Paraguay's President Peña is facing criminal investigation and impeachment proceedings due to a major bank scandal.
On the 3rd, the Central Bank of Paraguay seized the country's largest digital bank, Venovia Bank, causing millions of customers to be unable to withdraw their deposits. Venovia Bank has approximately 3 million customers, almost half of Paraguay's population. On the 5th, Peneia submitted his resignation in order to avoid being impeached.
The Paraguayan National Prosecution Service has filed criminal charges against Pena and other officials in relation to this banking crisis, initiating three criminal investigations.
The House of Representatives has passed an impeachment bill, accusing him of having committed “serious and systemic dereliction of duty” in his dealings with that bank. The Senate subsequently announced that it will initiate the impeachment proceedings.
Péña stated that he will appear in court to respond to the charges and defend himself: 'I will respond based on arguments and evidence, and I will adhere to the constitution and respect all national institutions of the republic.'
As Pena was submitting his resignation, members of parliament were deliberating charges filed by 35 opposition members and dissidents from the ruling party. These charges demanded the removal of the president, who took office in August 2023 and served a five-year term.
Shortly after his announcement of resignation, the Paraguayan Chamber of Deputies voted unanimously to initiate impeachment proceedings.
The House of Representatives and the Senate then held a joint meeting to consider his resignation; however, several members left the meeting during the voting process, and the meeting was ultimately adjourned without any resolution being reached.
Opponents of the president said they still plan to advance the impeachment trial in the Senate, arguing that Pena is still the president and must face judicial accountability.
If the members accept his resignation, he will receive immunity and special protection; however, if he is impeached and removed from office, he will no longer enjoy these privileges.
Saint George Perrya must be incarcerated, a warrant of arrest should be issued...He will be detained prior to trial and immediately imprisoned. Senator Yolanda Paredes stated to reporters earlier.
The right-wing political party belonging to Peiyan occupies a majority in both the House of Representatives and the Senate.
Pernia previously stated that he resigned in order to reassure the Paraguayan people who have entrusted their savings to their country's financial system.
He wrote in a message posted on social media: "I have decided to submit my resignation as the President of the Republic. This decision is made for the stability of the country, social peace, and to protect our public institutions."
Pena, 44 years old, became president, making him one of the youngest presidents in Paraguayan history. He has served as Minister of Finance and also held positions as a director of the central bank.
He is one of the supporters of U.S. President Trump, and aligns with Trump's priorities in policy, especially in the areas of immigration and security.
The bank that collapsed this time is a private institution, affiliated with Peña. During Peña's tenure in power, several public institutions, including the social security bureau responsible for managing pensions for most workers in the country, invested substantial funds into this bank. VeroBank is also known for sponsoring local football teams and the Paraguay national team.
The Paraguayan Central Bank's investigation revealed that the solvency ratio of Banco Venon has dropped to less than half of the legal minimum standard. This was due to the bank's financial statements being adjusted during the compliance improvement process.
As settlement and disposal procedures start, millions of depositors have their deposits frozen in this institution.
On November 3rd, the takeover of Wenuo Bank shocked the entire country. The institution was accused of issuing loans to related companies, exceeding regulatory limits.
After a long line forming at the bank entrance, citizens feeling anxious, and two days of street protests, Peña announced his resignation.
Before the financial crisis, Paraguay received investment-grade ratings from two major international rating agencies. The country has always hoped to use these ratings to develop itself as a regional financial center.
