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Paraguayan Vice President Pedro Alliana has assumed the presidency following the parliamentary removal of Santiago Peña amid a severe banking crisis. The crisis, centered on the insolvency of Ueno Bank, has left nearly half of the country’s population without access to their funds. The Paraguayan Senate voted 44 to 45 to remove Peña from office. Shortly after the vote, the former president was placed under house arrest. Alliana, who is set to serve until 2028, has pledged full compensation for the nearly three million affected clients, a group that includes many retirees. While opposition lawmakers attempted to initiate impeachment proceedings against Alliana, the proposal was rejected by parliament. The collapse of Ueno Bank triggered widespread protests, with thousands of citizens demanding accountability from Peña. Critics had long alleged a conflict of interest, noting that Peña held a stake in Grupo Vázquez—the company that controlled the bank—until last year. Peña had consistently denied these allegations. Prosecutors are currently investigating whether he influenced banking oversight and improperly directed public funds into the institution. He is scheduled to be questioned regarding suspicions of breach of trust and embezzlement. Ueno Bank, which began as a small fintech company focused on digital services for low-income clients, grew rapidly to become a major financial institution. It managed state pension payments and held accounts for various government agencies. The scandal has already led to the resignations of the Central Bank governor and the Minister of the Interior. Additionally, eight senior Ueno Bank executives have been arrested, and police have conducted raids on multiple locations linked to Grupo Vázquez. The Central Bank began issuing initial compensation payments to affected clients on Thursday. The crisis has also had international repercussions; in neighboring Argentina, the ITTI technology firm, part of the Grupo Vázquez group, has suspended approximately 1,000 employees for 30 days without pay. The financial instability has further impacted the sports sector, as Ueno Bank serves as a sponsor for several first-division football clubs and the Paraguayan national team. Article source: HN Online | Image credit: HN Online
Paraguayan Vice President Pedro Alliana has assumed the presidency following the parliamentary removal of Santiago Peña amid a severe banking crisis. The crisis, centered on the insolvency of Ueno Bank, has left nearly half of the country’s population without access to their funds. The Paraguayan Senate voted 44 to 45 to remove Peña from office. Shortly after the vote, the former president was placed under house arrest. Alliana, who is set to serve until 2028, has pledged full compensation for the nearly three million affected clients, a group that includes many retirees. While opposition lawmakers attempted to initiate impeachment proceedings against Alliana, the proposal was rejected by parliament. The collapse of Ueno Bank triggered widespread protests, with thousands of citizens demanding accountability from Peña. Critics had long alleged a conflict of interest, noting that Peña held a stake in Grupo Vázquez—the company that controlled the bank—until last year. Peña had consistently denied these allegations. Prosecutors are currently investigating whether he influenced banking oversight and improperly directed public funds into the institution. He is scheduled to be questioned regarding suspicions of breach of trust and embezzlement. Ueno Bank, which began as a small fintech company focused on digital services for low-income clients, grew rapidly to become a major financial institution. It managed state pension payments and held accounts for various government agencies. The scandal has already led to the resignations of the Central Bank governor and the Minister of the Interior. Additionally, eight senior Ueno Bank executives have been arrested, and police have conducted raids on multiple locations linked to Grupo Vázquez. The Central Bank began issuing initial compensation payments to affected clients on Thursday. The crisis has also had international repercussions; in neighboring Argentina, the ITTI technology firm, part of the Grupo Vázquez group, has suspended approximately 1,000 employees for 30 days without pay. The financial instability has further impacted the sports sector, as Ueno Bank serves as a sponsor for several first-division football clubs and the Paraguayan national team.
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