The Paraguayan Congress has impeached and removed President Santiago Peña from office due to his involvement with the troubled Ueno Bank, which has left millions of customers unable to access their funds. The bank was shut down by the country's central bank due to its inability to pay debts and manage its finances. Peña, who took office in August 2023 at the age of 44, had previously served as finance minister and president of the Central Bank of Paraguay.
The impeachment vote was passed with 44 out of 45 senators supporting the move, with Vice President Pedro Alliana sworn in as the new president. Peña had announced his resignation on Thursday, citing the need to protect the country's stability and institutions. The attorney general's office has launched an investigation into Peña and other former government officials over their alleged involvement in the bank's collapse.
The Ueno Bank had approximately 2.9 million customers in a country of 6.1 million people. The central bank announced that the bank's ability to manage its financial difficulties had fallen below the required threshold. The investigation will also look into the large sums of government money invested in the bank, including funds from the state pension fund.
Peña's arrest was ordered by the attorney general, Christian Benítez, who stated that the former president would remain in custody while the investigation continues. The bank's collapse has sparked widespread protests and concerns among the Paraguayan public. The central bank has announced that it will begin gradually paying out funds to customers.
The crisis has raised questions about the government's oversight of the banking sector and the potential for future financial instability. Peña's government had faced criticism for its handling of the bank's troubles, with many accusing the administration of failing to act quickly enough to address the issue.
The Ueno Bank crisis has also sparked concerns about the potential impact on the country's economy, which had been growing steadily in recent years. The government has promised to take steps to stabilize the financial system and protect depositors' funds.
The impeachment and arrest of President Peña mark a significant development in the country's ongoing financial crisis. The investigation into the bank's collapse is expected to continue, with further arrests and charges possible in the coming weeks. Peña's removal from office has been seen as a necessary step to restore confidence in the government and the financial system.
Key points
- President Santiago Peña was impeached and arrested over his involvement with the troubled Ueno Bank.
- The bank's collapse left millions of customers unable to access their funds.
- Peña's removal from office has been seen as a necessary step to restore confidence in the government and the financial system.
