Paraguayan President Santiago Peña decided to resign before the Chamber of Deputies could vote on impeachment proceedings. Separately, the central bank took over Ueno Bank over a severe capital shortfall, leaving roughly 3 million customers without access to accounts. Vice President Pedro Alliana is set to replace him.
President Santiago Peña decided to resign before the Chamber of Deputies could vote on opening impeachment proceedings against him, requested by 35 lawmakers. Earlier on Thursday he lost backing from members of his own conservative party, and Vice President Pedro Alliana is set to take office as his replacement. Peña's own Colorado Party backed his removal on Thursday while Congress was debating the impeachment request. Peña served as finance minister before becoming president in 2023.
The Ueno Bank takeover
Paraguay's central bank took control of Ueno Bank on Tuesday, citing a severe capital shortfall. The bank's solvency ratio had fallen to below half the legal minimum. The central bank intervened after determining that ueno had breached minimum solvency requirements, leaving its roughly 3 million customers, in a country of 6.5 million people, unable to access accounts. Those customers are equivalent to about 60% of Paraguay's adult population. Pensioners were among the roughly three million depositors who lost access to their money.
Ueno Bank held around 850 million dollars in public funds, including money from the Social Security Institute. Lawmakers accused Peña of conflicts of interest, misuse of pension funds and institutional cover-ups linked to the collapse of ueno, which had grown quickly from a niche fintech player into a mid-tier bank. Under the law, a guarantee fund reimburses each client up to 75 minimum wages, around 228 million guaraníes or 37,700 dollars.
Central bank leadership
Central Bank president Carlos Carvallo stepped down after Peña requested his resignation. Carvallo had chaired Financiera Ueno, Ueno's predecessor, from June 2021 through mid-2023 before being appointed to lead the central bank.
Protests and the impeachment effort
Protests erupted across Paraguay after Ueno Bank was shut down in the middle of the night over a solvency crisis. Protesters gathered in Asunción on the evening of November 3, demanding the return of their savings and Peña's removal. The impeachment initiative received 35 signatures in the 80-member Chamber of Deputies. Under the Constitution, impeachment requires a two-thirds majority in the lower house before proceeding to the Senate.
Peña's explanation
In his resignation video, Peña said he decided to step down thinking about the country's stability, social peace and the preservation of democratic institutions. He said his priority was the peace of mind of Paraguayans who had entrusted their savings to the financial system. He added that his greatest wish is for the return of the funds to be guaranteed, for the deposit guarantee fund to fulfill its purpose and for public funds to be protected.
