Paraguay’s President Santiago Peña was removed from office on Friday, 6 November 2026, following a unanimous Senate vote. With 44 senators voting in favour of impeachment, Peña becomes the second Paraguayan president removed through this process, after Fernando Lugo in June 2012.
The decision comes three days after the closure of Ueno Bank, which triggered a financial and political crisis. Former Vice-President Pedro Alliana succeeds Peña as President, while Senator Antonio Barrios takes over the vice-presidency.
Former President Santiago Peña reportedly faces criminal charges for breach of trust in connection with the Ueno Bank case. Authorities have also reportedly ordered his arrest as part of the ongoing investigation.
From resignation to impeachment
Peña announced his resignation on Thursday, 5 November, through a video shared on social media, citing institutional stability and social peace. However, Congress could not formally consider his resignation due to a lack of quorum. The Chamber of Deputies subsequently approved impeachment proceedings unanimously, with 78 votes in favour.
On Friday, prosecutors presented their arguments before the Senate, followed by Peña’s defence lawyers. The former president had previously requested an additional 72 hours to prepare his defence, but senators rejected the request. The proceedings concluded with 44 votes in favour of removing Peña from office.
Ueno Bank allegations
The impeachment centred on allegations that Peña’s administration favoured the business group behind Ueno Bank and its associated companies. The accusations followed findings that the bank failed to meet minimum legal solvency requirements while managing substantial public funds. Approximately US$900 million in public resources were reportedly involved, including funds from the Social Security Institute (IPS), Caja Fiscal, Petropar, Senave and ANDE.
The Central Bank of Paraguay filed a complaint with the Public Prosecutor’s Office, which continues investigating the bank’s business group and associated companies. Peña has denied wrongdoing.
Paraguay’s new administration
Pedro Alliana, a Colorado Party politician and former president of the Chamber of Deputies, assumes the presidency after serving as Peña’s Vice-President since August 2023. Antonio Barrios, a senator and former Minister of Public Health and Social Welfare, takes over as Vice-President.
Under Paraguay’s constitutional framework, the new administration will serve the remainder of the current presidential term, scheduled to conclude on 15 August 2028. With Santiago Peña removed from office, Paraguay enters a new political chapter as Alliana assumes presidential responsibilities.
The leadership transition takes place as authorities continue examining the circumstances surrounding Ueno Bank’s collapse, including the handling of public deposits and potential irregularities in financial oversight.
Also read: As The Logos Come Down: The Rise And Fall Of Ueno Bank In Paraguay
