Paraguay's president is impeached minutes after resigning following a bank collapse
ASUNCIÓN, Paraguay —
asserted
president → impeach → collapse
Paraguay's lower house voted unanimously Thursday to impeach President Santiago Peña just minutes after he announced his resignation, as the collapse of a major digital bank tied to his government froze millions of people's savings, sent protesters surging into the streets and turned his own party against him.
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collapse → vote → him
The 78-0 vote marked a stunning repudiation of Peña by lawmakers from his long-ruling Colorado Party, who joined the opposition in backing his impeachment after three days of demonstrations rocked the capital, Asunción.
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days → mark → capital
The vote sends the charges to the Senate, where a two-thirds majority is required to convict the president and formally remove him from office.
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majority → send → office
The impeachment came as thousands protested for a third day, as they attempt to recoup lost savings, wages and pensions from Ueno Bank, a major digital lender.
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they → come → Bank
Peña, a close ally of U.S. President Donald Trump, announced his decision in a video posted to X as lawmakers debated his impeachment, saying he was stepping down in the interest of "the stability of our country, social peace and the need to preserve our democratic institutions."
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he → announce → institutions
The president, who until last year held a stake in a company related to Ueno Bank, expressed contrition but stopped short of accepting responsibility for the banking crisis that has plunged a South American nation long prized by foreign investors for its stability into financial and political turmoil.
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that → hold → turmoil
"I also want to apologize to the people if I have failed them at any point," he said.
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he → want → point
"It was never my intention to betray the trust they placed in me."
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they → betray → me
The extraordinary turn of events set the stage for a transfer of power later Thursday.
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turn → set → power
Congress was expected to formally accept Peña's resignation at 5 p.m., clearing the way for Vice President Pedro Alliana to be sworn in as president an hour later.
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Alliana → expect → president
Alliana would serve out Peña's term through August 2028, with lawmakers expected to choose a new vice president.
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lawmakers → serve → president
From star lender to seized bank
Ueno Bank, which exploded from an obscure finance company to a household name in less than five years, claimed more than 60% of Paraguay's adults as customers.
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which → seize → customers
They are now left scrambling to recoup their savings, government pensions, and, for 7,000 employees impacted by the bank's closure, unpaid wages.
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They → leave → closure
Many Paraguayans are left asking how a bank linked to the president, who until last year had a stake in Ueno's holding company, could grow so rapidly in size and importance despite repeated warnings about its dubious lending practices.
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who → leave → practices
The answer lies in the uncomfortable proximity of Peña's long-ruling Colorado Party to the country's regulators and business elite, a weakness that has endured even as steady economic management and rapid growth made Paraguay a darling of international investors in recent years.
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Paraguay → lie → years
"Santiago Peña and the Colorado Party have stolen all our savings," said Luis Pineda, one of the protesters marching to Congress on Wednesday.
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Pineda → steal → Wednesday
"We are fed up with 70 years of plunder.
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We → feed → plunder
Soon after winning its banking license in 2023, Ueno seemed to be everywhere in Paraguay.
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Ueno → win → Paraguay
The digital lender, a rebranded version of a decades-old finance company, lured customers with generous cash-back offers on groceries, grew to more than 70 locations, sponsored Paraguay's national soccer team and plastered its name on the country's main stadium.
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lender → lure → stadium
Government money poured into Ueno's coffers under Peña.
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money → pour → Peña
He also appointed Carlos Carvallo, president of Financiera Ueno, the predecessor to Ueno Bank, to run the central bank, the agency charged with supervising the digital lender.
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He → appoint → lender
As of last month, Ueno reported holding roughly $800 million in public deposits, about a quarter of its total, including money from the state pension and health fund and the operators of Paraguay's giant hydroelectric dams.
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Ueno → hold → dams
Even as retirees' savings and other public money piled up at Ueno, worries were escalating inside the central bank.
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worries → pile → bank
In June, its inspectors found a pattern of risky lending to insiders, reported ABC Color, a leading Paraguayan newspaper.
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Color → find → insiders
Ueno had extended large sums to companies tied to its owners, beyond what the law allows and without enough collateral to cover the debts if they went bad.
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they → extend → debts
On a single day in September 2025, nearly $39 million had gone to three such companies.
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million → go → companies
Peña repeatedly brushed off the warnings.
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Peña → brush → warnings
As recently as last month, he defended Ueno and the central bank's oversight, dismissing the concerns as a smear campaign that was spooking the public.
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that → defend → public
Long lines outside branches but customers are locked out
But on Monday, it all came crashing down.
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it → lock → Monday
Regulators investigating Ueno's loans to companies linked to its owners found poorly documented lending, the central bank said, as well as expenses the bank had wrongly counted as assets.
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bank → investigate → assets
Once the books were corrected, Ueno's capital, the cushion banks must keep to absorb losses, fell to less than half the legal minimum.
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banks → correct → minimum
The central bank seized the lender Tuesday and announced plans to move customers' accounts, along with whatever assets still hold value, to other banks before liquidating what's left.
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what → seize → banks
Ueno's app, cards and transfers went dark and its branches locked their doors, leaving desperate depositors lined up outside with no way to cash out their savings.
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branches → go → savings
On Wednesday, a rush to open new accounts elsewhere crashed other banks' mobile apps, fueling public panic.
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rush → open → panic
Officials appealed for calm and said they had begun repaying depositors, opening new accounts elsewhere for about 280,000 who had banked only with Ueno.
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who → appeal → Ueno
"The banking system is sound," insisted Pedro Acosta Bernal, appointed interim central bank president Wednesday after Carvallo resigned at Peña's request.
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Carvallo → insist → request
Authorities have detained eight senior Ueno executives, including founder Miguel Vázquez and bank President Juan Manuel Gustale.
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Authorities → detain → Vázquez
Prosecutors also charged 27 bank officials and business associates with offenses including breach of trust and attempted fraud.
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Prosecutors → charge → trust
Lawyers for several of the detained said they needed time to review the allegations before they could comment.
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they → detain → allegations
…and 10 more, not listed.
The Aporia
