Translated automatically by AI from the Italian original.
ASUNCIÓN – The wave of violent outrage and protest shaking Paraguay after the dramatic collapse of banking giant Ueno Bank shows no sign of abating. Not even the historic Senate decision to unanimously remove President Santiago Peña through a swift impeachment procedure has calmed the streets.
In the night between 6 and 7 November, tension erupted into urban guerrilla warfare in the heart of Asunción. An enraged crowd of account holders and savers attempted to break into the former head of state’s private home to protest the measure of house arrest, seen by public opinion as an intolerable privilege. Clashes with police – who used tear gas and rubber bullets – left several injured on both sides, forcing security chiefs to urgently evacuate Peña and transfer him to the presidential escort regiment, a protected military facility.
The Senate impeachment and its criminal consequences
The political turning point came after the political trial brought in Parliament: all 44 senators present voted in favour of removing Peña for serious violation and insufficient performance of his duties. This is the second president removed by impeachment in the South American country’s recent history, after Fernando Lugo in 2012.
- Alleged conflict of interest: At the heart of the accusations are Peña’s direct ties to the group that owns Ueno Bank and the alleged use of government influence to channel massive public deposits to the institution.
- Loss of immunity: With his removal through political trial, Peña loses the constitutional right to become a senator for life (a position reserved for elected former presidents), thus forfeiting the shield of parliamentary immunity in the face of the judiciary’s investigation.
- The defence: Peña’s lawyers deny any criminal charges and allege procedural irregularities and violations of minimum defence timeframes during the impeachment.
The Ueno Bank collapse: 2.9 million customers and pensions in freefall
What triggered the public anger was the sudden receivership of Ueno Bank ordered by the Banco Central del Paraguay on 3 November, after it emerged that the solvency ratio had plummeted to less than half the legal minimum. A systemic collapse: the bank had over 2.9 million customers in a country of just 6.1 million people.
Making matters worse is the involvement of the Instituto de Previsión Social, the state pension fund, which had placed a full $355 million there, effectively freezing pensions and primary financial services for millions of families. Meanwhile, the central bank governor, Carlos Carvallo, has also resigned, while the judiciary has opened a file on alleged illegal loans and irregular overdrafts granted to companies linked to the group.
Vice president Pedro Alliana has already been sworn in as the new president and will remain in office to complete the term until August 2028. His absolute priority will now be to unlock deposits to prevent a total economic meltdown in the country.
