Paraguay Senate rejects bid to delay president impeachment trial

Paraguay's Senate on Friday rejected President Santiago Pena's request to delay his impeachment trial over a banking scandal. Senate president Basilio Nunez stated that Pena's bid for a three-day delay was not successful and the extension was rejected. The trial is set to commence on Friday. The crisis began when the Central Bank took control of Ueno Bank due to solvency concerns, freezing the accounts of nearly three million customers, approximately half of the population.

Pena resigned on Thursday but his resignation was held by Congress while the impeachment process continued. Pena, an economist by training, demanded a 72-hour extension to prepare his defense, claiming he was served with a 15-page indictment just the evening before. The Central Bank's intervention in Ueno Bank, which had breached minimum solvency requirements, came as a surprise, as Paraguay is known for its economic and political stability.

Pena, who owned shares in Grupo Vasquez, the majority shareholder of Ueno Bank until 2025, denies any conflict of interest. The Attorney General's Office is investigating Pena for acts related to the supervision and resolution of Ueno Bank and the placement of public funds in the entity.