The Paraguayan Chamber of Deputies has voted unanimously to impeach President Santiago Pena, paving the way for his trial in the Senate. The vote, which took place on November 5, 2026, was supported by all 78 deputies present. Pena had announced his resignation earlier in the day, citing the need to maintain stability in the country and its democratic institutions. His decision comes after a financial crisis caused by the troubled Banco Oigno.
The crisis began when the Central Bank of Paraguay took control of Banco Oigno due to a severe shortage of capital, which had fallen below the required minimum. This led to panic among approximately three million customers and resulted in Pena losing the support of his key allies, including former President Horacio Cartes. The deputies' decision to impeach Pena was based on allegations of poor management of public affairs, conflict of interest, and irregularities in the appointment of a former Banco Oigno executive to the Central Bank.
Pena, who took office in August 2023, had faced mounting pressure from the opposition and the media. The allegations against him include the irregular deposit of social security funds into Banco Oigno, exceeding legal limits. The president's resignation was seen as a move to protect the country's stability and democratic institutions. According to the constitution, a special session of both houses of Congress is required to consider Pena's resignation.
If Pena's resignation is accepted, Vice President Pedro Alliana will assume the presidency until the end of Pena's term in August 2028. The Congress will then elect a new vice president. Meanwhile, the Senate will consider the impeachment proceedings against Pena. The crisis has raised concerns about the country's economic stability and the government's ability to manage the situation.
The unanimous vote in favor of impeachment reflects the widespread criticism of Pena's handling of the crisis. All parliamentary blocs, including the ruling Colorado Party, supported the move. The opposition and dissident lawmakers had initiated the impeachment process, which was joined by the rest of the deputies. Pena's resignation has sparked a constitutional process that will determine the country's next steps.
The crisis at Banco Oigno has had far-reaching consequences, affecting not only the country's economy but also its politics. The government's response to the crisis has been questioned, and Pena's resignation has raised questions about the accountability of the country's leaders. The coming days will be crucial in determining the country's future and the outcome of the impeachment proceedings.
The developments in Paraguay have sparked concern among international observers, who are closely watching the situation. The country's stability and democratic institutions are seen as crucial to the region's economic and political stability. As the situation unfolds, it remains to be seen how the country will navigate this crisis and what implications it will have for its leaders and citizens.
Key points
- Paraguay's President Santiago Pena resigns amid a financial crisis caused by the troubled bank, Banco Oigno.
- The Paraguayan Chamber of Deputies votes unanimously to impeach Pena, paving the way for his trial in the Senate.
- Vice President Pedro Alliana will assume the presidency if Pena's resignation is accepted, until the end of Pena's term in August 2028.
