Paraguay’s Senate removed President Santiago Peña on Friday 6 November, with 44 senators voting in favour and one abstaining. The vote followed a 78-0 impeachment vote in the lower house, and Vice President Pedro Alliana was sworn in as his successor. The decision came quickly for a president elected to a five-year term.
The removal came days after regulators seized Ueno Bank, a digital lender linked to the president’s business past, according to AP.
A Digital Bank With Millions of Customers
Ueno had about 3 million customers in a country of roughly 6.5 million people, which made it unusually large for a digital lender. Public funds in the bank were estimated at between $800 million and $850 million, including $355 million of state pension money.
Regulators’ findings on the bank’s condition led to its seizure, and savers found their accounts frozen, according to Emol. These figures come from early reporting and may change as audits conclude.
The scale explains why the failure reached the presidency so quickly. A bank holding that many accounts touches households across the country, and pension money turns a financial failure into a public one.
At least 27 people have been charged in connection with the collapse, though the charges have not yet been tested in court. The presumption of innocence applies to all of them.
Peña’s Business Ties Come Under Scrutiny
Peña held a shareholding in Grupo Vázquez, the group linked to Ueno. He says he sold that stake in early 2025, which the sources reviewed here do not confirm. The Buenos Aires Herald reported that the scandal threatened both his presidency and the country’s reputation.
The opposition argued that his past ties made the bank’s rise and collapse a political question, not just a regulatory one.
Peña is under house arrest on suspicion, and he has not been convicted of any offence. The case now depends on whether prosecutors can show a link between his former holding and the bank’s failure.
Until a court decides, his removal reflects a political judgement by lawmakers and not a verdict on guilt.
Markets and Politics After the Removal
The guaraní fell nearly 5 per cent to about 6,490 per US dollar as the crisis deepened, a sharp move for a currency that has usually been stable. A weaker guaraní raises the cost of imports and the burden on anyone with dollar debts. A further loss of confidence could push borrowing costs higher.
Senators had also asked for a trial against the president days before the vote, according to La Tribuna.
Alliana now has to reassure depositors and markets while the investigations continue. His first tests will be how quickly frozen savers regain access to their money and whether pension funds recover what they lost.
The affair also exposes a gap in oversight: a lender could reach millions of customers before regulators acted. Paraguayans will watch whether Alliana changes how digital banks are supervised.
Keep up with Daily Euro Times for more updates
Read also:
Lagarde’s Bank-Bred Authority is Going Public
Italian Banks Brace For Pressure as Election Nears
Revolut Forces Europe’s Old Banks to Go Digital Faster
