Paraguay Opposition Files Impeachment Motion Over Banking Crisis

• The opposition motion alleging misconduct and conflict of interest has gathered 35 signatures from lawmakers in Congress.
• Ueno Bank serves over three million customers and manages significant state funds, prompting the Central Bank to intervene for financial stability.

Asunción: The Paraguayan opposition filed a motion to remove President Santiago Pena from office over the Central Bank’s seizure of a major lender linked to him, a lawmaker told AFP on Wednesday.

The Central Bank’s decision to assume control of Ueno Bank on Tuesday left millions of depositors, including pensioners, unable to access their funds.

President Pena previously held shares in the group that controlled Ueno Bank but sold his stake last year.

The impeachment request, alleging misconduct and conflict of interest, secured 35 signatures among opposition lawmakers in Congress, according to dissident ruling party legislator Mauricio Espinola.

Espinola said Congress will hold a session on the motion Thursday morning.

At least 53 of 80 lawmakers must approve the removal of Pena and Vice President Pedro Alliana for the process to advance.

The motion would then proceed to the Senate, where approval from 30 of 45 senators is required.

Pena’s ruling party holds a majority in both legislative chambers.

Ueno Bank reports over three million customers — nearly half of Paraguay’s population — and manages millions of dollars in pensions and other state funds.

The Central Bank stated it assumed control of Ueno Bank due to a severe capital shortfall, aiming to “protect depositors and preserve the stability of the financial system.”

Authorities have suspended Ueno Bank’s services while they arrange the return of deposits.

Central Bank President Carlos Carvallo, who previously chaired Ueno Bank, resigned at the request of President Pena on Tuesday.

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