Photo Credit: Getty Images
Paraguayan President Santiago Peña has announced his resignation following a major political crisis triggered by the collapse of Ueno Bank, a digital lender whose financial difficulties have left millions of customers struggling to access their money.
Peña announced his decision in a video message shared on social media, apologising to citizens if he had failed them and insisting that he never intended to betray the public's trust.
He said stepping aside was necessary to protect national stability, social peace and democratic institutions as pressure mounted over his administration's handling of the banking crisis.
The controversy intensified after Ueno Bank entered insolvency proceedings, resulting in the suspension of its operations. The collapse sparked widespread concern because the lender reportedly served approximately three million customers, representing around 60 per cent of Paraguay's adult population.
Among the funds affected were pensions and other public resources held through the institution. Customers were left unable to access their accounts, prompting frustration and protests in different parts of the country.
The Central Bank of Paraguay subsequently seized the digital lender as authorities moved to address the financial disruption. Congress also approved a process intended to facilitate payments to affected depositors.
Peña's political position became increasingly uncertain as lawmakers questioned his previous association with the company that owned Ueno Bank.
The president had been a shareholder in the company until last year, raising concerns among legislators about possible conflicts of interest and misconduct. Critics argued that his connection to the institution required greater accountability, particularly given the scale of the financial crisis.
Peña has rejected suggestions of wrongdoing.
His resignation followed a vote in Paraguay's lower house of Congress in favour of pursuing an impeachment trial, increasing the political pressure on his administration.
The crisis has also prompted changes within the country's financial leadership, with a new president of the Central Bank appointed as authorities work to restore confidence in the banking system.
Peña was elected president in 2023 as the candidate of the conservative Colorado Party, defeating a centre-left challenger. His departure comes amid growing public dissatisfaction over the bank's collapse and its impact on ordinary citizens.
For many customers, the immediate concern remains recovering access to their savings and other funds held by the lender.
The unfolding situation presents a significant test for Paraguay's financial institutions and political leadership. Beyond the presidential resignation, authorities face the difficult task of restoring public confidence, protecting depositors and addressing questions surrounding the circumstances that led to the bank's collapse.
