After Santiago Peña was removed from office and placed under house arrest, Pedro Aliana was sworn in as President of Paraguay on Friday. It comes in the midst of a severe financial and political crisis in the country following the collapse of the Ueno digital bank, which provided bank accounts for about half of Paraguay's population.
Published on: 07/11/2026 - 07:43 Last updated: 07/11/2026 - 10:49
Pedro Aliana assumed the presidency of Paraguay, where he was sworn in, on Friday, succeeding Santiago Peña, who was removed from his position and placed under house arrest, in the midst of a rapidly developing political and financial crisis that erupted following the collapse of a digital bank.
In statements in front of Peña's home in the capital, Asunción, representatives of the Public Prosecution explained that the charges against him have not yet been determined, but they may include exploitation of influence. An order was also issued for him to appear before the Public Prosecutor’s Office on Saturday morning.
The decision to dismiss Peña came about an hour before the inauguration of his successor, following a unanimous vote in the Senate, where members raised questions about his previous relationships with the collapsed digital bank “Ueno”, which provided bank accounts for about half of Paraguay’s population.
Although Peña submitted his resignation on Thursday, the Senate preferred to continue his accountability procedures with the aim of removing him, rather than accepting his resignation, before rushing to install his deputy, Aliana, as president of the country.
The former president's placement under house arrest coincided with dozens of protesters gathering in front of his residence, while the police imposed a security cordon around the house.
The beginning of the crisis dates back to last week, when the Central Bank of Paraguay intervened in the affairs of Ueno Bank, which includes among its clients a large number of people who have never owned bank accounts.
The bank has achieved rapid growth since its launch in 2021, but doubts about its loan granting practices and its relations with the country’s political and financial elite have begun to escalate.
These questions included Peña, who until last year remained a shareholder in the bank's holding company, as well as Central Bank President Carlos Carvalho, who assumed the presidency of Ueno until 2023.
On Friday, public prosecutors also issued an arrest warrant for Carvalho, who resigned earlier this week as authorities launched a last-ditch attempt to prevent the bank's dissolution. Eight former senior Ueno executives have already been detained.
Others in Peña's inner circle also resigned, including the interior minister, the presidential chief of staff, and two of his advisers.
The impeachment charges that led to his dismissal stated that Peña was involved in a conflict of interest, tampering with regulatory oversight, transferring pension fund funds, and participating in an institutional cover-up involving the Central Bank.
Peña denied any wrongdoing and said the case was related to a regulatory issue. The central bank denied the existence of any conflict of interest, noting that Carvalho recused himself from making any decisions related to Ueno Bank.
France 24/AFP
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