Paraguayan President Pena impeached over banking crisis

Paraguayan President Santiago Pena. Handout via AFP. Paraguayan Senators on Friday (November 6, 2026) voted to impeach President Santiago Pena over the collapse of a major bank that locked almost half the population out of their accounts and triggered widespread protests.

Mr. Pena had offered his resignation over the disaster, but lawmakers pressed ahead with impeachment proceedings that would strip him of immunity granted to former Presidents. He did not attend the trial in the Senate despite earlier pledging to defend himself.

The President “is declared guilty of poor performance in his duties,” Senate President Basilio Nunez declared after a vote of 44 in favor of impeachment and one absence out of 45 senators. Around three million people have been unable to access their money since the Central Bank took control of Ueno Bank on Tuesday and froze its accounts over concerns about its solvency.

A Central Bank official told AFP that advance payments to some affected depositors had begun on Thursday (November 5, 2026) afternoon. The bank’s demise brought thousands of people onto the streets demanding repercussions for U.S.-backed Mr.

Pena, who until last year had a stake in Grupo Vazquez, which controlled Ueno. Lawmakers from Mr. Pena’s own party backed his impeachment. Mr. Pena, 47, apologized during an address to the nation on Thursday (November 5, 2026).

“It was never my intention to betray the trust you placed in me,” he said in a video statement. Around 250 people were gathered outside Congress awaiting the outcome of the trial, one of them waving a sign that read: “Pena in prison.” On Thursday (November 5, 2026), thousands protested for a third consecutive night in Asuncion and other cities to demand the return of their money.

“Santiago Pena has hurt so many Paraguayans, so many families, business owners and small business people, including my own son, who had savings in Ueno Bank,” Cynthia Farina told AFP at a protest in the capital that police dispersed with tear gas and water cannons.

Advance payments to an unspecified number of impacted depositors began on Thursday afternoon, Jose Maciel of the Central Bank’s Deposit Guarantee Fund told AFP. The first phase of aid deposits, up to around $1,600, will go to clients who don’t have loans and have an account at another bank or institution in Paraguay to receive the funds, Mr.

Maciel said. The next beneficiaries “will be announced progressively over the course of the payment process,” he said. Ueno began as a small fintech company with a digital-first model that attracted low-income customers, rapidly becoming a major bank that handled state pensions and the accounts of several state entities.

The opposition accuses Mr. Pena of a conflict of interest, which he denies.