Paraguay's president impeached after collapse of bank

Peña was arrested on Friday minutes after lawmakers, including from his own party, voted to remove him from office due to a crisis triggered by the collapse of Ueno Bank earlier this week. He had offered to step down on Thursday, but the move to impeach him and charge him with misconduct rather than accept his resignation meant he was stripped of his lifetime Senate seat and the immunity granted to ex-presidents.

The demise of the digital bank has left more than half of Paraguay's population without access to their savings after it was seized by Paraguay's central bank. An estimated three million depositors remain unable to access their savings and pensions prompting widespread protests particularly in the capital, Asunción.

The impeachment charges that led to Peña's removal alleged he had conflicts of interest, manipulated regulatory oversight, diverted pension funds, and participated in an institutional cover-up involving the central bank.