Paraguay legislator threatens impeachment of Central Bank head

Paraguayan legislator Roberto González has announced the possibility of impeachment proceedings against the head of the Central Bank of Paraguay (BCP), Carlos Carvallo Spalding, citing potential conflicts of interest. González pointed out that Spalding previously served as president of Ueno Bank, raising concerns regarding the impartiality of the financial regulator.

The legislator also criticized recent legislative changes that repealed key articles of the public function conflict of interest prevention law. He argued these changes have weakened solvency and equity requirements for financial entities handling state funds. There are growing calls for the Superintendency of Banks to verify the liquidity and patrimonial status of institutions to protect citizen savings.

These developments follow concerns raised by the Association of Banks of Paraguay (ASOBAN) regarding the stability of the banking system. Analysts have noted a downward trend in solvency ratios and expressed vulnerability regarding transactions with related companies, where bank directors or shareholders hold interests. The Senate has requested reports on four private banks to address doubts regarding the health of the national financial system.