Paraguayans Oust President Peña in Unanimous Impeachment Vote
The lower house removed the leader hours after he resigned, following a banking crisis that froze the savings of three million depositors.
By Fatou Mitchell ·
Paraguay’s lower house voted unanimously on Thursday to impeach President Santiago Peña. The decision came minutes after Peña posted a video on X announcing his resignation. This rapid sequence of events concluded a week of political turmoil driven by a banking scandal.
The crisis originated on Tuesday when the central bank seized control of Ueno Bank. Officials cited a severe capital shortfall as the reason for the intervention. This action prevented approximately three million depositors, including many pensioners, from accessing their funds.
Opposition lawmakers filed a request to impeach Peña on Wednesday. They accused the right-wing leader of showing favoritism to the bank in regulatory and pension fund decisions. Peña previously owned shares in the group that controlled Ueno, although he sold them last year.
In his resignation video, Peña apologized to the public. “I want to apologise to the people if at any point I failed,” he stated. He added that his primary goal was “the peace of mind of Paraguayans who entrusted their savings to our financial system.”
Public frustration grew throughout the week. Long lines formed outside Ueno branches in Asuncion on Tuesday and Wednesday. Protests erupted in the capital on both evenings. Hundreds of demonstrators demanded Peña’s removal. Police responded with tear gas and water cannons during the clashes.
Peña attempted to stabilize the situation by requesting the resignation of Central Bank president Carlos Carvallo, who subsequently stepped down. The government also passed a law requiring the return of most frozen funds to depositors within five business days. The central bank stated that it took over Ueno to “protect depositors and preserve the stability of the financial system.”
Peña’s own Colorado Party supported his removal as Congress debated the impeachment. Ruling party deputy Alejandro Aquilera noted, “In the face of these accusations I can't pretend to be oblivious.” He cited the harm caused to more than three million Paraguayans. Vice President Pedro Alliana will now assume the presidency, following Peña’s tenure as finance minister and subsequent election in 2023.
