Vice-President Pedro Alliana has been sworn in to serve until August 2028 after senators voted 44–0 to strip Santiago Peña of office and immunity.

Published 7 Nov 2026, 14:41 GMT

3 min read

Reunião com Senhor Santiago Peña, Presidente Eleito do Paraguai

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Paraguay's Senate has unanimously impeached President Santiago Peña and prosecutors have placed him under house arrest in Asunción over the collapse of Ueno Bank, installing Vice-President Pedro Alliana as head of state.

All 44 senators present on Friday, November 6, with one lawmaker absent, voted to convict Peña of misconduct in office a day after Congress rejected his resignation. Removing him by impeachment rather than accepting his resignation stripped the 47-year-old economist of the lifetime senate seat and legal immunity normally granted to former Paraguayan presidents.

Minutes after the Senate vote, police and prosecutors arrived at Peña's residence in the capital to enforce a house arrest order. Prosecutor Elena Fiore Franco said he "voluntarily allowed officers to enter and made himself available for all procedural purposes," The Guardian reported.

Alliana, a former Speaker of the Chamber of Deputies from the ruling Colorado Party, was sworn in on Friday to serve the remainder of the five-year term ending in August 2028, while former health minister Antonio Barrios became vice-president, according to the Asunción Times.

"Compatriots who are now going through a difficult time as a result of the financial collapse will be fully compensated," Alliana said after taking office, pledging "firmness against those who want to steal this future from them."

Paraguay's central bank seized Ueno Bank on Tuesday, November 3, after finding its capital had fallen below half the legal minimum. The failure froze the savings and pensions of nearly three million people — about 60 per cent of the country's adult population — and set off nationwide street protests.

Lawmakers accused Peña, who held roughly US$1 million in shares in Ueno's parent group until 2025, of conflicts of interest, manipulating regulatory oversight and steering hundreds of millions of dollars in public and pension funds into the digital lender.

Prosecutor Silvia Margarita González Vester said Peña was scheduled to be questioned on Saturday, November 7, over suspected breach of trust, influence peddling and misappropriation of public funds, charges that carry up to 10 years in prison, CBC News reported.

Prosecutors also ordered the arrest of former Ueno chief executive Carlos Carvallo Spalding, whom Peña appointed central bank governor in 2023, while Ueno founder Miguel Vázquez is being held in Asunción's Tacumbú prison.

Peña, who had been one of US President Donald Trump's closest regional allies, has denied any wrongdoing, and his defence lawyer, Ricardo Preda, called the charges "irresponsible and opportunistic". Before the verdict, Peña wrote on social media: "I say goodbye with gratitude, without ignoring the anguish of those who are waiting for answers today."

Araba IncoomAraba Incoom writes on multiple topics with a vast knowledge across different sector. You can almost call me an AI, after all, my initials are Araba Incoom.

Paraguay&#39;s President Peña impeached and placed under house arrest over Ueno Bank collapse

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Paraguay's President Peña impeached and placed under house arrest over Ueno Bank collapse

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