Paraguay's president resigns after Ueno bank collapse

· Politics · Paraguay

Paraguay's President Santiago Peña resigned on Thursday after the collapse of digital lender ueno froze millions of people's savings, including pensioners' money. Minutes after he announced his resignation on X, the lower house of Congress voted unanimously to impeach him. Protests had gripped the streets since the bank's takeover. Peña, a Trump ally, had authorised Ueno Bank to drastically expand operations before its collapse. He said he would defend himself in the Senate against a vote to forcibly remove him rather than accept his resignation, a legal distinction that could determine whether he retains immunity from criminal prosecution. The crisis has undermined Paraguay's reputation as a stable destination for foreign investment.

Why it matters：A bank failure has toppled a government in one of Latin America's more stable economies, raising questions about depositor protection and political risk across the region.

Key points

  • The lower house voted unanimously to impeach Peña minutes after his resignation.
  • Ueno's collapse froze savings of millions, including pensioners.
  • Peña will defend himself in the Senate rather than accept removal.

Sources (original reporting)

More stories from this day