In brief
In Asunción, President Santiago Peña was removed from office with a unanimous Senate vote and detained on house arrest as the collapse of Ueno Bank halted access for nearly 3 million Paraguanos. Vice President Pedro Alliana took the reins as interim president, pledging compensation, while investigations probe corruption, money‑laundering, and influence peddling tied to Peña’s previous shares in the bank.
In the capital of Asunción, Paraguay, President Santiago Peña was removed from office and placed under house arrest after the Senate voted unanimously to impeach him; the move follows the collapse of the digital lender Ueno Bank, which froze the accounts of an estimated 2.9 million customers, about 60 % of the adult population.
Impeachment and House Arrest
The Senate’s 44‑0 vote formally removed Peña from the presidency, following the Chamber of Deputies’ approval of the charges with 78 votes. The proceedings unfolded in a short span, with Peña announcing his resignation a day earlier; however, lawmakers rejected the resignation, stripping him of the lifetime Senate seat and the legal protections granted to former presidents under Paraguay’s Constitution.
Minutes after the Senate vote, officials detained Peña at his residence and placed him under house arrest, a process he reportedly cooperated with. Prosecutor Elena Fiore Franco told The Guardian that Peña had “voluntarily allowed officers to enter and made himself available for all procedural purposes.”
Investigations have been launched to examine allegations that Peña used his political influence to benefit Ueno Bank, where he previously held shares. Authorities are looking into potential corrupt enrichment, money‑laundering schemes, influence peddling, and misappropriation of funds linked to the bank’s collapse.
Financial Crisis and Compensation
The sudden shutdown of Ueno Bank left almost three million Paraguanos unable to access their savings, triggering a nationwide financial crisis. Deposits were frozen, and many citizens are now dealing with cash shortages and uncertainty about the security of their funds.
The Deposit Guarantee Fund has begun reimbursing eligible depositors, issuing initial payments of approximately $18,700 per customer. Full guaranteed coverage is expected to reach around $37,000, providing relief to the most affected customers.
Vice President Pedro Alliana was sworn in as interim president, pledging that those affected by the financial collapse would be fully compensated. Alliana said:
"Compatriots who are now going through a difficult time as a result of the financial collapse will be fully compensated,"
Protesters flooded the streets of Asunción in the days following the bank’s collapse, demanding answers and transparent accountability. The crisis has drawn international attention, with observers noting the significant impact on Paraguay’s economic stability and governance.
Peña, who has denied any wrongdoing, maintains that the allegations are irresponsible and opportunistic. His attorney, Ricardo Preda, has defended him, calling the accusations baseless. Despite this, the judiciary steps will continue to scrutinize the former president’s conduct.
As Paraguay navigates the aftermath, the investigations into the Ueno Bank collapse and Peña’s role remain central. The interim administration plans to restore confidence in the banking system while ensuring that affected citizens receive the promised compensation and that the legal fallout from the impeachment process is fully addressed.
