Paraguay’s Senate has removed President Santiago Peña from office following a unanimous vote by the 44 senators present, while national police have placed him under house arrest as prosecutors investigate alleged misconduct linked to the collapse of Ueno Bank.

The impeachment vote took place on Friday, November 6, 2026, after lawmakers found Peña guilty of poor performance in office.

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His removal brought an abrupt end to his presidency, which began in August 2023.

The Senate’s decision followed an impeachment process initiated on Thursday, with opposition lawmakers accusing the president of conflicts of interest, misuse of public funds and interference in institutions responsible for overseeing the banking sector.

Paraguay’s Senate confirmed that the president had been declared guilty and removed from office after a roll-call vote.

The proceedings continued despite Peña having submitted his resignation the previous day, as Congress had not acted on it because of a lack of quorum.

Following his removal, prosecutors ordered his arrest, and police served the warrant at his residence in the capital, Asunción.

He was placed under house arrest pending his appearance before the Attorney General’s Office for questioning.

The investigation centres on allegations of breach of trust, influence peddling and misappropriation of funds in connection with the collapse of Ueno Bank. Peña has denied wrongdoing.

The crisis intensified after Paraguay’s central bank intervened in Ueno, one of the country’s major financial institutions, following concerns about its financial position and failure to meet required solvency standards.

The intervention disrupted banking services and left millions of customers temporarily unable to access their savings and carry out transactions.

Ueno reportedly served approximately 2.94 million customers, representing a substantial proportion of Paraguay’s population.

The bank also held substantial public-sector deposits, including funds linked to pension institutions, bringing further scrutiny to the government’s relationship with the financial institution.

Lawmakers alleged that Peña’s administration gave Ueno preferential treatment and failed to exercise adequate oversight.

They also raised questions about the president’s previous financial links to the bank’s parent company, Ueno Holding.

Peña sold his shares in the holding company in 2025 and has maintained that he did not engage in wrongdoing.

The impeachment process also examined the role of former central bank chief Carlos Carvallo, who was appointed by Peña and previously held a leadership position at Ueno.

Prosecutors also ordered his arrest as part of the investigation.

Following Peña’s removal, Vice-President Pedro Alliana was sworn in as Paraguay’s new president.

He is expected to serve the remainder of the presidential term, which runs until August 2028.

In his first address after taking office, Alliana pledged that customers affected by the banking crisis would be compensated, promising that the government would not abandon those who had lost access to their funds.

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Peña’s removal marks a major political development in Paraguay, where the collapse of a major financial institution has triggered public protests, institutional scrutiny and a criminal investigation involving senior political and financial figures.