Paraguay's former President Santiago Peña was placed under house arrest on November 6, shortly after the Senate impeached and removed him from office amid a political and financial crisis triggered by the collapse of digital lender Ueno Bank.
The arrest order was issued by the Public Prosecutor's Office as part of an investigation into alleged irregularities connected to the bank's supervision and resolution. Peña will remain under house arrest at his residence in Asunción until he appears before prosecutors.
Editorial Insight
Key Highlights
Important points readers should notice.
Paraguay's Senate impeached and removed Santiago Peña on November 6, 2026.
Forty-four senators voted in favour, while one senator was absent.
Peña was placed under house arrest following his removal.
Prosecutors are investigating alleged offences connected to the Ueno Bank crisis.
Ueno Bank had approximately 2.94 million customers.
Thousands of customers reported difficulties accessing their funds.
Prosecutors said Peña would be questioned over alleged offences, including breach of trust, influence peddling and misappropriation of funds. The allegations are under investigation and have not been established in court.
Earlier on Friday, Paraguay's Senate voted to remove Peña, declaring him guilty of poor performance in his duties. A total of 44 of the 45 senators voted in favour of impeachment, with one senator absent.
The impeachment followed the financial crisis involving Ueno Bank, which had approximately 2.94 million customers in a country with a population of around 6.1 million. The Central Bank intervened in the lender after its solvency ratio fell below the legally required minimum, leaving thousands of customers, including pensioners, reporting difficulties accessing their funds.
Editorial Analysis
Why This Matters
The political crisis has raised concerns about financial regulation, public-sector deposits and accountability in Paraguay. The investigation and the government's response to affected depositors will be important for restoring confidence in the country's banking system.
Peña had submitted his resignation on November 5, but Congress did not act on it because of a lack of quorum. Lawmakers subsequently proceeded with impeachment, resulting in his removal from office and the loss of the immunity associated with his position as a former president.
Meanwhile, former Vice President Pedro Alliana was sworn in as Paraguay's new president following Peña's removal. He will complete the remaining presidential term, which runs until August 2028.
In his first address after taking office, Alliana promised that people affected by the Ueno Bank crisis would be fully compensated and said the government would not abandon depositors facing financial difficulties.
The developments have intensified scrutiny of Paraguay's banking oversight, the handling of public funds and the accountability of political leaders.
