Paraguay's President Santiago Peña has been impeached and placed under house arrest following the collapse of Ueno Bank, a crisis that has left over half the nation's population unable to access their accounts. The impeachment vote occurred Friday, with lawmakers citing a conflict of interest due to the president's past business ties to the bank.

The collapse of Ueno Bank earlier this week triggered a severe financial crisis, with an estimated three million depositors unable to access their savings and pensions. This has led to widespread public outrage and protests across the country, particularly in the capital, Asunción, where citizens lined up for days attempting to withdraw funds.

Lawmakers, including those from Peña's own party, voted unanimously to remove him from office. The impeachment charges allege conflicts of interest, manipulation of regulatory oversight, diversion of pension funds, and participation in an institutional cover-up involving the central bank. Prosecutor Silvia Margarita Gonzalez Vester stated Peña will be questioned regarding allegations of breach of trust, influence peddling, and misappropriation of funds.

Pedro Alliana, Peña's deputy, has been sworn in as the interim president and pledged that affected citizens will be fully compensated. Alliana will serve in the presidential capacity until 2028, aiming to restore public confidence following the scandal.

Peña, who held shares in the company that owned Ueno Bank until last year, has denied any wrongdoing. In a video posted online, he stated his priority was the peace of mind of Paraguayans and that it was never his intention to betray their trust. Senate president Basilio Núñez declared Peña guilty of dereliction of duty following the impeachment.

Senator Rafael Filizzola described the situation as the "biggest corruption scandal in our democratic history," warning of a significant blow to the nation's credibility. Analysts suggest Peña is likely to face prosecution in connection with the bank's collapse.

Protests against the financial fallout saw thousands take to the streets, with earlier demonstrations involving clashes with police, who deployed tear gas and water cannons. The impeachment vote by the senate was decisive, with 44 out of 45 senators voting in favor.

The seizure of Ueno Bank by Paraguay's central bank has left a significant portion of the population in financial distress, highlighting systemic issues within the country's financial regulatory framework and raising questions about oversight and accountability.