ASUNCIÓN: Paraguayan President Santiago Peña has resigned amid a major political and financial crisis triggered by the collapse of digital lender Ueno Bank, which has left nearly three million customers unable to access their bank accounts and savings.
Peña announced his resignation on Thursday, November 5, shortly before lawmakers moved forward with impeachment proceedings against him. He reportedly lost the backing of members of his own conservative Colorado Party as public pressure mounted over the banking crisis.
In a video statement posted on social media, Peña said he was stepping down to protect national stability, social peace and democratic institutions. He also said he would defend himself against the allegations before the Senate and called for the swift return of customers’ funds.
The crisis intensified after Paraguay’s central bank intervened in Ueno Bank on November 3, following findings that its solvency ratio had fallen below half of the legally required minimum. The intervention disrupted the bank’s digital services, card payments and transfers, leaving millions of customers unable to access their money.
Ueno had grown from a financial technology company into a mid-sized bank, serving approximately three million customers in a country of around 6.5 million people. It also managed an estimated $850 million in public funds, including money linked to government agencies and pension institutions.
The banking crisis has also shaken Paraguay’s financial markets. The country’s sovereign bond prices declined, while the guarani weakened by nearly five per cent against the US dollar, reaching around 6,490 guaranies per dollar.
The controversy has also forced the resignation of Central Bank President Carlos Carvallo, while arrest warrants were issued for eight Ueno executives. Authorities have been investigating financial irregularities and the bank’s lending practices.
Opposition lawmakers accused Peña of conflicts of interest, misuse of pension funds and protecting the bank from regulatory scrutiny. The allegations partly stem from his previous shareholding ties to Ueno’s parent company, Grupo Vázquez. Peña has denied wrongdoing.
Following his resignation announcement, Paraguay’s Chamber of Deputies unanimously approved an impeachment motion, adding another dimension to the country’s political crisis.
Vice President Pedro Alliana is expected to succeed Peña as the country faces growing pressure to restore public confidence in its banking system and ensure that affected customers recover their funds.
Source: International NEWS Media
