Paraguay: Pedro Alliana Sworn In as President Following Santiago Peña's Impeachment Amid Severe Banking Crisis

Paraguay witnessed a prominent political and constitutional shift on Friday, following the swearing-in of Vice President Pedro Alliana as the country's new president. This came after the decision to impeach President Santiago Peña and place him under house arrest in the capital, Asunción, amid the repercussions of a widespread financial and banking collapse that shook the nation.

Unprecedented Banking Crisis and Judicial Investigations

The current political and financial crisis erupted following the collapse of 'Ueno Bank' this week, which led to the freezing of the accounts and financial savings of half of Paraguay's adult population. Consequently, ousted President Peña was placed under house arrest in the capital ahead of being questioned by investigative and prosecutorial authorities regarding suspicions of breach of trust, influence peddling, and embezzlement of public funds.

Pledges to Rescue the Economy by 2028

Upon officially assuming power, 52-year-old Pedro Alliana announced his commitment to working intensively to address the deteriorating situation and restore financial and political stability before the conclusion of his presidential term scheduled for August 2028, having served as vice president over the past three years.

Who Is the New President, Pedro Alliana?

Alliana was born in February 1974 in the city of Pilar, located on the banks of the Paraguay River. Prior to entering politics, he pursued a career in business and was a player on the national basketball team in 1991. He grew up in a political environment, as both of his parents served as municipal council members.

Despite losing his first electoral bid for mayor of his hometown in 2006 at the age of 32, he succeeded two years later, specifically in 2008, in winning the position of governor of the southern department of Ñeembucú. With close backing from former President Horacio Cartes—one of the country's prominent political figures and leader of the ruling 'Colorado Party'—Alliana continued his political ascent, serving as a member and president of the Chamber of Deputies between 2013 and 2023, and subsequently leading the conservative party.

Alliana had been preparing to run for the Senate in 2021 before Cartes pushed him to enter the presidential race as running mate to Santiago Peña. The new president is married to Deputy Fabiana Souto and is a father of four. He has previously faced criticism over several members of his family, including his eldest daughter Montserrat, securing jobs and positions in public government administration.