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The takeover of Uno Bank by the Central Bank of Paraguay triggered a financial crisis and a wave of demonstrations. President Penia announced his resignation after facing impeachment pressure, and was replaced by Vice President Ariana.
President Pena Pena of Paraguay, Taiwan’s ally, announced his resignation today, and Vice President Ariana will take over leadership of the country. The recent takeover of a bank linked to Pena has left millions of people unable to withdraw their deposits, causing a financial and political crisis in the country.
Agence France-Presse reported that the Central Bank of Paraguay took over Uno Bank on the 3rd, citing a serious lack of bank capital. After this, a wave of protests broke out in the South American country.
On the 4th, opposition members of Congress called for the impeachment of Santiago Peña Palacios in response to the crisis, accusing him of favoring the bank in regulatory and pension fund-related decisions.
The right-wing president announced his resignation in a video posted on social platforms
Peña said his first priority is “to give peace of mind to the people of Paraguay who entrust their savings to our financial system.”
Currently, around 30 lakh depositors, including retired people, are unable to withdraw their deposits.
On the 3rd and 4th, people trying to withdraw their deposits from Uno Bank branches stood in long queues in the streets of the capital Asuncion; Angry protesters also took to the streets of the capital on the evenings of the last two days.
The Central Bank of Paraguay said that Uno Bank was seriously undercapitalized and that the takeover was to “protect depositors and maintain the stability of the financial system”.
Pena once owned a stake in the group that controlled the bank but sold it last year.
When Congress debated the impeachment case today, Peña’s Colorado Party also expressed support for removing him from office.
Ruling party member Alejandro Aquilera said during the debate: “In the face of these accusations, I can’t pretend not to see it. We have more than 3 million Paraguayans who have suffered losses. They feel cheated, cheated and defrauded.”
The Associated Press reported that shortly after Peña announced his resignation, the House of Representatives voted unanimously to impeach him, with 78 votes in favor and 0 against.
Peña had previously called for the resignation of central bank governor Carlos Carvalho in an effort to ease tensions, and Carvalho later stepped down. Peña also introduced a law that would require depositors to return most of their funds within five working days.
However, these measures were not enough to suppress public discontent. Hundreds of protesters in Asuncion demanded his resignation and clashed with police, who fired tear gas and water cannon into the crowd.
Before assuming office as President in 2023, Peña served as Finance Minister. In his place, Vice President Pedro Eliana will now lead Paraguay.
