Paraguay's President Santiago Peña has been impeached and removed from office following a banking crisis, according to reports from the country.
The impeachment ends Peña's time in the presidency, which he took up after winning Paraguay's election. The banking crisis that preceded his removal has hit the country's financial system hard.
One report goes further, saying Peña was arrested after being removed and is now under house arrest. The claim comes from a single outlet and has not been echoed in other accounts of his removal.
The same outlet reports that the crisis has left 60% of Paraguayans unable to access their accounts. If that figure is accurate, the disruption would reach a majority of the population, affecting wages, savings and everyday payments.
The impeachment
Paraguay's constitution gives the legislature the power to remove a president. Peña's removal came after the banking crisis, which has become the defining issue of the country's politics in recent days.
Peña had been regarded as a close ally of business interests and had presented himself as a manager of the economy. The crisis in the banking system has left that reputation in tatters.
The fallout
Ordinary account holders are the people most directly affected. Those shut out of their money face difficulty paying for food, rent and transport, and small businesses that rely on bank transfers are exposed to the same disruption.
The country will now need a government able to deal with the crisis. Paraguay's financial regulators and the central bank are expected to be at the centre of efforts to stabilise the banking system, and lenders and depositors alike are waiting to see what measures follow.
The reported arrest and house arrest of Peña, if confirmed, would add a criminal dimension to what has so far been a political and financial crisis.
British nationals with accounts or business interests in Paraguay may be among those caught up in the disruption.
Paraguay is a landlocked South American nation of around seven million people, bordered by Argentina, Brazil and Bolivia.
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