Paraguay Congress Rejects Pena Resignation, Opens Impeachment After 78-0 Vote
Updated
Updated · Al Jazeera English · Nov 5
Paraguay Congress Rejects Pena Resignation, Opens Impeachment After 78-0 Vote
3 articles · Updated · Al Jazeera English · Nov 5
Summary
Lawmakers refused President Santiago Pena’s resignation and moved ahead with impeachment, with the lower house voting 78-0 and the Senate summoning him to appear Friday.
The push followed Ueno Bank’s collapse, which left about 3 million customers in Paraguay unable to access accounts and pensions after regulators found its capital was less than half the legal minimum.
Pena, who once held a stake in Ueno parent Grupo Vazquez, faces accusations of negligence and possible complicity in concealing the lender’s insolvency; rejecting his resignation could strip him of the legal immunity former presidents usually gain as senators for life.
The crisis has already widened beyond the presidency: central bank chief Carlos Carvallo resigned, prosecutors opened three criminal investigations, and Vice President Pedro Alliana would likely take over if Pena is removed.
What hidden political motives drove Paraguay's ruling party to reject the president's resignation in favor of a historic, unanimous impeachment?
How did a Paraguayan fintech secure $850 million in public funds before triggering a national crisis and presidential impeachment?
Will Paraguay's deposit insurance truly protect the millions of citizens caught in the sudden collapse of its largest digital lender?
Paraguay’s Ueno Bank Disaster: Impeachment, Pension Fund Scandal, and Economic Shockwaves
Overview
In November 2026, Paraguay was plunged into crisis when Ueno Bank, a fast-growing digital lender, collapsed after reckless expansion and illegal insider lending. The Central Bank froze 3 million accounts, locking out millions of citizens and triggering panic. As the currency plunged and commerce stalled, political support for President Santiago Peña evaporated. Lawmakers accused him of conflicts of interest and misuse of pension funds, leading to a dramatic impeachment after his resignation was rejected to strip him of immunity. The fallout included mass protests, emergency payouts, arrests of bank executives, and urgent calls for regulatory reform to restore trust and stability.