In brief
The Senate’s removal of President Santiago Peña after the Ueno banking collapse has paved the way for Vice President Pedro Alliana to assume Paraguay’s presidency. Alliana, a senior Colorado Party figure, vows continuity while navigating economic uncertainty and an upcoming 2028 election. A Reuters investigation details the institutional stakes, court actions, and Alliana’s policy priorities.
In the early hours of Monday, the Paraguayan Senate voted to impeach President Santiago Peña, citing the collapse of the digital lender Ueno that left millions of citizens without access to their wallets. Vice‑President Pedro Alliana, the Colorado Party’s long‑time stalwart, steps into the presidential role to complete Peña’s term through August 2028, carrying with him the weight of economic uncertainty and a potentially tenuous mandate.
The Ueno debacle erupted when the lender’s algorithmic trading platform failed, wiping out billions of dollars of deposits and sparking widespread outrage. Lawmakers blamed Peña’s administration for failing to safeguard the institution, and senior officials within the Colorado Party – the dominant force for eight decades – accused him of mismanagement. That push culminated in the Senate’s impeachment, a rare showcase of a legislative check on executive power in Paraguay.
Alliana, 52, has been a key player behind the Colorado Party’s power structure. He served as the party’s president for seven years, rising through the ranks alongside former President Horacio Cartes. Alliana had positioned himself for a 2028 presidential campaign but moved to the presidency two years earlier, a decision that will reshape the party’s electoral calendar.
During a press briefing on Monday, Alliana said,
I want to be president of the Republic. I think I have the capacity, I have the knowledge, I have the ideas.
Alliana told reporters he was unwilling to take responsibility for mistakes made by others, a remark that echoes the tension that led Peña’s supporters to distance themselves from the former president.
The shift may not herald a dramatic change in policy, analysts suggest. Mariano Machado, Americas principal analyst at Verisk Maplecroft, warned that Alliana’s presidency would mean “policy continuity, dependence on Cartes and a weak mandate.” Machado further noted that the removal of Peña “eliminates the main advocate of Paraguay’s investment case,” implying a challenge for attracting foreign capital amid the country’s ongoing financial strain.
Alliana has positioned Paraguay’s external alliances as a pillar for internal stability. In an August interview with Infobae, he praised the Trump administration’s Shield of the Americas security initiative for strengthening anti‑organized‑crime measures. He also remained steadfast in supporting formal ties to Taiwan – one of only twelve nations with diplomatic relations with the island – and with Israel, signaling continuity in the country’s foreign policy posture.
Alliana’s ascent did not come without political cost. Prior to the impeachment, he had aligned with Peña, but the impeachment day found him suspending his bid for the Colorado Party’s December primary elections, a move that allowed the government to focus on addressing the fallout from Ueno without a campaign conflict.
Economically, the Ueno collapse left a scar across Paraguay’s banking sector. The crisis exposed a vulnerability in the digital lender’s regulatory oversight, prompting a call for comprehensive reforms. Alliana faces the dual challenge of restoring public trust in financial institutions while maintaining the stability the Colorado Party promises to its electorates.
Institutionally, the Senate’s impeachment underscores the judiciary’s role as a check on executive authority. The decision may embolden other branches of government to hold the presidency accountable, potentially reshaping Paraguay’s democratic safeguards during the coming years.
As the country looks toward the 2028 election, Alliana’s brief incumbency presents a complex mix of continuity, uncertainty, and opportunity. With policy continuity guaranteed but a weak mandate raised by analysts, the Colorado Party must navigate a path that balances domestic reforms with the expectations of voters who are still grappling with the aftermath of the Ueno collapse.
