Taiwan reaffirms Paraguay ties after president’s removal from office

ASM, Philippine Canadian Inquirer
November 07, 2026

Photo courtesy: Reuters

Taiwan has reaffirmed its diplomatic ties with Paraguay despite a political crisis that led to the removal of President Santiago Peña following the collapse of a major bank.

Taiwan’s Ministry of Foreign Affairs said Friday, November 6, that political developments in Paraguay would not affect relations between the two countries.

The assurance came as Paraguay faced growing unrest over the collapse of Ueno Bank, which left millions of customers unable to access their money.

Taiwan pledges continued cooperation

In a statement, Taiwan’s foreign ministry said it was closely monitoring the situation and respected Paraguay’s constitutional procedures.

The ministry also stressed that both countries would continue working together on projects aimed at improving people’s lives.

It said the political changes would not disrupt existing cooperation or weaken their longstanding diplomatic relationship.

Meanwhile, Deputy Foreign Minister Chen Ming-chi said Taiwan remained in contact with Paraguay’s ruling party and government officials.

Taiwan also expressed its intention to strengthen bilateral cooperation despite the leadership change.

Paraguay removes president amid banking crisis

Peña announced his resignation on Thursday, November 5, as pressure mounted over the collapse of Ueno Bank.

However, Paraguay’s Congress did not accept his resignation. Lawmakers instead proceeded with impeachment hearings over allegations involving the bank and its ties to government officials.

The crisis began after Paraguay’s central bank intervened in Ueno over concerns about its financial condition.

The bank’s collapse disrupted access to accounts for nearly three million customers. It also triggered protests and investigations into the handling of public funds.

On Friday, November 6, Paraguay’s Senate voted unanimously among those present to remove Peña from office.

Vice President Pedro Alliana was subsequently sworn in as president.

Peña has denied wrongdoing related to the banking scandal. Authorities continue to investigate allegations concerning the bank and public officials.

Paraguay remains a key diplomatic ally

Paraguay is Taiwan’s only formal diplomatic ally in South America.

The two countries established diplomatic relations in July 1957 and have maintained close ties for nearly seven decades.

Their partnership has included cooperation in trade, investment, technology and development projects.

During a visit to Taiwan in May 2026, Peña reaffirmed Paraguay’s commitment to maintaining diplomatic relations with Taipei.

However, the relationship has faced political debate in Paraguay.

Some politicians and business leaders have argued that closer economic relations with China could offer greater benefits.

China considers Taiwan part of its territory and opposes countries maintaining formal diplomatic relations with Taipei.

Taiwan rejects Beijing’s sovereignty claims and continues to maintain formal ties with a small group of international partners.

Paraguay remains among the 12 countries that formally recognize Taiwan.

Taiwan maintains its diplomatic position

Despite the change in Paraguay’s leadership, Taiwan has not announced any suspension or reduction in bilateral cooperation.

The foreign ministry said it would continue working with Paraguay to strengthen relations and advance existing projects.

The statement followed Peña’s departure and came as Paraguay began its transition to a new administration under President Pedro Alliana.