Paraguay's Peña resigns after Ueno Bank collapse
Key points
- Paraguayan President Santiago Peña has resigned following Ueno Bank's collapse and mounting impeachment pressure.
- The lender served approximately 3 million customers and administered nearly $850 million in public funds.
- Vice President Pedro Alliana is set to succeed Peña as investigations and efforts to recover frozen deposits continue.
Paraguayan President Santiago Peña has resigned following Ueno Bank's collapse and mounting pressure from lawmakers and protesters.
The digital lender served approximately 3 million customers across Paraguay, leaving account holders unable to access deposits.
“I do so with the stability of our country, social peace, and the need to preserve our democratic institutions in mind,” President Santiago Peña said in a recorded address on Thursday.
Opposition lawmakers accused Peña of conflicts of interest, pension fund misuse and protecting Ueno from regulatory scrutiny.
Paraguay's lower house unanimously approved an impeachment motion shortly after Peña announced his resignation.
Ueno administered approximately $850 million in public funds, including deposits from state institutions and pension entities.
Paraguay's central bank intervened after Ueno breached minimum solvency requirements, while authorities pursued eight bank executives.
The collapse highlights the risks facing Paraguay's digital banking sector and its wider financial system.
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