Paraguay's president tangled up in Ueno banking crisis
Paraguay's president has stepped down after the collapse of Ueno Bank plunged the country into a political crisis.
Paraguay's president, Santiago Peña, found himself in the midst of a banking crisis that ultimately led to his resignation. Ueno Bank, a digital lender holding over $800 million in Paraguayan public deposits, collapsed, plunging the country into political turmoil. Lawmakers rejected Peña's resignation and initiated impeachment proceedings against him.
The central bank seized control of Ueno Bank due to a severe capital shortfall, and arrest warrants were issued for eight of the bank's top executives. Peña, a former IMF economist, owned shares in Ueno Bank until last year. Opposition senators insisted on impeachment proceedings, stating that allowing Peña to resign would protect his eligibility for life in the Senate and grant him legal protections against prosecution.
The president expressed regret for any perceived betrayal of the people's trust and offered to cooperate with investigators in the ongoing criminal inquiries into the Ueno Bank crisis.
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