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Paraguay President Santiago Peña resigns
Paraguay’s President Santiago Peña has announced his resignation amid a political crisis following the collapse of Ueno Bank, which lawmakers linked to him through his former shareholding in its parent company. The lower house had voted to pursue an impeachment trial, while Peña denied wrongdoing and said stepping down would protect stability, social peace and democratic institutions.
Ueno Bank entered insolvency and froze its operations, leaving millions unable to access accounts; the digital lender said it had about three million customers, around 60% of Paraguay’s adult population. It held pensions and other public funds, prompting protests after the central bank seized it. Congress has approved a process to pay depositors, and Peña, elected in 2023 as the Colorado Party candidate, apologised to the public in a video message.
In short
- Santiago Peña resigns after a bank collapse sparks a political crisis.
- Lawmakers had voted to pursue an impeachment trial.
- Ueno Bank had about three million customers.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Peña’s resignation could be defended as a way to contain a crisis that had shaken public confidence and left many people unable to access their money. By stepping aside after lawmakers moved towards impeachment, he may help preserve social peace and democratic institutions while allowing scrutiny of his past connection to the bank to proceed without the presidency at its centre.
The case against
Resignation could be criticised as an inadequate substitute for a full public examination of whether Peña’s former shareholding involved any wrongdoing or influence over the bank’s treatment. With millions of customers affected and public funds held there, citizens may have a strong interest in seeing him remain accountable through the constitutional process rather than allowing his departure to close or distract from it.
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