Paraguayan President Santiago Pena removed from office following banking collapse

Santiago Pena, the 47-year-old president of Paraguay, was removed from office by the Senate on Friday, November 6, 2026, following a severe banking crisis. The collapse of Ueno Bank, which left nearly three million customers without access to their funds, triggered mass protests in Asuncion and a political crisis. The Central Bank of Paraguay placed the institution under state control on Tuesday, November 3, citing a significant capital deficit.

Initially, Pena announced his resignation on Thursday, November 5, amidst allegations of conflict of interest and misconduct regarding his historical business ties to the bank. However, the Senate subsequently voted unanimously to impeach him for "malfeasance in office." Following his removal, Vice President Pedro Alliana was sworn in as the new president, promising full compensation for affected depositors.

Santiago Pena has since been placed under house arrest and is expected to face charges, including breach of public trust, influence peddling, and abuse of public office for personal gain. He is scheduled to appear before the prosecutor's office to receive formal indictments as legal investigations into the financial failure proceed.