Paraguay changed presidents on Friday, November 6, after the Senate voted to remove Santiago Peña amid a crisis sparked by Ueno Bank. His announcement of resignation a day earlier never took legal effect because Congress did not complete the required acceptance process. That distinction matters beyond the chronology: impeachment removal affected his eligibility for an honorary lifetime Senate seat and its associated immunity. Pedro Alliana was sworn in as successor, while investigations into alleged financial misconduct continued. The Senate’s political ruling must not be confused with a criminal conviction.
A Senate vote, not a resignation, ended the presidency
Paraguay's Senate voted on Friday, November 6, to remove President Santiago Peña after an impeachment trial tied to the collapse of Ueno Bank. All 44 senators present supported removal in the 45-seat chamber. It was the country's second presidential removal through impeachment since the return of democracy, after Fernando Lugo in 2012.
The Chamber of Deputies had voted 78–0 on Thursday to bring the impeachment accusation. On Friday the Senate, sitting as the body responsible for judging that accusation, voted for removal. A two-thirds Senate majority required 30 votes, well below the 44 cast for dismissal.
The Senate's own account says it declared Peña responsible for poor performance of his duties under the constitutional impeachment procedure. That is a political judgment about whether a president should stay in office. It does not, on its own, establish criminal liability for bank fraud, breach of trust or any other offense. Those questions belong to separate investigations and courts.
Sources: Paraguay Senate votes to impeach President Peña · Senado destituye a Santiago Peña tras declararlo culpable en juicio político · Diputados aprueba juicio político al presidente de la República, Santiago Peña · Ousted Paraguayan president placed under house arrest after bank collapse · La Policía de Paraguay detiene al expresidente Santiago Peña tras su destitución · Los senadores que votaron por la condena de Santiago Peña por mal desempeño de funciones
Why Thursday's resignation never took effect
Peña announced on Thursday, November 5, that he would resign as public anger over the banking collapse escalated. But a declared intention to resign was not the same as an accepted resignation. Lawmakers meeting jointly did not complete the decision required to make his departure effective; the sitting lost its quorum after legislators aligned with his party walked out.
His lawyers argued that Congress should accept his resignation rather than try him, and they challenged the validity and fairness of the accelerated proceedings. The Senate rejected his request for another 72 hours to prepare a defense. His legal representatives appeared before senators even though Peña did not attend personally.
The difference carried concrete consequences. Under Paraguay's constitutional arrangements, an elected former president who leaves office normally can hold an honorary lifetime Senate seat associated with parliamentary immunity. A president removed by impeachment does not receive that protection. The Senate's judgment, rather than the unaccepted resignation, therefore determined both the manner of Peña's exit and the legal position in which he faced investigators.
Sources: Senado destituye a Santiago Peña tras declararlo culpable en juicio político · Ousted Paraguayan president placed under house arrest after bank collapse · Pedro Alliana jura como presidente de la República tras la destitución de Santiago Peña · Paraguay leadership in limbo as impeachment trial starts against president
The accusations, and Peña's challenge to them
The impeachment accusation linked Peña's previous interests in Ueno's holding company to decisions made while he was president. The lower house's official summary alleged conflicts of interest, questionable appointments and failures of oversight. It specifically cited the appointment of Carlos Carvallo, a former executive of a Ueno predecessor, to lead the central bank that supervised the institution.
Lawmakers also alleged that funds belonging to Paraguay's social-security system were concentrated at the lender beyond legal limits, and questioned regulatory decisions taken as the bank expanded. Such allegations concern the handling of public money as well as the independence of the authorities expected to supervise private lenders. They are accusations advanced in the political process, not independently established criminal findings.
Peña denied wrongdoing. His lawyers argued that responsibility for banking supervision and pension-fund decisions rested with institutions other than the presidency. They also maintained that the speed of the proceedings deprived him of adequate preparation time. The Senate's official record acknowledges those objections and says its members nonetheless concluded that the case concerned presidential performance, rather than the standards of an ordinary criminal trial.
Sources: Senado destituye a Santiago Peña tras declararlo culpable en juicio político · Diputados aprueba juicio político al presidente de la República, Santiago Peña · Ousted Paraguayan president placed under house arrest after bank collapse · Paraguay leadership in limbo as impeachment trial starts against president
The bank collapse behind the political crisis
Ueno had grown quickly from a digital lender into one of Paraguay's major banks, attracting customers who had previously had limited access to formal banking. Its sudden intervention restricted the use of accounts and cards for a customer base approaching three million people.
Regulators began a bank-resolution process after identifying a severe shortfall in capital adequacy. Reporting on the scandal also described extensive public deposits at Ueno and accusations of risky lending to companies connected with controlling shareholders. Those concerns raise questions about both private governance and the public institutions meant to check it. They do not prove that every challenged transaction was unlawful or that every depositor will suffer a permanent loss.
Authorities say deposit protection and repayments are being organized, while affected customers have demanded faster access to their money. Some withdrawals had resumed by Thursday, according to reporting, but a partial repayment is not the same as a completed resolution. The detailed rules for reimbursement and the lender's administration are a separate issue from the impeachment itself. For that background, see the related [Ueno Bank resolution report](/articles/paraguay-ueno-bank-resolution-depositor-protection-2026/).
Sources: Ousted Paraguayan president placed under house arrest after bank collapse · El presidente de Paraguay, Santiago Peña, destituido y detenido por presunta corrupción · Paraguay leadership in limbo as impeachment trial starts against president
Alliana takes over, but the institutional questions remain
Vice President Pedro Alliana was sworn in as Paraguay's president later on Friday, after the Senate's vote. He is expected to complete the existing presidential term, which ends in August 2028. The transfer followed the constitutional succession route rather than a snap national election.
Alliana had himself faced an attempted impeachment in the lower house on Thursday, but lawmakers rejected that accusation. Prosecutors have also examined complaints involving current and former officials, including Alliana; being named in an inquiry is not proof of participation in wrongdoing.
The vice presidency became vacant when Alliana assumed the top office. Paraguay's constitutional rules provide for Congress to select a replacement when such a vacancy arises in the later part of a presidential term. That appointment, decisions about the cabinet and public communication on bank repayments will be immediate tests of whether the transition produces administrative stability.
Sources: Ousted Paraguayan president placed under house arrest after bank collapse · Pedro Alliana jura como presidente de la República tras la destitución de Santiago Peña · Paraguay's Alliana sworn in as president after Peña impeachment
Investigations now proceed on a different track
After Peña's removal, authorities ordered him held at home as an investigation into suspected breach of trust proceeded, according to the Associated Press and EFE. The order was reported on Friday, after the Senate decision, and is a development distinct from the impeachment verdict. Prosecutors had already opened three criminal cases arising from the banking crisis, including complaints naming former and serving officials.
A detention order, a formal allegation and a conviction have different meanings. The Senate decided that Peña should no longer hold office; criminal investigators and judges must separately determine whether evidence supports charges and, ultimately, guilt. Peña has denied wrongdoing, and his defense has indicated it may challenge the impeachment process. Readers should not treat political dismissal or detention during investigation as a court's final finding.
For depositors, the most immediate measure of government performance will be practical: the accessibility of accounts, the treatment of insured and uninsured balances, and a transparent accounting of public deposits. For Paraguay's institutions, the larger question is whether parliamentary oversight, independent bank supervision and subsequent judicial proceedings can establish responsibility without blurring their separate powers. The presidency changed hands on November 6; those questions were still open.
Sources: Senado destituye a Santiago Peña tras declararlo culpable en juicio político · Ousted Paraguayan president placed under house arrest after bank collapse · La Policía de Paraguay detiene al expresidente Santiago Peña tras su destitución · Pedro Alliana jura como presidente de la República tras la destitución de Santiago Peña · El presidente de Paraguay, Santiago Peña, destituido y detenido por presunta corrupción
