The removal of the president follows the collapse of Ueno Bank, which left nearly three million people unable to access their savings.
Paraguayan prosecutors have charged former President Santiago Peña with breach of trust and administration for personal gain following his impeachment. According to BBC News, Peña was placed under house arrest on Friday after the Senate voted unanimously to remove him from office.
The impeachment follows the collapse of Ueno Bank, a digital lender that was seized by the central bank on November 3. The bank's failure has left an estimated three million people, roughly half of the country's population, unable to access savings and pensions.
Lawmakers accused Peña of using his political influence to channel public funds into the bank and manipulating regulatory oversight. The Senate also found him guilty of dereliction of duty, according to BBC News.
Peña, who previously held a stake in the company that owned the bank, has denied all allegations of misconduct. His lawyer, Ricardo Preda, described the charges as irresponsible and opportunistic.
Deputy Pedro Alliana has been sworn in as the interim president and is expected to serve until 2028. Alliana stated that those affected by the financial collapse will be fully compensated.
The banking crisis has triggered widespread public outrage and protests across Paraguay, including demonstrations in the capital, Asunción.
