Paraguay president impeached minutes after resigning following bank collapse that froze savings and wages
Impeachment vote follows resignation
Peña announced in a video posted to X that he was stepping down while lawmakers debated his impeachment. He said he acted for “the stability of our country,” and apologized to the public, while stopping short of accepting responsibility for the banking crisis.
The lower house’s unanimous 78-0 vote sends the charges to the Senate. Conviction requires a two-thirds majority, which would formally remove Peña from office. Congress was expected to accept Peña’s resignation at 5 p.m. Thursday, followed by Alliana’s swearing-in an hour later. Alliana would serve through August 2028, and lawmakers were expected to choose a new vice president.
Bank failure sparks public anger
Thousands of people protested for a third day, seeking to recover savings, wages and pensions held at Ueno Bank. The bank’s closure also affected 7,000 employees who were owed wages.
Ueno said it had more than 60% of Paraguay’s adults as customers. The digital lender had expanded rapidly, opening more than 70 locations and sponsoring the national soccer team and the country’s main stadium.
Questions over political connections
Ueno reported about $800 million in public deposits last month, around a quarter of its total. Those funds included money from the state pension and health fund and operators of the country’s hydroelectric dams.
Central bank inspectors found a pattern of risky lending to insiders in June, according to ABC Color. The bank’s rapid growth and its connections to government have prompted questions about oversight and the handling of public funds.
Key points
- The lower house voted 78-0 to impeach Santiago Peña minutes after he announced his resignation.
- The Senate needs a two-thirds majority to convict Peña and formally remove him from office.
- Ueno Bank’s collapse left customers seeking savings, pensions and wages, and affected 7,000 employees.
- Vice President Pedro Alliana was expected to take office Thursday and serve through August 2028.