Paraguay's Senate removes President Peña 44–0 over bank collapse

What happened

Paraguay's Senate removed President Santiago Peña from office on Friday in a unanimous 44–0 vote, AP reported. Lawmakers accused him of misconduct tied to the collapse of Ueno Bank. Vice President Pedro Alliana, 52, was sworn in the same day and will serve the rest of the term, which ends in August 2028.

Prosecutors then ordered Peña held at his home on suspicion of breach of trust, along with former central bank chief Carlos Carvallo. AP said it was not immediately clear whether either man had been taken into custody. Peña has denied wrongdoing. "I do not want my presence to be a cause of greater division or instability," he wrote before the verdict.

The charges: Lawmakers cite Peña's former stake in Ueno's holding company, his appointment of a former Ueno executive to run the central bank, and the state pension fund's $355 million deposit at Ueno, beyond legal limits. Ueno held more than $800 million in public money, according to AP.

Why it matters

Peña's presidency had been one of South America's most stable, AP said, and analysts told AP the central bank had been a pillar of the country's credibility. Regulators seized Ueno before dawn Tuesday, freezing nearly 3 million customers' access to their savings. The bank had signed up more than two-thirds of the country's adults, AP said.

What’s next

Depositors with up to about $1,600 began getting money back Thursday, and the central bank says insurance up to about $37,000 covers nearly all customers. Prosecutors have charged 27 people, including Ueno's controlling shareholder. Paraguay's largest teachers' union plans an indefinite strike starting Monday over pension funds.