The U.S. Embassy in Paraguay called for peace and respect for the country’s democratic institutions as political tensions grew over President Santiago Peña’s impeachment and the suspension of Ueno Bank. (Foto: Instagram)
The U.S. Embassy in Paraguay called for peace and respect for the country’s democratic institutions on Friday, Nov. 6, as a political crisis engulfed President Santiago Peña’s government following a scandal involving Ueno Bank. The embassy also expressed solidarity with the Paraguayan people.
The embassy described the United States as a longtime friend and ally of Paraguay and urged the country’s authorities and residents to preserve peace and respect democratic institutions. The statement came as the bank’s suspension and an impeachment effort against Peña intensified political tensions.
Paraguay’s central bank suspended Ueno Bank’s operations on Nov. 3, saying the digital financial institution was insolvent and unable to meet its financial obligations. The regulator began a resolution process. Prosecutors sought a criminal investigation into the bank and the arrest of its executives. The inquiries concern suspected mismanagement and loans to companies linked to the bank’s controlling group, which investigators say may have weakened the institution’s assets.
The crisis also affected senior officials and Peña. Carlos Carvallo, who had led the Central Bank since 2023, resigned; he had previously served as president of Ueno Bank. Peña had been a shareholder in Ueno Holding, a company associated with the bank’s controlling group, until March 2025. He faced an impeachment request in Congress and decided to resign on Thursday, Nov. 5, as the effort advanced.
About an hour after Peña announced his decision, the Chamber of Deputies unanimously approved the impeachment request, with 78 votes in favor. Opposition lawmakers argued the process should continue to prevent Peña from leaving office with the possibility of obtaining parliamentary immunity. Peña had asked the Senate for 72 hours to prepare his defense, but the request was denied Friday. He said he received notice of the proceedings at 10:15 p.m. Thursday and that it included a 15-page indictment and more than 300 pages of attachments. He argued that less than 12 hours to prepare would be insufficient under democratic rule-of-law principles. The session to consider the case had initially been scheduled for Friday morning.
Peña’s resignation was formalized in a letter delivered to Congress by Interior Minister Enrique Riera. In a statement on social media, Peña said he was stepping down to protect the country’s stability, social peace and democratic institutions.
