Paraguay president quits amid banking scandal as lawmakers move to impeach him

Paraguayan President Santiago Pena stepped down on Thursday amid a banking crisis that left nearly half the country's population unable to access their money. The Central Bank's takeover of Ueno Bank, linked to Pena, froze the deposits of three million people, including pensioners, leading to angry protests in Asuncion. Demonstrators, some waving placards demanding impeachment, clashed with police using tear gas and water cannons.

Opposition lawmakers submitted a request to impeach Pena for misconduct and a conflict of interest with the bank. In a resignation video, Pena apologized for any failures, emphasizing his intention was never to betray the trust placed in him. The Central Bank took control of Ueno due to a severe capital shortfall, aiming to protect depositors and maintain financial system stability.

Ueno had approved a loan for Pena's first house purchase, but the funds were never disbursed, leaving a 26-year-old mother of three without a home. Long lines of people queued to withdraw their money from Ueno branches in Asuncion on Tuesday and Wednesday. Despite Pena selling his shares in a group controlling Ueno last year, efforts to ease tensions fell short.

Congress convened an extraordinary session to decide on Pena's resignation or impeachment, with constitutional expert Alcibiades Gonzalez Delvalle explaining that accepting Pena's resignation while impeachment proceedings are underway would preserve his political immunity. If found guilty in impeachment, Pena would lose his immunity and Alliana would assume leadership of the South American nation.