Ousted Paraguay President Under House Arrest After Banking Crisis Leaves 60% of Country Unable to Access Accounts
Santiago Peña was detained minutes after he was impeached by Congress, as protesters took to the streets demanding answers after the suspension of the Ueno bank
TL;DR
- President Santiago Peña of Paraguay was impeached by Congress and subsequently placed under house arrest.
- The crisis stems from the suspension of Ueno bank, leaving 2.9 million people (60% of the adult population) unable to access their funds.
- Peña is being investigated for illicit enrichment, money laundering, and influence peddling related to Ueno bank.
- Protests erupted across the country, with some instances of violent clashes with police.
- Carlos Carvallo Spalding, former CEO of Ueno, was appointed head of the central bank and allowed Ueno to become a digital bank, contributing to its rapid growth.
- An estimated $800 million to $860 million in state and pension funds were invested in Ueno.
- Peña attempted to resign to retain senatorial privileges but was unsuccessful.