Published Friday, 6 November, 7:30 p.m. ET · Source: Senate of Paraguay, Public Prosecutor’s Office, Central Bank of Paraguay
A president who resigned on Thursday was thrown out on Friday, and by nightfall police were at his door. Paraguay’s Senate voted 44 of 45 to remove Santiago Peña, a conservative who had led the country since August 2023.
About 50 minutes later Pedro Alliana, his vice president, took the oath before Congress.
How the Fall Happened
Peña quit on Thursday 5 November after Ueno Bank collapsed. The Senate, which sits as judge in an impeachment, kept going anyway, because the Chamber of Deputies, the lower house, had already approved the accusation and sent it up.
He asked for a 72-hour delay and did not attend. Some senators of his own Colorado Party, Paraguay’s ruling conservative party, had walked out of Thursday’s session to stall it.
On Friday the Senate returned to the case and found him responsible for poor performance of his duties. Peña is the second Paraguayan president removed by impeachment, after Fernando Lugo in 2012.
He also loses the legal immunity that came with his status as senator for life, a seat former presidents normally hold. That change opened the door to what came next.
Why a Bank Brought Down a President
Ueno Bank is a private lender with about 3 million customers, including pension funds such as the state pension institute IPS. Paraguay’s Central Bank moved to take it over this week, and customers’ money has been frozen.
Critics say Ueno took in money from state institutions while Peña governed, and that it was tied to his former business partners. Peña said he stepped down to protect social peace.
The Arrest
Within about an hour of the vote, prosecutors ordered the arrest of Peña and of Carlos Carvallo, who quit as Central Bank president this week, over breach of trust and other alleged crimes. Police took Peña into custody, and he is being held at his home, while Carvallo is held at a police-chosen facility.
Peña is accused, not convicted of any crime. A hearing before a judge is set for Saturday 7 November at 11 a.m. Asunción time, and we have not seen the full charge sheet.
Our earlier reports track each step: the first impeachment push, his resignation and the prosecutors’ raid on the central bank.
Who Is Pedro Alliana?
Alliana was born in 1974 in the southern town of Pilar and rose through the Colorado Party, Paraguay’s ruling conservative party. He served as governor of Ñeembucú, a southern department, which is Paraguay’s term for a province.
Congress named Antonio Barrios, a senator, as his vice president that evening. On Thursday the Chamber of Deputies had rejected an impeachment request against Alliana himself.
What It Means for US Readers
Paraguay is a major soy and beef exporter and a close South American partner of Washington. The winners are savers if repayments keep flowing, as the central bank has begun to promise, and exporters if a steady handover calms politics.
The losers are households with money stuck in Ueno and any US firm that needs a stable government to sign contracts. Two things would confirm a quiet transition: the judge’s ruling on Peña’s custody after the Saturday hearing, and a cabinet Alliana names without a new fight in Congress.
He inherits the term that runs until 15 August 2028, so any calm or crisis will last well beyond this weekend.
What Is Not Known
We do not know the formal charges or whether a judge will keep Peña in custody after Saturday’s hearing. We have not confirmed any reaction from Washington or from financial markets, which were closed on Friday evening.
It is also unclear whether Alliana will name a new cabinet this weekend or keep the current ministers for now.
More: Paraguay news in English, every day from The Rio Times.
Frequently Asked Questions
Who is Paraguay’s president now?
Pedro Alliana, the former vice president, was sworn in before Congress on Friday 6 November 2026. Senator Antonio Barrios was named vice president.
Why was Santiago Peña removed?
The Senate found him responsible for poor performance of his duties over the Ueno Bank collapse. He lost 44 of 45 votes and did not attend.
Sources: Senate of Paraguay; Public Prosecutor’s Office of Paraguay; Central Bank of Paraguay; Congress of Paraguay, 5 and 6 November 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI ·