The U.S. Embassy in Paraguay called for peace and respect for democratic institutions as a banking scandal and impeachment proceedings shook President Santiago Peña’s government. (Foto: Instagram)
The U.S. Embassy in Paraguay called for peace and respect for the country’s democratic institutions on Friday, Nov. 6, as a banking scandal and an impeachment push shook the government of President Santiago Peña. The embassy also expressed solidarity with the Paraguayan people, describing the United States as a longtime friend and ally of Paraguay.
In its statement, the embassy urged Paraguayan authorities and the public to preserve peace and respect the country’s democratic institutions. The appeal came after the Central Bank of Paraguay suspended Ueno Bank’s operations on Nov. 3. The central bank deemed the digital financial institution insolvent, meaning it could not meet its financial obligations, and began a resolution process.
Paraguay’s Public Prosecutor’s Office sought a criminal investigation into the bank and the arrest of its executives. The inquiries involve suspicions about the bank’s management and loans made to companies linked to its controlling group, which investigators suspect may have harmed the institution’s assets. Carlos Carvallo, who had led the central bank since 2023 and previously served as president of Ueno Bank, resigned from his post. Peña, who was a shareholder in Ueno Holding—a company connected to the bank’s controlling group—until March 2025, also faced an impeachment request.
Peña announced his resignation on Thursday, Nov. 5, as the impeachment effort advanced in Congress. About an hour after the announcement, the Chamber of Deputies approved the impeachment request unanimously, with 78 votes in favor. Opposition lawmakers argued that the process should continue so Peña would not leave office with the possibility of obtaining parliamentary immunity.
Peña had asked the Senate for 72 hours to prepare his defense, but the request was denied on Friday. He said he received notice of the process at 10:15 p.m. Thursday and that the filing included a 15-page accusation and more than 300 pages of attachments. He argued that fewer than 12 hours to prepare a response would be insufficient under democratic rule-of-law principles. The session to consider the case had initially been scheduled to begin Friday morning.
Interior Minister Enrique Riera delivered Peña’s resignation letter to Congress. In a statement posted on social media, Peña said he had made the decision with the country’s stability, social peace and democratic institutions in mind. The embassy’s appeal for calm came as the resignation and impeachment proceedings unfolded alongside the continuing scrutiny of Ueno Bank.
