Paraguay
Bank collapse brings down Paraguay President! Santiago Peña impeached, placed under house arrest
Asunción/IBNS: Paraguay President Santiago Peña has been impeached and placed under house arrest following the collapse of Ueno Bank, a financial crisis that reportedly left millions of customers unable to access their accounts, media reports said.
Peña was impeached by lawmakers, including a member of his own party, over the collapse of Ueno Bank, which allegedly had links to his private business interests.
Soon after his impeachment, Peña was placed under house arrest.
Resignation rejected before impeachment
Peña had reportedly expressed his wish to step down from office.
However, his resignation was not accepted, and lawmakers subsequently proceeded with his impeachment.
Following his removal, Peña lost the immunity granted to former Presidents of the country, leaving him exposed to potential criminal proceedings.
Presenté mi renuncia para evitar más daño al país y contribuir a devolverle la tranquilidad al Paraguay. No quiero que mi presencia sea motivo de mayor división o inestabilidad. Mi responsabilidad es poner al país por encima de mi destino personal. Hoy nos toca unirnos como paraguayos para reconstruir la institucionalidad y recuperar la confianza. Me despido con gratitud, sin desconocer la angustia de quienes hoy esperan respuestas. Es momento de unir esfuerzos para reconstruir la institucionalidad y atender, con hechos y responsabilidad, a quienes están siendo afectados. Que Dios bendiga al Paraguay.
— Santiago Peña (@SantiPenap) November 6, 2026
Former president faces allegations of misconduct
Peña is likely to be questioned on Saturday over allegations of breach of trust, influence peddling and misappropriation of funds, prosecutor Silvia Margarita Gonzalez Vester said, as quoted by the BBC.
The allegations are linked to the controversy surrounding Ueno Bank and its reported connections with businesses associated with the president.
Ueno Bank collapse triggers financial crisis
The collapse of Ueno Bank, one of Paraguay's fastest-growing digital banks, has triggered a major financial crisis, widespread public anger and an extraordinary political upheaval.
The crisis began when Paraguay's central bank intervened in Ueno after identifying serious concerns about its financial health, including alleged risky lending to companies linked to its controlling shareholder.
The bank had around three million customers and managed approximately $850 million in public funds.
Its shutdown left customers temporarily unable to access their savings, while pension payments and government-related funds also came under scrutiny.
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