Pedro Alliana sworn in as Paraguay's president after Congress removes Santiago Peña over Ueno Bank crisis

In brief

• Pedro Alliana took office as Paraguay's president on Friday after the Senate removed Santiago Peña.
• Ueno Bank was placed under forced administration, freezing client accounts of close to 3 million customers.
• Peña was placed under house arrest and faces investigation into alleged conflict of interest and breach of trust.

Bank crisis behind the ouster

The crisis centres on Ueno Bank, a digital lender that regulators took over after concluding it did not meet minimum prudential requirements. Central bank authorities imposed forced administration, freezing client accounts. (Milióny Paraguajčanov sa zo dňa na deň nedostali k svojim peniazom. Bankový škandál vyvolal protesty aj tlak na prezidenta – STVR) (Paraguayský prezident Peña rezignoval kvůli bankovnímu skandálu – Seznam Zprávy)

The freeze left many people unable to buy food or cover basic expenses. Thousands protested in the streets, demanding accountability from Peña. (Paraguaj má nového prezidenta, parlament odvolal Peñu pre bankovú krízu – HNonline.sk) (Paraguay má nového prezidenta – Novinky.cz)

Peña's resignation and detention

Peña first offered his resignation, but lawmakers did not accept it. Instead they moved to impeach him, which also stripped him of the immunity normally granted to former presidents. He was then placed under house arrest. (Paraguay má nového prezidenta. Předchůdce krátce předtím sesadili – ČT24)

Peña had previously held a stake in Grupo Vázquez, the company that controlled Ueno Bank. The opposition accused him of a conflict of interest, which he denied. Prosecutors are investigating whether he influenced oversight of the bank and the placement of public money there, and he was due to be questioned on suspicion of breach of trust and embezzlement.

What comes next

Alliana will serve until 2028. He has promised full compensation to affected clients, including pensioners. Opposition lawmakers proposed starting impeachment proceedings against him, but Congress did not approve the motion. (Paraguay má nového prezidenta. Ten předchozí skončil kvůli bankovní krizi – iDNES.cz) (Pedro Alliana sa stal novým prezidentom Paraguaja, odvolaný Santiago Peňa zostáva v domácom väzení – Aktuality.sk)

The central bank began paying the first advances to affected customers on Thursday.