Santiago Peña Resigns Following Ueno Bank Collapse in Paraguay
Paraguayan President Santiago Peña resigned on Thursday in Asunción, stepping down as a party-wide revolt and looming impeachment proceedings engulfed his administration following the central bank takeover of major digital lender Ueno Bank. Depositors, protesters, and political factions moved against the 47-year-old former International Monetary Fund economist as public fury erupted over the systemic financial failure.
“I have made the decision to submit my resignation as president of the republic,” Peña said in a video posted to X, adding that he stepped down to preserve national stability, social peace, and democratic institutions.
Legislators from Peña’s own conservative Colorado Party had unified to back an impeachment motion after former President Horacio Cartes withdrew his political support. The swift unraveling of the administration followed the seizure of Ueno Bank by Paraguay’s central bank amid a severe solvency crisis.
The sudden collapse of Ueno Bank sent immediate shock waves through the national financial system. The digital lender, which secured its banking license in 2023 and expanded to more than 70 locations, claimed more than 60% of Paraguay’s adults as customers. As of last month, Ueno reported holding roughly $800 million in public deposits, about a quarter of its total reserves, including state pension funds.
Executives of Ueno Bank were taken into custody at the anti-corruption prosecutor’s office in Asunción as protesters clashed with riot police outside congress. Before his resignation, Peña had approved emergency payouts to protect savers and named a new central bank chief, while stopping short of accepting personal responsibility for the crisis.
The fallout centers on questions regarding how a lender closely linked to the executive branch and ruling party elites could grow so rapidly despite ongoing warnings regarding its lending practices.
