Paraguay President Santiago Pena Resigns Amid Ueno Bank Crisis
Paraguayan President Santiago Pena resigned on Thursday following widespread protests and an impeachment push triggered by the Central Bank’s takeover of Ueno Bank, which froze accounts for three million depositors. Three million depositors and pensioners found themselves locked out of their funds as demonstrations roiled the capital of Asuncion.
Ruling Party Abandons Leader As Capital Sees Clashes Over Frozen Funds
The Central Bank of Paraguay seized control of Ueno Bank on Tuesday, citing a severe capital shortfall that locked out roughly three million depositors and sparked consecutive days of street protests. Police deployed tear gas and water cannons against demonstrators outside bank branches in Asuncion on Tuesday and Wednesday.
Opposition lawmakers filed an impeachment motion on Wednesday, accusing Pena of regulatory favoritism toward the institution, in which he previously held shares before selling them last year. The right-wing president announced his departure in a video shared on X, stating that his priority remained the peace of mind of citizens who entrusted their savings to the financial system.
Pena previously attempted to ease mounting tensions by requesting the resignation of Central Bank president Carlos Carvallo, who subsequently stepped down, and by enacting a law setting a five-business-day limit to return most funds to depositors. However, the measures failed to quell the unrest, and the ruling Colorado Party backed the president’s removal while Congress debated the impeachment request.
Vice President Pedro Alliana will now replace Pena to lead the South American nation.
