Paraguay’s president impeached over bank collapse that locked millions out of their savings

Asuncion, Paraguay—Pedro Alliana was installed as the country's president on November 7, 2026, after removing his predecessor, Santiago Pena, in a vote of impeachment over a banking crisis that left nearly half the population without access to their accounts. Pena, who held ties to Grupo Vazquez, the entity controlling Ueno Bank, faced accusations of poor performance in his duties as Senate President Basilio Nunez declared him "guilty of poor performance in his duties."

One senator was absent during the vote, with 44 out of 45 senators voting in favor of impeachment. Pena was placed under house arrest shortly after his removal, while Alliana vowed to compensate the nearly three million affected depositors, including pensioners. The Central Bank began issuing advance payments to affected depositors on Thursday, with the first phase of aid deposits reaching up to US$1,600.