Paraguay’s Vice President Pedro Alliana has assumed the presidency after the Senate impeached and ousted Santiago Peña amid a banking crisis that sparked widespread political backlash.
The 52-year-old Colorado Party politician will serve out the remainder of Peña's term until August 2028, taking office amid political and financial turmoil caused by the collapse of digital lender ueno.
The lender's failure left millions of customers unable to access their accounts, triggering street protests in Asunción and raising questions about financial supervision. The fallout also forced the resignation of Paraguay's central bank chief on Tuesday.
Peña lost the backing of senior figures in the governing Colorado Party after lawmakers blamed him for the banking collapse. He had been a business partner in the group that owned ueno until March 2025.
Following his impeachment, Peña was placed under house arrest in Asunción on Friday. Prosecutors said he was awaiting questioning over alleged breach of trust, influence peddling and misappropriation of funds.
Born in February 1974 in Pilar, on the banks of the Paraguay River, Alliana built his political career with the backing of former president Horacio Cartes, one of the most influential figures in the country and the leader of the ruling Colorado Party.
Before entering politics, he pursued a business career and played basketball, representing Paraguay's national team in 1991.
Politics was part of his family background, with both parents having served as local councillors.
Alliana's first attempt to enter public office ended in defeat in 2006, when he unsuccessfully ran for mayor of his hometown. Two years later, he was elected governor of Ñeembucú.
He went on to serve in the Chamber of Deputies from 2013 to 2023, including a period as president of the lower house. He also led the Colorado Party for seven years before becoming vice president in 2023.
A reserved politician with deep connections to the party establishment, Alliana is married to congresswoman Fabiana Souto, and the couple have four children.
Alliana's political rise was closely linked to former President Horacio Cartes, one of Paraguay's most influential political figures.
In 2021, the now president had planned to seek a Senate seat but later recalled that Cartes encouraged him to become Peña's running mate instead.
Alliana did not hide his presidential ambitions. A year after taking up the vice presidency, he publicly acknowledged his desire to one day take the top job.
In 2025, Cartes openly backed his possible candidacy.
“Pedro, you are blessed,” he said at a Colorado Party event, where he called for supporters to get behind him as the “next president of the Republic.”
However, their relationship later deteriorated. After Cartes withdrew his support, Alliana distanced himself, declaring on 26 October that loyalty should not be confused with “blind obedience.”
Alliana had been preparing to run for president in 2028 but suspended his bid for the party's December primary elections on Monday as the banking crisis intensified.
He also said he would not take responsibility for mistakes made by others, a remark widely interpreted as signalling growing distance from Peña.
His political fortunes shifted when lawmakers voted to remove Peña while rejecting impeachment proceedings against him thus allowing him to assume the presidency two years earlier than planned.
Analysts expect broad policy continuity under Alliana, although his leadership could face challenges as Paraguay deals with the financial crisis and prepares for the 2028 elections.
“An Alliana presidency means policy continuity, dependence on Cartes and a weak mandate,” said Mariano Machado, Americas principal analyst at Verisk Maplecroft.
“Peña’s exit removes the main advocate of Paraguay’s investment case. Expect orthodox macroeconomic policy to continue, but with greater pressure for spending on patronage ahead of the 2028 elections.”
On foreign policy, Alliana has emphasised Paraguay's close relationship with the United States.
In an interview with Infobae last August, he said the Trump administration's Shield of the Americas regional security initiative would help Paraguay strengthen its fight against organised crime.
He has also supported Paraguay's diplomatic ties with Taiwan, one of the few countries maintaining formal relations with the island, as well as its close relationship with Israel.
Alliana now faces the challenge of addressing the banking crisis, restoring public confidence and governing through the remainder of Peña's presidential term.
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