The collapse of Ueno Bank ignited widespread unrest after the central bank placed the firm into resolution, locking the deposits of approximately 3 million customers. Lawmakers moved swiftly toward an impeachment trial, fueled by allegations of conflicts of interest stemming from Santiago Peña's previous shareholding in the entity managing the failed institution. Adding to the pressure, the troubled lender held between $800 million and $850 million in government and pension capital, leading to the arrest of multiple bank executives. Vice-President Pedro Alliana has automatically stepped in to assume the presidency following the resignation.
Key points
Vice-President Pedro Alliana automatically assumes the presidency following Peña's depart…: Vice-President Pedro Alliana automatically assumes the presidency following Peña's departure from office.
Bank executives were taken into custody as authorities and the national football team dem…: Bank executives were taken into custody as authorities and the national football team demanded legal accountability.
Peña cited democratic preservation and the safe return of frozen deposits as primary just…: Peña cited democratic preservation and the safe return of frozen deposits as primary justifications for his exit.
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Paraguay’s rightwing president, Santiago Peña, resigned on Thursday after a political and financial crisis collapsed the South American country’s banking system in recent days.
At the centre of the crisis is Ueno Bank, which in just a few years under Peña went from an obscure digital bank to one of the country’s largest lenders, claiming to have about 60% of Paraguay’s adult population as customers.
Last Monday, the central bank ordered Ueno into resolution over insolvency, freezing the deposits of 3 million customers, leaving hundreds of thousands of families without access to money for food and basic daily expenses. Bank executives were arrested, and people took to the streets in massive protests.
In power since August 2023 and with a term running until 2028, the 47-year-old economist was already facing impeachment proceedings that had broad support.
“Dear compatriots, today I address you at one of the most difficult moments of my life. With my heart set on Paraguay and with the conviction that our republic must always come before any person or circumstance, I have decided to submit my resignation…
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