Paraguay President Resigns Amid Crisis Over Bank Collapse

Paraguay’s President, Santiago Peña, has announced his resignation following a political crisis triggered by the collapse of a bank in which he previously held a financial interest.

Peña announced his decision in a video message posted on social media, apologising to Paraguayans and saying he never intended to betray the trust they placed in him.

“I want to apologise to the people if at any point I failed. It was never my intention to betray the trust you placed in me,” he said.

The crisis followed the collapse of Ueno Bank, which entered an insolvency process that forced it to suspend operations and left millions of customers unable to access their accounts.

Lawmakers accused Peña of conflict of interest and misconduct because he was reportedly a shareholder until last year in the company that owned the bank. However, the president denied any wrongdoing.

His resignation came after Paraguay’s lower house of Congress voted in favour of pursuing an impeachment trial against him.

Explaining his decision, Peña said he wanted to protect the country’s stability, social peace and democratic institutions.

Ueno Bank reportedly had about three million customers, representing approximately 60 per cent of Paraguay’s adult population. The lender also held pension funds and other public funds, raising concerns over the impact of its collapse on depositors and government-related financial arrangements.

Following the bank’s failure earlier in the week, the Central Bank of Paraguay seized the digital lender, while affected customers staged protests demanding Peña’s resignation.

Authorities have since appointed a new president of the Central Bank, while Congress has approved a process to facilitate payments to depositors.

Peña was elected president in 2023 as the candidate of the ruling conservative Colorado Party, defeating a centre-left challenger.