In brief
On 7 November 2026, former Vice President Pedro Alliana was inaugurated as Paraguay’s president in Asunción while former President Santiago Peña was removed by a unanimous Senate vote and placed under house arrest. The impeachment followed a crisis that began when the Central Bank seized control of Ueno Bank, freezing deposits for about three million customers and sparking nationwide protests. Prosecutors are investigating charges that could involve influence peddling, and Peña has been ordered to appear at the prosecutor’s office the following day.
On Friday evening, 7 November 2026, Paraguay’s capital Asunción witnessed the inauguration of former Vice President Pedro Alliana as the country’s new president, while authorities simultaneously placed former President Santiago Peña under house arrest following a Senate vote that unseated him amid the fallout of a banking crisis involving the digital bank Ueno.
Santiago Peña had submitted a resignation in the days preceding the vote, but the Chamber of Deputies chose to pursue impeachment proceedings instead, citing allegations of misconduct and a conflict of interest tied to Ueno. A unanimous Senate vote – 44 senators present – removed Peña from office, as reported by WAM and corroborated by Reuters, which noted the lawmakers’ decision was swift and decisive.
Senate removes Peña amid banking crisis
Both sources describe the Senate’s action as a response to the crisis that began when Paraguay’s Central Bank seized control of Ueno Bank earlier that week over concerns about the institution’s solvency. The takeover froze deposits for approximately three million customers, roughly half the nation’s population, including pensioners, and triggered protests across the country. The Chamber of Deputies had already launched impeachment proceedings, with members of the ruling Colorado Party joining the move as they cited alleged misconduct connected to the banking collapse.
According to a report by WAM, prosecutors speaking outside Peña’s house in Asunción stated that the charges against him were still being determined but could include influence peddling. The officers added that Peña was ordered to appear at the prosecutor’s office the following morning. The exact nature of the allegations remains unclear, but investigators are probing possible ties between Peña and the controlling group of Ueno.
Reuters added that the bank crisis left millions of depositors unable to access their funds, further amplifying the political fallout. The rapid parliamentary action was framed by officials as a necessary measure to restore public confidence and to address the financial turmoil that had destabilized Paraguay’s banking sector.
The oath ceremony that observed Pedro Alliana’s handover of the presidency highlighted his final mandate to stabilize the nation after the abrupt departure of his predecessor. Alliana, who had previously served as Vice President, was expected to navigate the country through this period of uncertainty and to address the systemic issues that led to the collapse of Ueno Bank.
As the transition continues, the Paraguayan legislature and the judicial branch are under pressure to resolve the ongoing investigations into Peña’s alleged misconduct, while the public watches closely to see how the new administration will tackle the economic fallout and restore confidence in Paraguay’s financial institutions.
