Paraguay's President Resigns Amid Ueno Bank Crisis, Impeachment Pressure

ISTANBUL, Nov 6 (NNN-Anadolu) -- Paraguay’s president submitted his resignation on Thursday amid a political crisis triggered by the collapse of digital lender Ueno Bank and mounting pressure for his impeachment, Anadolu Ajansi (AA) reported, citing daily ABC Color.

Santiago Pena announced his decision in a video recorded at the presidential residence, saying he was stepping down to protect the country's stability, social peace, and democratic institutions.

He apologised to Paraguayans if he had failed to meet their expectations but did not explicitly accept responsibility for the crisis.

He said his priority was ensuring that depositors recover their savings and that public funds are protected.

The resignation came hours after opposition lawmakers formally requested Pena's impeachment.

The move followed days of protests in the capital because of the Ueno Bank crisis and marks a major political setback for the Colorado Party government as authorities seek to contain the financial fallout and restore public confidence in the banking system.

Pena also lost support within his conservative Colorado Party.

Former President Horacio Cartes, a key party figure and Pena’s political mentor, backed the impeachment effort, ABC Color reported.

Pena took office in August 2023 for a five-year term.

He held shares in Ueno Holding, the bank's parent company, until 2025, raising conflict-of-interest allegations.

Uruguay’s Central Bank intervened in Ueno Bank after its capital fell below the legal minimum, leaving millions of customers unable to access their accounts.

The lender had nearly 3 million customers in a country of around 6.5 million people and managed large amounts of public money, including pension and health fund deposits.

Opposition lawmakers accused the government of conflicts of interest, misuse of pension funds, and covering up problems at the bank.

Authorities began transferring customer accounts to other banks to protect depositors.

Eight Ueno executives were detained, while 27 bank officials and business associates faced charges, ABC Color reported.

--NNN-ANADOLU