Paraguay’s Senate removed President Santiago Peña on Friday over Ueno Bank’s collapse, and Vice President Pedro Alliana was sworn in hours later as prosecutors ordered Peña to stay at home.
All 44 senators who were present voted to remove Peña, even though he had offered to resign the day before. Congress had refused to accept his resignation and continued the process to remove him from office. The crisis began after regulators took control of Ueno Bank, citing concerns that it could not pay its debts.
Roughly three million customers could not access their accounts or pension payments. Lawmakers accused Peña of using his influence to help the lender and directing public funds to it while oversight weakened. Peña has denied the allegations.
Prosecutors ordered Peña to stay at home on suspicion of misusing a position of trust and committing other alleged crimes. Peña appeared before prosecutors on Saturday as the investigation continued. His removal also ended the immunity tied to his Senate seat as a former president.
Alliana, who took office on Friday, is to serve through the end of the presidential term in August 2028. He promised to compensate customers who were affected. Authorities began a gradual process to return some customers’ funds.