Pedro Alliana assumed the presidency of Paraguay on Friday after his predecessor was impeached over a massive banking crisis that left nearly half the country unable to access their accounts.
Shortly after voting to remove Santiago Pena over the chaotic collapse of a bank he was linked to, senators appointed Alliana, the former vice president, to the post.
After 44 of 45 senators voted in favor of impeachment, with one lawmaker absent, Senate President Basilio Nunez declared Pena “guilty of poor performance in his duties.” 
Hundreds of people gathered outside Congress and celebrated his impeachment loudly.
“Justice has been done. Now we want him to give us back our money and go to jail,” Jessica Aquino, 32, told AFP.
Prosecutor Silvia Margarita Gonzalez Vester told reporters that Paraguayan authorities placed the former leader under house arrest just minutes after he was removed from office.
Alliana pledged that he would not turn his back on the nearly three million depositors, pensioners among them, who were affected by Ueno Bank’s takeover amid worries about insolvency.
“Compatriots who are now going through a difficult time as a result of the financial collapse will be fully compensated,” said Alliana, who will serve as president until 2028.
Opposition lawmakers had also submitted a motion to impeach Alliana over the crisis, but it failed to secure congressional approval.
The bank’s collapse brought thousands of people into the streets calling for consequences for US-backed Pena, who held a stake in Grupo Vazquez until last year; the group controlled Ueno.
A Central Bank official told AFP that advance payments to an unspecified number of affected depositors began Thursday afternoon.
Jose Maciel of the Central Bank’s Deposit Guarantee Fund said the first round of aid deposits, worth up to about $1,600, would go to clients without loans who have an account at another bank or institution in Paraguay to receive the funds.
The next beneficiaries “will be announced progressively over the course of the payment process,” he added.
Pena had tendered his resignation because of the disaster, yet lawmakers pushed forward with impeachment proceedings that have removed his political immunity.
The opposition charged the US-backed politician with a conflict of interest, an accusation he rejected.
The Attorney General stated that it was investigating him for “acts related to the supervision and resolution of Ueno Bank S.A. and the placement of public funds in said entity.”
Prosecutor Gonzalez Vester said he will be questioned on Saturday regarding alleged crimes of breach of trust, influence peddling, and misappropriation of funds.
Shortly before his removal, Pena called for reconciliation in a post on X.
“Today, we must come together as Paraguayans to rebuild our institutions and restore trust,” he said.
On Friday, the US Embassy in Paraguay voiced “its solidarity with the Paraguayan people,” without making any mention of the president.
“Pena in prison,” read one of the protest signs outside Congress on Friday.
On Thursday, thousands protested for a third consecutive night in Asuncion and other cities to demand the return of their money.
“Santiago Pena has hurt so many Paraguayans, so many families, business owners, and small business people, including my own son, who had savings in Ueno Bank,” Cynthia Farina told AFP at a protest in the capital that police dispersed with tear gas and water cannons.
Ueno started out as a small fintech firm operating on a digital-first model that appealed to low-income customers, but it quickly grew into a major bank managing state pensions and the accounts of multiple state entities.
The scandal has led to the removal of Central Bank President Carlos Carvallo and Interior Minister Enrique Riera, while eight Ueno executives have been arrested.
On Wednesday and Thursday, police raided several locations associated with Grupo Vazquez.
Neighboring Argentina also felt the crisis’s effects, with around 1,000 employees at ITTI, a technology company belonging to Grupo Vazquez, suspended without pay for 30 days.
Football was affected as well. Ueno Bank sponsors several first-division teams, along with the national team.
