• Analysis
Santiago Peña impeachment: Paraguay's president quits and is impeached minutes later over Ueno Bank scandal
Paraguay's lower house voted unanimously on Thursday to impeach President Santiago Peña, minutes after he announced his resignation on X amid the Ueno Bank banking scandal.
A resignation followed within minutes by an impeachment vote
The Santiago Peña impeachment moved with unusual speed: the president announced his resignation on X on Thursday, and the lower house voted unanimously to remove him from office only minutes afterward. The vote came while Congress was still weighing the removal request.
His own Colorado Party backed his removal on Thursday during the congressional debate. Ruling party deputy Alejandro Aquilera addressed the accusations directly in the chamber.
"In the face of these accusations I can't pretend to be oblivious," said ruling party deputy Alejandro Aquilera during the debate.
Aquilera added that more than three million Paraguayans had been harmed and felt betrayed, swindled and deceived.
Ueno Bank takeover and the freeze on three million depositors
The crisis began on Tuesday, when the central bank took control of Ueno Bank, citing a severe capital shortfall. Protests had rocked the country since the takeover.
- •The Central Bank said the intervention aimed to protect depositors and preserve the stability of the financial system.
- •About three million depositors, including pensioners, lost access to their money.
- •Peña enacted a law setting a limit of five business days to return most of the funds to depositors.
Accusations and protests in Asuncion
Opposition lawmakers submitted the impeachment request on Wednesday, accusing Peña of favoritism toward the bank in regulatory and pension fund decisions. Peña owned shares in a group that controlled Ueno Bank but sold them last year.
Long withdrawal lines formed outside Ueno branches in Asuncion on Tuesday and Wednesday, and angry protests swarmed the capital on both evenings. Hundreds of demonstrators called for Peña's removal and clashed with police, who used tear gas and water cannons on the crowd. Peña had also requested the resignation of Central Bank president Carlos Carvallo, who stepped down.
Peña's farewell and the handover to Pedro Alliana
In a video announcing his resignation, Peña apologized to the public and said his priority was the peace of mind of Paraguayans who entrusted their savings to the financial system.
"I want to apologize to the people if at any point I failed. It was never my intention to betray the trust you placed in"
Vice President Pedro Alliana will now replace him to lead Paraguay.
