Paraguay Vice President Assumes Presidency After Santiago Peña’s Impeachment, Outgoing Leader Placed Under House Arrest

Paraguay’s New President Pedro Alliana Takes Office After Peña’s Impeachment, Former Leader Put Under House Arrest

Paraguay witnessed a major political upheaval on Saturday as Vice President Pedro Alliana assumed the presidency following the impeachment and removal of Santiago Peña. The ousted president was subsequently placed under house arrest amid an investigation into his alleged involvement in a banking scandal that has affected millions of customers.

Alliana was sworn in shortly after Paraguay’s Senate unanimously voted to remove Peña from office over the collapse of Ueno Bank, which reportedly left nearly three million customers unable to access their savings and bank accounts.

The 52-year-old new president will complete the remaining presidential term, which runs until August 2028. Addressing the banking crisis, Alliana pledged that his administration would stand by affected depositors and work to ensure they recover their money.

FORMER PRESIDENT PEÑA PLACED UNDER HOUSE ARREST

Following his removal, Peña was placed under house arrest at his residence in Asunción, the country’s capital.

Prosecutor Silvia Margarita Gonzalez Vester confirmed that the former president would remain at home until investigators question him. The investigation reportedly involves allegations of breach of trust, influence peddling and misappropriation of funds.

Authorities are examining claims that Peña used his political position to channel hundreds of millions of dollars in public funds into Ueno Bank, while financial regulators allegedly failed to address concerns about the institution’s risky lending practices.

Peña has denied any wrongdoing. His legal team had earlier argued that lawmakers should accept his resignation, submitted on Thursday, instead of proceeding with impeachment.

His removal also means he loses the lifetime Senate seat and parliamentary immunity generally available to former elected presidents under Paraguay’s Constitution.

ALLIANA FACES PRESSURE TO RESOLVE BANKING CRISIS

The new president inherits a banking crisis that has triggered widespread public anger and protests across Paraguay.

Ueno Bank was taken over by financial regulators earlier this week following concerns about its financial condition. The collapse disrupted access to deposits, withdrawals and banking services for millions of customers.

The Central Bank has started releasing advance payments to eligible depositors. The initial phase covers customers holding deposits of up to 10 million guaranies, equivalent to approximately $1,600.

Alliana, a member of Paraguay’s ruling Colorado Party, will also face questions over his alleged connections to the banking scandal. Prosecutors are reportedly examining his possible involvement, while an opposition effort to impeach him was shelved by lawmakers on Thursday.

PUBLIC ANGER GROWS OVER BANK COLLAPSE

The banking crisis has sparked demonstrations in several parts of the country, with customers demanding immediate access to their savings and accountability from officials responsible for the financial institution’s collapse.

The political fallout has now placed the new administration under pressure to restore confidence in Paraguay’s banking system, protect depositors and ensure a transparent investigation.

Alliana’s immediate challenge will be to manage the financial fallout while addressing allegations surrounding the previous administration and rebuilding public trust in the country’s institutions.