Paraguay’s Santiago Pena under arrest, new president Pedro Alliana sworn in

What the report says

Paraguay has entered a rapid political transition after lawmakers removed President Santiago Pena from office following a banking scandal tied to the collapse of Ueno Bank. According to Al Jazeera, Vice President Pedro Alliana was sworn in as the country’s new president in Asuncion on Friday, becoming Paraguay’s 53rd president. Pena, from the long-dominant Colorado Party, was later the subject of prosecutors’ plans to seek his arrest on suspicion of breaching public trust and other crimes, and he was reported detained at his home.

The crisis began when the central bank said Ueno Bank no longer met solvency requirements and took control of the lender, moving its remaining assets to other institutions. The move left millions of customers unable to access accounts and pension payments. The bank had grown quickly in recent years and was one of Paraguay’s largest lenders by deposits, with public pension funds among its investors.

Pena had tried to resign, saying the move would help protect democratic institutions, but Congress rejected that step and proceeded with impeachment. The Chamber of Deputies voted unanimously to impeach him, and senators then removed him from office. Alliana, who had served as Pena’s vice president since 2023, takes office amid one of Paraguay’s most serious political and financial scandals in recent memory.