Paraguay’s Senate Impeaches President Peña Amid Banking Crisis, Alliana Becomes Interim Leader

On November 6, 2026, Paraguay’s Vice President Pedro Alliana was sworn in as the interim president after the Senate voted to impeach President Santiago Peña. This decision came in response to a severe banking crisis that left many citizens unable to access their accounts.

Senators voted overwhelmingly, with 44 out of 45 in favor of impeachment, citing Peña’s failure to manage the crisis effectively. Senate President Basilio Nunez stated that Peña was guilty of poor performance in his duties. Following the vote, hundreds of people celebrated outside the Congress, demanding accountability for the situation.

Shortly after his impeachment, Peña was placed under house arrest. Alliana, who will serve as president until 2028, promised to support the nearly three million depositors affected by the collapse of Ueno Bank, which was linked to Peña. He assured the public that those impacted would be compensated.

The banking crisis led to widespread protests, with citizens demanding the return of their funds. Some demonstrators called for Peña to face imprisonment for his role in the bank’s failure. The Central Bank has begun to distribute advance payments to some depositors, with more assistance planned in the coming days.

Peña had previously offered to resign but faced impeachment proceedings instead. He is now under investigation for various alleged crimes, including breach of trust and influence peddling. The U.S. Embassy in Paraguay expressed support for the Paraguayan people during this tumultuous time.

The fallout from the banking crisis has also affected other sectors, including technology and sports, as companies and teams associated with Ueno Bank faced challenges due to the financial turmoil.