Paraguayan lawmakers have officially sworn in former Vice President Pedro Alliana to lead the nation, following the rapid impeachment of President Santiago Pena. The decision to remove Pena from office came on Friday after senators voted overwhelmingly against him, citing his alleged involvement in the collapse of Ueno Bank, which ranks among the country's largest financial institutions.
The political turmoil follows a massive banking crisis that left millions of Paraguayans unable to access their personal deposits. Chaos erupted in the South American nation earlier this week when the Central Bank took control of Ueno due to solvency concerns, effectively blocking the accounts of nearly half the population. Ueno, which originated as a small fintech company with a digital-first model, had grown rapidly to handle government entities and state pensions.
Protests have rattled the capital city of Asuncion as the situation unfolded. Pena, a US-backed leader, faced intense scrutiny over his previous ties to the bank, which he maintained until last year as a stakeholder in the group that controlled Ueno. While opposition members have accused him of a conflict of interest, the former president has consistently denied the claims.
Meanwhile, the Central Bank has initiated the payment of advances to depositors who lost access to their funds. Jose Maciel, an official with the Central Bank's Deposit Guarantee Fund, confirmed that payments began on Thursday afternoon. The initial phase of this relief effort is focused on clients who have deposits of approximately $1,600 or less, provided they do not have outstanding loans and hold an account at another local institution. Maciel noted that further beneficiaries would be announced progressively throughout the payment process, though he did not disclose the current number of individuals who have already received funds.
