Paraguay Senate Removes President Peña, Vice President Alliana Sworn In

The update

Paraguay’s Senate voted 44 in favour on Friday to remove President Santiago Peña from office over the collapse of Ueno Bank. Vice President Pedro Alliana, 52, was sworn in as the country’s 53rd president to serve until August 2028. Prosecutors then ordered Peña’s arrest in a criminal investigation, and officials said he was placed under house arrest pending final charges. An arrest warrant was also issued for former central bank chief Carlos Carvallo.

Why it matters

Ueno’s failure left about 2.94 million customers, roughly 60 percent of Paraguay’s adult population, unable to access deposits and pension payments after the central bank seized the lender on Tuesday, after its solvency fell below legal standards. The Social Security Institute held about $355 million at the bank. Congress had rejected Peña’s offered resignation on Thursday, choosing impeachment instead, stripping him of the lifetime Senate seat and legal protections former presidents receive. At least 27 people face criminal charges linked to the scandal.

What to watch

Alliana takes office amid protests and queues outside closed branches, with savers still waiting for full access to their money. Watch whether prosecutors file formal charges against Peña and Carvallo, how quickly depositors and pensioners are repaid, and whether the investigation widens into the bank’s regulation and government ties.

Sources

• aljazeera.com — confirms the Senate vote, Alliana’s swearing-in and the moves to arrest Peña
• dw.com — confirms the impeachment, house arrest, Ueno customer numbers and pension funds at risk

Related coverage

• Paraguay President Santiago Peña Resigns Amid Ueno Bank Collapse
• Paraguay Congress Rejects Peña Resignation and Presses Impeachment Over Ueno Bank Collapse
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