Update · 7 Nov 2026, 11:30 AM PKT: Ueno Bank expanded exponentially under Peña's government before it was suspended this week after irregularities. Figures in the new coverage put the share of the population unable to access bank accounts at 60%, while the earlier figure was more than half.
Paraguay’s President Santiago Peña has been impeached and placed under house arrest after the collapse of a digital bank with links to his private business interests. Peña was arrested on Friday, minutes after lawmakers, including members of his own party, unanimously voted to remove him from office. The vote came as a widening crisis followed the collapse of Ueno Bank earlier in the week.
Peña had offered to step down on Thursday. Instead of accepting his resignation, senators impeached him and charged him with misconduct. That decision means he has lost the immunity normally granted to former presidents.
Senate removes Peña amid a widening banking crisis
The impeachment passed with 44 of 45 senators voting in favour, while one lawmaker was absent. Senate president Basilio Núñez said Peña had been found guilty of “dereliction of duty.” Peña, who until last year held shares in the company that owned the bank, has denied any wrongdoing.
The bank was seized by Paraguay’s central bank, leaving more than half the country’s population without access to their savings. An estimated three million depositors still cannot reach their savings and pensions. The situation has sparked widespread protests, particularly in the capital, Asunción.
Charges cite conflicts of interest and an alleged cover-up
The impeachment charges alleged that Peña had conflicts of interest, manipulated regulatory oversight and diverted pension funds. They also alleged he took part in an institutional cover-up involving the central bank. Analysts say he is likely to face prosecution over the bank’s collapse.
Prosecutor Silvia Margarita Gonzalez Vester said Peña is due to be questioned on Saturday over allegations of breach of trust, influence peddling and misappropriation of funds. His defence lawyer, Ricardo Preda, described the allegations as a “reckless accusation” that was “irresponsible and opportunistic.” In an address to the nation on Thursday, Peña said he was sorry and that “it was never my intention to betray the trust you placed in me.”
Pedro Alliana sworn in as interim president
Vice-President Pedro Alliana was sworn in as interim president shortly after the vote. In his first remarks, Alliana said that “compatriots who are now going through a difficult time as a result of the financial collapse will be fully compensated.” He will serve as president until 2028.
Senator Rafael Filizzola described the affair as “the biggest corruption scandal in our democratic history,” calling it a “tremendous blow to the state, to private citizens, and to the country’s credibility and image.”
