In brief
The Paraguayan Senate voted unanimously 44‑0 to impeach President Santiago Peña on November 6, 2026, following the freezing of millions of accounts at the Ueno Bank. Vice President Pedro Alliana was sworn in as interim president, while Peña is under house arrest as investigators probe alleged corruption and money‑laundering ties. The Deposit Guarantee Fund has begun reimbursing affected depositors while the investigation remains ongoing.
On Friday, November 6, 2026, the Paraguayan Senate voted 44‑0 to impeach President Santiago Peña, who had been in office since August 2023, and placed him under house arrest minutes after the motion passed.
Ueno Bank, one of the country’s largest digital lenders, collapsed in a financial crisis that froze the accounts of an estimated 2.9 million customers, about 60 % of Paraguay’s adult population.
The Chamber of Deputies had approved the impeachment charges with 78 votes; the Senate removed Peña from office. His resignation was rejected, stripping him of the lifetime Senate seat and constitutional protections for former presidents.
Vice President Pedro Alliana was instantly sworn in as interim president. “Compatriots who are now going through a difficult time as a result of the financial collapse will be fully compensated,” Alliana said following his inauguration, the BBC reported.
Paraguay’s Deposit Guarantee Fund began reimbursing eligible depositors on Thursday, offering initial payments of roughly $18,700 per customer and full guaranteed coverage up to about $37,000.
Prosecutors are investigating allegations that Peña used his political influence to benefit Ueno Bank, where he previously held shares, and potential cases of illicit enrichment, money laundering, influence peddling and misappropriation of funds. Attorney Ricardo Preda described the allegations as “irresponsible and opportunistic.”
Prosecutor Elena Fiore Franco confirmed that Peña cooperated with officials: “It has been established that he is indeed inside his home,” Franco told the Guardian.
Peña remains under house arrest as investigations continue, and the exact extent of his alleged misconduct has yet to be confirmed by judicial authorities.
