Paraguay removes Peña as Ueno Bank crisis spreads through public institutions

Paraguay's Senate removed President Santiago Peña from office on November 6, escalating a political crisis that followed the intervention at Ueno Bank. The chamber said senators present voted unanimously to find him responsible for misconduct in office under the constitutional impeachment process.

The decision followed the start of the bank's resolution procedure earlier in the week. It brings the leadership dispute and the protection of depositors into the same national crisis, although the political proceeding, the bank resolution and any criminal investigations remain separate processes.

A solvency failure triggers intervention

The Banco Central del Paraguay ordered the resolution of Ueno on November 2 and announced the decision the following day. It said adjustments to the lender's financial statements revealed that its solvency indicator had fallen below half the required minimum.

The central bank is handling the case under the country's deposit-guarantee and bank-resolution law. Its stated objectives are to protect depositors and manage the failure in an orderly way while preserving confidence in the wider financial system.

Authorities described Ueno's condition as a specific institutional problem rather than a general failure across Paraguayan banks. That assessment does not determine the final losses at the lender or the timing of access to every affected account. Those outcomes depend on the resolution measures and the treatment of individual claims.

The Senate completes the removal process

The impeachment proceeding began in the upper chamber on November 5 after an accusation from the Chamber of Deputies. Peña requested an additional 72 hours to prepare his defense, but senators rejected that request. His legal representatives appeared before the chamber when he did not attend personally.

The Senate's decision completed a political judgment on his performance in office. It should not be read as a criminal conviction or a final determination of all allegations surrounding Ueno.

The bank's failure has intensified questions about supervision and the placement of public money. Establishing responsibility for particular transactions will require evidence beyond the removal vote itself.

Prosecutors open a separate inquiry

On November 5, the public prosecutor's office announced three criminal cases concerning complaints linked to Ueno's supervision and resolution, public funds placed with the bank, and the conduct of current and former officials. A team specializing in economic crime and corruption was assigned to investigate.

Those inquiries establish that complaints are being examined. They do not establish the guilt of any individual named in them.

For depositors and institutions with money tied to Ueno, the immediate issue remains the resolution's implementation: which obligations will be met, through what mechanism and on what schedule. Political accountability may move quickly, but it does not itself return frozen deposits or settle the financial claims left by a failed bank.