Paraguay President Santiago Peña resigns after Ueno Bank collapse
Peña announced his resignation in a video message after Ueno Bank's collapse and a lower house vote in favour of an impeachment trial.
At a glance
- Paraguay's President Santiago Peña announced his resignation after the collapse of Ueno Bank, a lender linked to him.
- Lawmakers accused Peña, a shareholder until last year in the bank's owner, of conflicts of interest; he rejected wrongdoing.
- Ueno Bank had about three million customers and held pensions and public funds; its collapse froze accounts.
Paraguay's President Santiago Peña has announced his resignation after a political crisis caused by the collapse of Ueno Bank, a lender linked to him. The announcement came in a video message on X, after Paraguay's lower house of congress voted in favour of pursuing an impeachment trial.
In the message, Peña said: "I want to apologise to the people if at any point I failed" and "It was never my intention to betray the trust you placed in me." He said he was resigning to protect stability, social peace and democratic institutions.
Bank collapse and frozen accounts
The crisis erupted after Ueno Bank entered an insolvency process, which froze all operations. The bank said it had about three million customers, equivalent to about 60% of Paraguay's adult population. It held pensions and some other public funds, and after its collapse earlier this week, millions of people could not access their accounts.
The central bank seized the digital lender. People took to the streets to protest and demand Peña's resignation.
Lawmakers accused Peña, who was a shareholder until last year in the company that owned the bank, of conflicts of interest and misconduct. Peña has rejected suggestions of impropriety.
Political fallout
His resignation follows the lower house vote in favour of an impeachment trial. A new president of the Central Bank of Paraguay has been appointed, and Congress has approved a process to pay depositors.
Peña won election in 2023 representing Paraguay's ruling conservative Colorado Party, beating a centre-left challenger.
Source: BBC World.
Questions and answers
- Why did Paraguay's President Santiago Peña resign?
- He resigned after a political crisis sparked by the collapse of Ueno Bank, which was linked to him, and after the lower house voted in favour of an impeachment trial. He said he wanted to protect stability, social peace and democratic institutions.
- What happened to Ueno Bank?
- Ueno Bank entered an insolvency process that froze all operations. The central bank seized the digital lender, and millions of customers could not access their accounts. It said it had about three million customers, equivalent to about 60% of Paraguay's adult population.
- Who was Santiago Peña?
- He won Paraguay's 2023 election for the ruling conservative Colorado Party, beating a centre-left challenger. He was a shareholder until last year in the company that owned Ueno Bank.
