Wire reporting: (AP, via Anchorage Daily News)

Paraguay's Senate on Friday removed President Santiago Peña from office over the collapse of Ueno Bank and prosecutors ordered him held at home, as Vice President Pedro Alliana was sworn in to serve through August 2028^1,4,11.

All 44 senators present, of 45, voted to find Peña guilty of poor performance of his duties, including members of his Colorado Party^1,5,11. He had offered to resign on Thursday; Congress did not accept the resignation and impeached him instead, which outlets said strips the lifetime Senate seat and immunity an elected former president would otherwise receive^1,4,11.

Paraguay's central bank seized Ueno, described as a major digital lender, days earlier amid a solvency crisis that froze access for millions of customers^1,10,5. BBC put the share without account access at more than half the population and estimated about three million depositors still locked out; France 24 said nearly half of about six million people; RTE said almost half the country^1,4,5.

Impeachment articles alleged conflicts of interest, misuse or diversion of pension funds, regulatory failures and an institutional cover-up involving the central bank^1,10. Peña has denied wrongdoing^1,4,11.

He held shares in the company that owned the bank until last year, BBC said; MercoPress dated the holding-company stake to April 2025; RTE named Grupo Vazquez as the controller^1,11,5. Carlos Carvallo ran the finance company that became Ueno until Peña named him central bank chief in 2023; prosecutors ordered Carvallo's arrest as well, France 24 and MercoPress reported, without confirmation he was in custody^4,11.

Prosecutor Silvia Margarita Gonzalez Vester said Peña was placed under house arrest minutes after the vote and is due to be questioned Saturday over alleged breach of trust, influence peddling and misappropriation of funds^1,5. France 24 said the most serious counts carry up to 10 years in prison⁴. Colombia One, citing ABC, said police served the warrant at his residence as Alliana took the oath¹².

Alliana promised that people affected by the collapse would be fully compensated^1,5. RTE said a bid to impeach Alliana failed, and France 24 said he is also under investigation in connection with the bank^5,4. MercoPress quoted opposition senator Rafael Filizzola accepting succession for institutional continuity while calling Alliana complicit¹¹.

Protests over frozen savings filled streets in Asunción, with earlier clashes involving tear gas, water cannon or rubber bullets, according to BBC¹. RTE cited depositor Jessica Aquino, 32, as saying, "Justice has been done. Now we want him to give us back our money and go to jail"⁵.

A Central Bank Deposit Guarantee Fund official, Jose Maciel, said a first phase of payments up to about $1,600 began Thursday for clients without loans who can receive funds at another Paraguayan institution⁵. What share of deposits will be repaid, and on what schedule, remains unset in the accounts reviewed^5,1.