Paraguay’s Senate pushed ahead on Friday with impeachment proceedings against President Santiago Peña, a day after he submitted his resignation amid the collapse of Ueno Bank.
Peña remains formally in office because Congress never voted on his resignation: a joint session lost its quorum on Thursday when lawmakers from his own Colorado Party walked out, La Nación reported. Vice President Pedro Alliana has not been sworn in as his successor. Alliana survived a separate impeachment vote in the lower house the same day, with 48 deputies voting against and 30 in favour, La Nación reported. On Friday morning, Peña signed decrees accepting ministers’ resignations, ABC Color reported.
The route matters. A conviction would bar Peña from the lifetime Senate seat normally granted to democratically elected former presidents under Article 189 of the Constitution, a seat that carries a voice but no vote.
Colorado lawmakers, including Senate President Basilio Núñez, argued that the resignation should be accepted so the executive branch could return to order, La Nación reported. Senator Celeste Amarilla and deputies Rocío Vallejo and Johanna Ortega argued instead for the trial to continue, saying a resignation would let Peña take the lifetime seat and the legal immunity that comes with it, the paper reported. According to Infobae, a resignation would also have let him keep a senator’s income, which the opposition rejected outright.
The last president the Senate removed was Fernando Lugo, on June 22, 2012, by 39 votes to 4, La Nación reported.
Senators voted 39-3 to reject Peña’s request for a 72-hour extension to prepare his defence, according to the Associated Press. Peña did not appear at the scheduled hearing. His lawyers, Ricardo Preda and Adolfo Ferreiro, arrived later and argued that the trial should end because Peña had already resigned, ABC Color and Perfil reported. They also said the timetable denied him adequate time to respond. Ferreiro said he would take the case to the Inter-American Court of Human Rights if Peña were removed through an irregular procedure. The Senate then admitted the evidence and began reviewing it.
The Chamber of Deputies approved the accusation on Thursday by 78 votes to none, with Peña’s own Colorado Party backing it, according to the chamber; the party did not back the separate accusation against Alliana. The accusation lists four grounds: a conflict of interest arising from Peña’s past stake in Ueno Holding; his appointment of Carlos Carvallo, a former president of Financiera Ueno, to head the central bank; his push to change the conflict-of-interest law; and allowing hundreds of billions of guaraníes from the Social Security Institute (IPS), the state pension fund, to be concentrated in Ueno Bank. The accusers say those deposits exceeded legal limits and cite indications of illicit enrichment, Última Hora reported.
Peña previously held a stake in Ueno’s parent group and says he sold his shares last year. In April 2025, he said he had “no connection whatsoever” with Ueno Bank, Última Hora reported. In a video address on Thursday, he apologised for failing to prevent the crisis and said: “My greatest wish is that the return of those funds be guaranteed,” according to Al Jazeera.
The Central Bank of Paraguay began Ueno’s resolution process after finding its solvency ratio had fallen below 50% of the required minimum following adjustments to its financial statements.
Ueno has nearly three million customers, according to the AP; Infobae puts the figure at 2.9 million.
The central bank said deposit-guarantee payments began on November 5 for an initial group of eligible customers with deposits of up to 10 million guaraníes.
Later groups will be paid in stages; the guarantee covers up to 75 minimum wages, about 228.3 million guaraníes, La Nación reported.
Paraguay’s Attorney General’s Office opened three criminal investigations on Thursday based on complaints linked to Ueno. They include complaints naming Peña, Alliana and current and former officials of the central bank and the IPS, according to the AP and La Nación. Opening a case does not mean anyone has been charged.
Prosecutors have separately charged 27 people linked to Ueno and related companies with offences including attempted fraud and breach of trust, La Nación reported.
Removing Peña requires a two-thirds majority, 30 of the Senate’s 45 votes, according to the AP. Senate President Basilio Núñez scheduled closing arguments and a final vote for Friday night, Paraguay time, ABC Color reported. If Peña is convicted, Alliana would serve out the term, which ends in August 2028, La Nación reported.