Pedro Alliana took over as Paraguay's president on Friday following the impeachment of his predecessor, Santiago Pena, over a major banking crisis that left nearly half the country's population unable to access their accounts. Senators appointed Alliana, who previously served as vice president, shortly after voting to remove Pena following the chaotic collapse of a bank with which he had links.&nbsp;Senate President Basilio Nunez declared Pena guilty of poor performance in his duties after 44 of the 45 senators voted in favour of impeachment. One senator was absent. Hundreds of people gathered outside Congress and loudly celebrated Pena's removal from office. "Justice has been done. Now we want him to give us back our money and go to jail," Jessica Aquino, 32, told AFP.&nbsp;Minutes after his impeachment, Paraguayan authorities placed the former president under house arrest, prosecutor Silvia Margarita Gonzalez Vester told reporters. Alliana pledged that the government would not abandon the nearly three million depositors, including pensioners, affected by Ueno Bank's takeover amid concerns over its insolvency.&nbsp;"Compatriots who are now going through a difficult time as a result of the financial collapse will be fully compensated," Alliana said. He will remain president until 2028. Opposition lawmakers had also submitted a motion seeking Alliana's impeachment over the crisis, but the proposal failed to secure congressional approval.<h3>Money begins returning to depositors</h3>The collapse of the bank triggered street demonstrations, with thousands demanding accountability from US-backed Pena. Until last year, he held a stake in Grupo Vazquez, the company that controlled Ueno. A Central Bank official told AFP that advance payments to an unspecified number of affected depositors started on Thursday afternoon. Jose Maciel of the Central Bank's Deposit Guarantee Fund said the first phase of payments, amounting to approximately $1,600, would be directed to customers who have no outstanding loans and maintain accounts with another bank or financial institution in Paraguay to receive the money.&nbsp;The remaining beneficiaries "will be announced progressively over the course of the payment process," he added. Although Pena had offered to resign following the banking crisis, lawmakers continued with impeachment proceedings, resulting in the removal of his political immunity. The opposition accused the US-backed politician of having a conflict of interest, an allegation he denied.&nbsp;The Attorney General's office confirmed that it was investigating him for acts related to the supervision and resolution of Ueno Bank S.A. and the placement of public funds in said entity. Prosecutor Gonzalez Vester said Pena would be questioned on Saturday over alleged crimes involving breach of trust, influence peddling and misappropriation of funds.Shortly before his removal, Pena called for national unity in a post on X.&nbsp;"Today, we must come together as Paraguayans to rebuild our institutions and restore trust," he said. The US Embassy in Paraguay expressed "its solidarity with the Paraguayan people" on Friday but made no reference to the country's president.<h3>Protests demand Pena's imprisonment</h3>"Pena in prison," read one of the protest signs displayed outside Congress on Friday. Thousands of people had taken to the streets for a third consecutive night on Thursday in Asuncion and other cities, demanding the return of their money. "Santiago Pena has hurt so many Paraguayans, so many families, business owners and small business people, including my own son, who had savings in Ueno Bank," Cynthia Farina told AFP during a demonstration in the capital.&nbsp;Police dispersed the protest using tear gas and water cannons. Ueno initially operated as a small fintech company with a digital-first business model that attracted low-income customers. It subsequently expanded into a major bank, managing state pensions and accounts belonging to several government entities. The scandal has already resulted in the departures of Central Bank President Carlos Carvallo and Interior Minister Enrique Riera. Meanwhile, eight Ueno executives have been arrested.&nbsp;Police also carried out raids on several locations associated with Grupo Vazquez on Wednesday and Thursday. The crisis also affected neighbouring Argentina, where approximately 1,000 employees of technology company ITTI, part of Grupo Vazquez, were suspended for 30 days without pay.&nbsp;The fallout extended to football as well. Ueno Bank sponsors several first-division football clubs and Paraguay's national team. "We were also victims of this situation," members of the national team said in a statement posted on X.

Pedro Alliana takes over as Paraguay's president after Santiago Pena is impeached over the Ueno Bank collapse, which left millions of depositors affected

Pedro Alliana took over as Paraguay's president on Friday following the impeachment of his predecessor, Santiago Pena, over a major banking crisis that left nearly half the country's population unable to access their accounts. Senators appointed Alliana, who previously served as vice president, shortly after voting to remove Pena following the chaotic collapse of a bank with which he had links. Senate President Basilio Nunez declared Pena guilty of poor performance in his duties after 44 of the 45 senators voted in favour of impeachment. One senator was absent. Hundreds of people gathered outside Congress and loudly celebrated Pena's removal from office. "Justice has been done. Now we want him to give us back our money and go to jail," Jessica Aquino, 32, told AFP. Minutes after his impeachment, Paraguayan authorities placed the former president under house arrest, prosecutor Silvia Margarita Gonzalez Vester told reporters. Alliana pledged that the government would not abandon the nearly three million depositors, including pensioners, affected by Ueno Bank's takeover amid concerns over its insolvency. "Compatriots who are now going through a difficult time as a result of the financial collapse will be fully compensated," Alliana said. He will remain president until 2028. Opposition lawmakers had also submitted a motion seeking Alliana's impeachment over the crisis, but the proposal failed to secure congressional approval. Money begins returning to depositors The collapse of the bank triggered street demonstrations, with thousands demanding accountability from US-backed Pena. Until last year, he held a stake in Grupo Vazquez, the company that controlled Ueno. A Central Bank official told AFP that advance payments to an unspecified number of affected depositors started on Thursday afternoon. Jose Maciel of the Central Bank's Deposit Guarantee Fund said the first phase of payments, amounting to approximately $1,600, would be directed to customers who have no outstanding loans and maintain accounts with another bank or financial institution in Paraguay to receive the money. The remaining beneficiaries "will be announced progressively over the course of the payment process," he added. Although Pena had offered to resign following the banking crisis, lawmakers continued with impeachment proceedings, resulting in the removal of his political immunity. The opposition accused the US-backed politician of having a conflict of interest, an allegation he denied. The Attorney General's office confirmed that it was investigating him for acts related to the supervision and resolution of Ueno Bank S.A. and the placement of public funds in said entity. Prosecutor Gonzalez Vester said Pena would be questioned on Saturday over alleged crimes involving breach of trust, influence peddling and misappropriation of funds. Shortly before his removal, Pena called for national unity in a post on X. "Today, we must come together as Paraguayans to rebuild our institutions and restore trust," he said. The US Embassy in Paraguay expressed "its solidarity with the Paraguayan people" on Friday but made no reference to the country's president. Protests demand Pena's imprisonment "Pena in prison," read one of the protest signs displayed outside Congress on Friday. Thousands of people had taken to the streets for a third consecutive night on Thursday in Asuncion and other cities, demanding the return of their money. "Santiago Pena has hurt so many Paraguayans, so many families, business owners and small business people, including my own son, who had savings in Ueno Bank," Cynthia Farina told AFP during a demonstration in the capital. Police dispersed the protest using tear gas and water cannons. Ueno initially operated as a small fintech company with a digital-first business model that attracted low-income customers. It subsequently expanded into a major bank, managing state pensions and accounts belonging to several government entities. The scandal has already resulted in the departures of Central Bank President Carlos Carvallo and Interior Minister Enrique Riera. Meanwhile, eight Ueno executives have been arrested. Police also carried out raids on several locations associated with Grupo Vazquez on Wednesday and Thursday. The crisis also affected neighbouring Argentina, where approximately 1,000 employees of technology company ITTI, part of Grupo Vazquez, were suspended for 30 days without pay. The fallout extended to football as well. Ueno Bank sponsors several first-division football clubs and Paraguay's national team. "We were also victims of this situation," members of the national team said in a statement posted on X.

Pedro Alliana becomes Paraguay's president after Santiago Pena's impeachment over a banking crisis that affected millions of depositors

Pedro Alliana becomes Paraguay interim president after Santiago Pena's impeachment over banking crisis

Paraguay's lower house voted unanimously on Thursday to impeach President Santiago Pena, shortly after he announced his resignation, as the collapse of a major digital bank linked to his government froze millions of people's savings, sparked widespread protests and triggered a political revolt within his own party. The 78-0 vote represented a major blow to Pena, with lawmakers from his long-ruling Colorado Party joining opposition members to support impeachment following three days of demonstrations in the capital, Asunción. The charges will now go to the Senate, where a two-thirds majority is necessary to convict the president and formally remove him from office.&nbsp;Thousands of people continued protesting for a third consecutive day, demanding the return of their savings, salaries and pensions trapped following the collapse of Ueno Bank, a major digital lender. Pena, a close ally of US President Donald Trump, announced his resignation in a video posted on X while lawmakers were debating his impeachment. He said he was stepping down in the interest of the stability of our country, social peace and the need to preserve our democratic institutions.&nbsp;Although the president expressed regret, he did not accept responsibility for the banking crisis that has pushed Paraguay, a South American country long regarded as a stable destination for foreign investors, into financial and political uncertainty. "I also want to apologize to the people if I have failed them at any point," he said. “It was never my intention to betray the trust they placed in me.” The developments paved the way for a transfer of power later on Thursday. Congress was expected to formally accept Pena's resignation at 5 pm, allowing Vice President Pedro Alliana to take the presidential oath an hour later. Alliana would complete Pena's term, which runs until August 2028, while lawmakers are expected to select a new vice president.<h2>From prominent lender to government seizure</h2>Ueno Bank rose from an relatively unknown finance company to a household name in less than five years, claiming more than 60% of Paraguay's adult population as customers. Its collapse has left customers struggling to recover their savings and government pensions. Around 7,000 employees affected by the bank's closure are also facing unpaid wages. Questions have emerged over how a financial institution connected to the president, who held a stake in Ueno's holding company until last year, managed to expand so quickly despite repeated concerns about its lending practices.&nbsp;The crisis has highlighted the close relationship between Pena's long-governing Colorado Party, financial regulators and the country's business elite. This has remained a concern even as consistent economic management and rapid growth helped Paraguay attract international investors in recent years. After securing its banking licence in 2023, Ueno rapidly expanded its presence across Paraguay. The digital lender, which was rebranded from a finance company that had operated for decades, attracted customers through generous grocery cashback offers.&nbsp;Under Pena's government, substantial public funds were deposited with Ueno. The president also appointed Carlos Carvallo, the president of Financiera Ueno, the institution that preceded Ueno Bank, to lead the central bank responsible for supervising the lender. By last month, Ueno had reported approximately $800 million in public deposits, accounting for around a quarter of its total deposits. These included funds from the state pension and health fund, as well as operators of Paraguay's major hydroelectric dams.&nbsp;However, concerns over the bank's lending activities were growing within the central bank. According to ABC Color, a leading Paraguayan newspaper, inspectors identified risky lending to insiders during a June inspection. Ueno had reportedly extended substantial loans to companies connected to its owners, exceeding legal limits and without sufficient collateral to cover potential losses. On a single day in September 2025, nearly $39 million was reportedly transferred to three such firms. Pena repeatedly dismissed the warnings. As recently as last month, he defended Ueno and the central bank's supervision, describing the concerns as a smear campaign that was creating public anxiety.&nbsp;Also Read: <a href="https://www.wionews.com/world/six-killed-as-massive-fire-tears-through-brooklyn-home-lithium-ion-battery-found-at-scene-mamdani-says-neighbourhood-faces-immense-grief-1793894151643">Six killed as massive fire tears through Brooklyn home, lithium-ion battery found at scene; Mamdani says neighbourhood faces 'immense grief'</a><h2>Customers locked out as bank branches shut</h2>The situation unravelled on Monday when regulators investigating Ueno's loans to companies linked to its owners discovered poorly documented lending practices, according to the central bank. Investigators also identified expenses that the bank had incorrectly recorded as assets. Following corrections to its financial records, Ueno's capital, which banks are required to maintain as protection against losses, dropped to less than half the legally required minimum.&nbsp;The central bank seized control of the lender on Tuesday and announced that customers' accounts, along with the remaining valuable assets, would be transferred to other banks before the institution was liquidated. The bank's mobile application, cards and transfer services stopped working, while its branches shut their doors. Customers were left waiting outside in long queues, unable to withdraw their money. On Wednesday, a surge in customers attempting to open accounts at other financial institutions caused mobile banking applications at several banks to crash, intensifying public panic.&nbsp;Authorities appealed for calm and said repayments to depositors had begun. They also opened new accounts at other banks for approximately 280,000 customers who had held accounts exclusively with Ueno. "The banking system is sound," insisted Pedro Acosta Bernal, who was appointed interim central bank president on Wednesday after Carvallo resigned at Pena's request. Authorities have detained eight senior Ueno executives, including founder Miguel Vazquez and bank President Juan Manuel Gustale. Prosecutors have also charged 27 bank officials and business associates with offences that include breach of trust and attempted fraud. Lawyers representing several detained individuals said they needed time to examine the allegations before commenting.<h2>Protests intensify across Paraguay</h2>Hundreds of employees from Ueno Bank and other businesses under its parent conglomerate, Grupo Vazquez, gathered outside the Labor Ministry on Thursday. The workers demanded severance payments and unpaid salaries as their employment situations remained uncertain and their wages were trapped in the collapsed bank. A day earlier, hundreds of retirees, depositors, university students and workers had taken to the streets of Asunción. "We want your head, Peña!" they shouted.&nbsp;Protesters carried signs demanding the president's impeachment, describing him as ‘the enemy of savers’ and calling for their money to be returned. Riot police used pepper spray and rubber pellets to disperse the crowds. For many demonstrators, Ueno's collapse represented more than a banking failure. They viewed it as another example of alleged corruption and the close connections between political leaders and powerful business interests.

Paraguay President Santiago Peña resigns after a unanimous impeachment vote as the Ueno Bank collapse triggers protests, frozen savings and political turmoil

Paraguay's lower house voted unanimously on Thursday to impeach President Santiago Pena, shortly after he announced his resignation, as the collapse of a major digital bank linked to his government froze millions of people's savings, sparked widespread protests and triggered a political revolt within his own party. The 78-0 vote represented a major blow to Pena, with lawmakers from his long-ruling Colorado Party joining opposition members to support impeachment following three days of demonstrations in the capital, Asunción. The charges will now go to the Senate, where a two-thirds majority is necessary to convict the president and formally remove him from office. Thousands of people continued protesting for a third consecutive day, demanding the return of their savings, salaries and pensions trapped following the collapse of Ueno Bank, a major digital lender. Pena, a close ally of US President Donald Trump, announced his resignation in a video posted on X while lawmakers were debating his impeachment. He said he was stepping down in the interest of the stability of our country, social peace and the need to preserve our democratic institutions. Although the president expressed regret, he did not accept responsibility for the banking crisis that has pushed Paraguay, a South American country long regarded as a stable destination for foreign investors, into financial and political uncertainty. "I also want to apologize to the people if I have failed them at any point," he said. “It was never my intention to betray the trust they placed in me.” The developments paved the way for a transfer of power later on Thursday. Congress was expected to formally accept Pena's resignation at 5 pm, allowing Vice President Pedro Alliana to take the presidential oath an hour later. Alliana would complete Pena's term, which runs until August 2028, while lawmakers are expected to select a new vice president. From prominent lender to government seizure Ueno Bank rose from an relatively unknown finance company to a household name in less than five years, claiming more than 60% of Paraguay's adult population as customers. Its collapse has left customers struggling to recover their savings and government pensions. Around 7,000 employees affected by the bank's closure are also facing unpaid wages. Questions have emerged over how a financial institution connected to the president, who held a stake in Ueno's holding company until last year, managed to expand so quickly despite repeated concerns about its lending practices. The crisis has highlighted the close relationship between Pena's long-governing Colorado Party, financial regulators and the country's business elite. This has remained a concern even as consistent economic management and rapid growth helped Paraguay attract international investors in recent years. After securing its banking licence in 2023, Ueno rapidly expanded its presence across Paraguay. The digital lender, which was rebranded from a finance company that had operated for decades, attracted customers through generous grocery cashback offers. Under Pena's government, substantial public funds were deposited with Ueno. The president also appointed Carlos Carvallo, the president of Financiera Ueno, the institution that preceded Ueno Bank, to lead the central bank responsible for supervising the lender. By last month, Ueno had reported approximately $800 million in public deposits, accounting for around a quarter of its total deposits. These included funds from the state pension and health fund, as well as operators of Paraguay's major hydroelectric dams. However, concerns over the bank's lending activities were growing within the central bank. According to ABC Color, a leading Paraguayan newspaper, inspectors identified risky lending to insiders during a June inspection. Ueno had reportedly extended substantial loans to companies connected to its owners, exceeding legal limits and without sufficient collateral to cover potential losses. On a single day in September 2025, nearly $39 million was reportedly transferred to three such firms. Pena repeatedly dismissed the warnings. As recently as last month, he defended Ueno and the central bank's supervision, describing the concerns as a smear campaign that was creating public anxiety. Also Read: Six killed as massive fire tears through Brooklyn home, lithium-ion battery found at scene; Mamdani says neighbourhood faces 'immense grief' Customers locked out as bank branches shut The situation unravelled on Monday when regulators investigating Ueno's loans to companies linked to its owners discovered poorly documented lending practices, according to the central bank. Investigators also identified expenses that the bank had incorrectly recorded as assets. Following corrections to its financial records, Ueno's capital, which banks are required to maintain as protection against losses, dropped to less than half the legally required minimum. The central bank seized control of the lender on Tuesday and announced that customers' accounts, along with the remaining valuable assets, would be transferred to other banks before the institution was liquidated. The bank's mobile application, cards and transfer services stopped working, while its branches shut their doors. Customers were left waiting outside in long queues, unable to withdraw their money. On Wednesday, a surge in customers attempting to open accounts at other financial institutions caused mobile banking applications at several banks to crash, intensifying public panic. Authorities appealed for calm and said repayments to depositors had begun. They also opened new accounts at other banks for approximately 280,000 customers who had held accounts exclusively with Ueno. "The banking system is sound," insisted Pedro Acosta Bernal, who was appointed interim central bank president on Wednesday after Carvallo resigned at Pena's request. Authorities have detained eight senior Ueno executives, including founder Miguel Vazquez and bank President Juan Manuel Gustale. Prosecutors have also charged 27 bank officials and business associates with offences that include breach of trust and attempted fraud. Lawyers representing several detained individuals said they needed time to examine the allegations before commenting. Protests intensify across Paraguay Hundreds of employees from Ueno Bank and other businesses under its parent conglomerate, Grupo Vazquez, gathered outside the Labor Ministry on Thursday. The workers demanded severance payments and unpaid salaries as their employment situations remained uncertain and their wages were trapped in the collapsed bank. A day earlier, hundreds of retirees, depositors, university students and workers had taken to the streets of Asunción. "We want your head, Peña!" they shouted. Protesters carried signs demanding the president's impeachment, describing him as ‘the enemy of savers’ and calling for their money to be returned. Riot police used pepper spray and rubber pellets to disperse the crowds. For many demonstrators, Ueno's collapse represented more than a banking failure. They viewed it as another example of alleged corruption and the close connections between political leaders and powerful business interests.

Paraguay's President Santiago Pena resigns amid an impeachment vote and mass protests following the collapse of digital lender Ueno Bank

Paraguay President Santiago Pena impeached minutes after his resignation as Ueno bank collapse triggers nationwide protests

Paraguay’s opposition has launched an impeachment bid against President Santiago Pena following a banking crisis that has left nearly three million customers unable to access their money after the Central Bank took control of digital lender Ueno.Thirty-five lawmakers submitted impeachment articles in the 80-member lower house on Wednesday (Nov 4), accusing Pena of misconduct, conflicts of interest and alleged irregularities in the handling of the bank's collapse. They have sought an extraordinary congressional session on Thursday to debate the motion.The opposition needs at least 53 votes in the lower house for the proceedings to advance. The motion would then require approval from 30 of the 45 senators. Pena's ruling Colorado Party holds a majority in both chambers, making the outcome uncertain.<h2>Why is Pena facing impeachment?</h2>The controversy centres on Pena’s former association with Grupo Vazquez, the business group controlling Ueno Bank. The conservative economist, who took office in 2023, held shares in the group until March 2025.Opposition lawmakers have accused his administration of conflicts of interest, misuse of pension funds and attempts to cover up institutional failures linked to the bank's collapse.“Never before has anyone harmed 3 million people in a single day in the Republic of Paraguay, and you achieved it, Mr. President,” opposition lawmaker Rocío Vallejo said during a congressional session.

<blockquote class="twitter-tweet">🚨🇵🇾Paraguay protests erupt over Ueno bank collapse 

Paraguay police fired water cannons and tear gas near Congress as violent protests paralyzed downtown Asunción following the sudden crash of digital lender Ueno Bank.

The bank's insolvency froze accounts for nearly 3 million people.

Writer: Bri https://t.co/M8eolXWhU1&mdash; Mario Nawfal (@MarioNawfal) <a href="https://x.com/MarioNawfal/status/2118205002913099952?ref_src=twsrc%5Etfw">November 5, 2026</a></blockquote>
<script async src="https://platform.x.com/widgets.js" charset="utf-8"></script>

<h2>Depositors protest as bank remains shut</h2>The Central Bank intervened in Ueno after finding that it had breached minimum solvency requirements, citing a severe capital shortfall. The lender has around three million customers in a country of 6.5 million people and manages close to $850 million in public funds.The takeover triggered protests and long queues outside bank branches in Asuncion, with customers unable to withdraw their savings.“I lost my entire life savings,” 68-year-old depositor Marcelino Vergara told AFP.Pena has sought to calm public anger, insisting that Paraguay’s financial system remains stable. He also enacted a law allowing depositors to access guaranteed funds, with payments expected within five days.The crisis has also forced the resignation of Central Bank chief Carlos Carvallo. Arrest warrants were issued for eight Ueno executives, while authorities ordered their assets frozen as investigations widened.Paraguay’s banking association has said lenders are handling an influx of customers moving their accounts from Ueno and that the wider banking system continues to operate normally.

Paraguay's opposition has moved to impeach President Santiago Pena after the Ueno Bank crisis left nearly 3 million customers unable to access their money, sparking protests.

Paraguay’s opposition has launched an impeachment bid against President Santiago Pena following a banking crisis that has left nearly three million customers unable to access their money after the Central Bank took control of digital lender Ueno. Thirty-five lawmakers submitted impeachment articles in the 80-member lower house on Wednesday (Nov 4), accusing Pena of misconduct, conflicts of interest and alleged irregularities in the handling of the bank's collapse. They have sought an extraordinary congressional session on Thursday to debate the motion. The opposition needs at least 53 votes in the lower house for the proceedings to advance. The motion would then require approval from 30 of the 45 senators. Pena's ruling Colorado Party holds a majority in both chambers, making the outcome uncertain. Why is Pena facing impeachment? The controversy centres on Pena’s former association with Grupo Vazquez, the business group controlling Ueno Bank. The conservative economist, who took office in 2023, held shares in the group until March 2025. Opposition lawmakers have accused his administration of conflicts of interest, misuse of pension funds and attempts to cover up institutional failures linked to the bank's collapse. “Never before has anyone harmed 3 million people in a single day in the Republic of Paraguay, and you achieved it, Mr. President,” opposition lawmaker Rocío Vallejo said during a congressional session.

Paraguay's opposition has moved to impeach President Santiago Pena after the Ueno Bank crisis left nearly 3 million customers unable to access their money, sparking protests.

Ueno Bank crisis: Why are millions protesting as Paraguay’s president faces impeachment?

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Pedro Alliana becomes Paraguay interim president after Santiago Pena's impeachment over banking crisis

Paraguay President Santiago Pena impeached as Ueno bank collapse sparks protests

Ueno Bank crisis: Why is Paraguay’s president facing impeachment?