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Newly appointed Paraguayan President Pedro Alliana has directed all ministers and senior government officials to submit their resignations as the country grapples with a banking crisis that has left millions unable to access their funds.
Alliana, who previously served as vice president, assumed office on Friday after lawmakers impeached Santiago Peña over the collapse of Ueno Bank, which has links to the former president.
In a statement posted on X on Monday, Alliana said he had instructed his new chief of staff, Rolando de Barros, to request the resignation of ministers, secretaries and other senior officials appointed to positions of trust.
He explained that the move was intended to improve coordination across government agencies and strengthen administrative efficiency, while assuring citizens that public institutions would continue to function normally.
“My goal is to strengthen coordination within the Government and ensure more efficient management,” he wrote on X, adding that “all institutions will continue to operate with complete normality.”
The banking crisis began after Paraguay’s Central Bank took control of Ueno Bank on November 3, cutting off nearly three million customers from their accounts and sparking widespread protests.
The regulator began reimbursing depositors through a guarantee fund on Thursday. By Saturday, approximately $160 million had been returned to nearly 1.2 million customers.
Peña, who became president in 2023, previously held shares in the bank’s parent company but sold his stake last year.
He faces allegations that he used his presidential influence to direct millions of dollars in government deposits to Ueno Bank.
He is also accused of concealing or playing down the bank’s financial difficulties despite warnings about questionable lending practices and its ability to meet its obligations.
Following his impeachment, authorities placed Peña under house arrest. His residence was also searched over the weekend as part of the investigation into the bank’s collapse.
