Top aides to Paraguayan President Santiago Peña have resigned as the Senate resumed an impeachment trial that could remove him from office. The crisis was triggered by the collapse of Ueno Bank, a digital lender that served nearly half of Paraguay's population.
Interior Minister Enrique Riera resigned late Thursday, followed Friday by Peña’s chief of staff, Javier Giménez, and his legal adviser, Roberto Moreno, who quit just as the president was preparing to defend himself before the Senate. Peña stated he received the summons and hundreds of pages of accusations only hours before the session, leaving him insufficient time to prepare a defense or hire legal counsel.
The implosion of Ueno Bank has plunged Paraguay into its deepest political crisis in over a decade. Regulators seized the bank early Tuesday, and by Thursday afternoon, Peña had offered to resign amid pressure from his own party. "It was never my intention to betray the trust you placed in me," he said in a video address as protests erupted in the capital and other cities.
Former President Horacio Cartes, who had been Peña’s mentor, publicly supported his ouster. The lower house voted unanimously to impeach Peña and send the case to the Senate. This represents a significant reversal for Peña, an economist who previously worked for the International Monetary Fund, as his presidency had relied on the support of powerful figures within his party.
Under Paraguay's Constitution, a president who resigns avoids impeachment and becomes a senator for life, granting parliamentary immunity. This provision has turned Peña's potential exit into a political battle. His allies sought congressional approval for his resignation, while opponents aimed for Senate conviction and removal. When Peña's allies realized they lacked the necessary votes on Thursday, they walked out, preventing the Senate from proceeding with the trial.
Conviction in the Senate requires 30 votes out of 45 members. Regardless of the outcome, Vice President Pedro Alliana, who survived his own impeachment attempt, would serve out the remainder of the term until August 2028.
The impeachment charges focus on Peña’s close ties to Ueno Bank, which rapidly grew into one of Paraguay's largest banks, holding over $800 million in public funds. Lawmakers cite Peña's past stake in the bank's holding company, which he sold last year, and his appointment of a former Ueno executive to lead the central bank that regulated it. Additionally, he is accused of allowing public pension deposits at the bank to exceed legal limits.
Prosecutors have launched three criminal investigations into the bank's collapse, including complaints against Peña, Vice President Alliana, and current and former officials from the central bank and the state pension fund. Ueno Bank's former CEO, Miguel Vázquez, faces charges including breach of trust and attempted fraud, and a judge has ordered six bank directors to be held in pretrial detention. Authorities raided the bank's offices and seized luxury vehicles from Vázquez's home.
Ueno Bank's nearly 3 million customers remain unable to access their funds or conduct transactions. The central bank has stated that the collapse is an isolated incident and that the broader financial system remains secure.