A major political storm has erupted in Paraguay following the sudden ouster and house arrest of President Santiago Peña. The development, reported on Friday, 6 November 2026, is seen as a direct consequence of the crisis triggered by the collapse of Ueno Bank.
The collapse of the bank left thousands of depositors unable to withdraw their funds. Fierce public protests erupted over Peña's personal business ties to the lender and the deposit of vast amounts of public funds into it during his administration.
Key Points
- President removed by a unanimous vote of all 44 Senators present.
- Vice President Pedro Alliana sworn in as the new President.
- Arrest warrant issued for former Central Bank Chief Carlos Carvallo.
Unanimous Senate vote and a new President
Peña was stripped of his presidency on charges of abuse of office through a unanimous vote of all 44 members present in the 45-seat Senate. Notably, members of his own political faction voted against him. Vice President Pedro Alliana was immediately sworn in as the new President.
Arrests and investigations
Following his removal from office, police moved to place Peña under house arrest at his residence in the capital, Asunción, on the orders of public prosecutors. He will reportedly remain there until he is produced before prosecutors handling economic crimes and anti-corruption.
Investigations are currently underway into several allegations, including breach of trust. An arrest warrant has also been issued for Carlos Carvallo, the former Central Bank chief appointed by Peña. Authorities noted, however, that impeachment and detention do not imply guilt.
What happens next?
Santiago Peña was scheduled to be questioned on Saturday, 7 November, regarding charges of breach of trust, undue influence and misappropriation of funds.
