Paraguay: Peña removed from office and placed under house arrest as Pedro Alliana is sworn in as president

Paraguay's Santiago Peña has been removed from office by Congress and placed under house arrest, a day after lawmakers refused to accept his resignation over the collapse of a digital bank.

The Chamber of Deputies voted 78-0 on Thursday to impeach him, and on Friday 44 of the 45 senators voted to remove him, with one abstention. Peña did not attend the hearing and was represented by his lawyers. Prosecutors then ordered him confined to his home while they investigate suspected breach of trust and other offences.

His vice president, Pedro Alliana, 52, was sworn in on Friday as Paraguay's 53rd president. Even Horacio Cartes, the powerful former president who leads the ruling Colorado Party, backed the impeachment.

The crisis was triggered by the failure of Ueno, a digital bank with about three million customers. The central bank took it over this week after it fell below legal solvency levels, leaving many people, including pensioners, unable to get their money. About $800 million in public funds helped it grow, including $355 million of state pension money.

At least 27 people face criminal charges, including the bank's main shareholder, Miguel Vázquez, and an arrest warrant has been issued for the former central bank governor. Peña was once a shareholder in Ueno's parent company but says he sold his stake in early 2025. In a farewell message, he said he was leaving with gratitude.