Paraguay president resigns amid Ueno Bank crisis

Paraguayan President Santiago Peña has reportedly resigned amid a political crisis following the collapse of Ueno Bank, a digital lender allegedly linked to his former business interests.

Peña announced his resignation on Thursday in a video message posted on social media, saying his decision was intended to protect the country’s stability, social peace and democratic institutions.

“I want to apologise to the people if at any point I failed. It was never my intention to betray the trust you placed in me,” he said.

According to Reuters, the resignation followed moves by Paraguay’s lower house of Congress to pursue impeachment proceedings against Peña over allegations of conflict of interest and misconduct relating to the bank.

Peña has denied any wrongdoing, rejecting suggestions that his previous business relationship with Ueno’s owner influenced his conduct as president.

Ueno Bank was reportedly placed under resolution by Paraguay’s Central Bank earlier in the week after regulators found that its solvency ratio had fallen below the required minimum.

The intervention reportedly affected the accounts of about three million customers, leaving many unable to access their savings and other funds.

The bank had also administered hundreds of millions of dollars in public funds, including pension and other government resources, Reuters reported.

The development triggered protests in the capital, Asunción, with demonstrators demanding Peña’s resignation.

Authorities subsequently began arrangements to compensate affected depositors, while reports indicated that eight Ueno executives had been detained and their assets frozen as investigations into the bank’s operations widened.

Peña was said to have been a shareholder in Grupo Vázquez, the company that previously owned Ueno Bank, until 2025.

Opposition lawmakers had accused him of a conflict of interest over his previous relationship with the bank’s ownership and the government’s dealings with the lender.

The president, however, maintained that he had committed no wrongdoing.

In his resignation message, Peña called on authorities to protect public funds and ensure that affected customers recovered their money.

“I want the affected people to be guaranteed the return of those resources, that the Deposit Guarantee Fund fulfil its purpose and that public funds and resources belonging to all Paraguayans be protected,” he said.

His reported resignation came after the resignation of Paraguay’s central bank governor earlier in the crisis.

Reuters reported that Vice-President Pedro Alliana was expected to assume the presidency following Peña’s departure.