RismadarVoice Reporters
November 7, 2026
Paraguay’s Vice President, Pedro Alliana, has been sworn in as president following the impeachment of Santiago Peña over a banking crisis that left millions of customers unable to access their savings.
The country’s Senate voted on Friday, November 6, to remove Peña following the collapse of Ueno Bank, a major financial institution with which the former president previously had business links.
Senate President Basilio Núñez announced the decision after 44 senators voted in favour of Peña’s removal.
Hundreds of demonstrators gathered outside the National Congress in Asunción welcomed the outcome, having demanded accountability over the banking crisis.
Shortly after his removal, Paraguayan authorities placed Peña under house arrest pending further investigations into alleged financial misconduct.
Prosecutors are examining possible offences involving breach of trust, influence peddling and misappropriation of funds.
Peña has denied wrongdoing and maintained that he previously disposed of his stake in Grupo Vázquez, the company associated with Ueno Bank.
The former president had offered to resign before the impeachment proceedings, but lawmakers proceeded with his removal.
Alliana, who is expected to complete the presidential term ending in 2028, pledged to ensure that affected depositors receive compensation.
The banking crisis followed regulatory intervention at Ueno Bank amid concerns about its financial stability and ability to meet obligations.
Nearly three million customers were reportedly affected by restrictions on access to their accounts, including pensioners and recipients of government payments.
According to officials of Paraguay’s Deposit Guarantee Fund, initial payments to eligible customers began on Thursday, with some depositors expected to receive approximately $1,600 in the first phase.
The collapse sparked widespread protests in Asunción and other cities, with demonstrators demanding the return of their savings and investigations into alleged financial irregularities.
The crisis has also resulted in the departure of senior government officials, including Central Bank President Carlos Carvallo and Interior Minister Enrique Riera.
Several Ueno Bank executives have been arrested as investigators examine the institution’s operations and financial transactions.
Meanwhile, the political transition has attracted international attention, with the United States Embassy expressing solidarity with the Paraguayan people.
The banking crisis has also affected businesses and sporting organisations connected to Ueno Bank and its parent company.
Although Peña has been removed from office, the allegations against him remain subject to criminal investigation and have not been established by a court conviction.
