Paraguay’s Senate unanimously removed President Santiago Peña on November 6 amid the collapse of Ueno Bank, which left nearly three million customers unable to access their savings. Peña was placed under house arrest following the vote, according to The Associated Press.
The removal followed a congressional impeachment process. Paraguay’s Chamber of Deputies approved the accusation against Peña by 78 votes to none before the Senate voted to dismiss him, according to a parliamentary report.
Bank resolution began days before the vote
The Central Bank of Paraguay began a resolution process for Ueno Bank on November 3, citing insufficient solvency. Its report also identified weaknesses involving the bank’s assets, transactions with related companies and documentation.
The bank’s failure disrupted access to savings for nearly three million people. The scale of the disruption was a central feature of the political crisis that culminated in Peña’s removal.
Peña denies wrongdoing. His placement under house arrest followed suspicions of criminal conduct, but it is not a conviction. The Central Bank of Paraguay report details the grounds for the bank’s resolution process.
Reid Bentley