Paraguay resumes Pena impeachment proceedings as financial crisis deepens

Banco do Paraguai entra em colapso com metade das economias da população.

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• list 2 of 3Paraguay Congress rejects President Pena’s resignation after bank collapse.
• list 3 of 3Paraguay’s president impeached amid bank collapse crisis.
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Lawmakers in Paraguay have resumed impeachment proceedings against President Santiago Pena, a day after he resigned amid links to the country’s worst financial crisis in decades.

The Senate convened a rare session on Friday to consider Pena’s political future, opting to move forward with efforts to remove the conservative economist from office.

Politicians formally filed impeachment charges against the president on Thursday, despite his resignation. Pena, who was elected in 2023, has requested a 72-hour extension to prepare his defence before the Senate.

As deliberações seguem uma votação na câmara baixa do Congresso do Paraguai, onde os legisladores aprovaram de forma esmagadora as acusações de impeachment contra Pena em uma votação de 78-0.

The political turmoil surrounding the country’s president follows Paraguay’s central bank’s intervention earlier this week at Ueno Bank, one of the country’s fastest-growing digital lenders, citing breaches of minimum solvency requirements.

Pena previously held a stake in Ueno’s parent company, Grupo Vazquez, until last year, when he claims he sold his shares. Paraguayan lawmakers have accused the president of a conflict of interest and questioned whether authorities failed to act on warnings about the lender’s financial position.

A crise também provocou a renúncia do chefe do banco central do Paraguai, Carlos Carvallo, e mandados de prisão para oito executivos da Ueno, que mais tarde se entregaram.

Paraguay’s attorney general has ordered three criminal investigations into the bank’s collapse, including its regulatory oversight and the placement of public funds in the institution.

If Pena is convicted in an impeachment trial, he would lose the lifetime Senate seat and associated legal protections ordinarily granted to former Paraguayan presidents.

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