Despite Pena’s resignation, he remains technically in power because Congress voted unanimously to launch impeachment proceedings for misconduct and conflict of interest. Lawmakers placed the resignation on hold to allow the impeachment trial to move forward, which is set to begin on Friday morning. Vice President Pedro Alliana is expected to assume leadership once the process concludes. The Central Bank stated that the seizure of Ueno was necessary to “protect depositors and preserve the stability of the financial system.”
The economic impact has been immediate and severe for households. Long lines formed outside Ueno branches in the capital, Asuncion, as customers attempted to withdraw cash. Nadia Gonzalez, a 26-year-old mother of three, told AFP that Ueno had previously approved a loan for her first home purchase, but the funds were never disbursed. “Now we have nowhere to live,” she said. Andres Maldonado, a 21-year-old student protester, described the situation as a criminal scheme, demanding that “Santi (Pena) is a criminal, he has to go to jail.”
Pena, a right-wing leader, apologized in a video posted on X, stating, “It was never my intention to betray the trust you placed in me.” He claimed his priority is the “peace of mind of Paraguayans who entrusted their savings to our financial system.” Although Pena sold his shares in the group controlling the bank last year, opposition lawmaker Raul Benitez alleged that a “criminal scheme” drained the bank under the protection of institutions Pena controlled. In an attempt to ease tensions, Pena had previously requested the resignation of Central Bank president Carlos Carvallo and set a five-day limit for the return of funds, measures that failed to quell the unrest.
Protests outside Congress on Thursday saw thousands of demonstrators chanting “Give back the money.” Earlier demonstrations resulted in clashes with police, who deployed tear gas and water cannons. Interior Minister Enrique Riera also resigned on Thursday, with Carlos Benitez appointed as his interim replacement. Congress initially attempted to hold an extraordinary session to vote on the resignation but failed to reach a quorum. A subsequent session scheduled the impeachment trial for Friday, with ruling party Senator Derlis Maidana stating the aim is to conclude the trial quickly to “reassure the public.”
