Paraguay's New President Is Pedro Alliana as Impeached Peña Is Placed Under House Arrest

Paraguayan Vice President Pedro Alliana took the presidential oath. This happened after the country's Senate impeached former president Santiago Peña.

After the impeachment, Peña was moved to house arrest. Prosecutors said the charges are still being specified, but they may include the use of influence to obtain a benefit. Peña denies the allegations.

A political crisis in Paraguay began at the start of this week, after the digital bank Ueno Bank collapsed financially. The bank has around 3 million customers, who have been left without access to their bank accounts.

Ueno Bank was founded in 2021. Throughout this time, there have been many questions about the bank's lending policy and its ties to Paraguay's political elite, including with Peña, who was a shareholder in the company that owned the bank until last year.

The crisis was followed by protests in Asunción, where demonstrators demanded the return of their money. Peña announced on Thursday that he would step down as president, but instead of accepting his resignation, the Senate voted to impeach him.