BanglaPress Desk: Santiago Peña, the President of the South American nation of Paraguay, has resigned. He stepped down amid intense political pressure following the collapse of a digital bank, which left the funds of approximately 3 million customers inaccessible. The President faces allegations of negligence and the concealment of information regarding the bank's insolvency.
According to Al Jazeera, President Santiago Peña resigned after the collapse of the digital bank 'Ueno' left millions of customers unable to access the funds in their accounts. The opposition had initiated moves toward impeachment, and protests demanding his resignation were also underway. Given these circumstances, he announced his departure on Thursday (November 5).
He has been accused of negligence, conflict of interest, and concealing information related to the bank's collapse. In a video message announcing his resignation on Thursday, Peña stated, "I have made this decision in consideration of the need to ensure the stability of our country, social peace, and the protection of our democratic institutions."
Peña—known as an ally of U.S. President Donald Trump—stepped down at a time when the opposition had called for a special session of Congress to initiate impeachment proceedings against him, while protesters were simultaneously demanding his resignation.
Notably, Peña had also lost the support of members of his own conservative party prior to his resignation. He will be succeeded by Vice President Pedro Alliana.
Al Jazeera reports that lawmakers have raised allegations of conflict of interest, the misuse of pension funds, and the institutional concealment of information regarding the collapse of Ueno Bank. The financial technology firm, which initially operated on a limited scale, had rapidly grown into a mid-sized bank. It managed approximately $850 million in government funds.
Lucia Newman, Al Jazeera’s Latin America editor, noted, "He faces accusations of, at the very least, negligence and involvement in covering up the bank's insolvency." He further stated, "At this moment, Congress is pursuing impeachment proceedings against both the President and the Vice President. A session regarding this is currently underway."
Newman remarked, "As I speak, people are protesting outside. They are urging Congress not to accept the President’s resignation, as they demand that he face trial and be impeached."
According to media reports, the crisis began after Paraguay’s central bank intervened in the operations of Ueno Bank, following the discovery that the institution had failed to meet minimum financial solvency requirements. As a result, approximately 3 million customers—in a nation with a total population of 6.5 million—lost access to the funds in their bank accounts.
In his resignation address, Peña added, "My primary hope is that the return of depositors' funds will be ensured, that the deposit protection fund will fulfill its purpose, and that both public funds and the assets of all Paraguayan citizens will remain secure."
Ueno Bank has not yet issued any public statement regarding this matter.
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