With some savers still unable to reach their funds, Paraguay’s Senate removed President Santiago Peña by unanimous vote Friday, Reuters reported, transferring power during a banking crisis.
Former Vice President Pedro Alliana took office Nov. 6. The change followed Peña’s resignation submission the previous day and the Senate’s removal vote, Reuters reported. EconoTimes earlier covered Peña’s resignation submission and the lower-house impeachment vote.
MercoPress has described Peña’s case as the second presidential impeachment proceeding to reach the Senate since Paraguay’s 1989 return to democracy. Former President Fernando Lugo was removed by the chamber in 2012, the outlet said.
The lender’s rapid expansion since its 2021 launch, along with concerns about lending decisions and political connections, formed part of the crisis’s background, Reuters reported. Senators raised questions about Peña’s past connection to ueno, the outlet said. Peña held shares in the bank’s parent company until 2025, and almost half the country’s residents had accounts with the lender. He denied wrongdoing and described the matter as a regulatory issue.
The freeze affected some ueno customers, including retirees whose state benefits were deposited through the bank. Demonstrators in Asuncion demanded accountability and compensation for people still unable to access deposits, Reuters reported. Peña approved legislation intended to speed payouts, and initial reimbursements began Nov. 5, the outlet said.
Prosecutors confined Peña to his home and ordered him to appear at their office Nov. 7, Reuters reported. They were still weighing charges, with influence peddling among the possibilities.
