Pedro Alliana Sworn In As Paraguay's President Following Santiago Pena's Impeachment
The new leader assumes office on the same day his predecessor is placed under house arrest amid the Ueno Bank collapse.
By Paula Delgado ·
Pedro Alliana took the oath of office on Friday to become the 53rd president of Paraguay. He assumed the role immediately after the Senate voted to remove his predecessor, Santiago Pena, from power. Alliana, 52, had served as vice president under Pena since 2023.
The Senate removed Pena with a vote of 44 to 0. One of the 45 senators abstained. Prosecutors subsequently ordered Pena placed under house arrest on suspicion of breach of trust and other crimes. An arrest warrant was also issued for Carlos Carvallo, the former head of the central bank. Carvallo resigned earlier in the week after the institution was accused of failing in its oversight duties.
The political upheaval coincides with the collapse of Ueno Bank. The central bank announced early Tuesday that the lender fell below legal solvency standards. It lacked sufficient collateral to cover its loans and other ventures. The central bank seized the institution and transferred its remaining assets to other banking bodies to protect the system.
Millions of Ueno clients lost access to their accounts and pension payments following the seizure. The bank counted nearly two-thirds of Paraguay’s adults among its customers, with roughly three million members. It had grown to become the country’s fifth-largest bank by deposits, with $800 million in public money fueling its expansion. Prior to its collapse, the firm claimed more than a million Paraguayans had opened their first bank account with it.
Pena was identified as a shareholder of Ueno’s parent company in 2023. He stated he sold his shares in early 2025. Questions remain regarding whether the bank was properly regulated and if Pena had conflicts of interest. Prosecutors have investigated whether government connections shielded Ueno from accountability. Approximately $355 million in state pension funds were invested in the bank.
Pena initially offered to resign to preserve democratic institutions. However, Congress rejected his resignation on Thursday. The Chamber of Deputies voted 78 to 0 to impeach him, allowing the Senate to remove him the following day. The legislature declined to open impeachment hearings against Alliana. The Colorado Party, which has dominated Paraguayan politics since 1948, supported the impeachment. Horacio Cartes, a former president and party leader, wrote in a statement that the move was necessary to restore the republic’s institutions.
At least 27 people face criminal charges related to the scandal. These include lead shareholder Miguel Vazquez. Crimes under investigation include attempted fraud, breach of trust, misappropriation of funds, and influence peddling. Pena did not appear at the impeachment hearings on Friday, sending his lawyers instead. He wrote in a statement that he did not wish his presence to cause greater division or instability. He indicated plans to cooperate with the investigation.
Alliana began his political career as the governor of Neembucu department. He served nearly a decade in the Chamber of Deputies, including three years as its president. He now leads the country while it faces one of its most severe political and economic scandals in recent history.
