Paraguay President Santiago Peña resigns amid banking crisis and protests
The resignation follows the collapse of Ueno Bank, which left approximately three million depositors unable to access their accounts.
Paraguay President Santiago Peña resigned on Thursday following a banking crisis that has left nearly half the country's population unable to access their bank accounts. According to reports from Hindustan Times and Firstpost, the crisis was triggered by the collapse of Ueno Bank SA, a digital lender that manages millions of dollars in pension and state funds.
The Central Bank intervened in Ueno Bank due to a severe capital shortfall and a breach of minimum solvency requirements. The intervention aimed to protect depositors and preserve financial stability, but it resulted in approximately three million customers being locked out of their accounts. In response to the crisis, eight Ueno executives were detained and their assets were frozen by the courts.
Peña announced his resignation in a video on X, stating he was stepping down to preserve the country's stability, social peace, and democratic institutions. He said his priority was ensuring depositors recovered their savings. The President also enacted a law to allow savers to withdraw part of the guarantee funds in the shortest possible time.
The crisis led to political pressure on Peña, with opposition lawmakers moving to impeach him over alleged misconduct and conflicts of interest. Lawmakers accused him of having improper ties to the group that controlled Ueno Bank, as he was previously a shareholder in Grupo Vázquez. Peña has denied any wrongdoing, stating the matter should be dealt with through the courts.
Central Bank President Carlos Carvallo resigned on Tuesday at the request of Peña. Following the resignation, the Senate is expected to ratify the decision, with Vice President Pedro Alliana expected to be sworn in as president. Congress was scheduled to meet on Thursday to officially receive the resignation.