Paraguay Ousts Pena as Alliana Takes Over Presidency

By Staff, Agencies

Paraguay's Senate impeached President Santiago Pena on Friday following the collapse of Ueno Bank, which left around three million people unable to access their accounts and triggered widespread protests. Vice President Pedro Alliana was subsequently sworn in as president, completing the country's mandate until 2028.

A total of 44 senators voted to find Pena guilty of poor performance in office, while one was absent. The decision also stripped him of the immunity granted to former presidents. Pena had offered to resign but did not attend the Senate trial.

The crisis centered on Ueno Bank, which expanded rapidly under Pena's administration to become one of Paraguay's largest lenders. 

The bank reportedly served around 60% of the adult population and managed between $800 million and $850 million in deposits from state institutions and pension entities, raising questions over potential conflicts of interest linked to Pena's previous shareholding ties to Ueno Holding.

Following his swearing-in, Alliana pledged to address the crisis and ensure that affected depositors were not abandoned, as his administration faces pressure to restore confidence in the country's financial system.