Paraguay’s rightwing president has been placed under house arrest minutes after he was impeached by Congress, amid a severe crisis that left more than half the country’s population unable to access their bank accounts.

Santiago Peña is being investigated about allegations he used his political influence to favour a bank that expanded exponentially under his government and was suspended this week after irregularities .

The move froze the accounts of 2.9 million people, about 60% of the country’s adult population, who were customers of the bank – Ueno - and who overnight could no longer use their own money even for basic purchases such as bread and water.

Protests spread across the country, some involving violent clashes with police.…