STORY: Pedro Alliana was sworn in as Paraguay's new president on Friday (November 6) just as authorities put his impeached predecessor Santiago Pena under house arrest, the latest developments in a fast-moving political and financial crisis triggered by the collapse of a digital bank.

Prosecutors speaking outside Pena's house in Asuncion said charges were still being determined but could include influence peddling. Pena was ordered to appear at the prosecutor's office on Saturday morning.

Pena was ousted from the presidency about an hour beforehand in a unanimous Senate vote, with lawmakers citing questions over his past links to the collapsed digital bank ueno that had provided accounts for nearly half of Paraguay's population.

Although Pena offered his resignation on Thursday, the Senate chose to finalize the impeachment process rather than accept, and swiftly moved to install his second-in-command, Alliana.

By the time of his arrest, dozens of protesters had gathered outside Peña's residence. Police installed a security cordon around the property.

The turmoil began earlier this week when Paraguay's central bank intervened in ueno, whose customers include many people who had not previously had access to a bank account.

The bank had grown rapidly since launching in 2021. But questions had emerged over ueno's lending practices and its ties to Paraguay's political and financial elite — including Pena, who until last year was a shareholder in ueno's holding company, and the central bank chief Carlos Carvallo, who had headed ueno until 2023.

Prosecutors on Friday also issued an arrest warrant for Carvallo, who resigned earlier this week as authorities launched last-ditch proceedings to prevent the lender dissolving. Eight former ueno executives have already been detained.

Pena denied any wrongdoing and said the affair was a regulatory issue. The central bank has denied any conflict of interest, saying Carvallo recused himself from all decisions related to ueno.

DESCRIPCIÓN DE IMÁGENES

SHOWS: ASUNCION, PARAGUAY (NOVEMBER 6, 2026) (SENADO TV PARAGUAY HANDOUT - Access all)

1. (MUTE) VARIOUS OF PEDRO ALLIANA ENTERING BUILDING, GREETING ATTENDEES

2. (MUTE) ATTENDEES STANDING

3. PRESIDENT OF SENATE BASILIO NUNEZ STARTING CEREMONY

4. (MUTE) ALLIANA STANDING UP, WALKING FOR SWEARING IN CEREMONY

5. ALLIANA BEING SWORN IN

6. (MUTE) ALLIANA STANDING NEXT TO PARTNER

7. (MUTE) ALLIANA WALKING TO LECTERN

8. (SOUNDBITE) (Spanish) PRESIDENT OF PARAGUAY, PEDRO ALLIANA, SAYING:

“What I am here to promise is concrete. Our fellow citizens who are currently facing difficult times as a result of the financial crisis will be fully compensated; we will not leave them to fend for themselves. I am ordering that immediate action be taken to compensate savers, starting with the most disadvantaged.”

9. (MUTE) VARIOUS OF CEREMONY ENDING