Paraguay Senate Opens Impeachment of Peña After Quorum Blocks Resignation Amid 2.8 Million-Client Bank Collapse
Updated
Updated · Yahoo! Voices · Nov 6
Paraguay Senate Opens Impeachment of Peña After Quorum Blocks Resignation Amid 2.8 Million-Client Bank Collapse
3 articles · Updated · Yahoo! Voices · Nov 6
Summary
Paraguay's Senate opened impeachment proceedings against President Santiago Peña after Congress failed to reach quorum on his resignation, keeping him in office and requiring him to appear Friday.
Ueno Bank's collapse drove the crisis: the central bank moved to wind down the lender after its capital reserves fell below required levels, freezing accounts for 2.8 million customers.
Those frozen accounts also handled pension payments, deepening financial disruption and fueling street protests in Asunción as Peña urged authorities to recover savers' money.
Peña has denied conflict-of-interest allegations tied to his former stake in Ueno's holding company, which he says he sold in March 2025.
The impeachment fight now carries legal stakes beyond his presidency, because a resignation accepted by Congress could have made Peña a senator for life with parliamentary immunity.
With millions locked out of their accounts, can Paraguay's government truly honor the deposit guarantees before panic consumes the nation?
How did a bank tied to Paraguay's President secretly gamble away millions in state pensions before regulators finally intervened?
The Ueno Bank Crisis: Inside Paraguay’s $850 Million Financial Meltdown and Presidential Downfall
Overview
Paraguay’s Ueno Bank collapsed after years of insider lending and weak oversight, draining its capital and leaving nearly 3 million depositors locked out of their accounts. The crisis triggered mass protests and a political earthquake: President Santiago Peña, who had business ties to the bank’s owners and appointed its former executive as central bank chief, faced unanimous impeachment charges and resigned. Emergency laws were rushed through to help depositors, while top bank executives were arrested. The fallout damaged Paraguay’s international credit standing and forced a rapid transfer of power, exposing deep flaws in the country’s financial and political systems.