Paraguayan President Peña Peña steps down, confidants resign, people stay outside their homes to prevent escape

(Central News Agency, Asunción, Comprehensive Foreign Reports on the 6th) Paraguayan President Santiago Peña was impeached today for his involvement in the collapse of digital bank Ueno Bank. It was reported that many close associates resigned and crowds gathered outside Peña's apartment to prevent him from escaping.

According to reports from the Associated Press and Reuters, Pena was ordered to stay at his apartment in the capital, Asuncion, and will be questioned by prosecutors tomorrow morning. He faces charges of breach of trust, gossiping and using public office for personal gain, the most serious of which carries a maximum penalty of 10 years in prison.

Lawmakers accused Pena of using political influence to channel hundreds of millions of dollars in public funds into Ueno Bank, while financial regulators turned a blind eye to risky insider lending.

Police were stationed around Penia's apartment today, and people gathered outside the house waving flags and vowing to stay vigil until dawn to ensure he did not escape.

Prosecutors also ordered the arrest of Carlos Carvallo, the president of the central bank. The financial company he once ran became Ueno, and Pena appointed him as central bank governor in 2023. It was unclear whether Cavallo was detained.

The central bank took control measures against Ueno on the 3rd of this month, and Cavallo subsequently resigned.

Others in Penha's inner circle also resigned, including the interior minister, chief of staff and two advisers.

Pena has denied any wrongdoing and said the matter was a regulatory matter. The central bank also denied there was a conflict of interest, saying Cavallo had recused himself from all decisions related to Ueno.