Paraguay Congress Rejects Peña Resignation and Presses Impeachment Over Ueno Bank Collapse

The update

Paraguay’s Congress has declined to accept President Santiago Peña’s resignation, leaving him temporarily in office while an impeachment process moves forward. Peña tendered his resignation on Thursday after Ueno Bank collapsed, but deputies present voted unanimously, 78-0, to impeach him, and both houses have since declined his offer to step down. Thousands have protested in public squares, demanding accountability for a failure that left nearly half the population unable to access their savings.

Why it matters

Lawmakers said allowing Peña to resign would preserve his eligibility to become a senator for life and grant legal protections against prosecution. Attorney General Emiliano Rolón Fernández has ordered three criminal investigations into the crisis, including allegations involving Peña and officials, examining oversight of the bank, its failure and the placement of public funds. Ueno held about $800 million in public deposits, including pension and health funds, and claimed more than three million customers in a country of 6.4 million.

What to watch

Watch whether the Senate trial removes Peña, which would put Vice President Pedro Alliana in office until 2028, and whether savers regain their money under a law enacted this week to return most deposits within five days. Protests, met with tear gas and water cannon outside Congress, are expected to continue while investigations run.

Sources

• abc.net.au — the resignation declined, the unanimous impeachment vote and the criminal investigations ordered
• euronews.com — thousands protesting, nearly half the population cut off from savings and the resignation on hold

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