In brief
Vice‑Presidential Pedro Alliana was sworn in as Paraguay’s president after the Senate impeached and removed former President Santiago Peña during the Ueno banking crisis. Alliana, a long‑time Colorado Party stalwart, will serve the remainder of Peña’s term until August 2028, continuing the party’s policies while addressing the country’s financial turmoil. Analysts note that Alliana’s rule may signal continuity but with added pressures for patronage ahead of the 2028 elections.
In Paraguay, Vice‑President Pedro Alliana became president on 6 November after the Senate gave Parliament the power to impeach and remove outgoing President Santiago Peña over a banking crisis involving the collapsed digital lender Ueno.
Alliana, 52, will serve the remainder of Peña’s term through August 2028, ensuring policy continuity for the long‑ruling Colorado Party amid a period of economic uncertainty.
Alliana said on Monday that he had decided to suspend his bid for the party’s December primary elections while the government addressed the country’s financial turmoil.
“I want to be president of the Republic,” Alliana told reporters on Monday. “I think I have the capacity, I have the knowledge, I have the ideas.”
He also said he was unwilling to take responsibility for mistakes made by others. He had been a business partner in the group that owned Ueno until March 2025.
Alliana has served as President of the Colorado Party for seven years, rising through the ranks alongside former President Horacio Cartes. He promised to maintain strong ties with the United States, citing the Shield of the Americas security initiative as a tool for combating organized crime, and to continue Paraguay’s formal diplomatic recognition of Taiwan and Israel.
Analysts say Alliana’s presidency signals a cautious but steady hand: Mariano Machado, Americas principal analyst at Verisk Maplecroft, noted that an Alliana presidency means “policy continuity, dependence on Cartes and a weak mandate.” He added that “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.”
Background: The Ueno Collapse and Political Fallout
The crisis that brought Alliana to power began when Ueno, a digital lender that had attracted millions of customers, failed abruptly, leaving clients unable to access their accounts. The collapse triggered a wave of public anger and called into question the integrity of the businesses that underpinned the national financial system.
President Peña had been an early supporter of the project, and his ties to the group that owned Ueno, which began operations in 2019, made him a target of the Senate’s investigations. Weakening support from senior members of the Colorado Party, Peña was impeached in a vote that passed on 5 November, six days before Alliana’s oath of office.
Alliana’s Immediate Priorities and Challenges
In the days after the impeachment, Alliana has vowed to restore confidence in Paraguay’s banking sector, with a promise to tighten regulatory oversight. He also announced plans to conduct a thorough review of the financial services sector, aiming to root out fraud and corruption and re‑establish trust among the Paraguayan population.
The new president faces an economy still grappling with the fallout of the Ueno collapse, inflationary pressures, and public expectations for reforms. Analysts suggest that while Alliana will likely preserve the party’s mainstream economic policies—maintaining a lean fiscal stance—he may also face increased demands for patronage spending as the 2028 elections approach.
International Relations and Stated Policies
Alliana’s statements indicate a focus on leveraging international partnerships to strengthen Paraguay’s security and economic standing. He highlighted U.S. security cooperation via the Shield of the Americas and reaffirmed support for Taiwan and Israel.
These positions echo the long-standing foreign policy stance of the Colorado Party, which traditionally seeks close ties with the United States and maintains a pro‑Western foreign policy orientation. However, the turbulence within the party might lead to shifts in how these alliances are framed publicly and operationalized.
Unanswered Questions and Ongoing Developments
While the constitutional transition is complete, questions remain about how Alliana will fill positions left vacant by resigned officials and how he will tackle the reforms demanded by opposition parties. The extent to which he will confront the allegations of mismanagement that led to Peña’s impeachment is still uncertain.
Future developments will also hinge on how the Colorado Party regroups after the leadership upheaval, whether it can maintain its electoral dominance, and if policy continuity will translate into economic stability for Paraguay. These unfolding dynamics will shape the political and economic trajectory of the country until the end of the current term in August 2028.
