A bloc of 35 lawmakers in Paraguay’s Chamber of Deputies on Wednesday filed an impeachment accusation against President Santiago Peña and Vice-president Pedro Alliana, escalating a political crisis sparked by the collapse of Ueno Bank, which left millions of customers unable to access their accounts.
The move follows the intervention and dissolution of the lender by the Central Bank of Paraguay (BCP), carried out after the bank’s solvency ratio fell below 50% of the required minimum.
The opposition deputies Johanna Ortega, Raúl Benítez and Rocío Vallejo submitted to the Lower Chamber the documents to activate the procedure provided for in article 225 of the Paraguayan Constitution and requested to convene, for this Thursday, November 5, to an extraordinary session to discuss them.
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The text of the indictment presented before the Chamber of Deputies asks to proceed with the political trial “for the poor performance of his duties in the exercise of office”. President Santiago Peña is accused, among others, of “conflict of interest” and his patrimonial evolution is questioned.
The measure occurs one day after the Central Bank of Paraguay (BCP) decided to intervene in the Ueno Bank because of a serious capital shortfall. His services were suspended while the authorities arranged for the return of deposits. President Santiago Peña, who assumed a mandate until 2028 in 2023, held shares in a group that controlled Ueno Bank, from which he divested in 2025.
Ueno Bank has 2.9 million customers in a country of 6.1 million inhabitants. After it was declared insolvent, its branches were closed and operations ceased, while thousands of savers tried to mobilize their accounts. Millionaires resources of public entities are deposited in Ueno, which also sponsored local football teams and events such as the stage in the country of the Rally World Championship.
Diputados convoca a sesión extraordinaria para este jueves 5/11 a las 10:00 hs para tratar libelos acusatorios de juicio político contra el presidente Santiago Peña y, a continuación, contra el vicepresidente Pedro Alliana (Art. 225 CN). pic.twitter.com/d5jEFPvpGu
— Cámara de Diputados (@DiputadosPy) November 5, 2026
Text reads: “Deputies convene an extraordinary session for this Thursday, November 5, at 10:00 A.M. to deal with the accusatory charges of political trial against President Santiago Peña and then against Vice-President Pedro Alliana (Art. 225 of National Constitution).“
Allegations Against Peña
The text filed against the Paraguayan President first alleges a conflict of interest stemming from his shareholding link to Ueno Holding. Ueno Bank’s chairman, Juan Manuel Gustale, who is currently in custody, has said he had no tie to the bank itself, although Santiago Peña did own shares in Ueno Holding.
The accusation also questions the appointment of Carlos Carvallo, a former President of Ueno finance company, to head the Central Bank, a decision the signatories describe as incompatible with protecting the public interest. In addition, it accuses Peña of promoting changes to conflict-of-interest legislation and of tolerating the accumulation by the Social Security Institute (IPS) of huge sums in Ueno Bank, above the permitted caps.
As for Alliana, the filing argues that he acted politically to shield the bank’s crisis from legislative scrutiny. It also faults him for endorsing the destination of pension funds and for staying silent despite warnings about excess credit limits granted to related companies.
Both case files rest on the same thesis: that senior officials knew how serious the bank’s financial situation was and still put corporate interests ahead of the public’s well-being.
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What Happens Next
Article 225 of the National Constitution allows impeachment of the President, the Vice-president and other senior officials for poor performance of duties, crimes committed in office or common crimes. Under the process, the Deputies chamber must approve the accusation by a two-thirds majority for it to move to the Senate, which acts as a court and needs the same share of votes to convict.
For the indictment against Peña and Alliana to go to the Senate, deputies need to gather 53 votes out of 80 legislators, a two-thirds qualified majority. If it succeeds in the Lower House, the Senate will carry out the trial that can remove the presidents if 30 votes of 45 senators (absolute two-thirds majority) are reached.
The Colorado Party (ANR), to which Peña belongs, has its own majority in both houses of Parliament. However, the group is chaired by the former President Horacio Cartes, distanced from the current President and considered a key figure to define the position of the Party against the request.
Deputy Vallejo said 36 opposition and dissident Colorado Party deputies have initially pledged their support, but at least five lawmakers from the ruling bloc would need to provide a quorum for such a session to take place.
Outside Congress, the Paraguayan Trade Union and Social Front called workers, retirees, savers and the general public to a demonstration in front of the Heroes Pantheon in Asuncion, describing the bank’s collapse as a “monumental swindle” of the Paraguayan people.
The groups estimate total losses at around 900 million dollars, of which some $350 million would correspond to IPS pension funds. They demand that those responsible be investigated and prosecuted, naming Peña, Alliana, Central Bank of Paraguay’s officials, bank executives and members of the IPS board, and assigning political responsibility to the head of the Colorado Party (ANR).
MILLIONS of people LOCKED OUT of their own money as Ueno bank COLLAPSES IN Paraguay
President Pena faces IMPEACHMENT — reports pic.twitter.com/3vb8z7MIQm
— RT (@RT_com) November 5, 2026
The crisis erupted on Tuesday when about three million users woke up unable to manage or withdraw their money after the Central Bank of Paraguay triggered Ueno Bank’s resolution process. The digital platform had been the fastest-growing player in the national financial market, with three million clients in a country of fewer than seven million people. The Chamber of Deputies is also set to discuss, in an extraordinary session, a bill to speed up the return of deposits.
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