Paraguay resumes Pena impeachment proceedings as financial crisis deepens

What the report says

Paraguayan lawmakers have resumed impeachment proceedings against President Santiago Pena as the country’s financial crisis widens, according to Al Jazeera. The Senate held a rare session on Friday to weigh his political future, one day after Pena resigned amid fallout from the collapse of a major digital bank. The lower house had already approved impeachment charges in a unanimous 78-0 vote, and Pena has asked for extra time to prepare his defense.

The proceedings center on the central bank’s intervention this week in Ueno Bank, a fast-growing digital lender. Al Jazeera reported that the bank’s failure has triggered intense political scrutiny because Pena previously held a stake in the parent company, Grupo Vazquez, until last year. Lawmakers have accused him of a conflict of interest and questioned whether regulators ignored warning signs about the lender’s condition.

The collapse of Ueno, which held $850 million in public funds, has reportedly left more than half of Paraguay’s population unable to access their accounts. That has intensified public anger and raised concerns about oversight of the financial system. Pena apologized in a video message and said he wanted the funds returned and protected.

The crisis has also led to the resignation of central bank chief Carlos Carvallo, arrest warrants for eight Ueno executives, and three criminal investigations ordered by the attorney general. If Pena is convicted, he could lose the lifetime Senate seat and legal protections normally granted to former Paraguayan presidents.