Paraguay’s president resigns as banking crisis rocks country

Paraguay's President Santiago Peña has resigned amid a banking crisis that has left the South American nation in a state of financial and political turmoil. Peña's decision to step down comes after the collapse of Ueno Bank, one of the country's largest lenders, which has 2.8 million customers, or about 60% of the adult population.

In a televised address, Peña explained that his primary concern was the well-being of Paraguayans whose savings were stored in the financial system. He expressed his regret for any mistakes made during his tenure. The crisis was triggered by Ueno Bank's capital reserves falling below the required levels, leading the central bank to initiate procedures for winding down the institution.

Ueno Bank's frozen accounts were also utilized for processing pension payments, exacerbating the situation. The fallout from the bank's collapse has prompted street protests in the capital, Asunción. Peña faced previous criticism for his business ties to Ueno's holding company, which he owned until March 2025. As the financial woes of Ueno Bank deepened, Peña encountered renewed allegations of conflicts of interest, which he categorically denied.

Opposition lawmakers initiated impeachment proceedings against Peña on Wednesday. Additionally, Central Bank Governor Carlos Carvallo resigned amid accusations of a conflict of interest tied to his previous senior role at Ueno Bank.