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Ueno Bank collapse froze deposits, leaving about 3 million customers unable to access accounts. Paraguay President Santiago Peña resigned amid mounting pressure and impeachment talks.
Resignation After Ueno Collapse
Paraguayan President Santiago Peña resigned on Thursday after the collapse of digital lender Ueno left millions of customers unable to access their accounts. Peña said in a video recorded address on Thursday, “I do so with the stability of our country, social peace, and the need to preserve our democratic institutions in mind,” as opposition called for an extraordinary session to begin the process of filing an impeachment motion in Congress. Ueno Bank entered an insolvency process that froze all operations, and lawmakers voted in favour of pursuing an impeachment trial.
The Central Bank of Paraguay found Ueno Bank’s solvency ratio fell below 50% of the required minimum, and the BBC said the bank’s collapse triggered protests demanding Peña’s resignation. Peña won election in 2023 representing Paraguay’s ruling Colorado Party, beating a centre-left challenger.
Impeachment Push and Party Rift
Peña lost backing from members of his own conservative party earlier on Thursday, and Vice President Pedro Alliana was set to take office as his replacement. Paraguay’s Chamber of Deputies began a special session this Thursday to debate charges brought by 35 opposition lawmakers and ruling-party dissidents to trigger the impeachment mechanism provided for in Article 225 of the Constitution. The Chamber of Deputies would have to decide whether to accept or reject the resignation, while Peña’s resignation came as Congress began impeachment proceedings against him.
Peña’s resignation came after Paraguay’s lower house of congress voted in favour of pursuing an impeachment trial. Peña said, “I apologize to the people if I have failed them at any time.”
Depositors, Public Funds, and Next Steps
The crisis left Ueno Bank customers unable to access their money, and crowds gathered around the headquarters in Asunción and the bank’s 75 branches across the country. The Central Bank of Paraguay said, “We proceeded to close the institution; neither the app, nor the cards, nor any service at all has been active since today,” and it said the bank held around 850 million dollars in public funds. The banking crisis froze the deposits of nearly three million savers and Peña resigned after facing an imminent impeachment threat in Congress.
Peña’s priority was “the tranquility of Paraguayans who trusted their savings in our financial system,” and the presidency would be left in the hands of Vice President Pedro Alliana. The Chamber of Deputies would meet in an extraordinary session to vote on whether to open impeachment proceedings against Peña, and the process depended on securing 53 votes in the lower house and, subsequently, the support of two thirds of the Senate.
