In brief
Santiago Pena was removed from office after a 44‑to‑1 impeachment vote tied to the collapse of Ueno Bank, and a warrant for his arrest was issued. The president’s deputy, Pedro Alliana, 52, was sworn in that same Friday as Paraguay’s new commander in chief. The crisis has spotlighted regulatory failures and alleged links between Pena and the failed lender.
In Paraguay’s capital, Asunción, the government saw a swift and dramatic change of leadership late on Friday: former president Santiago Pena was taken into custody amid a banking scandal, and conservative politician Pedro Alliana was sworn in as the 53rd president.
Impeachment and Bank Collapse
Earlier that day, 44 of Paraguay’s 45 senators voted to remove Pena from office, with a single abstention. The motion was brought forward after the central bank announced that Ueno Bank had fallen below the legal solvency threshold, a move that forced the seizure of the lender’s remaining assets and left millions of Paraguayans without access to their accounts or pension payments.
Prosecutors recalled that Pena was implicated in a breach of trust and other crimes; the prosecutor’s office ordered his house arrest following the impeachment and issued an arrest warrant for former central‑bank chief Carlos Carvallo, who had resigned earlier in the week after allegations that he failed in oversight duties.
"I take my leave with gratitude, while fully acknowledging the anguish of those who are currently awaiting answers,"
This message, posted by Pena on social media in the afternoon, was a quiet farewell to the position he had held for years within the Colorado Party.
The scandal involving Ueno Bank reached a tipping point when the institution, once the country’s fifth‑largest bank by deposits, was discovered to hold only $800 million in public funds in a largely unregulated environment. The lender’s rapid rise had been built on progressive growth and promises that more than a million Paraguayans had opened their first bank account with the firm. Many of those customers lost their savings – and their trust – when the bank’s licensure was revoked.
Presidential Inauguration
Within an hour of Pena’s removal, Pedro Alliana, a 52‑year‑old Conservative politician and deputy minister of government, was sworn in. The ceremony took place in front of the presidential palace where he took the oath of office, becoming Paraguay’s 53rd president. The choice of Alliana reflected the urgency of restoring stability after the rapid fiscal turmoil.
Alliana’s ascension follows the turmoil, underscoring the fragility of the country’s political and regulatory institutions. Analysts noted that Ueno’s collapse and the subsequent blackout of client accounts exposed potential lapses in oversight and raised questions about the ties between political leaders and financial institutions.
While Alliana vows to address the regulatory gaps and safeguard Paraguay’s banking system, the transition marks a pivotal moment for the nation. How effectively the new administration will restore investor confidence and re-establish the integrity of the banking sector remains to be seen. The country now watches closely as it navigates the aftermath of a crisis that has etched a new chapter in its political history.
