Pedro Alliana has stepped in as the new president of Paraguay following the removal of Santiago Peña from office on Friday. The leadership change comes after a massive banking crisis locked nearly half the country’s citizens out of their bank accounts, according to Punch.
The Paraguayan Senate moved decisively, with 44 out of 45 lawmakers voting in favour of removing Peña, while one senator was absent. Senate President Basilio Nuñez pronounced Peña guilty of failing to carry out his duties properly. Following the decision, crowd gatherings outside the National Congress erupted in celebration over the outcome.
Peña had offered to resign amid the fallout, but lawmakers chose to proceed with the impeachment trial, stripping him of immunity. Moments after his removal, law enforcement placed the former leader under house arrest, as confirmed by prosecutor Silvia Margarita Gonzalez Vester. Prosecutors plan to question him on Saturday over allegations including breach of trust, influence peddling, and misappropriation of funds linked to public deposits in Ueno Bank. Peña had denied having a conflict of interest despite previous ties to Grupo Vazquez, the parent company of the bank.
Taking charge of the government until 2028, President Alliana addressed the nation and promised that affected citizens would receive relief. He pledged that nearly three million depositors and pensioners hit by the insolvency crisis at Ueno Bank would be fully compensated. Opposition lawmakers had also tried to sponsor an impeachment motion against Alliana, but the measure failed to pass in Congress.
The fallout from the bank's collapse has led to street demonstrations in Asuncion and other cities. Ueno Bank, which began as a digital fintech firm before managing government accounts and state pensions, was seized amid solvency failures. Central Bank Deposit Guarantee Fund official Jose Maciel noted that advance payments of up to roughly $1,600 have started rolling out to depositors who hold separate accounts in other local banks and do not carry loans.
The wider fallout has forced Central Bank President Carlos Carvallo and Interior Minister Enrique Riera from their positions, while authorities have arrested eight bank executives. The crisis has even touched sports, as Ueno Bank serves as a major sponsor for several top-flight football clubs and Paraguay's national team.
