Three million people without access to bank accounts. The president was removed from office and detained
Pedro Alliana took office after Santiago Peña was removed as president by the Senate
Quick Look
- The Paraguayan Senate removed Santiago Peña from the presidency, and Pedro Alliana was sworn in as the new president.
- The former president was arrested at his residence in connection with the bankruptcy of the online bank Ueno, supervised by the Central Bank of Paraguay, and on suspicion of breach of trust and illegal use of pension funds.
AI-generated summary
Why It Matters
The political crisis in Paraguay was triggered by the collapse of the online bank Ueno, which was taken over by the Central Bank of Paraguay and subjected to bankruptcy proceedings. Nearly 3 million customers lost access to funds. Santiago Peña, former president and former shareholder of the holding company that controls Ueno, is suspected of breach of trust, conflict of interest and illegal use of pension funds.
On Friday, the Paraguayan Senate decided to remove President Santiago Peña from office. At the same time, in Congress, the current vice-president, Pedro Alliana, took the oath of office as the new president.
While Alliana was taking office, police officers showed up at Peña's apartment. They informed him about the arrest warrant. The former president is currently under arrest at his residence, ABC reported.
The main cause of the political crisis is the bankruptcy of the online bank Ueno, which on Tuesday was taken over by the Central Bank of Paraguay and entered into bankruptcy proceedings. As a result of this decision, nearly 3 million customers lost access to their funds. The scandal caused huge public outrage.
Santiago Peña, who held shares in the holding company controlling Ueno until 2025, is suspected of breach of trust, conflict of interest and illegal use of pension funds. The opposition also accuses him of trying to hide facts regarding the activities of the bank, which administered public funds worth approximately $850 million.
The Paraguayan Attorney General's Office has opened three separate proceedings in the Ueno bank case. Searches were carried out in the offices of companies related to the bank and in the house of one of its bosses. Due to the scandal, Interior Minister Enrique Riera also resigned.
Pedro Alliana, the new president of Paraguay, is an experienced politician of the ruling Colorado Party. In the past, he served as governor of the Neembucu department and president of the Chamber of Deputies. Now he will lead the country until the end of the current term, i.e. until August 2028.
What to Watch
AI outlook — possibilities, not facts
The Paraguayan Attorney General's Office will complete its investigation into Ueno Bank and formally charge Santiago Peña.
Likely · Within weeks
Pedro Alliana will serve as President of Paraguay until August 2028.
Very likely · Within months
Open Questions
- What exactly were the charges brought against Santiago Peña?
- What fate awaits the 3 million customers of Ueno Bank?
- Who will take over as president after Alliana's term ends in August 2028?
