Paraguay president quits as Ueno Bank crisis sparks protests, impeachment proceedings

Paraguayan President Santiago Pena has resigned amid a banking crisis that has sparked widespread protests and impeachment proceedings. The Central Bank seized Ueno Bank on Tuesday, affecting three million people – nearly half of Paraguay’s population – from accessing their savings. Opposition lawmakers submitted impeachment requests on Wednesday, accusing Pena of misconduct and a conflict of interest in dealings with the bank, to which he had once held shares.

Pena apologized in a video, stating he never intended to betray the trust placed in him. He expressed his priority is "the peace of mind of Paraguayans who entrusted their savings to our financial system." After his resignation, lawmakers unanimously approved the impeachment proceedings while rejecting it for Vice President Pedro Alliana.

Pena owned shares in a group controlling Ueno Bank but sold them last year. Congress convened an extraordinary session to decide on Pena’s resignation or continue with the impeachment process, with the president’s political immunity being a key issue. Pena, who previously served as finance minister, was elected president in 2023.