08/11/2026

Paraguay's President Santiago Pena Impeached Amid Banking Crisis

Updated 20 hours ago: The impeachment of President Santiago Peña was described as unanimous and he has been placed under house arrest, while the number of affected citizens was updated to nearly half of the country's 6 million, and new allegations of misconduct were added, including influence peddling and the potential for a 10-year prison sentence.

Paraguay's Senate voted unanimously to impeach President Santiago Peña, who has been placed under house arrest following the collapse of Ueno Bank. The bank's failure affected nearly half of the country's 6 million citizens, locking them out of their savings. Lawmakers accused Peña of misconduct, including steering public funds into the bank and overlooking risky lending practices. He faces charges of breach of trust and influence peddling, which could lead to a prison sentence of up to 10 years. Vice President Pedro Alliana has assumed the presidency, inheriting a government under pressure to address the financial crisis and compensate affected depositors. The bank's collapse has triggered significant political turmoil and economic instability in Paraguay, with the national currency and bonds experiencing severe losses.

Published 1 day ago • 06 Nov 2026, 07:52 AM IST

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