Paraguay has been plunged into a political crisis after the Senate voted to impeach President Santiago Peña, following the dramatic collapse of a major bank linked to him and a deepening criminal investigation.

In a near-unanimous decision on Friday, 44 of the 45 senators voted in favour of removing Peña from office, a move that sealed the end of his presidency just a day after he announced his resignation.

Vice President Pedro Alliana was sworn in as president shortly after the vote, taking over leadership of the South American nation at a moment of intense public anger and financial uncertainty.

The impeachment was triggered by the overnight shutdown of Ueno Bank, a financial institution with business ties to Peña. The bank was closed by regulators after a severe solvency crisis left it unable to meet its obligations.

Millions of customers were left unable to access their savings, sparking panic, long queues outside branches, and widespread outrage across the country. The crisis quickly turned into a national scandal, raising serious questions about regulation, political influence, and the safety of ordinary Paraguayans’ money.

Peña announced his resignation on Thursday, hours after the bank’s closure, in an attempt to defuse the growing pressure. However, lawmakers pressed ahead with impeachment proceedings on Friday, arguing that his resignation did not absolve him of political responsibility.

He is now facing a criminal investigation over his links to the collapsed bank and the circumstances surrounding its failure. Prosecutors are expected to examine whether there was mismanagement, conflicts of interest, or regulatory failures that contributed to the collapse.

Alliana, in his first address as president, promised to restore confidence in the banking system and ensure that depositors are protected. He also pledged full cooperation with the investigation.

For many Paraguayans, however, the political shake up offers little immediate comfort as they wait to find out when and if  they will recover their funds.