Pedro Alliana was sworn in as Paraguay’s president on Friday, November 6, after Congress removed Santiago Peña through impeachment. The transition puts a new government in charge amid the collapse of Ueno Bank, which left roughly 3 million customers unable to access savings, wages or pensions. Alliana has promised compensation for those affected.

How the transition unfolded

At the end of a two-day process, Senators voted to condemn Peña by 44 votes. He had submitted his resignation on Thursday after losing his party’s support, but it was not formally accepted. Alliana, who was vice president, took office to complete the presidential term through 2028.

The impeachment case included allegations that Peña had conflicts of interest, manipulated regulatory oversight and taken part in an institutional cover-up linked to Ueno. The political crisis followed the bank’s collapse; a Chilean report said Paraguay’s central bank intervened in Ueno over solvency problems.

The reported number of affected customers is close to 3 million. Mexico’s Gaceta.mx reported that 3 million had lost access to savings, wages and pensions, while Venezuela’s El Tiempo put the figure at about 2.94 million. The prosecutor’s office ordered Peña’s arrest, and reports said he was detained at his home. El Tiempo said police detained him on suspicion of breach of trust.

Foreign governments welcome the new president

Brazilian President Luiz Inácio Lula da Silva said he was ready to work with Alliana and hoped to receive him in Brasília to discuss bilateral ties. Chilean President José Antonio Kast congratulated Alliana and pointed to shared priorities including security, organized crime and economic growth. The Chilean government also wished him success in the interests of Paraguay’s institutional stability.

The U.S. Embassy in Asunción called Paraguay a strategic regional partner, friend and ally, and said it hoped to work with Alliana’s government. Mexico also congratulated him and said it was willing to strengthen cooperation. Peru’s President Keiko Fujimori wished him success, while Taiwan said its ties with Paraguay were unaffected and outlined continued cooperation in health, education, trade and investment.

Paraguay’s Foreign Ministry said that, on Alliana’s instructions, Foreign Minister Rubén Ramírez Lezcano held calls with other governments to reaffirm continuity in the country’s foreign-policy direction.

The bank crisis remains unresolved

In his first presidential speech, Alliana promised to compensate people affected by the financial collapse. The sources did not specify how or when compensation would be delivered, leaving the practical terms of the promise unanswered.

Reuters, citing an unnamed Brazilian government source, reported that Brazil’s main concern was preventing social instability and resolving the banking crisis without wider unrest. The final findings on Ueno’s collapse, and any responsibility for it, remain unknown.