Paraguay's Senate opens impeachment proceedings against Peña — Der Spiegel
In Paraguay, the Senate has opened impeachment proceedings against President Santiago Peña amid a banking crisis involving Ueno Bank. Before that, a joint session of the Senate and the Chamber of Deputies lost its quorum while considering Peña's submitted resignation letter. Representatives of the ruling Colorado Party left the chamber, Der Spiegel reports.
Senate summons the president
The Chamber of Deputies unanimously initiated impeachment proceedings over the banking crisis surrounding digital bank Ueno. After the interrupted session on the resignation, the Senate opened proceedings and summoned the incumbent head of state to a hearing.
Peña said on social media platform X that he would take part in the proceedings and defend himself. According to him, he will cooperate with the competent authorities to clarify the circumstances of the case. Earlier, in a video address, the president promised a law intended to return depositors the money owed to them as quickly as possible. In his resignation letter, he apologized if he had made a mistake.
Banking crisis and investigations
Several hundred people protested against Peña outside the Congress building in Asunción, demanding that he be punished. Participants accuse the president of shared responsibility for Ueno Bank's bankruptcy. Peña had previously rejected allegations of a possible conflict of interest.
More current news is available on the UA.News Telegram channel Telegram.
According to the publication, Peña had business ties with Grupo Vázquez, which owns Ueno Bank, until March 2025. On Thursday, the Prosecutor General's Office launched several investigations into the president. They concern oversight of the bank, its resolution procedure, and the provision of public funds to the financial institution.
This week, the central bank began resolution proceedings against Ueno Bank after its capital adequacy ratio fell below half of the established minimum. The bank's customers temporarily had no access to their accounts. The bank said it had 2.8 million customers in the first quarter of the year, or about 60% of the country's adult population. Pension payments were also processed through its accounts.
The prosecutor's office confirmed the detention of Ueno Bank executives. Central bank chief Carlos Carvallo left his post; he was also accused of a possible conflict of interest because of his previous executive work at the digital bank. Interior Minister Enrique Riera also announced his resignation. The central bank announced the start of guarantee payments to Ueno Bank depositors.
