Paraguay’s president steps down as banking crisis sows chaos

Paraguayan President Santiago Pena resigned on Thursday amid a banking crisis that left nearly half the population unable to access their money. The Central Bank took control of Ueno Bank, freezing deposits of around three million people, including pensioners, leading to angry protests in Asunción. Demonstrators waved placards demanding Pena's impeachment, while others clashed with riot police using tear gas and water cannons.

Opposition lawmakers submitted a request for impeachment, accusing Pena of misconduct and a conflict of interest with the bank he owned shares in. Pena denied allegations, stating it was never his intention to betray the trust placed in him. He expressed regret for not fulfilling his promise to protect depositors' savings.

Ueno Bank's takeover was due to a severe capital shortfall, aimed at protecting depositors and preserving financial system stability. The crisis sparked protests as people struggled to withdraw their money. Pena, who owned shares in a group that controlled the bank, had previously attempted to ease tensions but failed.

Congress convened an extraordinary session to decide whether to accept Pena's resignation or proceed with impeachment. Constitutional expert Alcibiades Gonzalez Delvalle explained that Pena's political immunity complicates the situation, as accepting the resignation while impeachment proceedings are ongoing would maintain his immunity. If found guilty in an impeachment trial, Pena would forfeit his immunity, and Vice President Pedro Alliana would assume leadership.