# Paraguayan Congress Initiates Impeachment Proceedings Against President Santiago Peña Legislators move toward near-unanimous impeachment following a major banking crisis involving Ueno Bank. - **Source:** [Poder360](https://www.poder360.com.br) - **Published:** 2026-11-05 - **Topic:** [politics](https://brifing.si/c/politics) - **Original article:** - **On Brifing:** https://brifing.si/s/7a62a5e6-8f36-45c2-8666-74a5fcf8cc08 ## Unanimous Legislative Support On November 5, 2026, the Paraguayan Chamber of Deputies began reviewing an impeachment request against President Santiago Peña. With 79 out of 80 deputies supporting the motion, the process faces near-unanimous backing. The proposal, introduced on November 4, gained critical momentum after the ruling Colorado Party’s 36-member bloc declared their support. ## Ueno Bank Crisis The impeachment stems from the collapse of Ueno Bank, the nation's largest digital financial institution. On November 3, the Central Bank of Paraguay intervened after discovering the bank's capital fell below half the legal requirement. This intervention suspended operations, effectively blocking access to funds for approximately three million affected bank customers. ## Conflict of Interest Allegations President Peña faces accusations of conflict of interest regarding his historical ties to the Grupo Vázquez, which controls Ueno Bank. Critics allege he made government decisions specifically favoring the institution. Peña reportedly held shares in the controlling group until 2025, fueling claims that his administration failed to provide necessary regulatory oversight. ## Broader Political Fallout The financial scandal has triggered significant administrative consequences beyond the presidency. Carlos Carvallo, the president of the Central Bank, resigned following the crisis. Additionally, authorities have arrested several executives linked to Ueno Bank. These events have intensified public pressure, forcing the government to announce emergency measures to restore customer deposits. ## Vice President Under Scrutiny The political crisis extends to the executive branch's leadership structure. Vice President Pedro Alliana is also facing a separate impeachment request currently being analyzed by the Chamber. The simultaneous targeting of both the President and Vice President suggests a deep institutional crisis that threatens the stability of the current administration's leadership. ## Constitutional Impeachment Process Following the Chamber of Deputies' approval, the impeachment process must move to the Senate for a final trial. To successfully remove the president from office, the constitution requires a two-thirds majority vote from the senators. This high threshold serves as the final legislative hurdle for those seeking to oust the president. ## Regulatory Oversight Failures The impeachment request specifically cites irregularities in the application of public resources and systemic failures in bank supervision. These allegations highlight concerns regarding how the government managed financial regulations during the bank's decline. The legislative focus remains on whether these regulatory lapses were intentional acts of favoritism by the executive branch. ## Implications for Governance The Colorado Party's decision to support the impeachment marks a pivotal shift in Paraguayan politics, signaling a loss of internal party confidence. As the process moves forward, the focus shifts to the Senate's upcoming deliberations. The outcome will determine the future of the current administration and the stability of national financial institutions. ## Sources covering this story - [Perfil — Paraguay Congress Unites for Impeachment Proceedings Against President Santiago Peña](https://perfil.com/politica/paraguay-hay-consenso-total-en-diputados-y-avanza-el-proceso-para-destituir-a-santiago-pena-asFBi6x63CDN) - [Poder360 — Paraguayan Chamber Moves Toward Unanimous Impeachment of President Santiago Peña](https://www.poder360.com.br/poder-internacional/impeachment-de-pena-e-unanime-na-camara-do-paraguai-diz-jornal/) - [G1 – Globo — Paraguayan President Santiago Peña Resigns Amid Banking Crisis](https://g1.globo.com/mundo/noticia/2026/11/05/santiago-pena-presidente-do-paraguai-que-renunciou-ao-cargo-e-de-direita-ou-esquerda-entenda-a-posicao-politica.ghtml) - [Asharq Al-Awsat — Paraguay President Santiago Peña Resigns Amid Banking Crisis](https://aawsat.com/node/5338027) - [Clarín — Paraguayan President Santiago Peña Resigns Amid Financial Scandal](https://www.clarin.com/mundo/santiago-pena-joven-economista-prometia-renovacion-cayo-medio-escandalo-financiero_0_2Ao8sdUafW.html) --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._