Paraguay's President Santiago Pena has tendered his resignation after a banking scandal left nearly half of the country's population unable to access their savings, triggering thousands to take to the streets in furious protest on Thursday.
Congress has placed Pena's resignation on hold while impeachment proceedings advance, meaning he will remain in office provisionally for the time being.
Central Bank Seizure Freezes Deposits
The crisis erupted two days earlier when the Central Bank seized Ueno Bank, which is linked to Pena, freezing the deposits of approximately three million people, including pensioners. The move sparked angry demonstrations across the nation.
On Thursday, thousands of Paraguayans gathered outside Congress to protest against the president, who remains technically in power. "Give back the money," AFP journalists heard the crowd chanting. Earlier demonstrations saw clashes with police, who deployed tear gas and water cannons against protesters.
"My family ran out of money; we don't have any cash. Santi (Pena) is a criminal; he has to go to jail," 21-year-old student protester Andres Maldonado told AFP.
Impeachment Proceedings Begin
Lawmakers voted unanimously on Thursday to launch impeachment proceedings against Pena over the crisis, alleging misconduct and a conflict of interest in dealings with the bank to which he is tied.
The right-wing president said he would attend his impeachment trial, which is set to begin Friday, after earlier apologising to the people of Paraguay.
Pena's Interior Minister Enrique Riera also resigned on Thursday, according to a decree published in local media, with Carlos Benitez appointed to replace him in the interim.
Central Bank Cites Capital Shortfall
Paraguay's Central Bank said it took over Ueno due to a severe capital shortfall, in order to "protect depositors and preserve the stability of the financial system."
The seizure has left millions of Paraguayans without access to their savings, creating widespread financial hardship and fueling public outrage. Pensioners and families have been particularly hard hit, with many unable to purchase basic necessities.
The unfolding crisis has plunged the country into political turmoil, with the president's future hanging in the balance as impeachment proceedings get underway. The coming days will be critical in determining whether Pena's provisional hold on power can be sustained amid mounting public pressure and legislative action.
