Pedro Alliana, Paraguay's former vice president, was sworn in as president on Friday, stepping into the highest office after the impeachment of Santiago Peña. The sudden transition marks a dramatic turn in the South American nation's politics, already strained by a financial emergency that has shaken public confidence.
Alliana, a 52-year-old former basketball player and longtime leader of the Colorado Party, inherits a country in turmoil. The collapse of Ueno Bank this week froze the savings of roughly half of Paraguay's adult population, sparking protests and a political crisis that culminated in Peña's removal. In his inaugural address, Alliana pledged to address the situation head-on, vowing to stabilize the economy before his term concludes in August 2028.
Peña under house arrest
Santiago Peña, who was impeached on Thursday, has been placed under house arrest in Asunción. Prosecutors say he faces questioning on Saturday over alleged crimes including breach of trust, influence peddling, and misappropriation of funds. The former president's detention adds another layer of uncertainty to a country already grappling with the fallout from the banking collapse.
The impeachment process, which moved swiftly through Congress, reflects the depth of public anger over the handling of the crisis. Demonstrators had taken to the streets in recent days, demanding accountability and swift action to protect depositors. The political establishment, long dominated by the Colorado Party, now faces a critical test of its credibility.
Who is Pedro Alliana?
Born in February 1974 in Pilar, a city on the banks of the Paraguay River, Alliana's political career has been closely tied to former President Horacio Cartes, a powerful figure and leader of the Colorado Party. Before entering politics, Alliana pursued business and played basketball, representing Paraguay's national team in 1991.
Politics ran in his family—both parents served as local councillors—but his first electoral attempt ended in defeat in 2006, when he lost a bid for mayor of his hometown. Two years later, he won the governorship of the southern department of Neembucu, and from 2013 to 2023 he served in the Chamber of Deputies, eventually presiding over the lower house and later leading the Colorado Party.
In 2021, Alliana had expected to run for the Senate, but he later recalled that Cartes directed him to become Peña's running mate instead. Peña had once predicted Alliana could become "the best vice president in Paraguay's history."
Alliana's tenure has not been without controversy. He has faced criticism for appointing relatives to public posts, including his eldest daughter, Montserrat. He is married to congresswoman Fabiana Souto and has four children.
Ambitions and a falling-out
Alliana never concealed his presidential ambitions. A year into his vice presidency, he publicly expressed his desire to one day lead the country. In 2025, Cartes openly backed a potential candidacy, saying at a Colorado Party event, "Pedro, you are blessed," and urging supporters to rally behind him as the "next president of the Republic."
However, the relationship between the two men eventually soured. After Cartes withdrew his support, Alliana distanced himself, stating on 26 October that loyalty should not be confused with "blind obedience." That rift now shapes the political landscape as Alliana assumes the presidency without the backing of his former patron.
The new president faces an immediate challenge: restoring trust in the financial system and addressing the plight of millions of savers. His response will likely determine not only his political survival but also the stability of Paraguay's democracy in the coming years.
