OMM Newsroom
Paraguay’s Vice President Pedro Alliana became president after the Senate impeached and removed Santiago Peña amid a banking crisis in the country, AnewZ reported.
The 52-year-old Colorado Party politician will serve the remainder of Peña’s presidential term, until August 2028. He took office amid a political and financial crisis triggered by the collapse of digital lender “ueno.”
The lender’s failure restricted millions of customers’ access to their accounts, prompting street protests in Asuncion and questions about financial oversight. The crisis also led to the resignation of the head of Paraguay’s central bank on Tuesday.
Peña lost the support of senior figures in the ruling Colorado Party after lawmakers said he bore responsibility for the banking crisis. He was a business partner in the group that owned “ueno” until March 2025.
Following his impeachment, Peña was placed under house arrest in Asuncion on Friday. Prosecutors said he was awaiting questioning over allegations of breach of trust, influence peddling and misappropriation of funds.
Peña said he was resigning to prevent further harm to the country and help restore stability in Paraguay. He wrote that he did not want his presence to lead to greater division and instability, and that he had to put the country before his personal fate. Peña urged Paraguayans to unite to restore institutions, rebuild trust and support those affected by the crisis.
Pedro Alliana’s political career
Born in February 1974 in Pilar, a city on the banks of the Paraguay River, Alliana built his political career with the backing of former president Horacio Cartes, one of the country’s most influential figures and leader of the ruling Colorado Party.
Before entering politics, he worked in business and played basketball. In 1991, he represented Paraguay’s national basketball team. Politics also ran in Alliana’s family: both his parents served as local council members.
His first bid to become mayor of his hometown failed in 2006. Two years later, he was elected governor of the Ñeembucú Department. He served in the Chamber of Deputies from 2013 to 2023 and was its speaker during that period. Alliana led the Colorado Party for seven years before being elected vice president.
Known as a restrained politician with close ties to the party elite, Alliana is married to Congresswoman Fabiana Souto. They have four children.
Presidential ambitions and political ties
Alliana’s rise was linked to his close political relationship with former president Horacio Cartes. He had planned to run for the Senate in 2021, but later said Cartes advised him to become Peña’s running mate for vice president.
Alliana has made no secret of his presidential ambitions. A year after taking office as vice president, he openly said he hoped to hold the country’s highest office in the future. In 2025, Cartes publicly endorsed a possible candidacy. At a Colorado Party event, supporters urged him to back Alliana as “the next president of the republic,” telling him, “Pedro, you are blessed.”
Their relationship later deteriorated. After Cartes withdrew his support, Alliana distanced himself from him and said on October 26 that loyalty should not be confused with “blind obedience.”
Alliana had been preparing to run in the 2028 presidential election, but suspended his candidacy in the party’s December primaries on Monday as the banking crisis deepened. He also said he would not take responsibility for other people’s mistakes. The remarks were seen as a sign that he was increasingly distancing himself from Peña.
As lawmakers voted to remove Peña from office, they rejected the launch of impeachment proceedings against Alliana. He therefore assumed the presidency two years earlier than planned.
What could Alliana’s presidency mean for Paraguay?
Analysts expect broad policy continuity under Alliana. However, the new president could face challenges as Paraguay grapples with a financial crisis and prepares for the 2028 elections.
Mariano Machado, Americas principal analyst at Verisk Maplecroft, said Alliana’s presidency would mean policy continuity, dependence on Cartes and a weak mandate.
Peña’s departure removes a key advocate for Paraguay’s investment appeal, Machado said. He expects conventional macroeconomic policies to continue, but also anticipates growing pressure for patronage-style spending ahead of the 2028 elections.
In foreign policy, Alliana has emphasized Paraguay’s close ties 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 step up its fight against organized crime.
Alliana has also supported Paraguay’s diplomatic relations with Taiwan and its close ties with Israel. Paraguay is one of the few countries that maintains official relations with Taiwan.
The new president now faces the tasks of resolving the banking crisis, restoring public trust and governing the country for the remainder of Peña’s presidential term.
