In brief
Paraguayan lawmakers voted 44‑to‑1 to impeach President Santiago Peña over his alleged ties to the failed Ueno Bank, which had frozen 3 million Paraguayan accounts. Peña was removed from office, and Vice‑President Pedro Allana took the oath as head of state. The bank’s collapse and a constitutional life‑senator rule heighten the political fallout.
In the capital of Paraguay, the Senate concluded a vote that will reshape the country’s leadership. Thursday’s session led to the removal of President Santiago Peña after the collapse of Ueno Bank triggered a financial crisis that froze millions of accounts. The vote, which saw 44 senators in favor and one absent, marked the first time a sitting Paraguayan president has faced impeachment proceedings.
The Senate’s decision was formalized with a “guilty verdict,” as Chairperson Basilio Nunez announced. Nunez said, “44 votes were cast in favor of issuing a guilty verdict; one senator was absent.” The chamber’s resolution cited Peña’s “improper performance of his official duties” and ordered his removal from office by law.
"44 votes were cast in favor of issuing a guilty verdict; one senator was absent," said Chairman Basilio Nunez.
Immediately after the vote, the Senate convened an extraordinary joint session for the next hour. During that session, Vice‑President Pedro Allana was sworn in as the new head of state. The oath was taken in a public forum that any Paraguayan citizen could watch on the upper house’s YouTube channel.
The impeachment process began earlier, when the lower chamber, the Chamber of Deputies, opened the inquiry on October 5. Its proceedings set the stage for the Senate’s final vote, giving the country a constitutional means to address a president allegedly involved in a bank’s failure.
Supporters of the removal pointed to a conflict of interest, claiming Peña had connections to Ueno Bank that compromised his duties. They argued that his relationship with the institution contributed to the bank’s insolvency, prompting emergency intervention by the Central Bank.
At the Senate hearing, President Peña announced his resignation. However, the congress failed to achieve a quorum, preventing a formal vote on accepting or rejecting his resignation. As a result, the impeachment vote itself carried the decisive weight.
According to the Paraguayan constitution, former presidents typically become life senators. However, one exception is impeachment—an outcome that will bar Peña from claiming that status once the Senate formalizes his removal.
The crisis in Ueno Bank itself unfolded on November 1, when the Central Bank placed the institution under external administration. The intervention froze the bank’s three million accounts, leaving many citizens without access to their savings and disrupting everyday transactions throughout the country.
Paraguay’s population, estimated at roughly seven million people, faces a sharp increase in uncertainty. The turmoil underscores the fragility of the nation’s financial systems and its political architecture as the country navigates this unprecedented shift in leadership.
As the new president’s cabinet assembles, attention will turn to restoring confidence in banking operations and ensuring that the leadership transition stabilizes both economic and political spheres. Paraguay’s future hinges on how it responds to the dual challenges posed by the impeachment and the bank’s collapse.
