The Paraguayan Senate voted on Friday to remove Santiago Peña from the presidency. This decision was made following an escalating criminal investigation related to the collapse of a large bank linked to Peña. The vote was conducted with results of 44 to 1 and followed a swift trial.
Bank Collapse and Its Consequences
A political crisis in Paraguay arose after the closure of the Oeuno bank, which was one of the financial institutions closely associated with Peña. The bank was abruptly shut down due to a severe liquidity crisis, leaving millions of depositors unable to access their savings. The Attorney General of Paraguay opened three separate criminal cases against Peña and several former officials in connection with this financial collapse.
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Removal and Reactions
Before the vote, Peña announced in a video that he would submit his resignation. He stated that this decision was made to maintain the stability of the country and social peace. However, the Paraguayan House of Representatives unanimously voted to initiate impeachment proceedings against him, accusing him of "serious and systematic misconduct in performing his duties."
During the final vote, Peña was not present in the chamber, and his defense attorneys, Adolfo Frerro and Ricardo Prada, defended him. Meanwhile, the Paraguayan Senate rejected their request for a 72-hour extension to prepare legal arguments.
Santiago Peña, 44, was appointed in August 2023 as one of the youngest presidents in Paraguay's history, representing the right-wing party of Colombia. He had previously served as Minister of Finance and Director of the Central Bank.
Internationally, Peña is recognized as one of Latin America's closest allies in the Donald Trump administration and has frequently aligned with U.S. political positions on regional security and immigration.
In response to this rapid political change in Asunción, a spokesperson for the U.S. State Department emphasized that Washington's bilateral relations with Paraguay remain intact. He stated, "We are committed to maintaining stable relations between the people of the United States and Paraguay and hope to continue our close cooperation on shared priorities."
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