Paraguay’s president quits after millions of people’s savings frozen in bank crisis

Paraguay’s president, Santiago Peña, resigned as a banking crisis engulfed the country and lawmakers moved to impeach him. The collapse has frozen millions of customers’ savings and prompted mass protests, while allegations of misconduct and conflicts of interest have intensified pressure on his government.

The central bank placed Ueno Bank into resolution over insolvency, restricting access to deposits held by about 3 million customers. The fast-growing lender had reportedly managed between $800m and $850m from state and pension entities; Peña had previously held shares in its parent group and said he had sold them. Ueno expanded rapidly after receiving authorisation to operate as a digital bank in 2023, during Peña’s administration, and claimed around 60% of adults in Paraguay were customers.