Paraguay’s Senate rejected President Santiago Peña’s request for 72 more hours to prepare his defense in impeachment proceedings tied to the Ueno Bank crisis. (Foto: Instagram)
Paraguay’s Senate rejected President Santiago Peña’s request for an additional 72 hours to prepare his defense against impeachment. The case stems from a banking crisis involving the collapse of Ueno Bank, which left some Paraguayans unable to access their money. Peña or a representative is expected to appear in person before Congress, with a hearing set to begin within 30 minutes, according to Basílio Nuñez, president of Paraguay’s Congress.
The House of Representatives approved opening the impeachment proceedings unanimously, with 78 votes. The vote came after Peña submitted his resignation, which Congress had not considered because of a lack of quorum. Opposition lawmakers allege he resigned strategically to preserve legal protections by seeking a lifetime Senate seat, a position available to former Paraguayan presidents.
The Senate will now deliberate on whether to remove Peña from office. Conviction requires the support of two-thirds of senators. The impeachment request was filed by 35 lawmakers and focuses on Peña’s ties to Ueno Bank, whose collapse prompted the crisis. Peña was a shareholder in the group that controlled the bank until 2025.
Lawmakers allege Peña changed the conflict-of-interest law and allowed billions of guaraníes in guarantees from the Paraguayan Social Security Institute, known as IPS, to be concentrated at the financial institution. They contend that the amount exceeded legal limits. These claims are allegations in the impeachment case, not established findings.
The lawmakers also accuse Peña of failing to act in the public interest when he appointed Carlos Cavallo, formerly president of Ueno Finance, to lead Paraguay’s Central Bank. Cavallo resigned as Central Bank president after the Ueno crisis and protests across the country.
Paraguay’s Public Prosecutor’s Office has opened a formal investigation into Peña’s relationship with Ueno Bank. It is investigating suspected illicit enrichment, money laundering, corruption, administrative fraud, and influence peddling. The investigation is separate from the Senate’s impeachment deliberations.
