In brief
The Senate voted 44‑0 to remove President Santiago Peña, who was placed under house arrest following the collapse of Ueno Bank that froze millions of accounts. Vice President Pedro Alliana became interim president and pledged to compensate those affected. Authorities are probing allegations of corruption, money laundering, and influence peddling linked to Peña’s former holdings in the bank.
On November 6, 2026, Paraguay’s government removed President Santiago Peña from office and placed him under house arrest after the collapse of the Ueno Bank, one of the country’s largest digital lenders.
The Senate voted a unanimous 44‑0 to impeach Peña, following a Chamber of Deputies vote that cleared 78 members to proceed with the charges.
Vice President Pedro Alliana was sworn in as interim president and said the financial collapse of Ueno Bank would be fully compensated for those affected, according to a BBC report.
Nearly 2.9 million Paraguayans had their accounts frozen, about 60% of the adult population, as the bank ran out of money. The Deposit Guarantee Fund began reimbursing eligible depositors, with initial payments of around $18,700 and full coverage near $37,000.
Investigators are looking into allegations that Peña used his influence to benefit Ueno Bank, where he once held shares, and into possible money‑laundering, corruption, and illicit enrichment. Prosecutor Elena Fiore Franco said Peña cooperated with authorities and allowed officials into his home.
Peña has denied the allegations, and his lawyer Ricardo Preda described them as “irresponsible and opportunistic.”
