Paraguay President Removed From Office as Banking Crisis Deepens

• Paraguay President Santiago Peña has been removed from office and placed under house arrest following a banking crisis, with Pedro Alliana sworn in as his successor.

Paraguay’s President Santiago Peña has been removed from office following an impeachment vote over a banking crisis that left millions of customers unable to access their savings.

Vice President Pedro Alliana was sworn in on Friday, November 6, following Peña’s removal. Paraguay’s Chamber of Deputies confirmed the presidential transition.

All 44 senators present voted to remove Peña for misconduct in office. Authorities subsequently placed him under house arrest amid an investigation involving suspected breach of trust and influence peddling, among other allegations.

The political upheaval followed the collapse of Ueno Bank, a lender linked to Peña’s former business interests. Its failure affected nearly three million customers, including people relying on pension payments.

Peña has denied allegations of a conflict of interest. His removal through impeachment does not constitute a criminal conviction on the allegations under investigation.

The banking crisis triggered demonstrations by depositors demanding access to their money and accountability from officials. Crowds gathered outside Congress celebrated the impeachment decision.

Alliana, who is expected to complete the presidential term ending in 2028, promised support for affected depositors as his administration confronted the financial fallout.

Authorities had begun an initial compensation process for some customers, while investigations into the bank and its management continued. The collapse has also affected businesses and organisations connected to the lender.