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Paraguay swears in new president as former leader imprisoned

Former Vice President Pedro Alliana takes office while ex‑president Santiago Peña is placed under house arrest amid Ueno bank crisis.

By FlashPoint NewsSource: wam.ae1 min read
Paraguay swears in new president as former leader imprisoned
Image via wam.ae

In brief

Alliana was sworn in on November 6, 2026 after a unanimous Senate vote removed Peña following the collapse of digital bank Ueno. Prosecutors are reviewing charges of influence peddling and order Peña to appear at the prosecutor’s office. The crisis began when the Central Bank seized control of Ueno, halting deposits for roughly three million customers.

Paraguay’s former Vice President Pedro Alliana was sworn in as president on Friday, 6 November, as authorities put former President Santiago Peña under house arrest amid the fallout from the collapse of digital bank Ueno.

Senate deputies voted unanimously to remove Peña, citing widespread accusations of misconduct and conflict of interest linked to Ueno’s insolvency and the freezing of deposits for approximately three million customers, nearly half the nation’s population. The Chamber of Deputies had already initiated impeachment proceedings, and the Senate concluded the matter with a 44‑member, present vote that took place in the early hours of the day following Peña’s resignation offer.

Following the Senate vote, prosecutors outside Peña’s home in Asunción said they were still determining the extent of the charges, which could include influence peddling. According to the prosecutor’s office, Peña was ordered to appear at the prosecutor’s office on Saturday morning as the investigation progressed.

The crisis unfolded after the Central Bank seized control of Ueno earlier in the week, citing the bank’s suspected insolvency and an inability to cover depositor funds. This move left millions of Paraguayans unable to access their accounts, including many pensioners, and triggered nationwide protests and calls for accountability.

Reuter’s coverage confirms the swearing‑in of Alliana and the arrest of Peña, noting that Alliana had served as president‑elect and accepted the mandate after the Senate’s unanimous decision. It also echoes WAM’s statement that prosecutors are investigating influence‑peddling allegations against Peña.

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