Paraguay's president faces Senate trial over bank collapse
Paraguayan President Santiago Peña offered to resign over the collapse of Ueno Bank, but Congress declined it, and the lower house impeached him with the Senate trial continuing Friday.
Developing story. Details may change as more information is confirmed.
Paraguayan President Santiago Peña is fighting for his job after the collapse of a major digital bank turned his own party against him.
The crisis centers on Ueno Bank. Paraguay's central bank said on Tuesday that it had started resolution proceedings for the lender after its solvency ratio fell to less than half the required minimum. Peña is now under criminal investigation in connection with the collapse.
Events moved quickly on Thursday. Peña said in a video posted on X that he was offering his resignation to protect national stability. Moments later the lower house voted unanimously to impeach him. Then both houses declined to accept his resignation, and the Senate decided to go ahead with a trial that could remove him from office.
The trial resumed on Friday morning, with Peña due to present his defense. Senators will then review evidence and hear closing arguments before a vote. Removal requires 30 of the 45 senators. If he is removed, the vice president would take over.
Peña, a former International Monetary Fund economist, took office in 2023 for the long-ruling Colorado Party. The party's turn against him is a striking reversal. Details of the case against him were still emerging. This is a developing story.
This summary is original reporting by tehworldnews, written after checking the facts against several major international news outlets and official statements.