Paraguayan ex-president placed under house arrest after banking collapse

The Guardian reported that Santiago Peña, Paraguay’s right‑wing president, was detained minutes after Congress voted to impeach him. He was then ordered to remain under house arrest as the country grappled with a banking crisis that left more than half of the population unable to reach their accounts.

Protesters gathered in the streets demanding answers following the suspension of the Ueno bank, which authorities said was halted because of irregularities. Peña is now the subject of an investigation into claims that he used his political influence to benefit the bank, which had expanded rapidly while he was in office.

The rapid growth of the bank and its sudden suspension have intensified public anger, linking the political leadership directly to the financial turmoil that has disrupted everyday life for a large share of Paraguay’s citizens.

Why it matters

The case ties political authority to a financial crisis that has cut off banking access for most of the population, highlighting the potential for governance failures to trigger widespread economic hardship.

Key details

Location

United States · Americas

Reported by

The Guardian

First reported

7 Nov 2026, 07:25 IST

Key names

Ousted Paraguay, Santiago Peña, Congress, Ueno

Section

World

Sources

This is an independent summary. Read the full, original reporting from the publisher:

• The GuardianOusted Paraguay president under house arrest after banking crisis leaves 60% of country unable to access accounts 7 Nov, 07:25

Read the full story at The Guardian ↗

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