Paraguay faces crisis over bank collapse: President Santiago Pena resigns
How one bank’s collapse is upending Paraguay, trapping savings and threatening its president
Paraguay's President Santiago Peña resigned on Thursday, following the collapse of the central bank that seized Ueno Bank. The digital lender had grown rapidly in just five years, becoming a household name and hoping to reach a $1bn valuation. Peña cited his resignation as a means to maintain the country's stability and democratic institutions.
Ueno's executives now face charges of breach of trust, irregular bookkeeping, and attempted fraud. Peña apologized for failing to meet depositors' expectations but denied accepting responsibility for the crisis. The rapid collapse of a bank with over 60% of the country's adult customers in its customer base has sent shockwaves through Paraguay's financial system.
The political upheaval follows the bank's seizure, protests clashing with riot police, and Ueno's executives being detained.
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