Bank Collapse: Paraguay President Quits As Lawmakers Move To Impeach Him
Paraguay’s President, Santiago Peña, has submitted his resignation following a major banking crisis that triggered nationwide protests, political tension and demands for his removal from office.
The development followed the collapse of Ueno Bank, one of Paraguay’s biggest digital lenders, which left millions of customers temporarily unable to access their savings.
Peña announced his decision on Thursday, November 5, while lawmakers were debating impeachment proceedings against him over allegations surrounding his administration’s relationship with the troubled bank.
In a statement shared on social media, the president said his decision was motivated by the need to protect the country’s stability and democratic institutions.
He also apologised to citizens who had been affected by the financial crisis, saying his immediate concern was ensuring that customers recovered their money.
However, his resignation did little to calm the political situation as Paraguay’s lawmakers proceeded with efforts to hold him accountable.
The Chamber of Deputies voted unanimously, with all 78 lawmakers present supporting the initiation of impeachment proceedings against him.
The Senate is expected to determine the next stage of the process, while some lawmakers have insisted that Peña should face impeachment rather than be allowed to leave office through resignation.
Senator Yolanda Paredes strongly opposed his proposed exit, demanding his arrest and prosecution over the allegations connected to the banking crisis.
The controversy centres on Ueno Bank, which was taken over by Paraguay’s Central Bank after regulators identified serious financial irregularities and concerns about its ability to meet regulatory requirements.
Investigations reportedly revealed that the institution’s solvency ratio had dropped below half of the required minimum, raising questions about its financial position and lending practices.
With approximately 2.9 million customers, Ueno Bank had become one of the country’s most significant financial institutions.
Its collapse left customers struggling to access their savings, while public institutions, including the Social Security Institute (IPS), also faced scrutiny over the substantial funds deposited with the lender.
The situation became politically explosive because Peña previously had financial ties to the group associated with Ueno Bank, although he maintained that he had disposed of his interests before the crisis.
Opposition politicians accused his administration of conflicts of interest, possible misuse of pension funds and failure to adequately address warning signs surrounding the bank’s financial condition.
The allegations triggered protests across the country, with angry customers demanding access to their money and calling for accountability from government officials.
Peña, an economist and former finance minister, assumed office in August 2023 and was expected to serve until 2028.
His resignation announcement has now opened a new chapter in Paraguay’s political crisis, with the impeachment process and investigations into the bank’s collapse continuing.
