Paraguayan President Santiago Peña Resigns Amid Banking Crisis and Protests

A banking crisis erupted in Paraguay after Ueno Bank SA, a major digital lender, was taken over by the Central Bank due to a severe capital shortfall. The intervention, aimed at protecting depositors and maintaining financial stability, left millions of customers, including pensioners, unable to access their accounts.

President Santiago Peña announced his resignation in a video posted to X, saying the decision was intended to preserve the country’s stability, social peace, and democratic institutions. He apologized to citizens for any perceived failure but did not accept direct responsibility for the crisis. Peña emphasized that his priority was to ensure depositors could recover their savings, noting that each deposit represented years of hard work and family aspirations.

The collapse has triggered three days of protests in Asunción, with demonstrators demanding accountability. Central Bank president Carlos Carvallo, who previously chaired Ueno, resigned at Peña’s request. The opposition, citing alleged misconduct and a conflict of interest stemming from Peña’s prior shareholding in a group that controlled Ueno, submitted a motion to impeach the president, gathering 35 signatures from lawmakers.

In response to public anger, Peña announced a law to expedite the release of guaranteed funds to savers, asserting that the financial system remains sound and equipped with protective mechanisms.