Lawmakers swiftly removed Santiago Pena from office after both congressional chambers rejected his attempted resignation and decisively voted for his ouster. The move was precipitated by the central bank seizing Ueno Bank due to its failure to meet legal solvency thresholds. Investigators are now probing whether state regulators, including the central bank's recently resigned chief, shielded the institution from scrutiny due to Pena's past shareholding in its parent company.
Key points
Pedro Alliana assumed office as Paraguay's 53rd president after previously serving as vic…: Pedro Alliana assumed office as Paraguay's 53rd president after previously serving as vice president and leading the Chamber of Deputies.
Millions of bank clients were left without access to their funds and pension payments fol…: Millions of bank clients were left without access to their funds and pension payments following the sudden collapse of Ueno Bank.
An arrest warrant was issued for former central bank head Carlos Carvallo over regulatory…: An arrest warrant was issued for former central bank head Carlos Carvallo over regulatory failures connected to the lender's government ties.
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The sudden leadership change comes as Paraguay reels from the collapse of the Ueno Bank, a popular lender.
Pedro Alliana has been sworn in as the new president of Paraguay, after a banking scandal led to the impeachment of his predecessor, Santiago Pena.
On Friday, Alliana, 52, took the oath of office to become the South American country’s 53rd president.
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Previously, Alliana had served as vice president under Pena since the start of the latter’s term in 2023.
But Pena’s tenure came to an abrupt end earlier in the day, after 44 of Paraguay’s senators voted to remove him from office. One senator in the 45-member chamber abstained.
“I take my leave with gratitude, while fully acknowledging the anguish of those who are currently awaiting answers,” Pena wrote on social media on Friday afternoon.
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