Former Vice President Pedro Alliana was sworn in as Paraguay’s new president on Friday, November 6, after President Santiago Peña was removed from office through impeachment proceedings linked to the country’s escalating Paraguay banking crisis.
The Paraguayan Senate voted overwhelmingly to remove Peña, declaring him guilty of poor performance in office over his administration’s handling of the collapse of Ueno Bank, a financial institution with which he had previously been linked through business interests.
A total of 44 of the Senate’s 45 members voted in favor of impeachment, while one lawmaker was absent during the proceedings.
Following the vote, Alliana immediately assumed the presidency and is expected to serve the remainder of the current term through 2028.
Minutes after his removal from office, Peña was placed under house arrest as prosecutors continued investigating his alleged involvement in the bank’s collapse.
Authorities said the investigation includes allegations of breach of trust, influence peddling, and the possible misuse of public funds connected to the financial crisis.
The banking turmoil affected an estimated three million depositors, including retirees and pensioners, after Ueno Bank was placed under government intervention due to solvency concerns and financial irregularities.
The collapse of the digital lender triggered widespread public anger after customers lost access to savings accounts, bank cards, transfers, and pension payments.
Alliana pledged that affected depositors would recover their money, assuring citizens that his administration would prioritize compensation efforts and financial stability.
The Central Bank has already begun an initial compensation program, with some eligible customers expected to receive payments of up to approximately $1,600 during the first phase of reimbursements.
Hundreds of citizens gathered outside Congress following Peña’s impeachment, celebrating his removal while demanding the return of their deposits and accountability for those responsible for the banking collapse.
The crisis has become one of Paraguay’s most serious political and financial upheavals in more than a decade, raising broader questions about banking oversight, conflicts of interest, and the handling of public funds.
Ueno Bank had grown rapidly to serve roughly three million customers before regulators intervened over solvency concerns. Investigations have focused on the bank’s relationship with political and financial elites, including allegations of conflicts of interest involving Peña and former financial regulators.
International coverage also notes that Paraguay’s Congress chose to complete the impeachment process despite Peña’s earlier offer to resign, underscoring the severity of the political fallout from the banking crisis