Paraguay’s President Impeached and Placed Under House Arrest After Bank Collapse

On Friday, November 6, 2026, 44 out of 45 senators voted to remove Peña from office, accusing him of misconduct, conflicts of interest and interference in financial oversight. He was arrested shortly after the vote.

Peña had offered to resign on Thursday, but lawmakers opted for impeachment instead. The charges against him include alleged misuse of public authority, diversion of pension funds and involvement in a cover-up surrounding the bank’s collapse. He has denied any wrongdoing.

The failure of Ueno Bank, which was taken over by Paraguay’s central bank, has reportedly affected about three million depositors, leaving many unable to access their savings and pension funds.

The crisis sparked protests across the country, with thousands of people taking to the streets demanding access to their money. Earlier demonstrations also resulted in clashes between protesters and police, who used tear gas and water cannons to disperse crowds.

Following Peña’s removal, Vice President Pedro Alliana was sworn in as interim president. He pledged that those affected by the financial collapse would receive compensation and promised not to abandon citizens facing financial difficulties.

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Peña is expected to face questioning over allegations including breach of trust, influence peddling and misappropriation of funds.

The political crisis has raised fresh concerns about financial accountability and public confidence in Paraguay’s banking system.