In Asunción on 7 November 2026, former Vice‑President Pedro Alliana was sworn in as Paraguay’s new president while former President Santiago Peña was placed under house arrest following an unprecedented Senate vote that removed him from office.
The Senate’s unanimous vote, which counted 44 senators in favor, followed an impeachment proceeding that had begun the day before after the Chamber of Deputies launched investigations into Peña’s conduct. The move came after the Central Bank seized control of the digital bank Ueno earlier in the week, suspending access to deposits held by about three million customers, nearly half of Paraguay’s population, sparking nationwide protests and fears of a financial collapse.
The crisis began when the Central Bank decided to take over Ueno over solvency concerns, forcing the bank to halt deposit‑access for millions of citizens. Protesters gathered across the country, demanding refunds and accountability for the sudden freeze. The failures were linked to Peña’s earlier ties with the controlling group of Ueno, a fact that legislators cited in their motion to impeach him.
President Peña had submitted his resignation two days earlier, an application that Congress did not accept and instead proceeded with a formal impeachment process. His resignation was rejected, and the Senate treated the matter as a removal of the president rather than a simple resignation, citing questions over his past links to Ueno and allegations of misconduct and conflict of interest.
On the night of the vote, police cordoned off the former president’s residence in Asunción. Prosecutors, speaking outside his house, said the investigation was still ongoing but could include influence peddling. Peña was ordered to appear at the prosecutor’s office on Saturday morning.
After the Senate vote, Pedro Alliana was sworn in at the presidential palace, where he thanked the people of Paraguay for their patience and vowed to stabilize the country’s finances and restore trust in public institutions.
The swift change of leadership follows a crisis that has shaken Paraguay’s banking system. While the new administration faces the challenge of re‑building confidence among depositors, the legal proceedings against the former president continue to unfold, with prosecutors still determining the full scope of the alleged misconduct.
