Paraguayans protest bank lockout as impeachment vote for Peña approaches

Savers locked out of Ueno Bank in Asunción set fire to their own debit cards on Tuesday, shouted down former presidential candidate Efraín Alegre, and watched as lawmakers moved forward with a vote to impeach President Santiago Peña. The protest erupted after the bank, a mid‑size lender with about 200,000 customers, was ordered by the Central Bank of Paraguay to suspend all withdrawals following a suspected fraud scheme that left the institution insolvent. Demonstrators gathered outside the branch, demanding immediate access to their savings and an end to what they called “state‑sanctioned looting.” The crowd turned violent when security guards tried to prevent the burning of cards, and the atmosphere grew tense as opposition leaders arrived to speak.

The bank lockout comes at a moment of heightened political pressure on Peña’s administration, which has been accused of shielding powerful business interests linked to the alleged fraud. Since taking office in August 2023, Peña has faced criticism for his handling of the economy, rising inflation, and a series of high‑profile corruption investigations. Opposition parties have used the Ueno Bank crisis to argue that the president’s allies in the Ministry of Finance and the Central Bank are compromising financial stability for political gain. The impeachment motion, filed by a coalition of centrist and left‑leaning legislators, cites abuse of power, failure to protect citizens’ deposits, and alleged interference in judicial investigations.

Congress is scheduled to vote on the impeachment on Thursday, with a simple majority required to remove Peña from office. If the motion passes, the Senate will then elect an interim president and set a date for new elections. The banking sector remains on edge, as the Central Bank has warned that further withdrawals could trigger a systemic crisis. International observers, including the International Monetary Fund, have called for a transparent resolution to restore confidence in Paraguay’s financial system. The outcome of the vote will determine whether the country can stabilize its economy or plunge deeper into political turmoil.