Paraguay's president resigns after bank failure

Paraguay President Santiago Peña has announced his resignation amid a banking crisis. He made the decision with a view to the stability of the country, social peace and the need to preserve democratic institutions, Peña said in a video message on his social media channels.

The resignation comes two days after the virtual bankruptcy of the digital bank Ueno, which plunged the South American country into a financial and political crisis.

Street protest in the capital

Millions of citizens now fear for their savings. In the capital Asunción, thousands took to the streets and in front of Congress in protest. At the same time, impeachment proceedings were initiated against President Peña.

President with business connections to the bankrupt bank

Peña has been criticized for his previous business ties to Ueno. Until March 2025 - well into his term as president - he was a business partner or shareholder in Grupo Vázquez, the conglomerate that owns Ueno Bank. He had previously rejected allegations of possible conflicts of interest.

The central bank initiated resolution proceedings against Ueno Bank on Tuesday after the financial institution's equity ratio fell below 50 percent of the prescribed minimum value. As a result, customers were temporarily no longer able to access their accounts.

The media also reported on inconsistencies in the granting of loans. According to its own information, the digital bank has between 2.8 and three million customers - around 60 percent of Paraguay's adult population. Pension payments were also processed through the bank.