On November 6, 2026, the Paraguayan Senate voted 44-0 to impeach President Santiago Peña and placed him under house arrest following the collapse of Ueno Bank, which froze the accounts of 2.9 million people. Lawmakers accused Peña of steering over $800 million in public pension funds to Ueno Bank while failing to enforce regulatory standards. Vice President Pedro Alliana was sworn in as president to serve until August 2028, promising full compensation to affected depositors.
Legal actions against Santiago Peña
- ▪Paraguayan prosecutors ordered former President Santiago Peña to remain under house arrest until his scheduled appearance on November 7, 2026 to face charges carrying up to 10 years in prison
- ▪Paraguayan authorities placed former President Santiago Peña under house arrest on suspicion of breach of trust, influence peddling, and misappropriation of funds, prosecutor Silvia Margarita Gonzalez Vester said
Succession of Pedro Alliana as president
- ▪Upon taking office on November 6, 2026, Paraguayan President Pedro Alliana pledged that citizens affected by the Ueno Bank collapse would be fully compensated
- ▪Vice President Pedro Alliana was sworn in as President of Paraguay
Collapse and investigation of Ueno Bank
- ▪On November 3, 2026, Paraguay's central bank seized Ueno Bank after the digital lender fell below legal standards for solvency
- ▪Paraguayan prosecutors charged 27 individuals in connection with the Ueno Bank collapse, including founder Miguel Vázquez, and issued an arrest warrant for former central bank president Carlos Carvallo
- ▪Ueno Bank accumulated between $800 million and $860 million in public funds and state pension deposits prior to its collapse, including $355 million from the state pension fund
Impact on depositors and relief efforts
- ▪Paraguay's Central Bank Deposit Guarantee Fund began initial repayments of up to 10 million guaraníes to eligible Ueno Bank account holders, Jose Maciel of the fund said
- ▪The regulatory intervention of Ueno Bank froze the savings and accounts of approximately 2.9 million customers, representing about 60% of Paraguay's adult population
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