“They all must go”: Peña’s removal fails to calm anger on Paraguay’s streets

Paraguay’s Senate removed President Santiago Peña from office on Friday. The action ended his presidency and triggered celebrations in Asunción. Peña then left office without immunity, a significant detail because he was later placed under house arrest. He was accused of breach of trust linked to the collapse of Ueno Bank.

Vice President Pedro Alliana became head of state after taking the oath. His appointment provided an immediate constitutional replacement, but it did not satisfy protesters demanding a broader political change. Many argued that Alliana and Peña represented the same government.

The change therefore solved one leadership question but not the wider crisis. Hundreds chanted “Out with them all” outside Congress. Protesters called for investigations, prison sentences and answers about missing money. They also objected to the Colorado Party government continuing after Peña’s removal.

Ueno Bank was enormous relative to Paraguay’s population. The bank had more than 2.9 million customers in a country with 6.1 million people. That scale meant its collapse could affect a large share of the public, far beyond a small group of investors.

The Central Bank took control of Ueno on Tuesday and froze its deposits. Among the people affected were about 32,000 pensioners from the Social Security Institute. Their money was caught in the banking crisis, creating immediate concern about access to savings and payments.

The figures also explain why the bank’s failure became politically explosive. Alliana promised that affected people would be fully compensated, but he did not explain how. The legal deposit guarantee covers up to 75 minimum wages, or about 228 million guaraníes, per depositor. Protesters demanded accountability as well as repayment.

A Central Bank takeover is a regulatory intervention in which the banking authority assumes control of a bank. It usually signals that the bank cannot safely continue operating under its existing management. The aim is to protect customers, examine the bank’s finances and prevent disorderly failure.

Freezing deposits means customers temporarily cannot withdraw or transfer their money. In general, regulators use such a freeze to stop a rush of withdrawals, preserve remaining funds and establish which claims can be paid. The article does not describe the Central Bank’s precise reasoning, but it records that Ueno’s deposits were frozen after the takeover.

That action immediately affected customers, including about 32,000 pensioners. It also created a public crisis because Ueno had more than 2.9 million customers. Alliana later promised full compensation, while the legal guarantee covered up to 228 million guaraníes per depositor.

When a Senate removes a president, lawmakers end that president’s term through a formal decision. The president leaves office before the normal end of the mandate. In Peña’s case, the article states that the Senate removed him, but it does not describe the exact legal procedure or vote.

The result is different from an election. An election allows voters to choose a president or governing representatives. Senate removal is a decision by legislators, usually based on alleged wrongdoing or a serious constitutional crisis. Here, Peña was later accused of breach of trust over Ueno Bank’s collapse.

Removal can change the head of state immediately without changing every institution or political group in power. Alliana became president after Peña’s removal, but protesters said the Colorado Party government remained. They demanded that the whole government leave, showing why removal did not feel like a complete political replacement.

Santiago Peña served as Paraguay’s president until the Senate removed him. The article connects his presidency to Ueno Bank because the bank received large amounts of public funds during his term. After his removal, he lost immunity and faced house arrest over an accusation of breach of trust.

Pedro Alliana was vice president under Peña. He became head of state when he was sworn in after the Senate’s decision. Alliana also announced that people affected by Ueno’s closure would be fully compensated, although he gave no details about the funding or process.

The Colorado Party is presented as the political force behind the government. Protesters opposed not only Peña but the entire Colorado Party government. They argued that Alliana represented “more of the same,” because other officials and the governing structure would remain after Peña left.

When a bank fails or is taken over, depositors may temporarily lose access to their accounts. Regulators then determine what funds remain, which claims are protected and how payments will be made. The disruption can be severe for people who depend on bank balances for daily needs, pensions or savings.

Paraguay’s legal deposit guarantee provides a protection limit. It covers up to 75 minimum wages, which the article values at about 228 million guaraníes per depositor. This means an eligible depositor could receive protection up to that limit, although the article does not explain the claim process or whether every balance qualifies.

The guarantee mattered after Ueno’s deposits were frozen. Around 32,000 Social Security Institute pensioners were affected. Alliana promised full compensation to those affected, but did not say how it would happen. The guarantee therefore offered a stated legal ceiling, while the political promise suggested broader repayment.

Banks connect private savings, public money and the wider economy. They use deposits to support lending and other financial activity. If a bank collapses, customers can lose access to money, public institutions can face losses and confidence in financial management can weaken. The effects reach beyond the bank itself.

Ueno Bank shows that mechanism clearly. It had more than 2.9 million customers, and the Central Bank froze its deposits. About 32,000 Social Security Institute pensioners were affected. The bank had also received large amounts of public funds during Peña’s term, linking its failure to government decisions and public accountability.

The result was both economic and political pressure. Alliana promised compensation, while protesters demanded jail and asked where the money had gone. Peña’s removal and house arrest followed the crisis. The article presents Ueno as one example of wider concerns about alleged plundering and the continuation of the same government.