A banking crisis that froze millions of people’s savings has brought down Paraguay’s President Santiago Peña in a dramatic four-day political collapse.What began with the intervention of Ueno Bank quickly turned into one of the biggest political crises in Paraguay’s recent history, ending with Peña’s removal from office and house arrest.The crisis began when Paraguay’s central bank stepped in to take control of Ueno, one of the country’s biggest digital lenders, after finding that it had failed to meet minimum solvency requirements.The move immediately affected around 3 million customers in a country of about 6.5 million people. Bank accounts, cards and transfers stopped working, leaving customers unable to access their savings. Angry depositors took to the streets, demanding their money back.The bank’s collapse soon raised uncomfortable questions for Peña.The president had previously been a business partner in Grupo Vázquez, the conglomerate linked to Ueno, before selling his stake in March 2025. His government was also accused of allowing hundreds of millions of dollars in public and pension funds to be deposited with the bank.Lawmakers accused Peña of conflicts of interest, misuse of pension funds and shielding the bank from proper scrutiny. He denied wrongdoing.As protests grew, Peña began losing support even within his own Colorado Party. His former political mentor, Horacio Cartes, publicly backed impeachment proceedings, saying, “We will not side with the theft of public, private and pension funds.”On Thursday, just days after the bank was taken over, Peña offered to resign.“I do so with the stability of our country, social peace, and the need to preserve our democratic institutions in mind,” Peña said in a recorded address.But his resignation did not end the political crisis. Congress moved ahead with impeachment proceedings, and Paraguay’s Senate voted on Friday to remove him from office.Peña was then placed under house arrest pending an appearance before prosecutors. He is being investigated over allegations including breach of trust, influence peddling and using public office for personal gain. He has denied the accusations.Ueno’s failure did not just affect a financial institution — it locked millions of people out of their money and exposed questions about the relationship between political power, public funds and one of the country’s fastest-growing banks.Vice President Pedro Alliana was sworn in to complete Peña’s term, which runs until August 2028. Paraguay’s central bank has said most depositors are covered by deposit insurance and that the wider financial system remains safe.