Paraguay’s Senate Removes President Santiago Peña Over Ueno Bank Collapse

Paraguay’s Senate has removed President Santiago Peña from office over the collapse of Ueno Bank, and prosecutors have now formally charged him and asked a judge to hold him in pre-trial detention. Vice President Pedro Alliana was sworn in as president on Friday night and will serve the rest of the term, which ends on 15 August 2028.

The speed of Peña’s fall has stunned the South American country. Just four days passed between the central bank’s takeover of Ueno Bank and the Senate vote that ended his presidency, according to MercoPress. Peña, a 47-year-old economist who took office in August 2023, denies any wrongdoing.

Why Was Santiago Peña Removed?

The Senate voted at 6.55pm local time on Friday 6 November to remove Peña for “poor performance of his duties”, after an impeachment trial that lasted about ten hours. All 44 senators present out of 45 voted in favour, including members of Peña’s own Colorado Party, MercoPress reported. Thousands of savers gathered outside Congress cheered the result.

The crisis began on Tuesday, when Paraguay’s central bank took control of Ueno Bank, citing insolvency and irregular loans to companies linked to the bank’s owners. The move froze the deposits of nearly three million customers, about 60% of the country’s adult population, as well as hundreds of millions of dollars in public and pension funds.

Peña had close ties to the bank. He was a shareholder in its holding company until April 2025, and the central bank governor he appointed, Carlos Carvallo, had previously been Ueno’s chief executive, MercoPress said. On Thursday, the Colorado Party, led by former president Horacio Cartes, withdrew its support and backed impeachment.

• Tuesday 3 November: central bank takes over Ueno Bank, freezing deposits
• Thursday 5 November: Colorado Party drops Peña; he submits his resignation
• Friday 6 November: Senate removes Peña 44–0; Alliana sworn in; Peña placed under house arrest
• Saturday 7 November: prosecutors formally charge Peña and seek pre-trial detention

Why Didn’t Peña’s Resignation Count?

Peña offered to resign on Thursday, but Congress never considered the letter. That mattered: a president who resigns normally receives a lifetime seat in the Senate and the parliamentary immunity that goes with it. By removing him through impeachment instead, the Senate stripped him of both, MercoPress reported.

The Senate also rejected his request for 72 more hours to prepare a defence. Peña did not attend the trial and sent his lawyers, Adolfo Ferreiro and Ricardo Preda, who argued they had too little time and that the trial was moot after his resignation. Ferreiro also defended former president Fernando Lugo, who was removed by impeachment in 2012.

“I submitted my resignation to avoid further harm to the country and help restore calm to Paraguay. I do not want my presence to be a cause of further division or instability,” Peña wrote in a farewell message.

What Charges Does Peña Face?

Hours after the vote, prosecutor Christian Benítez said Peña would be held under house arrest while the case passed to the anti-corruption and economic crimes unit. On Saturday, prosecutors formally charged him with breach of trust and administration for personal gain, Xinhua reported, citing the newspaper Última Hora, and asked for pre-trial detention and restrictions on his assets. Carvallo was charged with breach of trust, administration for personal gain and producing false public documents, and prosecutors are seeking his detention too.

Who Is Pedro Alliana, Paraguay’s New President?

Alliana, 52, is from Pilar in southern Paraguay. He is a former governor of Ñeembucú department and a former president of the Colorado Party, which has governed Paraguay for most of the past seven decades. He was sworn in minutes after the vote, and Antonio Barrios became vice president, according to the newspaper ABC Color.

The opposition accepted the handover, but with reservations. “We accept this situation to ensure institutional continuity for the country,” said opposition senator Rafael Filizzola, who called Alliana “complicit” in what had happened. Alliana had distanced himself from Peña just before the bank takeover and is expected to change members of the government and the central bank leadership.

What Does the Crisis Mean for Paraguay?

The immediate question for millions of Paraguayans is when they will get their savings back. MercoPress reported that Peña’s removal has not calmed anger on the streets, where some protesters are chanting that the whole political class “must go”. How quickly Alliana’s government can restore access to frozen deposits, and protect pension funds caught up in the collapse, is likely to decide whether the unrest grows.

The crisis adds to a turbulent period in South American politics, weeks after Brazilian voters re-elected Luiz Inácio Lula da Silva for a fourth term.

Featured image: Santiago Peña in an official portrait, by the Presidency of Ecuador / Wikimedia Commons, public domain. File photo.

Sources

• MercoPress — Paraguay’s Senate removes Santiago Peña, who is placed under arrest, and Pedro Alliana takes office (7 November 2026).
• Xinhua — World news summary at 0030 GMT, Nov. 8 (8 November 2026).
• Senate of Paraguay — Pedro Alliana juró como nuevo presidente de la República (in Spanish) (6 November 2026).
• Spectrum News NY1 (AP) — Paraguay’s Pedro Alliana sworn in as president after Senate removes Santiago Peña from office (6 November 2026).
• CNA — Paraguay president ousted and placed under house arrest, successor sworn in (7 November 2026).