Paraguay Senate Advances Impeachment Case Against Pena

Paraguay's Senate resumed impeachment proceedings against President Santiago Pena on Friday, a day after he resigned amid a banking collapse that has frozen deposits for more than half the country's population, according to Al Jazeera.

The Senate convened a rare session to weigh Pena's political future despite his resignation. Pena has requested a 72-hour extension to prepare his defense before the chamber, Al Jazeera reported.

What triggered the impeachment vote?

Political turmoil over Pena, elected in 2023, began after the central bank intervened at Ueno Bank earlier this week, citing breaches of minimum solvency requirements. Pena previously held a stake in Ueno's parent company, Grupo Vazquez, until last year, when he claims he sold his shares, Al Jazeera reported. Lawmakers have accused the president of a conflict of interest and questioned whether authorities ignored earlier warnings about the lender's finances.

Paraguay's lower house of Congress approved impeachment charges 78-0 before formally filing them on Thursday — the same day Pena announced his resignation.

How did Ueno Bank's collapse spread?

Ueno, one of Paraguay's fastest-growing digital lenders, held $850 million in public funds, according to Al Jazeera, citing Reuters. Its collapse has left more than half of Paraguay's population without access to their accounts, the report said. The scale of the freeze has drawn scrutiny to both the government's ties to the bank and the effectiveness of financial regulators.

In a video address Thursday, Pena apologized for failing to prevent the crisis. "My greatest wish is that the return of those funds be guaranteed, that the deposit guarantee fund fulfil its purpose, and that public funds — as well as the resources that belong to all Paraguayans — be protected," he said, according to Al Jazeera.

What happens next for Pena?

If the Senate convicts Pena in an impeachment trial, he would lose the lifetime Senate seat and legal protections ordinarily granted to former Paraguayan presidents, Al Jazeera reported. The 72-hour extension he requested would push final arguments into next week.

Timeline: key dates in Paraguay's crisis

• Earlier this week: Paraguay's central bank intervenes at Ueno Bank over solvency breaches.
• Thursday: Lower house of Congress approves impeachment charges 78-0; Pena announces resignation and apologizes in a video address; charges are formally filed against him anyway.
• Friday: Congress rejects Pena's resignation, according to Al Jazeera's related reporting, and the Senate resumes impeachment proceedings; Pena requests a 72-hour defense extension.

What are regulators and prosecutors doing?

Central bank chief Carlos Carvallo has resigned amid the fallout, Al Jazeera reported. Arrest warrants were issued for eight Ueno executives, who later turned themselves in. Paraguay's attorney general has ordered three criminal investigations into the bank's collapse, covering its regulatory oversight and the placement of public funds inside the institution, according to the report.

The overlapping bank intervention, criminal investigations and impeachment trial leave unresolved how quickly frozen depositors — more than half the national population, per Al Jazeera's figures — will regain access to their money.

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