Opposition lawmakers in Paraguay have requested impeachment proceedings against President Santiago Peña and Vice President Pedro Alliana amid the Banco Ueno crisis. (Foto: Instagram)
Opposition lawmakers in Paraguay have filed an impeachment request against President Santiago Peña and Vice President Pedro Alliana following the crisis surrounding Banco Ueno, the country’s largest digital bank. The bank, which had about 3 million customers, entered a dissolution process after its solvency ratio fell below half the required level. The upheaval 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. Brasília time on Thursday, Nov. 5, to consider whether to open impeachment proceedings against Peña and Alliana. Thirty-five deputies submitted the accusation. Opening proceedings requires the support of 54 members of the chamber.
The crisis has particular political significance for Peña because he held a stake in the company that controls Banco Ueno until 2025. The bank also held public funds, including money belonging to Paraguay’s social security system. The Central Bank began the dissolution process on Tuesday, Nov. 3, after the institution’s solvency ratio dropped to less than half the required threshold.
Authorities are investigating allegations that Banco Ueno manipulated its financial position and operated a lending scheme involving companies that may have links to the bank’s controlling group. Eight executives have been arrested, including the bank’s largest shareholder and vice president, Miguel Vázquez. The allegations remain under investigation.
The dissolution process temporarily left customers unable to access money held at the bank. Banco Ueno was covered by Paraguay’s Deposit Guarantee Fund, which provides coverage of up to $38,000, equivalent to 75 Paraguayan minimum wages. Peña approved a law allowing customers to receive an advance of up to 40 monthly minimum wages within five days. Announcing the measure on X, he said he trusted that the Central Bank would implement it immediately and thanked Congress for handling the measure responsibly. Congress approved the law in one day.
