Paraguay Swears In New President After Senate Removes Peña

A new president after a banking crisis

November 7, 2026 · 3:00 a.m. Central

Paraguay has sworn in Pedro Alliana as president after the Senate removed Santiago Peña from office amid a crisis triggered by the collapse of Ueno Bank, according to the Paraguayan Senate and The Associated Press.

Peña was subsequently placed under house arrest as prosecutors investigate allegations connected to the bank, AP reported. Peña has denied wrongdoing. An investigation and an impeachment do not establish criminal guilt.

The developments mark a change from Peña’s earlier announcement that he would resign. Alliana, previously vice president, took the oath Friday to serve the remainder of the term through 2028.

What happens to the former president

All 44 senators present voted to remove Peña for misconduct, AP reported. Lawmakers accused him of using political influence to direct public money to Ueno while regulators overlooked risky lending; those are allegations, and Peña has denied wrongdoing.

AP said prosecutors are investigating suspected breach of trust, influence peddling and use of public office for personal gain. Peña was ordered to remain at a home in Asunción ahead of an appearance before prosecutors. The outcome of that investigation remains unresolved.

AP also reported that Alliana is under investigation in connection with the bank. It did not establish his guilt, and the report did not include a response from him to those allegations.

Why the bank collapse matters

Ueno’s collapse left a vast number of customers unable to access savings, according to AP, while political pressure mounted for accountability and the return of funds. The change in leadership does not by itself resolve depositors’ claims.

Newstro previously reported Peña’s planned resignation. Friday’s Senate vote, house arrest and the swearing-in are subsequent developments.

How the leadership changed

• November 3: Authorities seized Ueno amid the banking crisis, AP reported.
• November 5: Peña was under investigation as impeachment proceedings moved forward, according to AP’s earlier report.
• November 6: The Senate removed Peña and Alliana was sworn in, the Senate said. AP reported Peña was placed under house arrest.

Dates are local to Paraguay.

Where the transition took place

The star marks the approximate area of Asunción, Paraguay; it does not identify a specific incident site.

Local coverage on X

Paraguayan outlet El Nacional’s November 7 post described Peña’s removal and Alliana’s succession. The post is a news summary, not the source of the Senate’s decision.

Read El Nacional’s post

Open the original post if the embed does not load.

Sources and visual credits

Paraguayan Senate · Associated Press · Reuters via Investing.com · El Nacional on X.

Hero and thumbnail: conceptual illustration, not a photograph of the proceedings. Map data: OpenStreetMap contributors, ODbL.