Paraguay’s Congress suspended a session evaluating President Santiago Peña’s resignation on Thursday after the Chamber of Deputies voted 78-0 to approve impeachment proceedings against him over the collapse of Ueno Bank. Peña, who took office in August 2023 and was a shareholder in Ueno’s parent conglomerate Grupo Vázquez until March 2025, announced his resignation earlier Thursday as his ruling Colorado Party withdrew its backing, saying he stepped down to preserve social peace and democratic institutions. Lawmakers also filed impeachment articles against Vice President Pedro Alliana, who was next in line to assume the presidency.

The political crisis began Nov 3 when the Central Bank of Paraguay seized Ueno Bank after its solvency ratio dropped to roughly 6%, half the 12% regulatory minimum, following about $146 million in related-party loans to companies tied to Grupo Vázquez. The closure froze apps, cards and transfers for nearly 3 million customers, or about 60% of Paraguay’s adult population, and locked up $2.8 billion in deposits, including $850 million in public funds and $380 million from the state pension and health system. Authorities ordered the detention of eight bank executives, including founder Miguel Vázquez and bank president Juan Manuel Gustale, while Central Bank President Carlos Carvallo, who previously led the firm that became Ueno, resigned at Peña’s request and was replaced by economist Raúl Vera Bogado.