Paraguay President Peña resigns under mounting pressure from bank collapse
Lawmakers moved to impeach him after regulators seized the bank, froze millions of accounts and detained eight senior executives.
- On Thursday, Paraguayan President Santiago Peña resigned in a video address, stating he acted "with the stability of our country, social peace and the need to preserve our democratic institutions in mind."
- The crisis erupted after Paraguay's central bank seized Ueno on Tuesday, discovering solvency ratios below 50% and risky insider lending tied to the bank's owners, while lawmakers accused Peña of conflicts of interest.
- Ueno held nearly $800 million in public funds, including state pension and health money, affecting about three million customers locked out of accounts; authorities detained eight bank executives including founder Miguel Vázquez.
- Minutes after his announcement, Congress voted unanimously 78-0 to impeach Peña, sending charges to the Senate; Vice President Pedro Alliana is expected to serve until August 2028.
- Thousands of citizens protested for three days demanding their money and calling Peña "the enemy of savers," as the collapse of Ueno shatters Paraguay's reputation for financial stability.
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Paraguay's president resigns after Ueno Bank collapse freezes millions of customers' funds
The collapse of Paraguay's Ueno Bank froze customers' savings, pensions and wages, sparking protests, investigations and impeachment proceedings that led President Santiago Peña to resign.
Today, Thursday, the President of Paraguay, Santiago Peña, announced his resignation, against the backdrop of a banking crisis that erupted following the collapse of the Bank of Ueno, which provoked popular protests and growing political pressure to abandon him.
Today, the lower house of the Paraguayan Parliament unanimously initiated the procedure to remove President Santiago Peña (47), although he announced that he resigned due to the failure of a large bank with which he is connected.
Paraguayan President Santiago Pena resigned during an impeachment process, supported by his own party, following allegations regarding the liquidation of Ueno Bank, one of the country's largest private banks, and the retention of approximately $355 million in pension funds within the bank.
Paraguayan president Santiago Pena impeached minutes after resigning following bank collapse
The 78-0 vote marked a stunning repudiation of Pena by lawmakers from his long-ruling Colorado Party, who joined the opposition in backing his impeachment after three days of demonstrations rocked the capital, Asuncion.
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