ASUNCIÓN, Paraguay — 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. 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. 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.
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. 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." 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.
"I also want to apologize to the people if I have failed them at any point," he said. "It was never my intention to betray the trust they placed in me." The extraordinary turn of events set the stage for a transfer of power later Thursday. 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.
Alliana would serve out Peña's term through August 2028, with lawmakers expected to choose a new vice president. 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. They are now left scrambling to recoup their savings, government pensions, and, for 7,000 employees impacted by the bank's closure, unpaid wages.
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. 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. "Santiago Peña and the Colorado Party have stolen all our savings," said Luis Pineda, one of the protesters marching to Congress on Wednesday.
"We are fed up with 70 years of plunder." Soon after winning its banking license in 2023, Ueno seemed to be everywhere in 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. Government money poured into Ueno's coffers under Peña.
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