Paraguay’s president faces removal after a bank collapse freezes millions of accounts

Paraguay’s President Santiago Peña announced his resignation in a video on Thursday, and minutes later the lower house of Congress voted 78–0 to impeach him. The crisis began on Tuesday, when the central bank seized Ueno, a digital bank that says it serves about 3 million people, more than 60% of the country’s adults, after finding its capital had fallen below half the legal minimum. Customers, including pensioners, lost access to their money, and the bank held some $800 million to $850 million in public funds, according to the Associated Press and Reuters. Peña said he was acting for “the stability of our country, social peace and the need to preserve our democratic institutions,” and added: “It was never my intention to betray the trust” placed in him.

Congress did not accept the resignation: a joint session lost its quorum after ruling Colorado Party lawmakers walked out. Opposition lawmakers want a trial because a president who resigns normally becomes a senator for life with legal immunity, which a conviction would rule out. The Senate has summoned Peña to appear today, and removal needs a two-thirds majority. Former president Horacio Cartes, who leads the Colorado Party, backed impeachment. Peña held a stake in a company linked to Ueno until last year, and central bank chief Carlos Carvallo resigned at his request. The attorney general has ordered three criminal investigations, and thousands protested outside Congress.

Why it matters

This is today’s highest-impact story because a single bank failure has cut off the savings of a majority of a country’s adults and may now bring down its elected government. Paraguay had promised to return funds within five days, and depositors are waiting to see whether that holds. If Peña is removed, Vice President Pedro Alliana would serve until August 2028. What to watch: the Senate vote today, whether Peña appears in person, and how quickly depositors get their money back.