Pedro Alliana sworn in as president of Paraguay

◆3 sources

Pedro Alliana was sworn in as Paraguay’s president after parliament deposed Santiago Peña. Alliana had served as Peña’s vice president. Peña had earlier sought to resign before the dismissal procedure, but parliament rejected the request and both chambers then unanimously voted to remove him.

Peña was blamed for a banking crisis that, according to one report, left 3 million of Paraguay’s 6.5 million people unable to access their savings. That report said prosecutors issued an arrest warrant for Peña and placed him under house arrest over alleged ties to Ueno bank, which the central bank had put under administration because of financial problems. Alliana said affected account holders would be compensated as soon as possible; the central bank has begun gradual payments through advances.

More on this story

Business & Finance

Santiago Peña resigns amid Ueno banking crisis

4 sources

Paraguayan President Santiago Peña announced his resignation after mass protests over the crisis at digital bank Ueno, which had been placed under Central Bank supervision. The bank's accounts and transactions were blocked, leaving almost three million of Paraguay's 6.5 million people unable to access their funds. Peña said he was stepping down to preserve stability. Ueno was reported to have less than half the required minimum capital and to be unable to meet immediate obligations. The bank holds public funds, and protesters and opposition figures held Peña responsible, citing his previous shareholding in Ueno's parent company and alleged failures of financial oversight. The Central Bank says deposits of up to €17,000, less any debts, are covered by a guarantee fund; the position of customers with larger balances remains unclear.