Crisis-hit Paraguay gets Pedro Alliana as new president: Ex-basketball player and a businessman

The crisis began on Tuesday when the Central Bank took control of ueno, a commercial bank, over concerns about its financial stability.

Pedro Alliana, who served as vice president for three years, took over as Paraguay's president on Friday after his predecessor was impeached following a major banking crisis that left nearly half the country's population unable to access their accounts.

Paraguay's President Pedro Alliana speaks after being sworn in following Santiago Pena's removal from office in an impeachment trial. (REUTERS)

A former national basketball player, businessman and member of the ruling party, Alliana took the oath on Friday, shortly after the impeachment of Santiago Pena. He will remain in office until 2028.

About Paraguay’s new president

• Born on February 19, 1974, in the riverside city of Pilar, Alliana rose in national politics with the support of former president Horacio Cartes, who remains one of the country's most influential political figures and leads the ruling Colorado Party.
• Before joining politics, Alliana worked as a businessman and made a name for himself as a basketball player. He was selected for Paraguay's national team in 1991.
• Politics was part of Alliana's life from a young age, with both his parents having served as local councillors. His first attempt to enter politics, however, ended in defeat in 2006, when he contested the mayoral election in his hometown at the age of 32.
• He was elected governor of the southern department of Neembucu two years later. Alliana served in the Chamber of Deputies from 2013 to 2023. During this period, he also headed the lower house before taking charge of the Colorado Party.
• His political rise was closely linked to 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 selected as Pena's running mate.
• Pena publicly backed his future deputy, saying Alliana could become “the best vice president in Paraguay's history.”
• Alliana is married to congresswoman Fabiana Souto and has four children. He has faced criticism over the employment of several relatives in public administration, including his eldest daughter, Montserrat Alliana.
• A year after becoming vice president, Alliana openly spoke about his ambition to eventually become president.
• He has also faced personal struggles in his life. In 2003, his 24-year-old brother, Rodolfo "Pili" Alliana, was kidnapped and murdered. A court found that the kidnapping was carried out to finance a cigarette smuggling operation, part of a billion-dollar trade in the landlocked country.
• In 2018, Alliana was diagnosed with leukaemia and received treatment in Brazil. He announced a year later that he had recovered, but underwent chemotherapy again in 2021.

The bank crisis in Paraguay

The ueno bank had expanded rapidly since its launch in 2021. However, concerns had been raised about its lending practices and its links to influential figures in Paraguay's political and financial circles. These included Pena, who remained a shareholder in ueno's holding company until last year, and Central Bank chief Carlos Carvallo, who had led the bank until 2023.

Paraguay's Senate impeached Pena on Friday. Although the president had offered to resign over the crisis, lawmakers continued with impeachment proceedings.

"The president is declared guilty of poor performance in his duties," Senate President Basilio Nunez said after the vote.

The bank's collapse sparked protests, with thousands taking to the streets to demand accountability from Pena, a key ally of the Donald Trump administration in the US.

With inputs from agencies