Pedro Alliana sworn in as Paraguay's new president

Alliana, 52, previously served as vice president under Pena since his term began in 2023. He will complete the remainder of the presidential term through August 2028.

Following unanimous backing from 44 senators for his removal, Pena was placed under house arrest in Asuncion. He faces formal charges of breach of trust, abuse of influence, and using public office for personal gain, which carry a maximum sentence of ten years in prison.

Lawmakers accused him of misusing political influence to channel hundreds of millions of dollars in public funds into ueno bank, where regulators failed to curb risky internal lending.

Pena is the second Paraguayan president to be removed by impeachment since the end of General Alfredo Stroessner's 35-year dictatorship in 1989. In a farewell statement, Pena expressed hope that his departure would prevent further division and instability.

The sudden seizure of ueno bank by regulators left nearly half of Paraguay's six million citizens unable to access their savings or conduct digital transactions. The collapse also disrupted subsidiary services, including a major transport app that left 3,000 drivers unemployed, and stalled millions in international development loans.

Crowds gathered outside the congressional building to celebrate the ruling, chanting slogans demanding accountability and the recovery of trapped deposits, while authorities tightened security around Pena's residence ahead of his court appearance.

-SA