Paraguayan President Santiago Peña has announced his resignation following public outrage and impeachment moves sparked by the collapse of Ueno Bank, according to Punch. The financial crisis locked millions of depositors out of their savings, triggering street demonstrations and severe political backlash.
The country's Central Bank intervened in Ueno Bank after discovering a severe capital shortfall and violations of lending rules involving affiliated firms. The financial institution holds about 2.9 million customers, affecting nearly half of Paraguay’s estimated population of 6.1 million people. The crisis also impacted the Social Security Institute, which manages worker pension funds.
In response to the intervention, long queues formed at bank branches across Asunción as depositors tried to withdraw their money. Demonstrators took to the streets and clashed with law enforcement officers, who deployed tear gas and water cannons. Although Peña demanded the resignation of Central Bank president Carlos Carvallo, who stepped down, and signed a law ordering funds returned within five business days, public anger continued to grow.
Lawmakers quickly moved to hold the president accountable over his past ties to the lender. Peña previously owned shares in a group that controlled Ueno Bank before selling them last year, but critics accused him of favouritism in regulatory and pension matters.
Peña announced his resignation on Thursday in a video message posted on social media. He stated that he took the decision to protect democratic institutions, social peace, and national stability, while offering an apology to the public if he had failed them.
Despite his decision to quit, Paraguay's Chamber of Deputies voted unanimously to begin impeachment proceedings. Opposition senator Yolanda Paredes called for criminal charges, stating that Peña should be arrested rather than simply allowed to leave office.
Peña, a member of the ruling Colorado Party, took office in August 2023. He previously served as finance minister between 2015 and 2017 and worked as a director of the Central Bank. Vice President Pedro Alliana is set to replace him as head of state.
