Paraguay President Santiago Peña resigns after bank collapse

Paraguay's President Santiago Peña has resigned amid a political crisis triggered by the collapse of a bank associated with him. In a video message shared on social media, Peña apologized to the people, stating he had never intended to betray their trust. The crisis unfolded after Ueno Bank entered insolvency, freezing all operations.

Lawmakers accused Peña, a former shareholder, of conflicts of interest and misconduct, though he has denied any wrongdoing. Peña's resignation aimed to maintain stability, social peace, and democratic institutions. The Central Bank seized Ueno Bank, which had three million customers, comprising around 60% of Paraguay's adult population.

The bank held pensions and public funds, leaving millions without account access. Following the bank's collapse, protests erupted, demanding Peña's resignation. The Central Bank of Paraguay appointed a new president, and Congress approved a process to compensate depositors. Peña, a conservative Colorado Party representative, was elected in 2023, defeating a center-left candidate.