Paraguay impeaches President Pena on November 6, 2026, following the Ueno Bank collapse that froze customer funds and sparked nationwide protests. Former Vice President Pedro Alliana takes office as Pena faces house arrest, prosecutors investigate misconduct allegations and authorities begin deposit repayments.
Paraguay's Senate removed President Santiago Pena from office on November 6, 2026, following the collapse of Ueno Bank, a major digital lender whose failure froze customer accounts and triggered widespread protests.
Authorities placed Peña under house arrest in Asunción, Paraguay's capital, while Vice President Pedro Alliana was sworn in as the country's new leader.
Paraguay Senate votes to impeach Santiago Pena
The Senate voted 44-0 to remove Peña over alleged misconduct linked to the banking crisis. The decision followed his unsuccessful attempt to resign before impeachment proceedings concluded.
Lawmakers accused Peña of conflicts of interest and interference in financial oversight. He has denied wrongdoing.
Alliana assumed the presidency following the vote and is expected to serve through August 2028.
Ueno Bank collapse freezes customer deposits
Paraguay's central bank announced a formal resolution process for Ueno Bank on November 3, 2026, after identifying severe solvency problems.
The lender served nearly 3 million customers, including people receiving salaries, pensions and government payments.
The suspension of banking services left customers unable to access savings or make routine payments, sparking demonstrations demanding compensation and accountability.
Santiago Peña placed under house arrest
Authorities ordered Peña to remain under house arrest pending a criminal investigation into allegations including breach of trust, influence peddling and misuse of public office.
Investigators are examining his previous business connections to the financial group associated with Ueno Bank and allegations involving public funds and regulatory oversight.
Former central bank chief Carlos Carvallo has also faced arrest proceedings. The allegations remain under investigation, and no criminal conviction against Peña has been established.
Pedro Alliana promises relief to depositors
New President Pedro Alliana pledged to compensate depositors affected by the bank's collapse, including pensioners.
The central bank has begun initial repayments to eligible customers. Authorities say deposit insurance covers approximately 97% of Ueno Bank's customers and have described the institution's failure as an isolated case.
The new administration faces pressure to accelerate repayments while prosecutors investigate responsibility for the collapse. Restoring access to frozen deposits and maintaining confidence in Paraguay's broader banking system remain immediate priorities.
