In brief
Paraguay’s President Santiago Peña is still in office after a joint session of Congress could not approve his resignation due to a lack of quorum. The collapse of digital lender Ueno Bank has sparked a political crisis that led to impeachment charges. Peña has said he will defend himself before the Senate as the upper house moves forward with the proceedings.
In Asunción on November 6, Paraguay’s President Santiago Peña remains in office after a joint session of Congress failed to approve his resignation. The vote could not be brought to a decision because lawmakers from the ruling Colorado Party walked out, preventing the necessary quorum.
Earlier that day, the Chamber of Deputies unanimously approved impeachment charges against Peña. The move followed the collapse of the digital lender Ueno Bank, whose failure left millions of customers unable to access their accounts and triggered a broader financial crisis.
Congressional Breakdown
The joint sitting that was supposed to confirm the president’s resignation was suspended when the Colorado Party members left the chamber. The split in the legislature meant that no formal vote could take place, leaving Peña’s resignation unaccepted and his official term intact.
Senate President Basilio Nunez announced that the upper house would proceed with the impeachment process. This decision follows the deputies’ approval of charges and sets the stage for a formal trial in the Senate.
President Peña has responded to the crisis by stating that he will appear before the Senate and exercise his right to defend himself.
"I will appear before the Senate and exercise my right to defend myself," said Peña in a statement on social media.
According to Xinhua, the political crisis is rooted in the Ueno Bank disaster, which has exposed vulnerabilities in Paraguay’s digital banking sector and raised questions about regulatory oversight. Ueno was a popular online lender, and its collapse has caused significant financial hardship for many citizens.
The failure of the bank also prompted widespread calls for presidential accountability. Critics argue that Peña’s administration either failed to oversee the lender properly or did not act swiftly enough to prevent the collapse. Supporters of the president claim that the crisis was an unexpected market failure beyond the government's control.
Within the Senate, the impeachment debate is expected to involve a review of documentation, witness testimony, and a final vote on the charges against Peña. The process is likely to take several sessions, as the Senate sets the procedural rules for the trial.
The political scene is tense, with opposition parties calling for immediate resignation and support groups demanding a thorough investigation. The crisis is also affecting the economy, with financial analysts warning that fears of contagion could spread if the bank failures are not addressed decisively.
In the days since the collapse, the Paraguayan government has tried to reassure the public that measures are being taken to recover the deposits and to restore confidence in the banking system. Nonetheless, the political ramifications have deepened, with the president officially remaining in office while Congress has not yet accepted his resignation.
As the impeachment process moves forward, observers will closely monitor whether Peña will ultimately be removed from office or whether Congress will negotiate a different resolution. The outcome of these proceedings will have lasting implications for Paraguay’s political stability and the future regulation of digital financial services.
