In a dramatic turn of events on November 6, 2026, Paraguay’s president, Santiago Pena, was arrested and removed from office, and the 52‑year‑old Conservative politician Pedro Alliana was sworn in as the 53rd president, according to a report by Al Jazeera. The change in leadership followed a banking scandal involving Ueno Bank that prompted a rapid impeachment and a cascade of regulatory inquiries.
Al Jazeera describes how 44 of Paraguay’s 45 senators voted to impeach Pena, a long‑time member of the Colorado Party, leaving only one abstention. Pena posted a farewell message on social media that read, "I take my leave with gratitude, while fully acknowledging the anguish of those who are currently awaiting answers." His removal marked a swift end to a tenure that had already been shadowed by questions about his ties to a fledgling lender.
The crisis began when the central bank announced that Ueno Bank had fallen below the legal solvency threshold, meaning it did not hold enough collateral to cover its obligations. Al Jazeera reports that the central bank seized the lender, transferring its remaining assets to other institutions; millions of Ueno clients suddenly lost access to their accounts and pension payments. At its peak, Ueno had grown to become Paraguay’s fifth‑largest bank by deposits, with about $800 million in public funds fueling its expansion. The bank’s rapid rise had been accompanied by the claim that more than a million Paraguayans had opened their first account there.
Al Jazeera notes that in 2023, Pena was identified as a shareholder of Ueno’s parent company, although he claimed to have sold his shares in early 2025. The alleged conflict of interest has raised questions about regulatory oversight. A prosecution team placed Pena under house arrest on suspicion of breach of trust and other crimes and issued an arrest warrant for former central bank head Carlos Carvallo, who has been accused of failing in oversight duties. Carvallo resigned earlier in the week in the wake of the collapse.
Al Jazeera highlights that the national crisis exposed potential regulatory failures, with the central bank’s decision to seize Ueno creating a ripple effect on private and public finances. While the report does not detail public sentiment beyond the resignation of Carvallo, it does hint at a broader sense of uncertainty regarding state oversight of financial institutions.
Finally, Al Jazeera notes that the new administration, inaugurated on November 6, “has taken oath to lead the country with a fresh mandate.” And while the article does not cover subsequent developments, it frames the situation as an unfolding examination of corporate governance and political accountability in Paraguay.
