A major banking crisis in the South American country of Paraguay has triggered a political upheaval. Parliament removed President Santiago Peña from office through impeachment proceedings. Shortly afterward, he was placed under house arrest at his residence. The country’s Vice President Pedro Alliana was sworn in as the new president on Friday, November 6. He will complete the current term until August 2028.
The crisis began after the closure of digital bank Ueno. The central bank acted against the bank on November 3 over concerns linked to its financial position and violations of minimum solvency standards. The move affected the accounts and banking services of about 2.94 million customers. Many people were unable to withdraw deposits, make payments or meet daily expenses. Customers held protests across the country and demanded the return of their savings.
In Parliament, Peña faced allegations of conflicts of interest linked to the bank, influencing regulatory oversight and irregularities in the use of public funds. All 44 members present in the Senate voted in favour of removing him from office. Peña has denied the allegations. He had offered to resign a day earlier, but Parliament completed the impeachment process.
The prosecution has ordered that Peña be kept under house arrest. He has been asked to appear before the economic crime and anti-corruption unit. The role of other officials, including former central bank chief Carlos Carvalho, is also being investigated in the case.
New President Alliana has assured compensation for the affected depositors. For now, the process of payments to some customers has begun, but getting the money to all affected people remains a major challenge for the government.
Hashtags: #WorldInternational #Bhopal #Paraguay #President #Peña #HouseArrest #Removed #CNN #ParaguayPresidentPeñaRemoved #PlacedUnderHouseArrest
