Paraguay: President Santiago Peña Faces Impeachment Following Banking Scandal That Shook the Country and Froze Millions of Savings

Paraguayan President Santiago Peña is preparing to appear before the Senate in an impeachment trial, against the backdrop of a massive financial and banking scandal affecting millions of depositors that sparked widespread outrage and brought thousands of protesters onto the streets of the capital, Asunción.

The South American nation of about 6.5 million people and a U.S. ally is experiencing an acute institutional vacuum and confusion. Although Peña (47) announced his resignation via a video on the 'X' platform to maintain 'the country's stability and civil peace,' he technically remained President of the Republic due to parliament's inability to resolve whether to accept the resignation or not because of a lack of the required legal quorum.

Public Outrage and Accusations of Looting Depositors' Funds

Concurrently with the holding of extraordinary parliamentary sessions, thousands of citizens, mostly young people, gathered around the parliament building in rallies dominated by anger and demands for justice and the recovery of stolen funds. Protesters raised banners denouncing corruption, demanding the imprisonment of the president, and calling for accountability for those involved in the financial crisis.

The crisis erupted following the Central Bank of Paraguay's decision to place 'Ueno Bank' under trusteeship and receivership, a bank serving approximately 2.94 million customers whose deposits have been temporarily frozen. Notably, President Santiago Peña held shares until last year in the holding group that owns this bank, which had experienced rapid growth in recent years.

Parliamentary Trial and Immunity at Stake

Peña confirmed on his account on the 'X' platform that he would appear before the parliamentary court to exercise his right of defense. According to constitutional experts, the president's attempt to resign prior to impeachment was aimed at preserving his immunity by automatically acquiring the status of 'senator for life.' However, opposition lawmakers pushed forward with impeachment and political trial proceedings, describing the event as an organized scheme to seize the bank's funds under political cover.

In an effort to ease tensions, parliament passed emergency legislation providing urgent compensation and advances to those affected, which could reach up to 40 times the monthly minimum wage. The judiciary also ordered the pretrial detention of eight bank officials and the prosecution of about 20 others. Should the decision to officially impeach the president be issued, his Vice President Pedro Alliana (52) will assume the presidency to complete the presidential term until 2028.