Paraguayan Political Crisis: Santiago Peña's Downfall Over Ueno Bank Scandal

The crisis began when the Paraguayan central bank placed Ueno Bank under guardianship due to a solvency ratio below 50%. This collapse affected nearly 2.94 million customers and triggered immediate political backlash. The opposition formally initiated destitution proceedings against President Santiago Peña, accusing him of misuse of power and conflicts of interest. The Chamber of Deputies subsequently opened impeachment debates as the Colorado Party called for his resignation. The political situation escalated on November 6, 2026, when the Senate removed Santiago Peña from office. The Senate denied his request for resignation to prevent him from gaining lifetime immunity. Following his removal, Interior Minister Enrique Riera resigned, and Carlos Humberto Benítez González assumed the role of interim minister. After a failed attempt to defend himself during a Senate trial, police arrested Peña at his private residence in Asunción. Pedro Alliana was sworn in as the new president to serve the remainder of the term until August 2028. Simultaneously, prosecutors began investigating Peña and former Central Bank director Carlos Carvallo Spalding for breach of trust. Peña was placed under house arrest and subsequently indicted by the Prosecutor's Office. These legal actions followed widespread protests and economic turmoil resulting from the bank's collapse. Law enforcement intensified the investigation by seizing luxury assets, including high-end vehicles, light planes, and a yacht. Prosecutors also conducted raids on Peña's luxurious home and the presidential residence, Mburuvicha Róga. On November 10, the Colorado Party's National Republican Association (ANR) Tribunal expelled Peña from the party for reproachable conduct. As of the latest record, Peña remains in preventive detention while investigations into financial misconduct and corruption continue.