Paraguay’s Peña loses top aides as impeachment trial resumes over failed bank

Paraguay's Senate on Friday rejected President Santiago Pena's request to delay his impeachment trial over a banking scandal that has crippled millions of people's access to their deposits. Senate President Basilio Nunez stated that Pena's request for a three-day delay to prepare his defense did not receive the required votes, leading to the extension being rejected.

The crisis began on Tuesday when the Central Bank seized Ueno Bank, fearing its insolvency, and froze the accounts of approximately three million customers, or nearly half of the country's population. Pena resigned on Thursday, but his resignation was temporarily suspended by Congress while the impeachment process continued. Pena had demanded a 72-hour extension to prepare his defense, claiming he received a 15-page indictment just the evening before the Senate was set to hold the impeachment hearing.

The Central Bank's intervention in Ueno Bank came as a shock, as Paraguay is known for its economic and political stability. Pena, who owned shares in Grupo Vasquez, which controlled Ueno Bank until 2025, denies any conflict of interest. The Attorney General's Office is investigating Pena for potential actions related to the bank's supervision and the use of public funds.

Opposition leaders aim to impeach Pena instead of allowing him to resign, as doing so would grant him immunity from prosecution. Thousands of demonstrators have taken to the streets across Paraguay for three nights demanding the return of their money and Pena's removal from office.