Paraguay President Peña resigns under mounting pressure from bank collapse
The collapse left millions of customers unable to access savings and triggered arrests, protests and impeachment moves against the president, officials said.
- On Thursday, Paraguay President Santiago Peña announced his resignation in a video, citing a need to preserve the country's stability and democratic institutions. Peña offered an apology but stopped short of accepting responsibility for the banking crisis.
- Government funds poured into Ueno under Peña, who defended the lender's oversight as recently as last month despite repeated warnings. As of last month, Ueno reported holding roughly $800 million in public deposits, including state pension and hydroelectric dam operator funds.
- Regulators seized Ueno on Tuesday after finding poorly documented loans and expenses wrongly counted as assets. Protesters flooded Asunción demanding Peña's impeachment, with signs calling him the "enemy of savers."
- Authorities detained eight senior Ueno executives, including founder Miguel Vázquez and President Juan Manuel Gustale, while prosecutors charged 27 bank officials with breach of trust. Interim central bank president Pedro Acosta Bernal insisted, "The banking system is sound."
- Only Venezuela ranks worse in South America on the latest corruption index from Transparency International, underscoring systemic institutional weakness. The collapse triggered a party-wide revolt within the Colorado Party, forcing Peña's swift departure.
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369 Articles
Paraguay's leader is stepping down as the country's banking meltdown deepens into a political one. President Santiago Pena appointed after lawmakers in the lower house voted to move ahead with an impeachment trial based to the collapse of Ueno Bank, a digital gender that served roughly 60% of the nation's...
In the midst of a severe banking crisis in his country, Paraguay's President Peña has filed his resignation, accusing him of business relations with the parent company of the bankruptcy bank.
A scandal about the digital bank Ueno has plunged the South American country into a political crisis. Customers can no longer access their accounts at times. President Santiago Peña apologizes in a television address and resigns.
Following the collapse of the Ueno digital bank in Paraguay, President Peña has announced his resignation under increasing pressure.
Paraguay President Santiago Peña impeached after Ueno Bank collapse freezes millions in savings, sparks protests
The 78-0 vote marked a stunning repudiation of Peña by lawmakers from his long-ruling Colorado Party, who joined the opposition in backing his impeachment after three days of demonstrations rocked the capital, Asunción.
The announcement comes forty-eight hours after a banking crisis broke out, which saw the Central Bank of Paraguay put Ueno under supervision, a financial entity claiming 2.94 million customers, whose deposits were temporarily frozen.
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