Paraguayan Congress Rejects Santiago Peña's Resignation, Launches Impeachment
President Santiago Peña faces impeachment after the collapse of Ueno Bank triggered a national financial crisis and the freezing of millions of customer deposits.
The Congress of Paraguay rejected the resignation of Santiago Peña on Thursday, opting instead to launch impeachment proceedings against the president. The lower house voted 78-0 to impeach Peña, and the Senate has summoned him to present his defense on Friday. Lawmakers accuse Peña of dereliction of duty and conflicts of interest, citing his former shareholding in Ueno Bank's parent company, Grupo Vázquez, and his appointment of a former Ueno executive to lead the central bank.
The political crisis follows the November 3 closure of Ueno Bank, the country's largest lender, after the Central Bank of Paraguay ordered it into resolution due to insolvency. The collapse froze the deposits of approximately 3 million customers and nearly $850 million in public funds. The financial fallout included a 12% jump in the US dollar against the guaraní and the default of $350 million in Ueno bonds. Central bank chief Carlos Carvallo also resigned due to his previous ties to the lender.
While Peña offered to resign to preserve democratic stability, opponents argued that doing so would grant him life-long senatorial immunity. If convicted, Peña could be barred from public office and face criminal investigations led by Attorney General Emiliano Rolon. The Deposit Guarantee Fund currently covers approximately 97% of depositors, though the Paraguayan Industrial Union has warned of potential freezes in commercial payment chains.
