Santiago Peña was removed from office by Congress following the collapse of Ueno Bank, which left nearly 3 million customers without access to their savings. This political upheaval is marked by allegations against Peña and former Central Bank chief Carlos Carvallo for mismanagement and breach of trust.
The Central Bank is currently working to reimburse 1.2 million affected customers, but public outrage has led to protests demanding accountability and access to funds. The situation escalated quickly, with Peña's resignation being rejected by Congress, leading to an impeachment trial. His removal is seen as a response to widespread dissatisfaction with perceived government corruption and impunity.
The political crisis is significant as it represents the most serious challenge to Paraguay's governance since its return to democracy in 1989, raising concerns about the stability of the conservative Colorado Party's long-standing rule.
The ongoing protests and the planned national strike by the teachers' union indicate that public sentiment is increasingly volatile, which could impact future political and economic developments in Paraguay