Ousted Paraguayan president appears before prosecutors

Résumé détaillé

Paraguayan President Santiago Peña was removed from office and placed under house arrest Friday. The Senate voted on his impeachment after the collapse of a state-affiliated bank.

Paraguay's President Santiago Peña waves after a meeting with Venezuela's interim President Delcy Rodriguez at the Miraflores Presidential Palace in Caracas, on September 19, 2026. Federico Parra/AFP via Getty Images hide caption

Paraguayan President Santiago Peña was impeached and placed under house arrest Friday after the collapse of a prominent U.S.-owned bank with ties to Paraguay's government. The fallout has left millions across the country without access to their money.

Peña is one of Washington's closest allies in the region and was a shareholder in Ueno Bank, a digital lender that served about 3 million customers — more than half of the country's adult population.

He was known as a pro-market leader focused on making it easier to do business in the country, but legislators said he jeopardized state assets and benefitted himself through his connection to the bank.

Ueno Bank previously said more than a million people opened bank accounts for the first time using its services, which included generous cash back offers on groceries.

A trial has proceeded against Peña, and he appeared before prosecutors Saturday morning. The last president ousted from office was Fernando Lugo in 2012.

At proceedings inside the country's Senate Friday, legislators unanimously found Peña guilty of malfeasance in office, according to the Senate's website.

Prosecutors then accused him of a breach of trust, among other charges, before placing him under house arrest.

"I want to apologize to the Paraguayan people if I have failed you," Peña said in a speech posted to social media.

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