Paraguay Lawmakers Push to Impeach President Over Bank Crisis

Paraguay's opposition lawmakers advanced impeachment efforts against President Santiago Pena, citing his alleged role in a financial crisis triggered by the collapse of digital lender ueno.

Thirty-five lawmakers submitted impeachment articles in the 80-seat lower house, requesting an extraordinary session to debate Pena's future.

Opposition claims Pena engaged in conflicts of interest, misused pension funds, and covered up issues related to the bank's collapse.

Pena has not publicly addressed the impeachment push, and the presidency did not immediately respond to comment requests.

In a social media post, Pena called on political leaders to prioritize depositors' interests and promised justice for those responsible for irregularities.

Pena, a conservative economist who took office in 2023, was a shareholder in Grupo Vazquez, which controls ueno, until March last year.

Ueno, a digital lender that grew from a fintech player to a mid-tier bank, now manages nearly $850 million in public funds.

Paraguay's central bank intervened after finding ueno breached minimum solvency requirements, sparking a crisis that left 3 million customers unable to access their accounts.

Opposition lawmaker Rocío Vallejo criticized Pena for harming 3 million people in a single day, calling it a historic event in Paraguay.

The crisis has undermined Paraguay's reputation as a stable investment destination, particularly for neighboring Brazil.

The fallout led to the resignation of the central bank chief and the detention of eight ueno executives, who later turned themselves in.

Prosecutors issued arrest warrants, and courts froze the executives' assets as the investigation expanded.

Ueno has not made public statements on the issue and did not respond to a request for comment.

While opposition lacks the two-thirds majority needed to advance impeachment proceedings, it has gained support from several dissident members of the ruling Colorado Party.

Several banking apps experienced outages, raising concerns about confidence in Paraguay's financial system.

The Association of Banks of Paraguay stated lenders are working to absorb a surge of customers shifting accounts from ueno and confirmed the banking system continues to operate normally.