Paraguay’s Pena impeached over banking crisis

Paraguayan President Santiago Pena was impeached on Friday after the collapse of the major bank Ueno Bank, which left nearly half the population without access to their accounts and sparked widespread protests. Despite earlier promising to defend himself, Pena did not attend the impeachment trial in the Senate. The Senate voted 44-1 in favor of impeachment, with Pena being declared guilty of poor performance in his duties.

The Central Bank took control of Ueno Bank on Tuesday and froze its accounts due to concerns over its solvency. Advances payments to affected depositors began on Thursday, with the first phase targeting those without loans and accounts in other banks. Ueno Bank, once a small fintech company, grew to handle state pensions and the accounts of several state entities, attracting low-income customers.

The impeachment prevents Pena from becoming a senator for life and enjoying immunity from prosecution. Vice-President Pedro Alliana will complete the current term until 2028. The scandal has led to the arrest of Ueno executives and the raid of ITTI, a subsidiary of Pena's former business partner Grupo Vazquez. Argentina, too, felt the impact of the crisis with the suspension of some 1,000 ITTI employees.