Paraguay lawmakers begin impeachment trial against president over bank collapse

Paraguay's Senate has launched impeachment proceedings against President Santiago Peña in response to the collapse of a major bank, Ueno Bank. The incident left approximately three million people without access to their funds and triggered widespread protests across the nation. Peña initially offered to resign but lawmakers pressed on with the impeachment process, which could potentially strip him of the immunity typically granted to former presidents.

The crisis began when the Central Bank seized control of Ueno Bank and froze its accounts due to concerns over the bank's financial stability. This move left customers unable to withdraw or access their money, leading to demonstrations calling for accountability from Peña. The president, whose 47-year-old self admitted to potential shortfalls in meeting public expectations, apologized for any failures during a televised address.

Despite his efforts, lawmakers voted to initiate the impeachment process following objections from his ruling Colorado Party. Ueno Bank, initially a digital-focused financial technology company, grew into a significant banking operation, managing government pension payments and accounts for various state-owned entities. Opposition lawmakers have accused Peña of having a conflict of interest stemming from his past involvement with the group controlling Ueno Bank, an allegation he refuted.

The Attorney General's Office is now investigating Peña for alleged actions related to Ueno Bank's supervision and resolution and the allocation of public funds to the institution. The U.S. Embassy in Paraguay expressed solidarity with the country's citizens, refraining from commenting on the political implications of the situation.