Pedro Alliana was sworn in as president of Paraguay after the Senate removed Santiago Peña over the political and financial crisis surrounding Ueno Bank. The ceremony was held during a joint ceremonial session of both chambers of Congress and was broadcast on the Senate’s YouTube channel. Alliana will complete the term, which expires in August 2028.
Before the swearing-in, the 44 senators present at the session unanimously voted to remove Peña from office. The decision came three days after the Central Bank of Paraguay placed Ueno Bank under external administration, and the accounts at the institution were frozen. The bank has around 3 million customers in a country with a population of approximately 7 million.
Banking Crisis Led to Impeachment
Supporters of Peña’s removal accuse him of a conflict of interest because of his ties to Ueno Bank. The charges state that he held shares in the holding company controlling the bank, which he sold in 2025. The grounds also include the appointment of Carlos Carvallo — a former head of a financial company that became Ueno — as governor of the Central Bank.
Lawmakers also claim that the state pension fund held around $355 million in Ueno, exceeding legal limits. Peña denies committing any violation. His lawyers said that Parliament should have first considered his submitted resignation instead of proceeding with the impeachment process.
Resignation Was Not Put to a Vote
Peña announced his intention to step down one day before the Senate session. Congress, however, failed to hold a vote to accept or reject the resignation because of a lack of quorum. Senators continued with the impeachment process, depriving the former president of the right to automatically become a senator for life — a status provided for former heads of state in Paraguay if they have not been removed through impeachment.
Following his removal, prosecutors asked that Peña be placed under house arrest on suspicion of, among other offenses, breach of trust and influence peddling. The detention of Carlos Carvallo was also requested. The orders are part of a separate criminal investigation and do not constitute a finding of guilt.
Promise of Compensation
The new president took office amid pressure on the authorities to restore customers’ access to their savings and clarify the reasons behind the bank’s collapse. In his first address, Alliana said: “Fellow citizens who are going through a difficult time today because of the financial collapse will be fully compensated.”
Ueno Bank expanded rapidly in recent years and attracted the accounts of nearly half of Paraguay’s population. The new government must now organize the repayment or restoration of the funds, while prosecutors continue to examine the actions of Peña, former and current central bank officials, and other public servants.
Sources: investing.com, apnews.com, dw.com