The Latin American country Paraguay is facing extreme financial crisis due to bank failure. UENO, the country's largest bank, took more than half of the country's money. Due to the incident, President Santiago Pena resigned in the face of the anger of the countrymen. However, the Congress refused to accept his resignation. In this situation, the impeachment process has started against him. Thousands of people are on the way.
It is learned that the bank suddenly announced the closure of its activities at midnight. Due to which millions of customers could not withdraw money. This incident indicates the huge corruption in the country. At the same time, political instability has been created. In this situation, Pena wrote on social media, 'I have decided to resign from the post of the country's president. This decision is in the interest of stability of the country, social peace and security of our government institutions. My only priority in this situation is the peace of mind of the country's residents. Those who trust our financial system put their savings.'
President Santiago Pena resigned in the face of the anger of the countrymen. However, the Congress refused to accept his resignation. In this situation, the impeachment process has started against him.
Paraguay's lower house of parliament voted unanimously to begin impeachment proceedings against Pena shortly after the president announced his resignation. The special session was called based on complaints brought by 35 opposition MPs and dissident leaders of the ruling party. Paraguay's Senate (the upper house of parliament) will now decide whether to proceed with the impeachment process, or accept the president's resignation. Meanwhile, the opposition accused Pena of “planned and serious dereliction of duty.”
Note that UENO Bank was once the fastest growing financial institution in the country. Whose customers were more than 60 percent of Paraguayans. However, the investigation revealed that the bank had violated the norms by giving large loans to companies linked to the bank owners without taking adequate collateral. The central bank took control of the bank on Tuesday as its financial condition deteriorated. Millions of customers are unable to withdraw their deposits as bank apps, cards and financial transactions are suspended. The crisis has also affected around 7,000 direct and indirect jobs.