Paraguay protesters demand Santiago Peña’s removal and jail after Ueno bank resolution triggers political crisis

Dozens of people kept a “permanent vigil” in Asunción on Friday, calling for President Santiago Peña to be removed from office and jailed as he faces an impeachment process tied to the Ueno bank scandal. For high-risk payment and banking operators, the useful detail is simple: the dispute has moved from a bank resolution into a broader constitutional fight, with the Central Bank of Paraguay involved and the legislature now part of the mechanics.

1. Paraguay was pushed into a political crisis after the Banco Central del Paraguay (BCP) ordered a resolution or closure process for Ueno bank on Tuesday. That move hit thousands of savers in the country, and it became the immediate trigger for the impeachment push.
2. Lawmakers cited the bank’s ties to Peña in advancing the political case against him, saying Ueno received millions in public funds during his administration. Peña announced his resignation on Thursday, but he remains formally president because pro-government legislators broke quorum in the joint session that was meant to vote on the resignation and activate the succession mechanism after declaring the office vacant.
3. Outside the institutional chessboard, protesters in the Plaza de Armas — the fourth day of demonstrations there — demanded that Peña be removed and sent to jail. Some carried flags, the national football shirt, and fans to deal with Asunción’s heat; most of the self-described “self-convened” crowd were young people waiting for the second session of the process against him.
4. One protester, identified as Juan Pueblo, told EFE that “more than two million nine hundred thousand Paraguayans” had been defrauded by the president and said demonstrators would keep pressing until there is justice. Another protester, Belén Maldonado, said the Ueno intervention “filled the glass” for a public that is tired of the current government and wants an “exemplary sanction” so future leaders do not repeat the same conduct.
5. The constitutional wrinkle matters: Article 189 of Paraguay’s Constitution says democratically elected former presidents become lifetime senators unless they have been impeached and found guilty. That status carries immunity, and criminal proceedings cannot move forward unless Congress votes to remove it.