Paraguay's President Pena Faces Impeachment Proceedings After Central Bank Intervenes in Ueno Bank

Paraguay's Senate has moved ahead with proceedings to remove President Santiago Pena. Pena offered his resignation on 5 November 2026. A TASS headline on 6 November said parliament had impeached him, but it gives no details, and the other reports reviewed by Vocemundi do not describe a final Senate verdict or his removal.

The case follows a crisis at Ueno Bank. The central bank placed the bank into resolution after finding that it had breached minimum solvency or capital requirements. Customers then lost access to their accounts.

Ueno belongs to Grupo Vazquez and had around 3 million customers. It held or managed roughly $800 million in public funds, including social security money.

Pena had business ties to Grupo Vazquez until March 2025, after he took office. In 2023, he appointed Carlos Carvallo, former head of Ueno's predecessor company, to lead the central bank. Carvallo has since resigned.

Prosecutors opened three criminal investigations and charged 27 people connected to the bank or associated companies. Alleged offenses include breach of trust and attempted fraud. On 5 November, a judge ordered multiple Ueno executives held in custody and placed two other defendants under house arrest. A central issue is whether Ueno's lending to companies linked to its owners exceeded legal limits.

Paraguay has enacted a law to speed up payments to depositors.

Latest reports

According to DW, the Chamber of Deputies voted unanimously to impeach Pena. DW also reported that a joint session of Congress on his resignation lacked a quorum. At 20:23 UTC on 6 November, DW reported that Pena remained in office for the time being. A TASS headline published at 22:25 UTC said parliament had impeached the president, but the item gives no further detail.

According to DW, resigning would automatically make Pena a senator for life, with immunity from prosecution. Impeachment would cost him that status.

Al Jazeera, citing the prosecutor's office, reported that the investigations include allegations involving Pena and other current and former officials. The reports do not specify the criminal allegations against him. DW says the Senate's impeachment proceedings are based on charges of serious breaches of duty.

What is disputed

• Intervention date: DW says 3 November. Al Jazeera's account points to 2 November.
• Deposit guarantee: DW says $37,600 per customer. Al Jazeera says about $36,000.
• Early payments: DW says around $20,000 per saver can be paid early, with timing unclear. Al Jazeera says repayment is due within five business days, starting with accounts of up to $1,600.

What each side says

Pena denies direct involvement with Ueno and any improper ties to it. According to DW, he says he will face the proceedings and defend himself. Al Jazeera reported that he sought a 72-hour extension, saying he had less than 12 hours to respond. It quoted him as saying: "That is not due process."

Opposition politicians say Pena should be removed rather than allowed to resign, according to Al Jazeera. The reports do not include direct statements from Ueno Bank, Grupo Vazquez, Carvallo or the defendants.

Analysis

The crisis now runs on two separate tracks: a political process over Pena's future and criminal cases over the bank. They could produce different outcomes. The manner of any exit matters, because DW reports that resignation and impeachment would have different consequences for his immunity. Business ties and an appointment do not in themselves show wrongdoing, and the reports do not show that Pena or Carvallo personally took part in or approved the lending under investigation. For depositors and pension contributors, the main unknowns are how much public money can be recovered and when payments will arrive. Questions about the timing of regulatory action may also shape future oversight debates.

Produced by the Vocemundi newsroom with AI assistance.