Paraguay has officially entered a new political era after the Senate voted overwhelmingly to impeach President Santiago Pena, removing him from office due to his alleged role in the catastrophic collapse of Ueno Bank. The decision, supported by 44 out of 45 senators, stripped Pena of his immunity and led to his immediate placement under house arrest. Prosecutors are currently preparing to question the former leader regarding accusations of breach of trust, influence peddling, and the misappropriation of public funds, specifically concerning his previous business ties to the bank’s parent company, Grupo Vazquez.

In the wake of the upheaval, former Vice President Pedro Alliana has been sworn in to lead the country through the remainder of the term, which runs until 2028. Alliana has moved quickly to calm a frustrated public, pledging that the nearly three million depositors—including pensioners—who lost access to their savings will be compensated. As the Central Bank begins the initial phase of returning funds to eligible account holders, the streets of Asuncion remain tense, with protesters continuing to demand full accountability. The scandal has already triggered a broader shake-up in the government, resulting in the resignations of top financial and interior officials and the arrest of several bank executives.