Paraguay’s President Santiago Peña has been impeached following a major banking crisis that left nearly three million customers unable to access their savings, triggering nationwide protests and raising questions about alleged links between his government and the collapsed financial institution.
Peña was removed from office on Friday, November 6, 2026, after the country’s Senate voted overwhelmingly in favour of his impeachment over alleged misconduct connected to the collapse of Ueno Bank.
According to the Associated Press, 44 out of 45 senators voted to remove Peña, with one lawmaker absent.
The Senate declared him guilty of poor performance in his duties.
The crisis began after Paraguay’s Central Bank intervened in Ueno Bank over serious financial irregularities and a critical shortfall in its capital reserves.
The intervention effectively suspended the bank’s operations, leaving millions of customers unable to withdraw their savings, access their accounts or make payments using their bank cards.
Ueno Bank reportedly served approximately three million people, representing about 60 per cent of Paraguay’s adult population.
Investigations into Ueno Bank reportedly uncovered questionable lending practices, including loans to companies linked to the bank’s owners that exceeded regulatory limits.
The bank had also accumulated between $800 million and $850 million in public-sector deposits, including funds belonging to state pension and health institutions.
Peña, who took office in August 2023 for a five-year term ending in 2028, previously held shares in Grupo Vázquez, the parent company associated with Ueno Bank, before reportedly selling his stake in 2025.
Opposition lawmakers accused him of a conflict of interest and questioned his administration’s handling of the bank’s rapid expansion and regulatory oversight.
Peña denied wrongdoing and maintained that his previous involvement was a personal investment.
The former president was placed under house arrest shortly after his removal from office as prosecutors pursued investigations into alleged breach of trust, influence peddling and the use of public office for personal gain.He has denied the accusations.
The banking crisis also prompted the resignation of Central Bank Governor Carlos Carvallo Spalding, while several Ueno Bank executives faced criminal investigations.
Following Peña’s impeachment, Vice President Pedro Alliana was sworn in as Paraguay’s new president.Alliana is expected to serve the remainder of the presidential term until August 2028.
He has pledged that affected depositors, including pensioners, will not be abandoned as authorities work to restore access to their funds.
The Central Bank has indicated that deposit insurance covers approximately 97 per cent of Ueno Bank’s customers, while initial payments to some eligible depositors have already begun.
The development marks a major political upheaval for Paraguay, with the collapse of a major digital lender exposing concerns over financial regulation, public funds and the relationship between political leadership and private financial institutions.
