Paraguay’s former president, Santiago Peña, has been placed under house arrest following his impeachment by Congress, as a banking crisis left over half the population unable to access their accounts.
The suspension of Ueno Bank left 2.9 million people, or about 60% of Paraguay’s adult population, unable to access their funds, disrupting basic purchases such as food and water. Protests erupted nationwide, with some turning violent as citizens demanded answers about the crisis.
Peña was impeached on Wednesday and arrested minutes later, with his vice-president, Pedro Alliana, sworn in as the new leader. A public prosecutor confirmed Peña was under house arrest and had cooperated with authorities. Investigations into Peña include allegations of illicit enrichment, money laundering, and influence peddling, with his former central bank chief, Carlos Carvallo Spalding, also named in the warrant.
Why it matters
The crisis has directly impacted millions of Paraguayans who lost access to their savings, highlighting the vulnerability of financial systems tied to political influence.
This section reflects Dumpling editorial interpretation and is provided for context only.
What to watch
The ongoing impeachment proceedings and the potential legal outcomes for Peña and Spalding will determine the next phase of the political and financial landscape in Paraguay.
This section reflects Dumpling editorial interpretation and is provided for context only.