Paraguay’s Senate has removed President Santiago Peña from office following an impeachment vote linked to a banking crisis that left millions of customers unable to access their funds.
Former Vice-President Pedro Alliana was sworn in as his successor on Friday and is expected to serve out the remainder of the presidential term, which ends in 2028.
The impeachment motion secured 44 votes in the 45-member Senate, with one senator absent. Senate President Basilio Núñez declared Peña guilty of poor performance in office.
The decision followed the collapse of Ueno Bank amid insolvency concerns, triggering widespread financial difficulties for depositors and protests across the country.
Hundreds of demonstrators gathered outside the National Congress to celebrate Peña’s removal, with some demanding the recovery of their savings and his prosecution.
“Justice has been done. Now we want him to give us back our money and go to jail,” a protester, Jessica Aquino, 32, told AFP.
Following his removal, Paraguayan authorities placed Peña under house arrest, according to prosecutor Silvia Margarita González Vester.
In his first address after assuming office, Alliana pledged that affected depositors would receive compensation, particularly the nearly three million customers impacted by the banking crisis.
“Compatriots who are now going through a difficult time as a result of the financial collapse will be fully compensated,” he said.
Meanwhile, the Central Bank has commenced the repayment process, with initial payments of up to approximately 1,600 dollars earmarked for eligible customers who have no outstanding loans and maintain accounts with other financial institutions in Paraguay.
Central Bank Deposit Guarantee Fund official, Jose Maciel, said further beneficiaries would be announced as the payment exercise progressed.
The crisis has also triggered investigations into Peña over allegations of conflict of interest, which he has denied.
Before last year, the former president reportedly held an interest in Grupo Vazquez, the conglomerate that controlled Ueno Bank.
The Attorney General’s office said it was investigating alleged irregularities involving the supervision and resolution of the bank, as well as the placement of public funds in the institution.
Peña is also expected to face questioning over allegations bordering on breach of trust, influence peddling and misappropriation of funds.
The banking crisis has prompted further consequences, including the resignation of Central Bank President Carlos Carvallo and Interior Minister Enrique Riera, while eight Ueno executives have been arrested.
Protests continued in the capital, Asunción, and other cities, with demonstrators demanding accountability and the return of their savings.
Before his removal, Peña called for national unity, writing on X, “Today, we must come together as Paraguayans to rebuild our institutions and restore trust.”
