Paraguay's President Santiago Peña was impeached on Friday due to a financial crisis. This crisis has left over 60% of the population unable to access their bank accounts. Lawmakers in the lower house of Congress voted 78-0 to approve impeachment charges against Peña. He is under investigation for alleged corruption linked to the collapse of Ueno Bank, a major digital lender. The bank was suspended after it failed to meet solvency requirements, freezing accounts for about 2.9 million customers.
Key Details
The crisis has led to widespread protests across Paraguay, some of which resulted in violent clashes with police. After his impeachment, Peña was placed under house arrest. Prosecutor Elena Fiore Franco confirmed that Peña is cooperating with authorities. Earlier in the week, he tried to resign, hoping to keep protections for former presidents, but Congress rejected his resignation. Peña, who previously held a stake in Ueno's parent company, Grupo Vazquez, faces accusations of influence peddling and money laundering.
Background
In a statement, Peña expressed his wish for the return of public funds and criticized the government's handling of the crisis. "My greatest wish is that the return of those funds be guaranteed," he said. The collapse of Ueno Bank, which held around $850 million in public funds, has raised questions about the government's oversight of financial institutions and its relationship with the bank.
The political turmoil in Paraguay may affect investor confidence, especially in the banking sector. The crisis raises concerns about regulatory effectiveness. Investors will watch for updates on the return of frozen funds and the outcome of the ongoing impeachment proceedings against Peña.
Based on reporting by: theguardian.com, aljazeera.com