Paraguay Senate removes President Pena following major Ueno Bank collapse

The Paraguayan Senate removed President Santiago Pena from office and he was placed under house arrest on Friday on suspicion of breach of trust, the South China Morning Post reported. Deutsche Welle World, Al Jazeera English, and the South China Morning Post all reported that Pena faced impeachment proceedings following the collapse of Ueno Bank, which plunged Paraguay into political crisis. [1][2][4]

Deutsche Welle World reported that the Paraguayan central bank initiated resolution procedures against Ueno Bank on November 3 after it breached minimum solvency requirements. According to Al Jazeera English and the South China Morning Post, Pena had offered to resign, but lawmakers proceeded with the trial to remove the immunity granted to former presidents. Al Jazeera English noted that Pena requested a 72-hour extension to present his defence after receiving an accusatory writ with about 300 pages of attachments. [1][2][4]

The collapse directly affected local account holders. The Rio Times reported that nearly three million Paraguayans could not access their money for two days. On November 5, the central bank announced that repayments to Ueno Bank savers had started, beginning at 1,700 United States dollars per person, as the interior minister quit. [3]

Santiago Pena Palacios is an economist who served on leadership boards for the Central Bank of Paraguay and Banco Amambay, and taught economics at the Catholic University of Asuncion before serving as president of Paraguay. Al Jazeera English noted that he is also a former International Monetary Fund economist. Ueno Bank is a digital bank that offered zero-fee savings accounts, virtual debit cards, and microloans, serving over two million users as of October 2024. [2][10][12]