Paraguay's Senate impeaches President Pena over Ueno bank collapse

Paraguay's Senate impeached President Santiago Pena on Friday over the collapse of major digital lender Ueno, removing him from office for misconduct and leaving millions of customers unable to access frozen deposits. He was placed under house arrest pending criminal charges. Senators voted overwhelmingly to convict Pena, stripping him of the lifetime Senate seat and immunity granted to former presidents, leaving him vulnerable to prosecution. Vice President Pedro Alliana will serve the remainder of the term until August 2028, while prosecutors also ordered the arrest of former central bank chief Carlos Carvallo. The crisis stems from Ueno's collapse, which held $800 million in public deposits and served 60% of Paraguay's adult population. Pena sold his shares in April 2025 but faced allegations of conflicts of interest and improper interference in pension funds, with dozens of protesters gathering outside his residence in Asuncion.