The political fallout follows allegations that the administration channeled hundreds of millions of dollars in public funds into the private lender while regulators ignored risky practices. The institution's sudden seizure locked more than three million customers out of their accounts and stranded $21 million meant for state electrical projects. Authorities are also prosecuting central bank president Carlos Carvallo over his previous ties to the financial firm. The removal marks only the second presidential impeachment in Paraguay since the end of Alfredo Stroessner's dictatorship in 1989.
Key points
The abrupt transition of power leaves Vice President Pedro Alliana leading the nation whi…: The abrupt transition of power leaves Vice President Pedro Alliana leading the nation while facing an active inquiry.
Regulatory authorities intervened after discovering undocumented lending that violated le…: Regulatory authorities intervened after discovering undocumented lending that violated legal limits and compromised customer assets.
Economic consequences continue to mount as the fallout drives down the value of Paraguay'…: Economic consequences continue to mount as the fallout drives down the value of Paraguay's national currency and sovereign bonds.
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Ousted Paraguayan president Santiago Peña was placed under house arrest in Asunción on Friday, November 6, on charges including breach of trust and influence peddling, hours after the Senate impeached him over the collapse of Ueno Bank, which left millions of customers unable to access their savings. Peña has been ordered to remain at one of his homes until he appears before prosecutors on Saturday.
All 44 senators present voted to remove Peña from office over misconduct, making him the second Paraguayan president to be ousted through impeachment since the end of Alfredo Stroessner's 35-year dictatorship in 1989. The charges against Peña include using public office for personal gain. Some carry prison terms of up to 10 years.
Lawmakers have accused Peña of using his political influence to direct hundreds of millions of dollars in public funds to Ueno Bank while regulators overlooked risky lending to companies linked to the lender's owners. Peña has denied wrongdoing.
Police surrounded his residence on Friday night as protesters gathered outside, waving Paraguayan flags and vowing to keep watch until morning.
Washington is intensifying intelligence-gathering efforts as international inspectors struggle to monitor centrifuge movements and critical components across the Islamic Republic. The intelligence bounty arrives amid an eight-month conflict marked by simultaneous backchannel diplomacy and targeted American military strikes on strategic regional infrastructure. Securing granular internal data on personnel and facilities remains pivotal to evaluating Tehran's true nuclear capabilities during ongoing ceasefire talks.
Lawmakers moved swiftly to impeach Santiago Peña after the collapse of Ueno Bank froze funds for millions of citizens, triggering widespread civil unrest and crippling commercial activity. Prosecutors immediately initiated criminal proceedings regarding illicit enrichment and the suspicious transfer of hundreds of millions in state and pension assets into the lender. With his resignation bid blocked, Peña lost key protections and now faces direct prosecution in ordinary courts.
American officials are targeting critical intelligence gaps caused by Tehran's refusal to comply with International Atomic Energy Agency safeguards obligations. The initiative seeks to uncover hidden equipment, sensitive facilities, and personnel movements after international monitors lost continuity of knowledge regarding centrifuge production. This intelligence push coincides with statements from President Donald Trump suggesting Tehran desires a negotiated settlement.