Santiago Peña was placed under house arrest minutes after Paraguay’s Congress impeached him, as protests erupted across the country over a banking crisis that has blocked access to accounts holding the savings of around 60% of the population.
The former rightwing president faces investigation for allegedly using his political influence to benefit a bank that grew rapidly during his administration. This bank was suspended earlier this week after authorities uncovered irregularities in its operations, leaving millions of Paraguayans unable to withdraw money or make transactions.
The suspension of Ueno bank, one of Paraguay’s largest financial institutions, triggered widespread unrest. Protesters demanded answers and accountability on the streets of Asunción and other cities. The government’s response included Peña’s detention under house arrest as lawmakers moved swiftly to remove him from office.
Details about the specific irregularities at Ueno bank have not been publicly disclosed. Officials confirmed the suspension followed an internal review that revealed financial misconduct but declined to provide further comment. The bank’s abrupt closure has created a liquidity crisis, affecting more than half the country’s population.
Peña’s impeachment came after a rapid parliamentary process. Lawmakers cited the alleged abuse of power and failure to prevent the banking collapse as grounds for his removal. The vote took place on Friday evening, and Peña was immediately detained and placed under house arrest pending further investigations.
The crisis has cast a shadow over Paraguay’s financial system and shaken public trust. Banks across the country have been forced to tighten controls, while economic activity slowed amid the uncertainty. The government has promised to stabilise the situation but has yet to outline concrete measures.
Protesters called for transparency in the investigation and for those responsible to face justice. The banking sector’s instability has raised fears about the wider impact on Paraguay’s economy, which relies heavily on domestic consumption and remittances.
Peña’s political future remains uncertain. The investigation into his conduct will determine whether criminal charges will follow. His supporters have not yet responded publicly to the impeachment or the house arrest order.
This week’s events mark a dramatic moment in Paraguayan politics, with the former president detained days after a financial scandal displaced millions from their bank accounts. The full consequences for the country’s political and economic landscape are still unfolding.
According to The Guardian.
