--- title: "Paraguayan authorities take ousted President Santiago Peña into house arrest" url: https://newscentral.site/paraguayan-authorities-take-ousted-president-santiago-pena-into-house/ language: en publisher: "News Central Site" section: "World" published: 2026-11-07T06:18:38.000Z updated: 2026-11-07T07:35:12.952Z id: d59edcef-bd8b-4ba6-9546-0625d85ec816 source: "France 24 English https://www.france24.com/en/americas/20261107-ousted-paraguay-president-under-house-arrest-after-banking-crisis" attribution: "Link to https://newscentral.site/paraguayan-authorities-take-ousted-president-santiago-pena-into-house/ and name News Central Site when you quote or summarize this story." --- # Paraguayan authorities take ousted President Santiago Peña into house arrest The Senate voted unanimously to strip Peña of his immunity, paving the way for potential prosecution following a massive banking scandal. Paraguayan authorities have taken ousted President Santiago Peña into house arrest, following his removal from office by the Senate over a massive banking scandal. The Senate voted unanimously to strip him of his immunity, paving the way for potential prosecution. The impeachment proceedings were sparked by the collapse of Ueno Bank, which left nearly half of Paraguay's population unable to access their savings. Regulators had seized the bank just three days prior, sending shockwaves through the financial system and sparking widespread outrage. Peña's removal marks a significant turning point in Paraguayan politics, ending what was seen as one of South America's most stable presidencies. The Senate's decision makes him the second president to be ousted by impeachment since the end of Alfredo Stroessner's 35-year dictatorship in 1989. The Senate voted with all 44 present lawmakers supporting Peña's removal, citing misconduct in office as the reason for their decision. Among the charges against him are breach of trust and influence peddling, which will likely be investigated further under his new status as a suspect rather than a protected official. Outside Congress, crowds gathered to celebrate the news, waving Paraguayan flags and chanting slogans against dictatorship. Depositors, retirees, and students in national soccer jerseys joined in the celebrations, marking a rare moment of unity in the face of economic uncertainty. Peña has been ordered to remain at one of his homes in Asunción until Saturday morning when he is due to appear before prosecutors on charges including breach of trust and influence peddling. These serious charges carry a prison sentence of up to 10 years. The house where Peña is under house arrest was ringed by police on Friday night, while crowds gathered outside waving flags and vowing to keep vigil until morning. This show of determination suggests that the public wants to ensure Peña does not escape justice. Carlos Carvallo, who previously ran the finance company Ueno before being appointed central bank chief in 2023 by Peña himself, has also been ordered arrested on charges related to the bank's collapse. However, it is unclear whether he has been taken into custody at this stage. Vice President Pedro Alliana has now assumed the presidency and will serve out the current term, which ends in August 2028. As the crisis surrounding Ueno deepens, public outrage is intensifying by the day. Protests are becoming increasingly vocal, with demonstrators marching through downtown Asunción demanding their frozen savings back and accountability for the bank's failure. The chants of protesters echo through the streets, with many calling for the former CEO of Ueno to be held accountable for the bank's collapse. The phrase "Santi Peña to Tacumbú is becoming a rallying cry, referencing the capital's main prison where Miguel Vázquez, the founder and former CEO of Ueno, is currently being held. Many customers are still reeling from the shock of not being able to access their savings or withdraw cash. The digital lender had aggressively marketed itself as a solution for the poor and unbanked, with generous supermarket rebates and other incentives that drew in over 1 million Paraguayans who opened their first bank account at Ueno. The fallout is not limited to individual customers, however. A ride-hailing app that relied on Ueno has shut down, leaving 3,000 drivers without work. The state power company is also feeling the pinch, with $21 million in loans from the Inter-American Development Bank and Taiwan trapped at the bank. Paraguay's economy is taking a hit as a result of the crisis. The country's bonds have posted some of the worst losses in emerging markets this week, and the guaraní has slid against the dollar. The economic impact is being felt far beyond the banking sector. The implications of Ueno's collapse are still unfolding, but one thing is clear: the government will need to take swift action to restore confidence in the financial system and protect the interests of depositors. Some depositors have started to recover their money after the collapse of Paraguay's Ueno bank. Those who had deposits of up to 10 million guaraníes (approximately $1,500) are among the first to receive reimbursement. This is in line with the central bank's guarantee that covers up to about $35,000 per customer. The central bank claims that this collapse is an isolated case and that the broader financial system remains safe. The authorities have stated that 97% of Ueno's customers fall within the insured limit. However, the incident has still sent shockwaves through the country's economy. In another development related to Ueno's executives, prosecutors have filed charges against 27 individuals, including Vázquez, for alleged breaches of trust and attempted fraud. A judge has ordered six former directors, including Vázquez, to be held in pretrial detention. Two other executives are being confined to their homes under electronic surveillance. The authorities have also seized several luxury items linked to Vázquez, including cars, a yacht, and two small planes. These assets were reportedly acquired with funds from the bank's operations. The move is seen as part of the efforts to recover losses and hold those responsible accountable for the collapse. Ueno's rapid expansion was facilitated by significant investments from public sources, which totaled over $800 million. This influx of capital allowed the bank to sign up more than two-thirds of Paraguay's adult population as customers, with its logo appearing in various locations across the country. The central bank's credibility began to erode under Peña's leadership, compromising its neutrality and relaxing control mechanisms to favor a prominent business group with ties to Ueno Bank. This shift in policy allowed Ueno to accumulate significant influence, becoming a key pillar of the powerful business group that benefited from lax regulations. Critics argue that Peña's actions undermined the bank's independence and created an environment conducive to financial instability. Despite mounting concerns about Ueno's stability, Peña continued to defend the bank until just weeks before its collapse. He claimed that a regulatory inquiry into the bank's activities did not necessarily signal its impending closure, and accused the media of spreading unnecessary panic among the public. Peña's defense of Ueno was likely motivated by his close ties to the business group backing the bank. His own rise to power owed much to Horacio Cartes, a former president and tobacco magnate who had made him finance minister and supported his presidential bids. As Peña's relationship with Cartes began to fray, he sought to consolidate his own influence within the government by quietly building a power base of his own. Ueno Bank, flush with public funds, emerged as a crucial component of this strategy, allowing Peña to expand his reach without appearing overtly partisan. Miguel Carter, director of DEMOS, a Paraguayan research center, described the ousting of President Mario Abdo Peña as a Shakespearean drama" in which he tried to displace his mentor and political patron on shaky grounds. The tables turned when senators loyal to former president Horacio Cartes began questioning the central bank about Ueno Bank's risky lending practices, ultimately leading to the collapse of Ueno and the loss of Peña's leverage. As a result, Cartes called for Peña's ouster, leaving him without a political base to rely on. --- Source: [France 24 English](https://www.france24.com/en/americas/20261107-ousted-paraguay-president-under-house-arrest-after-banking-crisis) Published by News Central Site: https://newscentral.site/paraguayan-authorities-take-ousted-president-santiago-pena-into-house/