Paraguay’s ousted president Santiago Peña arrested over alleged misconduct in banking crisis

Santiago Peña was removed from office as president earlier this week following an impeachment trial over the banking crisis that has hit Paraguay.

Problems in the country's financial system have been mounting since the collapse of Ueno bank, which serves about 60 percent of the country's adult population.

Peña was previously a partner in the group that controls the bank and is accused of using his influence as president to direct state funds to Ueno.

He is also suspected of concealing or downplaying the bank's financial problems, among other things, despite warnings that it lacked capital.