Key Points
- Thirty-five lawmakers submit impeachment charges against President Santiago Peña and Vice President Pedro Alliana
- Opposition accuses the leadership of favouring Ueno Bank and exposing public pension funds to financial risks
- An extraordinary parliamentary session is scheduled for today
ASUNCION: Paraguay’s opposition has filed impeachment charges against President Santiago Peña over alleged conflicts of interest and regulatory failures linked to Ueno Bank
The impeachment filing over the banking crisis has set up a congressional showdown, as the worst banking crisis fuels public anger and an extraordinary session scheduled for Thursday.
Thirty-five lawmakers formally submitted the accusations against Peña and Vice President Pedro Alliana to the Chamber of Deputies on Wednesday.
The submission seeks to hold the country’s top leadership accountable for alleged misconduct surrounding the collapse of the major digital lender.
The Chamber of Deputies announced an extraordinary session for Thursday at 10 am to consider the two impeachment proposals.
The proceedings are likely to become a major political challenge for Peña, whose former business connections with the financial group controlling Ueno have come under scrutiny.
Opposition alleges conflicts of interest
The charges against Peña rest on allegations that his former financial interests in Ueno’s parent group created conflicts of interest while his government oversaw the country’s financial regulatory institutions.
According to the accusation submitted to parliament, Peña retained a financial stake in Ueno Holding, the conglomerate controlling Ueno Bank, after taking office in 2023. He sold his shares in March 2025, according to Reuters’ reports.
The lawmakers also question the appointment of Carlos Carvallo, a former head of Ueno’s financial business, as president of the Central Bank of Paraguay.
They allege that changes to the country’s conflict-of-interest legislation weakened safeguards against links between public officeholders and private financial interests.
Another major allegation concerns the concentration of public pension funds in Ueno Bank.
The opposition claims that the government allowed substantial deposits from the Institute of Social Security (IPS), Paraguay’s state pension and health fund, to exceed regulatory exposure limits.
The accusations against Vice President Alliana focus on his alleged role in providing political and legislative protection and allowing pension-fund placements despite concerns about its financial position.
Both officials face allegations, not judicial findings of wrongdoing.
Parliamentary test
Under Article 225 of Paraguay’s Constitution, the Chamber of Deputies must approve an impeachment accusation by a two-thirds majority before the Senate proceedings.
The Senate then conducts the trial and requires a two-thirds majority to find the President and the Vice President guilty and remove them from office.
The 35 lawmakers backing the initiative fall short of the threshold required to advance the proceedings.
The opposition is therefore seeking support from dissident members of the governing Colorado Party, which holds a majority in both chambers.
The outcome will depend on whether enough governing-party lawmakers break ranks to support the charges.
Paraguay banking crisis’s political fallout
The impeachment submission follows the Central Bank’s intervention in Ueno Bank after its solvency ratio fell below the legally required minimum, leaving approximately three million customers unable to access their accounts.
The bank managed nearly $850 million in public funds, including nearly $380 million belonging to the state pension and health fund, according to Associated Press reporting.
The intervention prompted protests by depositors demanding access to their savings and raised questions about the supervision of the rapidly expanding lender.
The crisis also forced Central Bank President Carlos Carvallo to resign after President Peña requested his departure.
Authorities issued arrest warrants for eight senior Ueno executives. The prosecutors filed charges against 27 people for suspected financial irregularities involving the bank and related companies.
The investigation includes alleged lending to businesses linked to the bank’s ownership group under conditions that may have breached normal credit-risk requirements.
Peña has called for depositors’ interests to be prioritised and said those responsible for irregularities would face justice. He has also maintained that Paraguay’s overall financial system remains sound.
The impeachment proceedings now threaten to turn the banking crisis into a key test of political accountability, regulatory independence and public confidence in Paraguay’s financial institutions.
