Paraguayan President Santiago Peña Resigns Amid Ueno Bank Crisis
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President Santiago Peña announced his resignation as Congress prepares to consider his departure following the shutdown of Ueno Bank and related impeachment proceedings.
Paraguayan President Santiago Peña announced his resignation on Thursday after the overnight collapse of Ueno Bank, which left millions of customers unable to reach their deposits and deepened public anger over the country’s financial oversight. In a message posted to social media, Peña said he was stepping down to preserve the country's stability, social peace and public institutions, even as critics argued that the crisis exposed the consequences of political favoritism and weak regulation.
"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,"
He added that his priority was the peace of mind of Paraguayans who had entrusted their savings to a financial system now shaken by a major institutional failure.
Parliament's Chamber of Deputies opened a special session to debate impeachment charges brought by 35 opposition lawmakers and members of the ruling party. The charges allege "serious and systematic dereliction of duty" and seek to remove the president, who began a five-year term in August 2023, amid mounting accusations that the political establishment failed to protect the public.
The controversy stems from the intervention of Ueno Bank, a private lender linked to Peña that had received significant public funds, including contributions from the Social Security Institute. The Central Bank of Paraguay reported that the bank's solvency ratio fell below the required minimum after adjustments to its financial statements, prompting the regulator to shut it down and triggering a crisis that many say could have been prevented.
With the bank's assets frozen, thousands of account holders remain unable to withdraw their money, intensifying public concern and prompting Congress to decide whether to accept the president's resignation.