The suspension of Ueno Bank over financial irregularities cut off 2.9 million individuals from their money, devastating retail sales and prompting public protests. In response, Congress impeached Peña, whose administration had elevated a former bank executive to lead the central bank prior to the massive transfer of public funds. Lawmakers rejected the former president's attempt to resign, stripping him of the lifelong immunity typically afforded to former heads of state. Vice President Pedro Alliana has assumed the presidency while Peña remains confined to his residence during the active corruption probe.
Key points
The nationwide freeze on citizen accounts rapidly escalated into a major political and ec…: The nationwide freeze on citizen accounts rapidly escalated into a major political and economic crisis.
Investigators are focusing on potential corruption involving high-level government appoin…: Investigators are focusing on potential corruption involving high-level government appointments and public asset transfers to private lenders.
Pedro Alliana has taken over executive power as the judiciary proceeds with charges again…: Pedro Alliana has taken over executive power as the judiciary proceeds with charges against the ousted administration.
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Paraguay’s rightwing president has been placed under house arrest minutes after he was impeached by Congress, amid a severe crisis that left more than half the country’s population unable to access their bank accounts.
Santiago Peña is being investigated about allegations he used his political influence to favour a bank that expanded exponentially under his government and was suspended this week after irregularities.
The move froze the accounts of 2.9 million people, about 60% of the country’s adult population, who were customers of the bank – Ueno - and who overnight could no longer use their own money even for basic purchases such as bread and water.
Protests spread across the country, some involving violent clashes with police. Impeachment proceedings began on Wednesday before being concluded on Friday, minutes before Peña’s arrest was ordered.
His vice-president, Pedro Alliana, was being sworn in as the country’s new leader while a public prosecutor, accompanied by police outside Peña’s home, told local media the former president had been placed under house arrest.
“It has been established that he is indeed inside his home.…
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