Senate Ousts Paraguay President Pena, Orders House Arrest Over Bank Collapse
Paraguay‘s Senate impeached President Santiago Pena on November 6, 2026, ordering his immediate placement under house arrest following the insolvency and takeover of Ueno Bank. The financial collapse locked nearly three million depositors, almost half the nation’s population, out of their accounts, triggering street demonstrations across Asuncion that culminated in 44 out of 45 senators voting to remove the leader for poor performance in his duties.
Pedro Alliana Sworn In as President Pledges Full Relief for Locked Depositors
Former Vice President Pedro Alliana assumed the presidency on Friday to serve through 2028 after opposition effort to include him in the impeachment proceedings failed to pass Congress. Prosecuting official Silvia Margarita Gonzalez Vester confirmed that authorities placed Pena under house arrest minutes after his removal, with formal questioning scheduled on allegations of breach of trust, influence peddling, and misappropriation of funds relating to the placement of public money into Ueno Bank S.A. Central Bank Deposit Guarantee Fund official Jose Maciel confirmed that emergency disbursements of up to approximately $1,600 began releasing to impacted clients who carry no outstanding loans and maintain a valid account at another recognized domestic financial institution.
