Paraguay’s Senate has voted to impeach President Santiago Peña following a banking crisis involving digital lender Ueno Bank, which reportedly affected nearly three million customers.
Vice-President Pedro Alliana was sworn in as president following Peña’s removal and is expected to serve the remainder of the presidential term, which runs until August 2028.
Ueno Bank was placed under the control of Paraguay’s central bank on November 3 after regulators identified serious concerns about its financial position and capital requirements.
The intervention disrupted banking services and left many customers temporarily unable to access their deposits. The crisis also raised concerns about public funds held by the lender.
The controversy intensified after reports highlighted Peña’s previous business links to Grupo Vazquez, the conglomerate associated with Ueno Bank. Peña has said he sold his stake in the group in 2025 and has denied wrongdoing.
Opposition lawmakers accused the president of misconduct in connection with the banking crisis. However, the allegations remain subject to investigation and should not be treated as established findings.
Authorities have begun taking steps to facilitate payments to eligible depositors, while prosecutors continue examining the circumstances surrounding the bank’s financial difficulties.
The developments have prompted protests and renewed questions about banking regulation, financial oversight and the protection of depositors in Paraguay.
