📷 Image: Wikimedia Commons / 總統府
Politics
Paraguay President Pena Impeached, Placed Under House Arrest Over Bank Scandal
✍️ NDTV Top
🗓 07 Nov 2026, 07:25 AM
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Paraguay's President Pena has been impeached and placed under house arrest after lawmakers accused him of diverting public funds into the Ueno bank, while regulators failed to curb risky insider lending.
Paraguay’s President Pena was formally impeached by the National Congress and immediately placed under house arrest on Thursday. The move follows a parliamentary inquiry that found the president had used his political influence to channel hundreds of millions of dollars in public money into the Ueno bank.
Lawmakers allege that the Ueno bank engaged in risky insider lending, a practice regulators had overlooked while the president’s administration allegedly steered funds to the institution. The allegations were presented by a coalition of opposition deputies who cited financial records and internal communications.
Pena has denied any wrongdoing, stating that the funds were moved for legitimate developmental projects and that the accusations are politically motivated. He has called for a transparent investigation and said he will cooperate fully.
The impeachment marks a significant political crisis in Paraguay, with the president’s supporters warning of a potential constitutional crisis. The next steps will involve a formal trial and the possible removal of Pena from office if the charges are upheld.
Lawmakers allege that the Ueno bank engaged in risky insider lending, a practice regulators had overlooked while the president’s administration allegedly steered funds to the institution. The allegations were presented by a coalition of opposition deputies who cited financial records and internal communications.
Pena has denied any wrongdoing, stating that the funds were moved for legitimate developmental projects and that the accusations are politically motivated. He has called for a transparent investigation and said he will cooperate fully.
The impeachment marks a significant political crisis in Paraguay, with the president’s supporters warning of a potential constitutional crisis. The next steps will involve a formal trial and the possible removal of Pena from office if the charges are upheld.