Santiago Peña Arrested and Impeached After Digital Bank Collapse
More than half of Paraguay’s adult population lost access to their savings and pensions when Ueno Bank collapsed, plunging the South American nation into a severe political and financial crisis. nrk.no reported that the ensuing turmoil led directly to the downfall and arrest of President Santiago Peña, who held ownership stakes in the failed financial institution.
The crisis escalated rapidly in early November 2026. On November 3, Paraguay’s central bank intervened and placed Ueno Bank under external administration, freezing three million accounts and locking out roughly 60 percent of the adult population. Protests erupted in the capital of Asunción as citizens found themselves unable to access their money.
Resignation Offer Rejected in Favor of Impeachment Proceedings
Facing intense public pressure and a collapsing political base, President Peña announced his resignation on November 5, stating he stepped down for the sake of national stability, social peace, and democratic institutions, as reported by Aftenposten. However, the National Assembly could not immediately vote on his resignation due to a lack of a quorum.
Instead of accepting his departure, the Senate rejected the resignation offer and placed Peña on trial. According to VG, lawmakers found him guilty of professional misconduct and dereliction of duty tied to the bank collapse. Members of Peña’s own conservative Colorado Party broke ranks with the president during the proceedings, joining the opposition to strip him of his immunity and his constitutional right to a lifetime Senate seat.
Arrest Warrant Executed and Pedro Alliana Sworn In
Minutes after the Senate delivered its verdict, the public prosecutor’s office issued an arrest warrant, and police placed the former president under house arrest, vg.no reported. Prosecutors opened a criminal investigation charging Peña with breach of trust and suspected embezzlement of public funds.
Vice President Pedro Alliana was quickly sworn in as the new head of state to serve out the remainder of the term until 2028. Alliana moved quickly to calm panicked citizens, promising full compensation for bank customers affected by the economic collapse, as noted by nrk.no. Meanwhile, authorities continue investigating allegations of regulatory manipulation, diverted pension funds, and institutional cover-ups involving the central bank.
Frequently Asked Questions About the Political Crisis in Paraguay
Why did Ueno Bank collapse?
Paraguays sentralbank grep inn 3. november og plasserte Ueno Bank under ekstern forvaltning etter en finansiell krise som frøs tre millioner kontoer, ifølge vg.no.
Who now leads Paraguay following Santiago Peña’s removal?
Vice President Pedro Alliana took the oath of office as interim president and will lead the country until 2028, according to nrk.no and vg.no.
What specific charges did prosecutors bring against the former president?
The public prosecutor’s office initiated a criminal investigation for breach of trust, citing suspicions of embezzlement involving public funds and severe conflicts of interest tied to Ueno Bank.
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