Paraguay Senate Removes President Santiago Peña Over Ueno Bank Collapse
The Senate voted on November 6 to remove Santiago Peña after the failure of Ueno Bank froze accounts for nearly three million customers, and Vice President Pedro Alliana was sworn in as president.
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Paraguay's Senate removed President Santiago Peña from office on November 6 in connection with the collapse of Ueno Bank. The vote followed Peña's resignation the previous day. Vice President Pedro Alliana was sworn in as president.
Ueno, a digital lender that grew rapidly under Peña's administration, held accounts for roughly 2.9 to 3 million customers in a country of about 6.1 million people. The central bank ordered the bank into resolution after its solvency ratio fell below half the required minimum. Deposits were frozen, triggering protests and arrests of bank executives. The institution had also received substantial public funds, including pension money.
Lawmakers accused Peña of conflicts of interest. He had previously held shares in related entities and family members maintained ties to the bank. The lower house voted unanimously to impeach him. The Senate then removed him, stripping the parliamentary immunity that would have attached to a lifetime Senate seat for a former elected president. Prosecutors opened criminal investigations into oversight failures, placement of public funds, and related actions by current and former officials. An arrest order was issued for Peña on suspicion of breach of trust.
Peña, a 47-year-old former International Monetary Fund economist who took office in 2023, denied wrongdoing. He said he resigned to preserve stability and democratic institutions. His Colorado Party, including mentor and former president Horacio Cartes, turned against him. Top aides resigned as the trial proceeded.
The crisis has pressured the guaraní and left millions without normal access to savings. Resolution of the bank's assets and the restoration of customer access remain open questions under the new administration. Alliana assumes the presidency with the immediate task of managing the financial fallout and the political transition.
The episode marks a sharp reversal for a presidency that had aligned closely with the United States. The combination of frozen private savings, public fund exposure, and rapid institutional collapse produced one of the fastest leadership changes in recent Paraguayan history.
