Paraguayan president resigns over banking crisis

Paraguayan President Santiago Pena has tendered his resignation following a banking crisis linked to one of his US-aligned allies, which has left nearly half the population unable to access funds. The Central Bank seized control of Ueno Bank, bringing deposits for around 3 million people, including pensioners, to a halt. Thousands protested outside Congress, demanding the return of their money and accusing Pena of criminal conduct. Lawmakers unanimously voted to initiate impeachment proceedings, alleging misconduct and a conflict of interest in his association with the bank. Pena, a right-wing president, has apologized and will face his impeachment trial this Friday.

Paraguayan President Santiago Pena has resigned, stepping down after the Central Bank's seizure of Ueno Bank, which blocks nearly half the population from accessing their funds, sparked widespread protests. The Central Bank took control of Ueno Bank due to a severe capital shortfall, aiming to protect depositors and maintain financial system stability, but the move caused chaos, with pensioners and ordinary citizens unable to withdraw their savings. Thousands of demonstrators gathered outside Congress, shouting for Pena to "give back the money." Lawmakers voted unanimously to initiate impeachment proceedings against Pena, citing misconduct and a conflict of interest in dealings with the bank. Pena owned shares in the group controlling Ueno but had sold them prior to the crisis. Nonetheless, his attempts to ease tensions, including requesting the resignation of the Central Bank president and setting a funds return deadline, were insufficient and did not pacify the public. Congress failed to quorate during a session deciding on Pena's resignation, but an extraordinary session on Friday will conclude with an impeachment trial. Vice President Pedro Alliana will become the new acting president.

Demonstrators expressed their anger, with one 21-year-old student, Andres Maldonado, stating, "My family ran out of money, we don't have any cash. Santi [Pena] is a criminal, he has to go to jail." The financial crisis has also had a profound impact on ordinary citizens, such as 26-year-old Nadia Gonzalez, a mother of three, who said, "Ueno approved a loan for us to buy our first house. But the funds were never disbursed, and now we have nowhere to live." The banking crisis highlights the fragility of the Paraguayan financial system and the erosion of trust in government, amplified by the mismanagement revealed by the Ueno Bank crisis.

The decision to initiate impeachment proceedings reflects a sharp backlash against Pena's handling of the situation. The crisis has not only created financial hardship for millions of Paraguayans but has also led to a political one, where Pena's actions are now being scrutinized by the legislative branch. The upcoming impeachment trial will be closely watched, as it could result in significant changes for both Pena and the country's political landscape. The swift succession of events underscores the urgency of addressing the systemic issues exposed by this banking crisis.