President Santiago Peña of Paraguay submitted his resignation on Thursday, 5 November, amid a financial crisis triggered by the collapse of the digital bank Ueno. The bank, which held deposits for roughly 2.9 million customers—about 60 % of the country’s adult population—was forced to close overnight after its solvency ratio fell below the Central Bank’s minimum requirement. Peña’s resignation came as members of the Paraguayan Congress were debating a motion to remove him from office. In a statement posted on social media, the president said, “I have decided to submit my resignation as President of the Republic, taking into account the stability of our country, social peace, and the need to protect our public institutions.” He added that his priority was “the calm of Paraguayans who have entrusted their savings to our financial system.” Peña also apologized to the public if he had disappointed them. The Central Bank of Paraguay had announced on Tuesday that Ueno’s solvency ratio had dropped below 50 % of the required minimum, citing adjustments made to the bank’s financial statements during a regulatory review. The bank’s closure left millions of customers unable to access their deposits, and its app, card payments, and transfer services ceased to function. Branches were shut, and employees of Ueno and related companies staged protests outside the Ministry of Labor demanding payment of outstanding wages and severance. Opposition lawmakers and dissenting members of Peña’s own party have filed 35 accusations against the president, alleging “grave and systematic neglect of duties” and seeking his removal under Article 225 of the constitution. The accusations also reference Peña’s prior ownership of shares in Ueno Holding and loans he received from the bank, which critics say may constitute improper financial gain. The Paraguayan Chamber of Deputies convened a special session on Thursday to discuss the allegations and the potential suspension of Peña. The outcome of the proceedings will determine whether the president’s resignation is accepted or rejected. Ueno had reported holding approximately US 800 million in public sector deposits, including funds from operators of large hydroelectric dams. The bank’s failure has prompted widespread protests in Asunción, with demonstrators demanding the return of their savings and the resignation of Peña. The crisis has raised concerns about the stability of Paraguay’s financial system, though no direct link has been established to broader European Union financial risks.
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