Paraguay's President Impeached and Arrested

GRAND RAPIDS, MI. - Paraguayan lawmakers impeached President Santiago Peña and placed him under house arrest on Friday, November 6, 2026, following the collapse of Ueno Bank. The swift legislative action left millions of citizens unable to access their savings and triggered widespread protests across the nation.

Prosecutors charged Santiago Peña with breach of trust, influence peddling, and administration for personal gain, and requested pretrial detention for him. Investigators alleged that Santiago Peña used his political influence to direct public funds into Ueno Bank, shielded the lender from regulatory scrutiny, and permitted the state pension fund to deposit $355 million at Ueno Bank in violation of legal limits. Santiago Peña held a stake in Ueno's parent company until March 2025, but denied all wrongdoing. Authorities also charged Carlos Carvallo, the former head of Paraguay's central bank and a former executive at Ueno's parent company, with breach of trust, producing false public documents, and administration for personal gain.

Regulators seized Ueno Bank on Tuesday, November 3, 2026, after its solvency ratio fell below legal requirements. The rapid growth of Ueno Bank attracted millions of customers before its failure affected nearly half of Paraguay's population, leaving an estimated three million depositors without access to their savings and pensions.

Vice President Pedro Alliana assumed the presidency on Friday, November 6, 2026, to complete the remainder of Santiago Peña's term through August 2028. Pedro Alliana pledged to fully compensate all citizens affected by the banking crisis.