Paraguay has impeached and removed President Santiago Peña from office following a major banking crisis that left millions of customers unable to access their savings.
The country’s Senate voted unanimously on Friday, November 6, to remove Peña over alleged misconduct linked to the collapse of Ueno Bank, one of Paraguay’s major financial institutions. The 44 senators present voted in favour of his removal.
The crisis followed the Central Bank of Paraguay’s intervention in Ueno Bank after the institution reportedly failed to meet required financial solvency standards. The intervention disrupted banking services, including withdrawals, transfers and card payments, leaving approximately 2.94 million customers affected.
The bank’s collapse also raised concerns over public funds and pension deposits held by the institution, triggering widespread protests and demands for accountability.
Peña faced allegations of conflicts of interest, improper influence and misconduct relating to the bank and its regulatory supervision. He has denied wrongdoing, while prosecutors have launched investigations into the circumstances surrounding the bank’s collapse.
Following his removal, Vice President Pedro Alliana was sworn in as Paraguay’s new president. He promised that affected depositors would receive compensation.
Peña was subsequently placed under house arrest pending further legal proceedings. The development marks a major political crisis for Paraguay, as authorities work to restore public confidence in the country’s financial system.
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