Pedro Alliana was sworn in as Paraguay’s president on Friday after the Senate removed Santiago Peña through impeachment, while prosecutors ordered Peña detained at his home in Asunción as a criminal investigation linked to the collapse of digital lender ueno widened.
Paraguay’s Senate said lawmakers voted unanimously among those present to remove Peña for poor performance in office following a political trial that began on November 5.
Congress then swore in Alliana, the former vice president, to complete the 2023-2028 constitutional term.
Under Article 234 of Paraguay’s constitution, the vice president assumes the presidency when the office becomes permanently vacant and serves through the end of the term.
The Public Prosecutor’s Office said Peña and former central bank chief Carlos Carvallo were ordered detained on November 6 in criminal case 92/2026 over the alleged commission of breach of trust and other offences.
Prosecutors said Peña was to remain at his residence until being brought before the Specialized Unit for Economic Crimes and Anti-Corruption.
Peña has denied wrongdoing, according to Reuters.
Alliana, 52, is a longtime Colorado Party politician who served in the Chamber of Deputies and led the party for seven years before becoming vice president in 2023.
Reuters reported that he will serve through August 2028.
The political upheaval followed the Banco Central del Paraguay’s decision to begin resolution proceedings for ueno after finding its solvency ratio had fallen below 50% of the required minimum following adjustments to its financial statements.
The central bank said the case was specific to ueno and did not reflect a broader weakness in Paraguay’s financial system.
The BCP said deposits are guaranteed up to 75 monthly minimum wages per depositor per institution, currently equivalent to 228.3 million guaraníes.
On November 5, it began paying a first group of eligible depositors with balances of up to 10 million guaraníes.
Reuters reported that ueno’s collapse had frozen access to funds for millions of customers and prompted protests in Asunción.
The impeachment accusations against Peña included alleged conflicts of interest and interference with regulatory oversight, claims he rejected.