Paraguay: Bankenskandal bringt Paraguays Präsidenten zu Fall

Paraguay's President, Santiago Peña, resigned on Tuesday following a major bank scandal that brought him down. The scandal centered around the digital bank Ueno, which had promised a better future for Paraguayans with easy opening of bank accounts and attractive discounts. Within a few years, Ueno gained 2.9 million customers, nearly two-thirds of Paraguay's adult population.

However, the bank's facade hid a dangerous web of politics and private businesses. Carlos Carvallo, who previously headed the bank, was charged with overseeing the bank's affairs under Peña. The central bank took control of Ueno and initiated liquidation, leading to the arrest of several high-ranking bank managers. Peña, a 47-year-old economist who had been in office since 2023, held shares in a company linked to Ueno.

He came to power with grand ambitions to attract foreign investors to Paraguay, which has been one of the most dynamic economies in South America. However, the bank's mismanagement led to a shortage of capital, falling below half the required minimum value. The prosecutor's office is investigating allegations of abuse of trust, balance sheet manipulation, and attempted fraud.

Eight top bank managers were arrested. Peña denied any wrongdoing, but his downfall was sealed when his biggest ally, former President Horacio Cartes, withdrew support. Cartes, a wealthy entrepreneur who ruled Paraguay from 2013 to 2018, controls much of the conservative Colorado Party and has close ties with US President Donald Trump.

Peña's resignation comes as a major setback for Paraguay, which already faces a tarnished international reputation. Transparency International's 2025 Corruption Perceptions Index ranks Paraguay last among South American nations, aside from Venezuela.