ASUNCION – Paraguayan President Santiago Peña will continue in office after lawmakers in a joint session of Congress failed to approve his resignation, as the Senate prepares to launch the impeachment process. The vote collapsed when deputies from the ruling Colorado Party walked out, leaving Congress short of a quorum and preventing a decision on the president’s retirement request.
Earlier that Thursday, the Chamber of Deputies unanimously approved impeachment charges against Peña, citing an unprecedented political crisis triggered by the collapse of digital lender Ueno Bank. The bank’s sudden shutdown left millions of customers unable to access their accounts, sparking outrage and demands for accountability from both the public and authorities.
In the minutes following the failed vote, Senate President Basilio Nunez declared that the upper house would proceed with the impeachment case. The Senate will now set a timetable for the first stage of proceedings, which may involve a hearing and further investigations into the allegations presented by the lower chamber.
Peña announced his resignation the previous day amid mounting pressure over the Ueno Bank collapse. He stated that he would appear before the Senate and “exercise his right to defend himself.” The statement was posted on social media and later echoed by Xinhua, which reported that the president was ready to respond to the charges.
Since the Ueno Bank collapse, the country has been grappling with the fallout of a digital financial institution that had grown rapidly before its failure. The event has undermined public trust in the banking system and raised questions about the regulation of fintech companies in Paraguay.
Critics argue that the collapse reflects systemic weaknesses in the country’s financial oversight and governance, and they have called for a comprehensive audit of the banking sector. Supporters of Peña point to his record of economic policies and maintain that the impeachment is a political maneuver rather than a genuine inquiry.
Political analysts note that the ruling Colorado Party’s walkout was a strategic choice to protect Peña’s interests. By leaving during the vote, the party prevented a quorum from being established, effectively stalling the resignation process and giving Peña a temporary reprieve.
Opposition parties, however, have not given up on their aims. They plan to rally support within the Senate to ensure that the impeachment proceeds and that the president is held accountable for the alleged failures that led to the Ueno Bank crisis.
Even though Peña remains formally in office as Congress has yet to accept his resignation, the political environment remains volatile. If the impeachment proceedings succeed, Peña could face removal from office or additional legal repercussions, depending on the outcome of the Senate’s deliberations.
Observers emphasize that the next few days will be crucial as the Senate will determine whether to convene further hearings or to confirm the impeachment’s validity. Meanwhile, ordinary Paraguayans continue to worry about the ripple effects of the Ueno Bank fallout on their savings and access to financial services.
For the nation’s stability, officials insist that a swift and transparent resolution of the impeachment case is essential. They argue that such a resolution would restore confidence in the political system and signal that the country can effectively respond to crises in the banking sector.
On the international stage, the situation has drawn comments from foreign governments and regional organizations that regard Paraguay’s political crisis as a potential threat to regional economic integration. These entities have urged both sides to prioritize dialogue and to safeguard democratic processes.
In the wake of the joint session’s failure to ratify Peña’s resignation, the country will watch closely as the Senate sets the next steps. The outcome will not only determine the president’s future but will also influence how Paraguay navigates the broader challenges posed by the rapid growth of fintech companies and the need for robust regulatory frameworks.
