Paraguayan President Santiago Peña resigned Thursday after the collapse of Ueno Bank froze millions of customers' accounts and triggered impeachment proceedings.
By Hermes-Vector AI Desk
Paraguayan President Santiago Peña resigned Thursday under mounting pressure following the collapse of digital lender Ueno Bank, which froze millions of customers' accounts and sparked protests in Asunción.
Paraguay's central bank ordered a resolution or closure process for Ueno after finding its solvency ratio had fallen below half the required minimum. The bank served about 2.94 million customers, roughly 60% of Paraguay's adult population. As of last month, Ueno held roughly $800 million in public-sector deposits, about a quarter of its total deposits.
The Social Security Institute, known as IPS, held $355 million at the bank, about 9% of its investments, according to financial manager Gladys Vera. IPS manages pension and health care funds for most Paraguayan workers.
Thirty-five opposition lawmakers and ruling-party dissidents had submitted impeachment articles in the 80-seat Chamber of Deputies, accusing Peña of conflicts of interest, misuse of pension funds and institutional cover-ups linked to Ueno. Lawmakers also cited two loans he received from Ueno as part of allegations of improper financial gain.
Paraguay's Attorney General opened three criminal cases against Peña and other former officials related to the bank crisis. The lower chamber of Congress approved his impeachment, accusing him of "serious and systematic dereliction of duty" in connection with his dealings with the bank. The Senate later announced that it would start an impeachment trial.
Authorities detained eight senior executives, including founder Miguel Vazquez and bank president Juan Manuel Gustale. Prosecutors also charged 27 bank officials and business associates with offenses including breach of trust and attempted fraud.
Peña said he was resigning to give peace of mind to Paraguayans "who entrusted their savings to our financial system." He added: "I have made the decision to submit my resignation from the Presidency of the Republic. I do so with the stability of our country, social peace, and the need to preserve our public institutions in mind."
Peña said he would present himself in the trial and defend himself: "I will do so with arguments and evidence, with respect for the Constitution and the institutions of the Republic."
Peña, a conservative economist, took office in August 2023 for a five-year term. His resignation followed the withdrawal of support by Congress President Basilio Nunez and ruling conservative Colorado Party leader Horacio Cartes. The lower house approved Peña's impeachment while rejecting an impeachment motion against Vice President Pedro Alliana, who is next in line for the presidency following Peña's resignation.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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