Crisis-Hit Paraguay Gets Pedro Alliana as New President: Ex-Basketball Player and Businessman

Pedro Alliana, Paraguay’s former vice president, has taken over as the country’s new president following the impeachment of Santiago Pena. The leadership change comes amid a major banking crisis that left nearly half the country’s population unable to access their bank accounts.

Alliana was sworn in on Friday after lawmakers removed Pena from office over the handling of the crisis surrounding ueno, a commercial bank whose operations were frozen by the Central Bank. The new president will serve until 2028.

A former national basketball player, businessman and senior member of the ruling Colorado Party, Alliana enters the presidency at a time when Paraguay is facing public anger, questions about financial oversight and demands for political accountability.

Key Highlights

• Pedro Alliana became Paraguay’s president after Santiago Pena was impeached.
• Alliana previously served as vice president for three years and will remain in office until 2028.
• The new president is a former businessman and basketball player who represented Paraguay’s national team in 1991.
• The ueno banking crisis affected around 3 million customers after the Central Bank took control of the lender.
• Alliana’s political career has been closely associated with former president Horacio Cartes and the ruling Colorado Party.

Who Is Pedro Alliana, Paraguay’s New President?

Pedro Alliana was born on February 19, 1974, in Pilar, a riverside city in Paraguay. Before entering national politics, he worked as a businessman and gained recognition as a basketball player. He was selected for Paraguay’s national basketball team in 1991.

Politics was familiar to Alliana from an early age. Both his parents served as local councillors, giving him an early connection to public life. However, his own political journey did not begin with an immediate victory.

In 2006, at the age of 32, he contested the mayoral election in his hometown but lost. Two years later, he secured an electoral victory and became governor of the southern department of Ñeembucú.

Pedro Alliana’s Political Career and Rise to Power

Alliana entered Paraguay’s Chamber of Deputies in 2013 and remained there until 2023. During his time in the lower house, he also served as its president before taking charge of the Colorado Party, one of the country’s major political organisations.

His rise within the party was closely connected to former president Horacio Cartes, who continues to be an influential figure in Paraguayan politics. Alliana became associated with a faction within the Colorado Party founded by Cartes.

In 2021, Alliana was preparing to contest a Senate seat. However, he later recalled that Cartes told him he would instead be chosen as the running mate of Santiago Pena. Pena publicly supported Alliana at the time, saying he could become “the best vice president in Paraguay’s history.”

After serving as vice president for three years, Alliana took over the country’s top office following Pena’s removal. A year after becoming vice president, he had openly discussed his ambition to eventually become president.

Family Life and Controversies

Alliana is married to congresswoman Fabiana Souto and has four children. His family has also attracted public attention because of criticism over the employment of several relatives in public administration, including his eldest daughter, Montserrat Alliana.

His personal life has included significant difficulties. In 2003, his 24-year-old brother, Rodolfo, popularly known as Pili Alliana, was kidnapped and murdered. A court found that the kidnapping was carried out to finance a cigarette-smuggling operation linked to a large illicit trade in Paraguay.

Pedro Alliana’s Health Struggles

Alliana has also spoken publicly about his battle with leukaemia. He was diagnosed with the disease in 2018 and received treatment in Brazil.

In 2019, he announced that he had recovered. However, he underwent chemotherapy again in 2021. His health experience has been a significant part of his personal history alongside his political career.

What Triggered the Banking Crisis in Paraguay?

The crisis that led to the change in Paraguay’s presidency began when the Central Bank took control of ueno, a commercial lender, over concerns about its financial stability. The intervention resulted in the freezing of accounts belonging to approximately 3 million customers, representing nearly half of Paraguay’s population.

The disruption created widespread concern among account holders and raised questions about the bank’s financial condition, lending practices and regulatory oversight.

Ueno had expanded rapidly after its launch in 2021. However, concerns had emerged over its lending practices and connections with influential individuals in Paraguay’s political and financial circles.

Those connections included former president Santiago Pena, who remained a shareholder in ueno’s holding company until last year. Central Bank chief Carlos Carvallo had also led the bank until 2023, adding to scrutiny surrounding the institution and its oversight.

Why Was Santiago Pena Impeached?

Paraguay’s Senate impeached Santiago Pena on Friday following the banking crisis. Although Pena had offered to resign over the controversy, lawmakers proceeded with the impeachment process.

After the vote, Senate President Basilio Nunez announced the decision, saying: “The president is declared guilty of poor performance in his duties.”

The crisis had triggered protests across the country, with thousands of people taking to the streets to demand accountability from the government. Public anger intensified as customers struggled to access their money following the Central Bank’s intervention at ueno.

Pena was also a key ally of the Donald Trump administration in the United States, making his removal a significant political development beyond the immediate banking controversy.

What Challenges Await Paraguay’s New President?

Alliana takes office with the banking crisis at the centre of the country’s political and financial concerns. Restoring confidence among affected customers, addressing questions about the lender’s financial stability and responding to demands for accountability are among the immediate issues facing the new administration.

The crisis has also drawn attention to the relationship between financial institutions, political influence and regulatory supervision in Paraguay. The connections involving former government figures and the bank are likely to remain part of public scrutiny.

Alliana’s close political association with Horacio Cartes and his long-standing position within the Colorado Party will also form part of the political context surrounding his presidency.

Conclusion

Pedro Alliana’s rise from businessman and national basketball player to Paraguay’s president marks a major political transition for the country. His appointment follows the impeachment of Santiago Pena amid a banking crisis that disrupted access to accounts for millions of customers.

With his term expected to continue until 2028, Alliana faces the immediate task of addressing the banking controversy and responding to public demands for accountability. How his administration handles the financial disruption and the questions surrounding ueno will be central to the early period of his presidency.