Paraguay’s President, Santiago Peña, has reportedly been removed from office and placed under house arrest following a political crisis triggered by the collapse of Ueno Bank, which allegedly left millions of citizens unable to access their savings and pension funds.
According to the account, the development occurred on Friday, November 6, 2026, after all 44 senators present at an impeachment vote supported Peña’s removal. One senator was reportedly absent, while members of the President’s own political party also voted in favour of the decision.
Peña was reportedly taken into custody shortly after the Senate vote, while Vice President Pedro Alliana was sworn in as interim president.
Alliana is expected to oversee the government until 2028, according to the report.
The political crisis reportedly escalated after the collapse of Ueno Bank, which triggered widespread financial difficulties for depositors and pension beneficiaries who were unable to withdraw their funds.
Peña’s Resignation Offer Rejected
Before the impeachment proceedings, Peña had reportedly offered to resign on Thursday, November 5, in an attempt to resolve the growing political crisis.
However, senators proceeded with the impeachment process, stripping him of the immunity ordinarily enjoyed by former presidents.
Senate President Basilio Núñez reportedly announced that Peña had been found guilty of dereliction of duty, paving the way for his removal from office.
Allegations Of Financial Misconduct
The impeachment proceedings reportedly centred on several allegations involving financial misconduct, conflicts of interest and interference in regulatory activities.
Among the accusations were the alleged diversion of pension funds, manipulation of regulatory oversight and involvement in an attempted cover-up connected to the country’s central bank.
Peña, who reportedly held shares in the company that owned Ueno Bank until last year, has denied any wrongdoing.
The allegations have raised questions about the relationship between political leadership, financial institutions and regulatory independence in Paraguay.
Prosecutor Moves To Question Peña
Prosecutor Silvia Margarita Gonzalez Vester reportedly said Peña was expected to appear for questioning as investigations into the circumstances surrounding the bank’s collapse continued.
The investigation is expected to examine the allegations against the former president and establish whether any criminal wrongdoing occurred.
The reported political developments mark a major crisis for Paraguay, with the collapse of a financial institution allegedly triggering consequences extending beyond the banking sector to the country’s highest political office.
