Paraguay's opposition proposes a motion to impeach the president... Suspicions of collusion between politics and business

While the Central Bank of Paraguay has begun the liquidation process for Hueno, a large digital bank that is experiencing an insolvency crisis, the opposition party has proposed an impeachment bill against President Santiago Peña, who has been closely aligned with Bank Ueno.

According to AFP on the 4th (local time), 35 opposition lawmakers signed a bill demanding the president's dismissal due to misconduct in office and conflict of interest. Accordingly, the impeachment bill is scheduled to be submitted to the plenary session of the House of Representatives on the 5th.

However, it is unclear whether it will ultimately pass. At least 53 of the 80 members of the House of Representatives, more than two-thirds, must support impeachment, as the ruling party holds the majority. Even if it overcomes the wall of the House of Representatives, it is unlikely to pass the Senate, which is also controlled by the ruling party.

Immediately after taking office in 2023, President Peña selected Carlos Carballo, then president of Ueno Bank, as central bank president, and the Peña government has since poured a huge amount of public funds. He also previously owned shares of the parent group that controlled Ueno Bank, but sold all of them last year while he was president.

Bank Ueno is a large digital bank with 3 million customers, which is 60% of Paraguay's adult population. In particular, it has managed public funds worth 800 to 850 million dollars (approximately 1.7 trillion to 1.15 trillion won), including $380 million (510 billion won) invested by the Paraguayan State Pension Fund (IPS).