Following a political crisis brought on by the failure of a bank connected to him, Santiago Peña, the president of Paraguay, announced his resignation.He sent a video statement on social media saying, “I want to apologize to the people if at any point I failed.” “I never intended to violate your confidence in me.
When Ueno Bank started an insolvency procedure and halted all activities, the crisis broke out. Peña, a stakeholder in the bank’s parent firm until last year, was accused by lawmakers of misbehavior and conflicts of interest.
Quick Fact
| Detail | Information |
|---|---|
| Country | Paraguay |
| Main Event | Ueno Bank collapse and political crisis |
| Former President | Santiago Peña |
| Bank | Ueno Bank |
| Customers Affected | Approximately 3 million |
| Population Share | About 60% of Paraguay's adult population |
| Political Development | Peña resigned following an impeachment move |
| Government Action | New Central Bank president appointed |
| Depositor Support | Congress approved a compensation process |
| Public Reaction | Protests and demands for political accountability |
Paraguay Leader Resigns Amid Bank Crisis
Peña has denied any inappropriate behavior. His resignation comes after Paraguay’s lower house of legislature voted in support of starting an impeachment trial.
Peña stated in his video statement on X that he resigned in order to preserve social harmony, stability, and democratic institutions.
According to Ueno Bank, it has over three million clients, or roughly 60% of Paraguay’s adult population.
Millions of people were unable to access their accounts following its collapse earlier this week since it handled pensions and certain other public monies.
People protested and demanded Peña’s resignation in the streets when the central bank seized the digital lender.
Paraguay Moves to Compensate Bank Depositors
Congress has authorized a procedure for paying depositors, and the Central Bank of Paraguay has nominated a new president.
Peña defeated a center-left opponent to win the 2023 election as a representative of Paraguay’s ruling conservative Colorado Party.
