Paraguay's President Santiago Pena resigns amid a bank crisis that froze millions of customers' accounts and sparked protests

Paraguay's Lower House is set to vote on Thursday whether to impeach President Santiago Peña over a financial crisis stemming from the Central Bank's suspension of Ueno Bank's operations. The move comes after opposition members and dissidents from the ruling Colorado Party filed the impeachment request due to Peña's "poor performance of his duties while in office" and accusations of a "conflict of interest."

The Ueno Bank scandal has left nearly 3 million customers unable to access their deposits, affecting both individuals and government entities. Peña, who took office in 2023 and is set to remain in power until 2028, had previously held shares in a group controlling Ueno Bank, which he sold in 2025, and appointed former Ueno executive Carlos Carvallo as head of the Central Bank.

The impeachment request, supported by more than two thirds of present deputies, requires at least 30 votes in the 45-member Senate to remove Peña and Vice President Pedro Alliana from office.