Paraguay ousts President Peña
Vice-President Pedro Alliana was sworn in after the Senate unanimously removed Santiago Peña from office.
Follow-up to: Paraguayan president Peña resigns amid banking crisis Thursday, 5 November 2026, 19:10
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Paraguay’s Senate removed President Santiago Peña from office on Friday. All 44 senators present voted unanimously for his removal; Vice-President Pedro Alliana was then sworn in as president for the remainder of the term, until August 2028.
The change of power follows a political crisis surrounding the collapse of Ueno Bank. According to The Associated Press, regulators took over the bank three days earlier, after which nearly three million customers could no longer access their savings or bank cards.
According to AP, the Senate accused Peña of abuse of office. Parliamentarians said he had allegedly used his political influence to channel hundreds of millions of dollars in public funds towards Ueno Bank, while regulators allegedly allowed risky loans to insiders. Peña has denied the allegations.
Peña offered his resignation on Thursday, but both chambers of Congress rejected it. The Lower House then voted unanimously to begin impeachment proceedings. The Senate opted for removal on Friday, bringing a process lasting several days to an end with the departure of a president who had only come to power in 2023.
Alliana took the oath on Friday and must lead the government until the end of the current term in August 2028. He is an experienced politician from the conservative Colorado Party and previously served as governor of Ñeembucú province and speaker of the Lower House.
His accession does not represent a complete break with the power structure that supported Peña. According to AP, Alliana is also being investigated in connection with the bank case. According to AP, the Lower House set aside an opposition motion on Thursday seeking his own removal, allowing him to become president.
For Peña, the removal also has constitutional consequences. According to AP, he loses the right to a lifetime seat in the Senate normally granted to elected former presidents. As a result, he also loses the parliamentary immunity reportedly attached to that seat.
Restoring access to bank deposits and confidence in financial-sector supervision could create problems for the new president. The precise scale of the losses at Ueno Bank and the legal responsibility of Peña, Alliana and others involved have yet to be established. The allegations therefore do not constitute a judicial finding of guilt.
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Both sides of the figures
▲ Bright spots
- Alliana’s swearing-in, under the constitutional succession described, prevents a prolonged vacancy in the presidency.
- The new president was sworn in while access to bank deposits needs to be restored.
▼ Concerns
- AP reports that nearly three million customers temporarily lost access to their savings and bank cards after Ueno Bank was taken over.
- According to AP, the crisis also affects confidence in financial supervision and repayments to account holders.
Critical note
The scale of the losses, how much money account holders will recover and the extent of the banking problems remain unclear. It is therefore not yet possible to establish the scale of the economic damage.
Who notices what
- Households
- Account holders may be affected by the resolution of Ueno Bank and by the question of when deposits will again be fully available.
- Businesses
- Businesses dependent on Ueno Bank may face disruption while payment accounts and lending remain uncertain.
- Government
- The new government must safeguard financial stability while also providing clarity on possible public support and liability.
Every point comes from the article’s sources and was included in the fact check.
One story, several perspectives
What is established
- The Senate removed Santiago Peña with the unanimous support of the 44 senators present.
- Pedro Alliana was sworn in as president until August 2028.
- The removal followed a crisis surrounding Ueno Bank.
- Peña denies the allegations; legal investigations are under way.
Left
Arguments The state must protect account holders and investigate political influence over banks rigorously. Public funds must not be used to prop up financially connected institutions.
Values Equality, public accountability and protection of citizens from concentrations of political and financial power.
Consequences Supporters fear that without tough prosecutions, savers and taxpayers will end up paying the price.
Centre
Arguments The succession must proceed constitutionally and orderly, while independent regulators and courts investigate the bank case. Administrative continuity is needed to stabilise account holders and the financial sector.
Values The rule of law, institutional stability and careful assessment of evidence.
Consequences A rushed political reckoning could further damage confidence; too little accountability could instead cause new instability.
Right
Arguments The removal must not be used to pursue a broader political power struggle. The new government must first restore order, secure deposits and limit economic damage.
Values Effective government, property rights and political stability.
Consequences A prolonged process or further power struggle could put investment, banks and confidence in Paraguay under additional pressure.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The core facts were confirmed by Associated Press and are consistent with the succession reported by ABC Color. Allegations are attributed as allegations and are not presented as proven facts.
- confirmed The Senate removed Santiago Peña from office on 6 November 2026. — Associated Press reports the Senate’s unanimous removal. source
- confirmed All 44 senators present voted unanimously for the removal. — AP gives this number and reports the unanimous vote. source
- confirmed Pedro Alliana was sworn in and will serve out the term until August 2028. — AP mentions the swearing-in and the end of the term; ABC Color also reports the swearing-in. source
- confirmed Nearly three million customers temporarily lost access to their savings and bank cards after Ueno Bank was taken over. — Associated Press identifies this as a consequence of the takeover by regulators. source
- confirmed Peña denies the allegations concerning public funds and supervision. — AP reports that Peña denied the allegations. source
- confirmed Alliana is also being investigated in connection with the bank case. — This is reported by AP; the article does not present it as proven involvement. source
Editor's note
The removal, the unanimous vote by the 44 senators present and Alliana’s swearing-in were reported by AP. The allegations concerning public funds and supervision are still under investigation; Peña denies wrongdoing.Sources
The story so far
- Thursday, 5 November 2026, 13:11 Paraguay pays advances to Ueno Bank depositors
- Thursday, 5 November 2026, 19:10 Paraguayan president Peña resigns amid banking crisis
- Thursday, 5 November 2026, 23:44 Charges threaten Paraguay’s resigned president
- Saturday, 7 November 2026, 00:42 Paraguay ousts President Peña (this article)
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