World
Paraguay President Santiago Peña Resigns Amid Ueno Bank Collapse
Paraguay’s President Santiago Peña resigned on Thursday after pressure from opposition and protesters grew following the collapse of digital lender Ueno, which left millions of customers unable to access their accounts. In a video address, Peña said he was stepping down for the stability of the country, social peace and the protection of democratic institutions. He was an ally of former U.S. President Donald Trump. The opposition had called an extraordinary session to begin filing an impeachment motion in Congress, and Peña had lost support from members of his own conservative party. Vice President Pedro Alliana is set to assume the presidency. Lawmakers accused Peña of conflicts of interest, misuse of pension funds and institutional cover‑ups related to Ueno’s collapse. The bank, which had grown from a niche fintech into a mid‑tier bank managing close to $850 million in public funds, was found by Paraguay’s central bank to have breached minimum solvency requirements, triggering a crisis that has left about 3 million of the country’s 6.5 million residents without access to their accounts. Peña urged that the return of those funds be guaranteed, that the deposit guarantee fund fulfill its purpose, and that public funds and resources belonging to all Paraguayans be protected. Ueno has not issued a public statement on the matter.
Frequently asked questions
Why did President Santiago Peña resign?
He stepped down for the stability of the country, social peace and protection of democratic institutions amid opposition pressure and Ueno Bank collapse.
What caused the Ueno Bank collapse?
The bank breached minimum solvency requirements, leading to a crisis that left about 3 million residents without access to their accounts.