Paraguay Senate Impeaches President Peña, Alliana Takes Over

Paraguay's former Vice-President, Pedro Alliana, was sworn in as the new President shortly after the Senate voted to remove Peña, with 44 of the 45 senators supporting the impeachment motion. One lawmaker was absent, while Senate President Basilio Núñez declared Peña guilty of poor performance in office.

Hundreds of protesters gathered outside Congress to celebrate the decision, demanding accountability and the return of their savings following the banking crisis.

Authorities subsequently placed Peña under house arrest, according to prosecutor Silvia Margarita González Vester. He is expected to appear before prosecutors for questioning over allegations including breach of trust, influence peddling and misappropriation of funds.

The impeachment followed the collapse of Ueno Bank, which left millions of customers unable to access their accounts. The bank had grown from a digital financial technology company into a major lender responsible for handling state pensions and accounts belonging to several government institutions.

Investigators are examining allegations concerning the supervision and resolution of Ueno Bank, as well as the placement of public funds in the institution. Peña, who had previously held a stake in Grupo Vázquez, the group that controlled the bank, denied allegations of a conflict of interest.

Although Peña had offered to resign on Thursday amid mounting pressure, lawmakers proceeded with the impeachment, stripping him of his political immunity.

In his first remarks as President, Alliana pledged that affected depositors, including pensioners, would not be abandoned. He promised full compensation for citizens affected by the financial collapse and said his administration would serve until 2028.

Meanwhile, efforts to return some of the frozen funds have begun. Initial payments of up to approximately $1,600 are being made to eligible customers who have no outstanding loans and hold accounts with other financial institutions in Paraguay.

The crisis has also led to the removal of Central Bank President Carlos Carvallo and Interior Minister Enrique Riera, while eight Ueno executives have been arrested. Police have also conducted searches at locations linked to Grupo Vázquez.

Protests over the collapse continued in Asunción and other cities, with thousands of customers demanding access to their savings.