Paraguay has entered one of the biggest political and financial crises in its recent history after President Santiago Peña was impeached and placed under house arrest following the collapse of Ueno Bank, which left millions of citizens unable to access their savings.
The collapse of the digital bank triggered widespread panic as more than half of Paraguay’s population suddenly lost access to bank accounts, pensions and personal savings.
Scenes of long queues outside bank branches quickly turned into nationwide protests, with thousands demanding the return of their money while security forces fired tear gas and water cannons to disperse demonstrators.
Facing mounting public anger, Peña initially announced his resignation but lawmakers instead voted overwhelmingly to impeach him, allowing criminal proceedings to continue.
Senators accused the president of abusing his office by failing to properly regulate the bank despite his previous business links to its parent company.
Authorities are investigating allegations ranging from conflict of interest and influence peddling to diversion of pension funds and breach of public trust.
Peña has rejected all accusations and insisted he committed no offence.
His deputy, Pedro Alliana, immediately assumed office as interim president and pledged that every affected depositor would be compensated.
The crisis has shaken confidence in Paraguay’s banking sector while raising serious questions about financial regulation and political accountability.
The outcome of the criminal investigation is expected to determine whether the country’s worst banking collapse also becomes one of its biggest corruption scandals.