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Paraguay swears in new president as Peña is put under house arrest
Prosecutors seek pretrial detention as 1.2 million savers receive reimbursements after the bank collapse triggered impeachment and street protests.
On Saturday, Paraguayan authorities took former President Santiago Pena to the Attorney General's office for questioning, hours after Congress impeached him over the collapse of Ueno Bank.
Lawmakers removed Pena after regulators seized Ueno Bank last week, freezing nearly 3 million customers' savings; opponents called it the "biggest corruption scandal in our democratic history."
Vice President Pedro Alliana assumed power Friday as prosecutors ordered Pena's arrest alongside former Central Bank chief Carlos Carvallo for allegations of insider lending and breach of trust.
Alliana promised that "Compatriots... will be fully compensated," while the Central Bank reported 1.2 million customers received partial or full reimbursement of their insured deposits.
Public outrage continues as thousands plan an indefinite national strike Monday to demand protection for public pension funds, following clashes with police using rubber bullets this week.
Santiago Peña faces a criminal investigation in Paraguay in the Ueno bank case, a financial institution whose closure caused a political crisis and his dismissal as president.