Paraguay's Senate impeaches President Santiago Peña after bank collapse

Paraguay's Senate unanimously impeached President Santiago Peña following the collapse of a major bank, which froze savings for millions. Peña was arrested or placed under house arrest. Vice President Pedro Alliana was sworn in to replace him.

Paraguay's Senate on Friday impeached President Santiago Peña, a Trump and Netanyahu ally, after all attending members voted for his removal over allegations related to the collapse of Banco "Oino," which led to the freezing of a large number of citizens' savings. Peña was placed under house arrest pending his appearance before the public prosecutor. Vice President Pedro Alliana succeeded him to complete the term ending in August 2028, despite also being under investigation in the same case. The ouster came after regulators seized the bank three days earlier, depriving nearly half of the country's six million residents of access to their savings. The collapse sparked a broad financial and political crisis, with protests outside Congress and the ousted president's home. Lawmakers accused Peña of using his influence to funnel hundreds of millions of dollars in public funds to the bank and overlooking high-risk lending. Investigations extended to 27 people, including bank founder Miguel Vásquez.