Paraguay President Santiago Peña Removed from Office

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ASUNCIÓN, Paraguay: Paraguay has undergone a major political transition after President Santiago Peña was removed from office following an impeachment process linked to a major banking crisis involving Ueno Bank.

Vice President Pedro Alliana was sworn in as the country’s new president on November 6, 2026, following the Senate’s decision to remove Peña from office.

The political development has created significant uncertainty in the South American nation, where the collapse of a major financial institution has triggered concerns over banking regulation, public funds, and government accountability.

Why Was Santiago Peña Removed?

The political crisis intensified following the financial collapse of Ueno Bank, a prominent lender in Paraguay.

The country’s central bank had announced that Ueno Bank had fallen below the required solvency standards, raising concerns about its financial position and ability to meet obligations.

The crisis affected millions of customers who faced disruptions in accessing their accounts and pension payments.

Investigators also began examining possible conflicts of interest and questions surrounding the bank’s regulatory oversight.

Peña had previously been identified as a shareholder in the bank’s parent company, although he stated that he had sold his shares in early 2025.

Parliament Votes to Remove the President

The impeachment process moved rapidly through Paraguay’s legislature.

The Chamber of Deputies approved the impeachment proceedings by a vote of 78–0.

Subsequently, the Senate voted to remove Peña from office, with 44 senators supporting his removal and one abstaining.

The allegations focused on his administration’s handling of the banking crisis and concerns about the performance of public institutions.

Peña denied wrongdoing and said he intended to cooperate with the investigation.

Pedro Alliana Takes Over as President

Following Peña’s removal, Vice President Pedro Alliana was sworn in as Paraguay’s new president on November 6.

Alliana, a 52-year-old politician, previously served as vice president under Peña from 2023.

He has also held positions in the country’s legislature and served as president of the Chamber of Deputies.

In his first remarks after taking office, Alliana pledged to protect democratic institutions, strengthen public administration and promote political stability.

Ueno Bank Collapse Triggers Financial and Political Crisis

The Ueno Bank crisis has become one of the central issues behind Paraguay’s political upheaval.

The financial institution had grown rapidly and became one of the country’s major lenders.

Following concerns about its solvency, the central bank intervened and transferred the bank’s remaining assets to other financial institutions as part of efforts to safeguard the financial system.

The crisis also raised questions about the investment of public pension funds and the effectiveness of financial regulation.

Reports indicate that approximately $355 million in state pension funds had been invested in the bank.

Criminal Investigation Underway

Paraguayan prosecutors are investigating allegations connected to the bank’s collapse, including possible fraud, breach of trust, misappropriation of funds,s and influence peddling.

Several individuals are facing criminal investigations, including former officials and people connected to the financial institution.

Authorities are also examining whether political connections influenced regulatory decisions involving the bank.

These allegations remain subject to investigation and judicial proceedings.

What Happens Next for Paraguay?

Pedro Alliana now faces the challenge of restoring confidence in the country’s political institutions and financial system.

The new administration is expected to face pressure over banking regulation, public accountability, ty and the protection of depositors and pension funds.

The political transition also marks a significant moment for Paraguay’s democratic institutions as the country deals with one of its most serious recent financial and political crises.

Disclaimer: This report is based on information available as of November 7, 2026. Allegations involving Santiago Peña and other individuals remain subject to legal investigation. Impeachment and removal from office do not, by themselves, establish criminal guilt.