Paraguay's President Resigns Amid Political Turmoil After Ueno Bank Collapse
Paraguayan President Santiago Peña announced his resignation on Thursday as the nation faces a worsening political crisis triggered by the failure of the digital lender Ueno Bank.
In a video posted on X, Peña explained that he was resigning to uphold the country’s stability, maintain social peace, and safeguard democratic institutions. He emphasized his focus on protecting Paraguayans who had placed their trust and savings in the country’s financial system.
On Tuesday, Paraguay’s central bank initiated resolution proceedings against Ueno Bank after determining that its solvency ratio had fallen to less than half the required regulatory minimum.
Peña has come under increasing political pressure due to his previous business connections with Grupo Vázquez, the conglomerate behind Ueno Bank. According to AP, he remained a business partner with the group until March 2025.
Peña has rejected allegations of wrongdoing, stating that the issue was originally a regulatory concern that later escalated into a political controversy.
The banking collapse coincided with a surge in Tether (USDt) prices on Paraguay’s Bybit peer-to-peer marketplace. An advertisement seen Thursday morning offered USDt at 6,942 Paraguayan guaraníes, about 13% higher than the central bank’s official November 4 exchange rate of 6,144.02 guaraníes per US dollar.
Peña’s resignation occurred amid parliamentary debates on initiating impeachment proceedings over accusations of conflicts of interest, misappropriation of pension funds, and institutional cover-ups related to the Ueno Bank collapse, according to Reuters.
Having been elected in April 2023 and inaugurated in August of the same year, Peña was serving a five-year term set to conclude in 2028. Paraguay’s Constitution specifies that Vice President Pedro Alliana would complete the remaining term if Congress approves Peña’s resignation.
This is an ongoing situation. We will provide updates as new details emerge.
This resignation highlights the fragile state of Paraguay’s political landscape and its financial sector. Peña’s departure underscores the serious consequences of the Ueno Bank crisis and its broader impact on national stability and public trust.
Why it matters
Peña’s resignation signals a critical turning point in Paraguay’s political and financial stability, emphasizing the deep repercussions of the Ueno Bank collapse and the necessity to restore public confidence.
Prepared from the source material with AI-assisted editing and checked against the supplied facts.
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