Paraguay Senate removes President Peña after Ueno Bank collapse

Senate removes president

Paraguay's Senate removed President Santiago Peña from office on Friday, November 6, 2026, after the collapse of Ueno Bank. All 44 senators present voted to remove Peña for misconduct in office, making him the second Paraguayan president ousted by impeachment since the country returned to democracy in 1989.

House arrest ordered

Prosecutors ordered Peña held at his home on suspicion of breach of trust, pending an appearance before their economic crimes unit. The order also calls for the arrest of Carlos Carvallo, who ran the finance company that became Ueno until Peña named him central bank chief in 2023.

New president sworn in

Vice President Pedro Alliana was sworn in as president on Friday to serve out the term, which ends in August 2028. Congress President Basilio Nunez placed the presidential sash on Alliana as he took office.

Bank collapse and public funds

Ueno Bank entered an insolvency process, freezing all operations. The bank has said it has about three million customers, equivalent to about 60% of Paraguay's adult population. It held pensions and some other public funds, and after its collapse millions could not access their accounts. The central bank seized the digital lender.

Lawmakers accused Peña of using his political influence to steer hundreds of millions of dollars in public funds into Ueno while regulators overlooked risky insider lending. Peña has denied wrongdoing.

Why it matters

The collapse of Ueno Bank triggered Paraguay's worst political crisis in more than a decade, leaving millions without access to savings and leading to the removal of a sitting president by impeachment.

Sources

• bbc.com: Paraguay President Santiago Peña resigns after bank collapse
• bostonherald.com: Ousted Paraguay president Santiago Peña ordered arrested for offenses tied to bank collapse
• newsday.com: Ousted Paraguayan president placed under house arrest after bank collapse - Newsday
• aljazeera.com: Paraguay Congress rejects President Pena’s resignation after bank collapse | Business and Economy News | Al Jazeera
• dw.com: Paraguay's president faces impeachment after bank collapse
• ottumwacourier.com: Ousted Paraguayan president placed under house arrest after bank collapse | National News | ottumwacourier.com

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.