Paraguay President Resigns as Bank Crisis Puts Millions of People's Money at Risk

(President Santiago Peña. Photo Credit: RFI)

Paraguayan President Santiago Peña resigned after a major digital bank called Ueno Bank crashed, freezing the savings of millions of people.

He announced the decision on Thursday in a video posted on social media.

He said he wanted to protect the country's stability, social peace and democratic institutions.

I want to apologise to the people if at any point I failed.

It was never my intention to betray the trust you placed in me, he said.

According to reporters, the resignation came after the lower house of Congress moved to start impeachment proceedings.

Lawmakers accused Peña of a conflict of interest and misconduct linked to the bank.

Peña denies any wrongdoing and rejects claims that his past business ties to the bank's owner shaped his actions as president.

Paraguay's Central Bank placed Ueno Bank under resolution earlier this week, after finding its solvency ratio had dropped below the required minimum.

The move affected about three million customers, many of whom cannot get to their savings.

The bank also handled hundreds of millions of dollars in public funds, including pension money.

The crisis sparked protests in the capital, Asunción, where people demanded Peña's resignation.

Authorities have started plans to repay depositors.

Eight Ueno executives have reportedly been detained and their assets frozen as investigations continue.

Peña was reported to have been a shareholder in Grupo Vázquez, the company that owned Ueno Bank, until 2025.

In his resignation message, Peña called for depositors to get their money back, for the Deposit Guarantee Fund to do its job and for public funds to be protected.

The central bank governor had already resigned earlier in the crisis.

A reporter online has said that Vice President Pedro Alliana is expected to take over as president.