Paraguay's Peña resigns after Ueno Bank collapse freezes millions of accounts
Paraguayan President Santiago Peña announced his resignation after the collapse of Ueno Bank, a digital lender linked to him, froze the accounts of millions of customers, roughly 60 percent of Paraguay's adult population, and held pension and public funds. The central bank launched resolution proceedings after Ueno's capital adequacy ratio fell below 50 percent of the required minimum. The lower house voted 78-0 to impeach Peña, sending charges to the Senate. Protests erupted in Asunción, and Vice President Pedro Alliana was expected to assume the presidency.
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Paraguay President Peña Resigns Amid Ueno Digital Bank Scandal
Paraguayan President Santiago Peña announced his resignation in a televised address amid a severe banking crisis triggered by a scandal at the digital bank Ueno. The central bank initiated a resolution procedure against Ueno after its capital adequacy ratio fell below 50 percent of the required minimum, temporarily preventing customers from accessing their accounts. Peña, who had held a stake in the bank's parent company until March 2025, apologized to the nation and said his priority was ensuring the return of citizens' savings. The opposition had filed impeachment proceedings against him over alleged conflicts of interest. Central bank chief Carvallo also stepped down due to his prior senior role at the digital bank. Ueno reported 2.8 million customers, roughly 60 percent of Paraguay's adult population, and handled pension payments through the frozen accounts. Street protests erupted in the capital, Asunción.
Read sourceParaguay's Peña impeached minutes after resigning over bank collapse
Paraguay's lower house voted 78-0 to impeach President Santiago Peña minutes after he announced his resignation, following the collapse of Ueno Bank, a digital lender tied to his government that froze the savings of millions. The vote, backed by lawmakers from his own Colorado Party after three days of protests in Asunción, sends charges to the Senate, where a two-thirds majority is needed to convict. Peña, a close ally of U.S. President Donald Trump, said he was stepping down for the country's stability and apologized to the people, though he did not accept responsibility. Vice President Pedro Alliana was expected to be sworn in to serve out the term through August 2028. Ueno grew rapidly to serve over 60% of Paraguayan adults, and regulators found risky insider lending and capital below legal minimums before seizing it.
Read sourceParaguay President Santiago Peña Resigns After Ueno Bank Collapse
Paraguay's President Santiago Peña announced his resignation after a political crisis triggered by the collapse of Ueno Bank, a digital lender linked to him. In a video message on X, Peña apologized to the people, saying it was never his intention to betray their trust, and said he was resigning to protect stability, social peace and democratic institutions. The crisis erupted after Ueno Bank entered insolvency, freezing all operations; lawmakers accused Peña, who was a shareholder until last year in the company that owned the bank, of conflicts of interest and misconduct, which he has rejected. The resignation followed a lower house vote in favor of pursuing an impeachment trial. Ueno Bank said it has about three million customers, roughly 60% of Paraguay's adult population, and held pensions and some public funds. The central bank seized the lender, protests broke out, a new central bank president was appointed, and Congress approved a process to pay depositors. Peña won the 2023 election for the ruling Colorado Party.
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Paraguay President Santiago Peña Resigns After Bank Collapse and Impeachment Vote
Paraguay's President Santiago Peña announced his resignation following a political crisis triggered by the collapse of Ueno Bank, a financial institution linked to him. Peña, who was a shareholder until last year in the company that owned the bank, faced accusations from lawmakers of conflicts of interest and misconduct. The lower house of congress voted in favour of pursuing an impeachment trial against him. In a video message on social media, Peña apologised to the people, saying it was never his intention to betray their trust, and stated his resignation was aimed at protecting stability, social peace and democratic institutions. The bank held pensions and some public funds; after it entered insolvency, millions could not access their accounts and protests erupted demanding his resignation. Peña won the 2023 election representing the ruling conservative Colorado Party.
Read sourceUeno Bank Collapse Triggers Political Crisis in Paraguay as Millions Fear for Savings
The effective insolvency of Paraguayan digital bank Ueno has triggered a financial and political crisis. The central bank launched a resolution procedure after Ueno's capital ratio fell below 50 percent of the required minimum. Ueno reported 2.8 million customers in the first quarter, roughly 60 percent of Paraguay's adult population, and managed $800-850 million in public funds; frozen accounts also handled pension payments. Customers found accounts and ATMs inaccessible, gathered outside closed branches, and protested in Asunción. Central bank chief Carlos Carvallo resigned amid conflict-of-interest allegations over his prior role at the bank. President Santiago Peña, who had pressed Carvallo to resign, pledged via video to pass a law returning savers' money as quickly as possible. Opposition lawmakers are preparing impeachment proceedings against Peña over his past business ties to the Grupo Vázquez, which owned Ueno Bank.