Paraguay’s Senate voted on Friday, November 6, 2026, to dismiss President Santiago Peña, and Vice-President Pedro Alliana took his place. The vote followed the collapse of Ueno Bank, a digital lender that held accounts for nearly half of the country’s 6.5 million people, according to The Hindu.
Authorities intervened to seize Ueno Bank, which also held more than $800 million in government funds, according to The Hindu. Police then raided Peña’s home in San Bernardino as part of a probe into the collapse, according to prosecutors.
Peña is accused of using his influence as president to steer millions of dollars in government deposits to Ueno Bank, and of hiding or downplaying the bank’s financial problems despite warnings, according to the allegations reported by The Hindu. These are claims that have not been tested in court.
The indictment says Peña received two Ueno Bank loans totalling around $500,000 in 2024 to build his house. The charging sheet puts his monthly mortgage payment at $38,000, six times his presidential salary, according to The Hindu.
Japan Times reports that Peña was a business partner of the group that owns Ueno Bank until March 2025. Separately, the sources state that he owned shares in the bank’s holding company, Ueno Holding, until he sold them last year. Peña came to power in 2023.
NPR World reports that the collapse exposed a web of political and financial ties involving Peña.
Vice-President Alliana said the government has reimbursed 1.2 million Ueno Bank customers whose money was frozen. He said about $158 million has been disbursed so far and that payments will continue this week, according to The Hindu.
The collapse led to street protests in the small, normally stable country. Peña is now being held in custody at a military facility.
The main gaps in the reporting are significant. The sources include no response from Peña or his lawyers, so his side of the allegations is missing. Most details come from a single full article by The Hindu, which relies on AFP reporting. No second outlet confirms the loan amounts, mortgage figures or reimbursement totals. NPR World and Japan Times were available only as headlines and short excerpts, so their full reporting could not be checked. The sources also do not say what formal charges Peña faces or when he may appear before a court.
Prosecutors’ probe into the collapse continues, and government reimbursements to Ueno Bank customers are set to continue this week. No court dates or timetable have been reported.
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This article was written with AI assistance from the published reporting listed above. It is part of the World Brief daily news podcast.