Paraguay's political crisis deepened on Friday, November 6, 2026, when Congress refused to accept President Santiago Peña's resignation and the Senate opened an impeachment trial against him over the collapse of Ueno Bank. The Paraguay impeachment trial puts Peña's fate in the hands of 45 senators, who summoned him, as prosecutors charged 27 people and the central bank began paying deposit guarantees. Peña remains formally president for now, but only a Senate vote stands between him and removal.

Key Points

• Paraguay's Congress refused President Santiago Peña's resignation on Thursday, November 5, after his Colorado Party lawmakers walked out and broke the quorum.
• The Chamber of Deputies voted 78-0 to impeach Peña over the Ueno Bank collapse, and the Senate opened the trial on Friday, November 6, summoning him to defend himself.
• Removing Peña requires 30 of the Senate's 45 votes; if removed, Vice President Pedro Alliana, 52, would serve until August 2028.
• Attorney General Emiliano Rolón Fernández opened three criminal investigations, prosecutors charged 27 people linked to Ueno, and a judge ordered six executives into pretrial detention.
• The central bank began deposit-guarantee payments on Friday to a first group of customers, up to 10 million guaraníes (about $1,565) each, after Ueno locked out about 2.94 million customers.

What Happened

The extraordinary turn came on Thursday, when a joint session met to consider the resignation Peña had announced in a recorded video message. His Colorado Party lawmakers walked out, the quorum was lost, and the resignation was never accepted. Peña therefore remains president.

On the same day, the Chamber of Deputies voted 78-0 to impeach him over the Ueno Bank collapse and sent the charges to the Senate. The Senate opened the trial on Friday, November 6, summoning Peña to appear and present his defence. It was due to begin at 10 a.m. local time (13:00 GMT); removal requires 30 of the Senate's 45 votes.

Peña said on X that he will appear before the Senate and exercise his right to a defence.

Background/Context

The crisis began when Paraguay's central bank intervened in Ueno, a digital lender, on November 2-3, after its solvency ratio fell below half the legal minimum. The bank had about 2.94 million customers — nearly half of Paraguay's 6.5 million people — locked out of their accounts. Ueno held about $800 million in public deposits, nearly a quarter of its total.

Peña announced his resignation on Thursday, November 5, saying he stepped down "with the stability of our country, social peace, and the need to preserve our democratic institutions in mind". Lawmakers accused him of conflicts of interest over his past shareholding in Grupo Vázquez, owner of Ueno until March 2025, and of misusing pension funds. The central bank chief also resigned, and eight Ueno executives were detained. Read our earlier report on Peña's resignation after the Ueno Bank collapse.

Paraguay Impeachment Trial: How the Senate Vote Works

Under Paraguay's process, the Chamber of Deputies brings the charges and the Senate sits as the trial court. The 78-0 vote means the charges now go to a full Senate trial, where Peña will present his defence before senators vote.

The threshold is high: 30 of the 45 senators must vote to remove him, a two-thirds majority. Peña's fate depends on whether enough senators from his own Colorado Party — whose walkout blocked his resignation — will vote him out. The walkout showed the party is split: some lawmakers want him gone, others want him to stay.

If the Senate removes him, Vice President Pedro Alliana, 52, also of the Colorado Party, would serve out the term until August 2028. If Peña is acquitted, he would remain president but weakened, with the banking crisis unresolved and criminal investigations circling his administration.

Reactions/Quotes

He said on X that he will appear before the Senate and exercise his right to a defence, signalling he will contest the charges in person rather than accept removal quietly.

The legal pressure is mounting on several fronts. Attorney General Emiliano Rolón Fernández opened three criminal investigations on November 5 into Ueno's supervision, public funds, and official conduct. Prosecutors charged 27 people linked to Ueno, and a judge ordered six executives — including founder Miguel Vázquez and bank president Juan Manuel Gustale — into pretrial detention, with two others under house arrest.

For the millions of customers, the most immediate development is financial. The central bank began deposit-guarantee payments on Friday to a first group of customers, up to 10 million guaraníes, about $1,565, per depositor. It is only a first step: most customers still wait to learn when, and how much, they will get back.

Why It Matters

This is not a routine political fight. Ueno's collapse has touched nearly half of Paraguay's population, frozen the savings of pensioners and workers, and put about $800 million of public money at risk. How Congress and the courts handle the fallout will shape trust in Paraguay's banks and institutions for years.

The case also tests Paraguay's checks and balances in real time. A president who tried to resign is being kept in office by a Congress that refused his resignation — and the same Congress is now putting him on trial. Whatever the Senate decides, the episode has exposed deep divisions in the ruling Colorado Party and raised hard questions about the supervision of a bank that held the money of millions.

For the region, the crisis warns how fast a digital lender can grow, take public funds, and fail. Other Latin American countries will watch closely whether depositors are made whole and those responsible are held to account. More on the wider world this week: the UN begins liquidating its Western Sahara mission after 35 years and the Chernobyl shield needs at least €500 million in repairs.

What Happens Next

The Senate trial is now the centre of Paraguayan politics. Peña is expected to appear and present his defence, after which senators will vote on removal. No date for the final vote has been announced.

Meanwhile, deposit-guarantee payments will keep rolling out, and the criminal cases against Ueno executives and officials will move through the courts. The attorney general's three investigations — into supervision, public funds and official conduct — could still widen to more senior figures.

If Peña is removed, Pedro Alliana takes over until August 2028, inheriting the banking crisis and a divided ruling party. If he survives, he must govern a country whose trust in its banks and presidency is badly shaken.

FAQ

Why did Congress refuse Peña's resignation?
A joint session on Thursday lost its quorum when Peña's Colorado Party lawmakers walked out.

What is Peña accused of?
The Chamber impeached him over the Ueno collapse, citing conflicts of interest over his past shareholding in the bank's former owner.

How many votes are needed to remove him?
Thirty of the Senate's 45 members must vote in favour — a two-thirds majority.

Who would replace Peña if he is removed?
Vice President Pedro Alliana, 52, would serve until August 2028.

What is happening to Ueno's customers?
The central bank began paying deposit guarantees on Friday, up to 10 million guaraníes (about $1,565) each.