Pedro Alliana Sworn In as Paraguay President

Pedro Alliana was sworn in as Paraguay’s president on 6 November 2026, after the Senate removed Santiago Peña. Alliana will serve the remainder of Peña’s term, which ends in August 2028.

Impeachment and Ueno Bank collapse

All 44 senators present voted to impeach and remove Peña. Lawmakers accused him of directing public funds to Ueno Bank, overlooking risky lending to companies linked to its owners and having a conflict of interest because of his former stake in its holding company. Peña denied the allegations. Congress rejected his resignation, submitted the previous day, and proceeded with impeachment.

The Central Bank of Paraguay began resolution proceedings against Ueno Bank on 3 November, freezing accounts affecting about 2.9–3 million customers—around 60% of the country’s adult population. Lawmakers also questioned a state pension fund deposit of US355 million, alleged to have exceeded legal limits. Ueno had received more than US800 million in public funds.

Investigations and customer compensation

Peña was placed under house arrest and ordered to appear before prosecutors on 7 November. An arrest warrant was issued for former central bank chief Carlos Carvallo, previously head of the finance company that became Ueno Bank. Prosecutors charged 27 people, including controlling shareholder Miguel Vázquez; six bank directors were in pre-trial detention.

Alliana, himself under investigation, survived an opposition impeachment attempt on 5 November. He promised full compensation for affected customers; advance payments to some depositors had begun. Deposits were insured up to about US$37,000, covering nearly all Ueno customers.

Important Facts for Exams

• Digital operating model: Ueno Bank operated mainly through digital payment platforms, making digital delivery its principal channel for serving customers.
• Visión integration: After acquiring Visión Banco in 2024, Ueno Bank integrated it into its operations, expanding its customer base and active credit-card portfolio.
• Resolution threshold: The Central Bank initiated resolution after Ueno Bank’s solvency ratio fell below half the required minimum; access to deposits was restricted under Law No. 2334/03.