Paraguay’s political and banking turmoil has escalated as lawmakers reconvened the Senate to advance impeachment proceedings against former President Santiago Peña, who resigned last week following the collapse of the digital lender Ueno Bank.
After the lower house of Congress approved the charges in a 78‑0 vote, the Senate held a rare session on Friday to determine Peña’s future. The former president, a conservative economist elected in 2023, has requested a 72‑hour extension to prepare his defense before the Senate.
The crisis began when the central bank intervened at Ueno Bank, citing breaches of minimum solvency requirements. The lender, which had attracted significant public deposits, collapsed with $850 million in funds, leaving more than half of Paraguay’s population without access to their accounts.
Investigations have revealed that Peña previously held a stake in Ueno’s parent company, Grupo Vázquez, until last year. Lawmakers allege a conflict of interest and question whether authorities acted on warnings about the lender’s financial position.
In a video address, Peña apologized for failing to prevent the crisis and expressed his hope that the deposit guarantee fund would protect public funds. The central bank chief, Carlos Carvallo, resigned, and eight Ueno executives faced arrest warrants, though they later turned themselves in.
Paraguay’s attorney general has ordered three criminal investigations into the bank’s collapse, focusing on regulatory oversight and the placement of public funds in the institution. If convicted, Peña would lose his lifetime Senate seat and the legal protections usually granted to former presidents.
Source: Al Jazeera
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