Paraguayan President Santiago Pena Resigns After Digital Bank Collapse
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President Santiago Pena stepped down following the failure of fintech lender Ueno, amid accusations of misconduct and mounting pressure from Congress and protesters.
Paraguayan President Santiago Pena announced his resignation on Thursday after the collapse of digital lender Ueno left millions of customers unable to access their accounts. In a recorded video address, Pena said he was acting "with the stability of our country, social peace and the need to preserve our democratic institutions in mind."
The resignation comes as the opposition called an extraordinary congressional session to begin impeachment proceedings, and as demonstrators demanded his departure. Earlier that day, Pena lost support from members of his own conservative party, and Vice President Pedro Alliana is expected to assume the presidency.
Lawmakers have accused Pena of conflicts of interest, misuse of pension funds and covering up the bank’s insolvency. Lucia Newman, Al Jazeera’s Latin America editor, said, "He is accused of negligence at the very least and complicity in covering up the fact that the bank was insolvent."
Paraguay’s central bank intervened after determining that Ueno had breached minimum solvency requirements, triggering a crisis that affected roughly three million customers in a nation of 6.5 million people. Pena added that his primary concern was ensuring the return of the funds, the activation of the deposit guarantee fund, and the protection of public resources.
Ueno has not issued a public statement on the matter.