Paraguay Opposition Seeks Impeachment of Santiago Peña After Ueno Bank Crisis

Opposition lawmakers in Paraguay have filed an impeachment request against President Santiago Peña following the collapse of digital lender Banco Ueno, which had about 3 million customers. The banking crisis sparked protests and was followed by the resignation of Central Bank President Carlos Cavallo.

Raúl Latorre, president of Paraguay’s Chamber of Deputies, scheduled a session for 10 a.m. Brasilia time on Thursday, Nov. 5, to consider whether to open impeachment proceedings against Peña and Vice President Pedro Alliana. A group of 35 deputies submitted the accusation. Opening the proceedings requires support from 54 members of the chamber.

The crisis has drawn particular attention to Peña because he was a shareholder in Ueno’s parent company until 2025. The bank also held Paraguayan public funds, including money from the country’s social security system.

Paraguay’s Central Bank began the process of dissolving Banco Ueno on Tuesday, Nov. 3, after the institution’s solvency ratio fell to less than half the required level. The bank is under investigation over alleged manipulation of its financial position and a lending arrangement involving companies that may have ties to its controlling group. Eight executives have been arrested, including Miguel Vázquez, the bank’s vice president and largest shareholder.

The dissolution temporarily left customers unable to access money held at the bank. Ueno was covered by Paraguay’s Deposit Guarantee Fund, which provides protection of up to $38,000, an amount equivalent to 75 Paraguayan minimum wages. Peña approved a law providing for customers to receive an advance of up to 40 monthly minimum wages within five days.

“I trust that the Central Bank of Paraguay will implement this law immediately, and I thank the National Congress for its responsible and committed consideration,” Peña wrote on X as he announced the measure. Congress approved the law in one day.