How a bank collapse in Paraguay brought down the country’s President | Explained

People protest outside the home of Paraguay's ousted President Santiago Pena, who was placed under house arrest on suspicion of breach of trust following his removal by the Senate as prosecutors investigate the collapse of Ueno Bank, in Asuncion, Paraguay, on November 6, 2026. | Photo Credit: AP The story so far: Following impeachment proceedings initiated against the country’s President Santiago Pena, Paraguay’s Senate voted to remove him for misconduct in office and placed him under house arrest on November 7. Subsequently, Vice-President Pedro Alliana was sworn in as interim President.Both Mr. Alliana and Mr. Pena belong to the Colorado Party, the dominant force in Paraguayan politics since the 1940s. Published - November 07, 2026 02:35 pm IST