Paraguay president resigns amid banking crisis

ASUNCION, Paraguay — Paraguayan President Santiago Pena will face an impeachment trial after a financial crisis that led the US-allied leader to resign Thursday, after a banking takeover blocked almost half the population from accessing their money.

Congress put Pena's resignation on hold while the impeachment process move forwards, which means he will remain in office provisionally.

The Central Bank's seizure of Pena-linked Ueno Bank two days earlier froze the deposits of some three million people, including pensioners, and sparked angry demonstrations across the country.

Thousands of Paraguayans gathered outside Congress on Thursday to protest against the president, who is still technically in power as his resignation awaits legislative approval.

"Give back the money," AFP journalists heard them yelling. Earlier demonstrations featured clashes with the police, who used tear gas and water cannons on the crowd.

"My family ran out of money, we don't have any cash. Santi (Pena) is a criminal, he has to go to jail," 21-year-old student protester Andres Maldonado told AFP.

Lawmakers voted unanimously Thursday to launch impeachment proceedings against Pena over the crisis, alleging misconduct and a conflict of interest in dealings with the bank to which he is tied.

The right-wing president said he would attend his impeachment trial, which is set to begin Friday, after earlier apologizing to the people of Paraguay.

"It was never my intention to betray the trust you placed in me," he said in a video posted on X announcing his resignation.

Pena's priority, he added, is "the peace of mind of Paraguayans who entrusted their savings to our financial system."

Pena's Interior Minister Enrique Riera also resigned from his post Thursday, according to a decree published in local media, with Carlos Benitez appointed to replace him in the interim.

Paraguay's Central Bank said it took over Ueno due to a severe capital shortfall, in order to "protect depositors and preserve the stability of the financial system."

"Ueno approved a loan for us to buy our first house. But the funds were never disbursed, and now we have nowhere to live," 26-year-old Nadia Gonzalez, a mother of three, told AFP.

Long lines of people trying to withdraw their money from Ueno branches snaked down Asuncion's streets on Tuesday and Wednesday.

Pena owned shares in a group that controlled the bank, but he sold them last year.

He had attempted to ease tensions by requesting the resignation of Central Bank president Carlos Carvallo, who consented, and setting a five-day limit for the return of funds. Neither measure proved sufficient.

Congress called an extraordinary session of both chambers Thursday to decide whether to accept Pena's resignation or reject it and proceed with the impeachment process.

But the session failed to reach a quorum, so the vote did not go ahead.

A later extraordinary session scheduled the impeachment trial to begin on Friday morning.

"A criminal scheme has been set up here that has dedicated itself to draining a bank, under the protection of institutions he controlled as president of the republic," opposition lawmaker Raul Benitez stated.

The aim is to conclude the trial on Friday as a way to "reassure the public," ruling party Senator Derlis Maidana told reporters.

Vice President Pedro Alliana is set to take over as leader of the South American nation.

abtestabtest Americans vote in midterms set to upend Trump presidency By Frankie Taggart | 3 days ago Americans deliver their verdict on Donald Trump's tumultuous second presidency Tuesday in midterm elections that threaten... World Thousands of students, workers hold peaceful protests in Italy By Alexandria Sage | 6 days ago Thousands of students and workers took to the streets across Italy on Friday, calling for more school funding and relief from... World Chris Pappas to become first openly gay male US senator 2 days ago Democratic Representative Chris Pappas won election on Tuesday to the US Senate and will become the first openly gay man to... World Democrats flip US Senate, win full control of Congress 2 days ago World Democrats, Trump hold final rallies before midterm elections By Sebastian Smith | 4 days ago Democrats teed up final get-out-the-vote rallies Monday on the eve of midterm elections where they expect to win at least... World Latest More in World Israel faces new era of sinking US support after election What the US midterms mean for ties with China Once drawn to Trump, Latinos snub him big time in midterms Filipino teens among least physically active globally — WHO study abtest Trump congratulates Democrats on midterms, says Iran war played role By Danny Kemp | 2 days ago President Donald Trump had rare praise for rival Democrats Tuesday after their stunning US midterm elections victory and admitted... World PNP finds child abuse material on devices tied to Thomas Markle 2 days ago Police stressed that finding the material alone does not establish who placed it on the devices or who may be legally re... World How Trump could interfere in US midterm elections By Frankie Taggart | 3 days ago State officials who run US elections are braced for possible intervention by President Donald Trump's administration in... World Stocks mostly down on AI concerns as oil prices bounce after plunge 3 days ago Asian stock markets struggled Tuesday following another AI-fuelled tech selloff on Wall Street that overshadowed a possible... World Recommended VP Sara leaves for Hong Kong 11 hours ago Vice President Sara Duterte left for Hong Kong yesterday where she is expected to stay until Nov. 8, a day before her defense... WorldIMPEACHMENT Socmed affecting public perception of VP impeachment 11 hours ago Public opinion of the ongoing impeachment trial of Vice President Sara Duterte is largely affected by information being shared... WorldIMPEACHMENT VP’s SALN, AMLC records formally admitted into evidence 11 hours ago The Senate impeachment court has formally admitted into evidence the statements of assets, liabilities and net worth (SALN)... WorldIMPEACHMENT VP Sara to visit Hong Kong ahead of impeachment trial resumption 23 hours ago The Office of the Vice President announced that Vice President Sara Duterte will be in Hong Kong until November 8, just one... WorldIMPEACHMENT TRIALOVPSARA DUTERTE Senate impeachment court reimposes gag order for withdrawn articles 1 day ago The Senate impeachment court has reimposed its gag order on the three charges prosecutors dropped against Vice President Sara... WorldIMPEACHMENTSARA DUTERTE'S IMPEACHMENTSENATE next Recommended VP Sara leaves for Hong Kong Vice President Sara Duterte left for Hong Kong yesterday where she is expected to stay until Nov. 8, a day before her defense team starts to present evidence in the ongoing impeachment trial against her. 11 hours ago IMPEACHMENT Socmed affecting public perception of VP impeachment Public opinion of the ongoing impeachment trial of Vice President Sara Duterte is largely affected by information being shared on social media, a political scientist said. 11 hours ago IMPEACHMENT VP’s SALN, AMLC records formally admitted into evidence The Senate impeachment court has formally admitted into evidence the statements of assets, liabilities and net worth (SALN) and Anti-Money Laundering Council (AMLC) records of Vice President Sara Duterte, while denying the prosecution’s plea to include Commission on Audit (COA) reports regarding her controversial confidential funds. 11 hours ago IMPEACHMENT VP Sara to visit Hong Kong ahead of impeachment trial resumption The Office of the Vice President announced that Vice President Sara Duterte will be in Hong Kong until November 8, just one day before the resumption of her impeachment trial. 23 hours ago IMPEACHMENT TRIAL OVP SARA DUTERTE Senate impeachment court reimposes gag order for withdrawn articles The Senate impeachment court has reimposed its gag order on the three charges prosecutors dropped against Vice President Sara Duterte, reversing an October ruling that had freed both sides to discuss them in public. 1 day ago IMPEACHMENT SARA DUTERTE'S IMPEACHMENT SENATE OK Are you sure you want to log out? Yes No X Login Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!