Paraguay opposition seeks president’s removal over banking crisis

Paraguayan opposition lawmakers have submitted a motion to remove President Santiago Pena from office amid a banking crisis. The Central Bank seized Ueno Bank, a major lender linked to Pena, leading to millions of depositors, including pensioners, being unable to access their funds. Pena owned shares in a group that controlled Ueno Bank before selling them last year.

Opposition lawmakers signed the dismissal request, which now needs approval from at least 53 out of 80 members of Congress. If approved, the motion will proceed to the Senate, requiring 30 out of 45 votes for approval. Pena's ruling party holds a majority in both houses. Across Paraguay, long lines of people protested outside Ueno Bank branches as they attempted to withdraw their life savings.

President Pena has attempted to ease concerns by assuring the financial system's stability and enacting a law allowing depositors to withdraw part of the guarantee funds. Central Bank President Carlos Carvallo resigned at Pena's request, and eight top Ueno executives, including its president, have received arrest warrants. The Central Bank took over Ueno Bank due to a severe capital shortfall to protect depositors and maintain financial system stability.