Paraguay’s Senate voted on Friday to impeach President Santiago Pena over the collapse of Ueno Bank, which froze the accounts of about three million people and triggered widespread protests. Senate President Basilio Nunez declared Pena “guilty of poor performance in his duties” after lawmakers voted 44 in favor, with one absence in the 45-member chamber.
Pena, 47, had offered to resign over the disaster, but lawmakers pressed ahead with impeachment, preventing him from becoming a senator for life and enjoying immunity from prosecution. He did not attend the Senate trial despite earlier pledging to defend himself. Vice President Pedro Alliana is preparing to complete the current term until 2028.
The crisis began when the Central Bank took control of Ueno Bank on Tuesday and froze its accounts over solvency concerns. Ueno began as a small fintech company with a digital-first model that attracted low-income customers, rapidly becoming a major bank that handled state pensions and accounts of several state entities. Around three million people have since been unable to access their money. The Central Bank’s Deposit Guarantee Fund began advance payments to some affected depositors on Thursday afternoon. Jose Maciel said the first phase, of up to about $1,600, will go to clients without loans who have an account at another bank or institution in Paraguay. Further beneficiaries will be announced progressively.
Pena apologized in a video address on Thursday. “It was never my intention to betray the trust you placed in me,” he said. Lawmakers from his own party backed the impeachment. The opposition accuses Pena of a conflict of interest, which he denies, citing his former stake in Grupo Vazquez, which controlled Ueno until last year. The attorney general said it is investigating him over the supervision and resolution of Ueno Bank and the placement of public funds in the entity.
Thousands protested for a third consecutive night in Asuncion and other cities, demanding their money back. Police dispersed demonstrators with tear gas and water cannons. Outside Congress, about 250 people waited for the verdict, one holding a sign reading “Pena in prison.” “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.
The scandal has also forced out Central Bank President Carlos Carvallo and Interior Minister Enrique Riera. Eight Ueno executives have been arrested. Prosecutors raided offices of technology company ITTI, part of Grupo Vazquez, seizing hard drives, computers and other items. “We found a large amount of documents that will be useful for the investigation,” prosecutor Francisco Cabrera said. In neighboring Argentina, about 1,000 ITTI employees were suspended for 30 days without pay. Ueno Bank’s collapse also hit football, as the bank sponsors several first-division teams and the national team. The national team said its members were “also victims of this situation.” The US Embassy expressed solidarity with the Paraguayan people without mentioning Pena.
Original Source: https://www.ndtv.com/world-news/paraguay-senate-impeaches-president-santiago-pea-over-banking-crisis-12295139#publisher=newsstand
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Publish Date: 2026-11-07 05:04:00
