Paraguay President Impeached After Bank Collapse — SkimNews
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- Santiago Peña was placed under house arrest on suspicion of breach of trust and influence peddling, hours after the Senate removed him from office over Ueno Bank’s collapse.
- Paraguayan Senate voted unanimously to impeach Peña, ending one of South America’s most stable presidencies amid public outrage over frozen savings and political corruption.
- Ueno Bank had over $800 million in public funds and served more than 1 million customers before regulators seized it, halting withdrawals and locking out nearly half the population from their savings.
- Pedro Alliana was sworn in as president after Peña’s removal, inheriting a government under pressure to recover lost deposits and address systemic financial mismanagement.
- Carlos Carvallo, former head of Ueno and later central bank chief, was ordered arrested on similar charges, accused of benefiting from insider lending shielded by political ties.
- Miguel Vázquez, Ueno’s founder and former CEO, is now in pretrial detention as prosecutors charge 27 individuals with fraud and breach of trust, seizing luxury assets linked to him.
Why it matters: The impeachment and arrest of a sitting president over a bank collapse backed by public funds signals a rare political reckoning in Paraguay, where elite impunity has long gone unchecked. With 97% of depositors insured but trust shattered, the new administration must restore financial stability while facing ongoing investigations that reach into the highest levels of power.
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