Paraguay President Peña resigns under mounting pressure from bank collapse
The central bank’s seizure of Ueno Bank froze deposits for roughly 3 million people, prompting nationwide protests and a unanimous impeachment vote by the lower house, officials said.
- 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 president resigns as bank mess sparks crisis
Paraguayan President Santiago Pena has resigned after the takeover of a bank linked to the US-allied leader blocked almost half the population from accessing their money. The Central Bank's seizure of Ueno Bank two days earlier froze the deposits of some three million people, including pensioners, and sparked angry demonstrations across the country. Thousands of Paraguayans gathered outside Congress on Thursday to protest against the president, …
The crisis in the country began when one of the country's largest banks was declared insolvent. Now the president is facing impeachment.
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President Santiago Peña has been charged with misconduct in office, citing problems with a local digital bank.
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