Paraguay’s Congress met in a special session to consider President Santiago Peña’s resignation, which could pave the way for Vice President Pedro Alliana to take office. (Foto: Instagram)
Paraguay’s Congress held a special session Thursday, Nov. 5, to consider President Santiago Peña’s resignation. If lawmakers accept his departure, Vice President Pedro Alliana would take over. The session brought together senators and members of the Chamber of Deputies. Peña said in a video released Thursday that he had decided to leave office, citing the country’s stability.
Earlier Thursday, the Chamber rejected an impeachment request against Alliana. The vote removed a potential obstacle to the vice president’s succession, which could have been complicated if he were barred from office. Peña, a conservative politician, had faced an impeachment effort supported by the opposition and some members of his own governing coalition, leaving him politically isolated.
The political crisis intensified after the Central Bank of Paraguay intervened in Banco Ueno on Tuesday, Nov. 3, and suspended its operations. The regulator said the bank’s solvency ratio was below the required minimum of 50%. Banco Ueno is used by more than half of Paraguay’s adult population, and the suspension left nearly 3 million customers without access to banking services in a country of about 6.1 million people. Long lines formed at branches, customers expressed concern, and protests took place in the streets.
The central bank described the situation as an isolated case, saying it did not point to widespread problems in Paraguay’s financial system. It also said protecting depositors was a priority. Banco Ueno holds about $850 million in public deposits, including funds belonging to Paraguay’s Social Security Institute.
Peña was accused of being complicit in irregularities that led to the Banco Ueno crisis. The bank is controlled by a group in which he had previously been a shareholder. In his video statement, he apologized to Paraguayans who could not access their money and said his decision was intended to promote stability. “I am convinced that no position can be more important than Paraguay’s well-being. I also want to apologize to the people. If I failed at any point, it was never my intention to betray the trust they placed in me,” he said. He added that his resignation was meant to preserve social peace and the country’s democratic institutions.
On the day the Banco Ueno intervention was announced, Central Bank President Carlos Carvallo also resigned. Before leading the central bank, Carvallo had headed Financiera Ueno, the company that later became the bank placed under intervention. In recent years, Paraguay has sought to establish itself as a regional financial center and received investment-grade ratings from two of the leading international credit-rating agencies.
