Paraguay President Santiago Peña has announced his resignation, ending his term amid a severe political and economic crisis. The decision follows the sudden collapse of Ueno Bank, a digital lender linked to the president, which froze operations and left millions of citizens unable to access their funds.
In a video message posted on social media, Peña addressed the nation directly. “I want to apologise to the people if at any point I failed,” he said. “It was never my intention to betray the trust you placed in me.” He stated that his departure was necessary to protect social peace and democratic institutions.
Ueno Bank Insolvency Sparks Outrage
The crisis began earlier this week when Ueno Bank entered an insolvency process. The institution served approximately three million customers, representing roughly 60% of Paraguay’s adult population. Many of these accounts held pensions and other public funds, meaning the freeze disrupted essential financial flows for a significant portion of the country.
Paraguay’s central bank seized control of the digital lender. The move came after lawmakers accused Peña of conflicts of interest. Reports indicate that the president was a shareholder in the company that owned Ueno Bank until last year. Lawmakers argued that this connection constituted misconduct, especially as the bank’s failure threatened the livelihoods of everyday citizens.
Peña has consistently rejected suggestions of impropriety. However, the political pressure mounted rapidly. Paraguay’s lower house of congress voted in favor of pursuing an impeachment trial against him. The threat of removal from office, combined with widespread public anger, led to his final decision to step down.
Protests and Government Response
As news of the bank’s collapse spread, citizens took to the streets. Demonstrators demanded Peña’s resignation and called for accountability regarding the loss of their savings. The scale of the protest reflected the deep frustration felt by those who could not access their money during a critical period.
In response to the turmoil, the government has taken steps to stabilize the situation. A new president of the Central Bank of Paraguay has been appointed to oversee the transition. Additionally, Congress has approved a process to pay depositors, aiming to restore some level of financial security to the affected population.
Peña won the presidency in 2023, representing the ruling conservative Colorado Party. He defeated a centre-left challenger in that election. His resignation marks a sudden end to his term and introduces uncertainty into Paraguay’s political landscape. The country now faces the task of managing the fallout from the banking crisis while establishing new leadership.
Source: BBC
