Minutes after Paraguay’s Congress impeached Santiago Peña, the former president was placed under house arrest. The move came amid a banking scandal that has frozen access to 60% of the country’s bank accounts, affecting more than half of Paraguay’s population.
Peña’s detention follows the suspension of the Ueno bank, which expanded rapidly during his administration. Authorities are investigating allegations that Peña used his political influence to benefit the bank. The suspension of Ueno triggered widespread protests, with thousands taking to the streets demanding explanations.
The banking crisis has caused significant disruption. With over half the population unable to access their funds, daily life and business operations across Paraguay have been severely affected. The Ueno bank’s irregularities remain under scrutiny, but details have not yet been made public.
Congress moved quickly to impeach Peña. The precise charges have not been disclosed, but the investigation centers on the potential misuse of presidential power to promote Ueno’s growth. Peña’s supporters have not issued a statement since his detention.
The suspension of Ueno bank is an unusual event in Paraguay’s financial sector. The bank’s rapid expansion coincided with Peña’s term, raising questions about regulatory oversight and political interference. Protesters accuse Peña of corruption and demand accountability.
Peña’s house arrest comes as Paraguay faces mounting pressure to stabilise its banking system and restore public confidence. The government has not announced plans to address the frozen accounts or the broader economic impact.
This crisis follows a year marked by tensions in Paraguay’s political landscape. Peña, a rightwing figure, had maintained a strong grip on power until this week. His downfall reflects the growing unrest over financial mismanagement.
The investigation into Ueno bank’s irregularities is ongoing. Officials have not confirmed whether further arrests are expected or if additional institutions are implicated.
As Paraguay deals with the fallout, the effects on its banking system and political stability will remain under close watch. The frozen accounts have left millions in limbo, and the country’s immediate future hinges on resolving the crisis.
According to The Guardian.
