Paraguay's Congress has advanced impeachment proceedings against President Santiago Peña following the collapse of digital lender Ueno Bank, which held approximately $850 million in public funds and served around three million customers.
Peña announced his resignation on Thursday, November 5, amid mounting political pressure over the banking crisis. However, his resignation has not taken effect because a joint congressional session considering the offer failed to reach the required quorum.
Editorial Insight
Key Highlights
Important points readers should notice.
Paraguay's lower house approved impeachment proceedings against President Santiago Peña.
All 78 lawmakers present voted in favour of the motion.
Peña announced his resignation on November 5, but it has not taken effect.
A joint congressional session failed to reach a quorum.
The Senate resumed impeachment proceedings on November 6.
Ueno Bank held around $850 million in public funds and served approximately three million customers.
Earlier, Paraguay's Chamber of Deputies unanimously approved impeachment proceedings against Peña, with all 78 lawmakers present voting in favour. The charges were subsequently taken up by the Senate, which resumed proceedings on Friday, November 6.
The Senate is considering the case despite Peña's resignation offer. He has requested additional time to prepare his defence, with the proceedings expected to determine whether he will be removed from office.
The political crisis intensified after Peña lost the support of members of his ruling Colorado Party. Opposition lawmakers have accused him of conflicts of interest, misuse of pension funds and institutional cover-ups linked to the bank's collapse. Peña has denied wrongdoing.
Editorial Analysis
Why This Matters
The Ueno Bank collapse has developed into a major political and financial crisis in Paraguay. The impeachment proceedings raise questions about financial regulation, public fund management and political accountability, while millions of customers face uncertainty over access to their money.
Ueno Bank Collapse Triggers Public Anger
Meanwhile, the collapse of Ueno Bank has sparked protests in Paraguay's capital, Asunción, with customers, employees and other residents demanding accountability and the recovery of their money.
The Central Bank of Paraguay intervened in the lender after identifying serious financial irregularities, including risky lending practices and violations of minimum solvency requirements. Following corrections to its accounts, the bank's capital fell below half the legally required minimum.
The intervention disrupted banking services and left millions of customers temporarily unable to access their accounts, savings and wages.
Ueno had approximately three million customers and administered close to $850 million in public funds, including pension-related deposits.
Paraguayan prosecutors have launched investigations into the bank's collapse and related financial transactions. They have charged 27 bank officials and associates, while eight senior executives were initially subject to arrest warrants.
Authorities have begun arrangements to protect depositors and transfer eligible customer accounts as the investigation continues.
The developments have turned the banking crisis into a major political challenge for Peña, with the Senate proceedings and ongoing criminal investigations expected to shape the country's political and financial situation.
