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Paraguay President Santiago Peña resigns

November 6, 2026

CNA, a state-backed conglomerate, reports that Pedro Alliana was sworn in as Paraguay's new president on Friday (November 6) just as authorities put his impeached predecessor Santiago Peña under house arrest, the latest developments in a fast-moving political and financial crisis triggered by the collapse of a digital bank.

CBC and CBC News report that Peña was ordered to remain at one of his homes in Asunción until he appears before prosecutors Saturday morning on charges of breach of trust, influence peddling and using public office for personal gain, the most serious of which carry up to 10 years in prison. Peña was ordered to remain at one of his homes in Asunción until he appears before prosecutors Saturday morning on charges of breach of trust, influence peddling and using public office for personal gain, the most serious of which carry up to 10 years in prison, AP News reports. Paraguay was shaken by Tuesday’s intervention of Ueno, an institution that, according to authorities, violated limits on loans to related companies, CNN reports.

Key facts

CNA, a state-backed conglomerate, reports that Pedro Alliana was sworn in as Paraguay's new president on Friday (November 6) just as authorities put his impeached predecessor Santiago Peña under house arrest, the latest developments in a fast-moving political and financial crisis triggered by the collapse of a digital bank. Vice President Pedro Alliana was sworn in as president November 6 to serve out the term, which ends in August 2028, AP News reports. Peña, who until last year held shares in the company that owned the bank, has denied any wrongdoing, BBC reports. Although Peña offered his resignation on Thursday, the Senate chose to finalise the impeachment process rather than accept, and swiftly moved to install his second-in-command, Alliana, CNA, a state-backed conglomerate, reports.

According to AP News and AP, José Tomás Sánchez said, “For the last 20 years, the central bank has been one of the two pillars that gave Paraguay international credibility in managing its economy”. José Tomás Sánchez said, “Under Peña, the central bank began to lose credibility, lose neutrality and then relax all its control mechanisms to favor the business group that had Ueno Bank as one of its pillars”.

CBC and CBC News report that Peña was ordered to remain at one of his homes in Asunción until he appears before prosecutors Saturday morning on charges of breach of trust, influence peddling and using public office for personal gain, the most serious of which carry up to 10 years in prison. Peña was ordered to remain at one of his homes in Asunción until he appears before prosecutors Saturday morning on charges of breach of trust, influence peddling and using public office for personal gain, the most serious of which carry up to 10 years in prison, AP News reports. Paraguay was shaken by Tuesday’s intervention of Ueno, an institution that, according to authorities, violated limits on loans to related companies, CNN reports. The bank had grown rapidly since launching in 2021, CNA, a state-backed conglomerate, reports. Paraguay’s central bank intervened after determining that ueno had breached minimum solvency requirements, triggering a crisis that left millions of customers temporarily unable to access their accounts, Reuters reports. Ueno rose from obscurity to become one of Paraguay’s largest banks by deposits in just a few years, with more than $800 million in public money turbocharging its expansion, AP News and AP report. On TuesdayUeno was seized before dawn, CBC reports.

CBC and CBC News agree that ousted Paraguayan president Santiago Peña was placed under house arrest November 6 on suspicion of breach of trust and influence peddling, among other charges, shortly after the Senate removed him from office over the collapse of a government-linked bank that locked nearly half the country's six million people out of their savings. Peña will remain under house arrest, according to prosecutor Christian Benítez until a judge decides where he should stay while the criminal process against him takes place, CNN reports. All 44 senators present voted to remove Peña for misconduct in office, making him the second Paraguayan president ousted by impeachment since the country returned to democracy in 1989, AP News and AP report. AP News and AP report that the verdict came three days after regulators took over Ueno Bank, locking nearly half of Paraguay’s more than 6 million people out of their savings and bank cards and setting off the country’s worst political crisis in more than a decade.

According to AP News and AP, José Tomás Sánchez said, “For the last 20 years, the central bank has been one of the two pillars that gave Paraguay international credibility in managing its economy”.

José Tomás Sánchez

Still developing

CNN reports that Peña will remain under house arrest, according to prosecutor Christian Benítez until a judge decides where he should stay while the criminal process against him takes place. All 44 senators present voted to remove Peña for misconduct in office, making him the second Paraguayan president ousted by impeachment since the country returned to democracy in 1989, AP News and AP report. AP News and AP report that the verdict came three days after regulators took over Ueno Bank, locking nearly half of Paraguay’s more than 6 million people out of their savings and bank cards and setting off the country’s worst political crisis in more than a decade.

How settled the reporting is

Reported 85% · Contested 0% · Developing 15%

Sources

Toggle read the full reports of 7 of the 9 outlets counted on this event. The other 2 are counted from their headlines and opening sentences.