Paraguayan President Santiago Peña has resigned following a political and financial crisis linked to the collapse of digital lender ueno, which left millions of customers unable to access their accounts.
Peña said his decision was intended to protect Paraguay’s stability, social peace and democratic institutions as opposition lawmakers moved towards impeachment proceedings and pressure grew within his own Colorado Party.
Key developments:
- ueno’s collapse prompted regulatory intervention after authorities found the lender had breached minimum solvency requirements.
- The bank managed around $850 million in public funds and had approximately three million customers affected by account restrictions.
- President Carlos Carvallo of the Central Bank of Paraguay resigned amid scrutiny over supervision of the lender.
- Vice President Pedro Alliana is expected to assume the presidency and complete the current term until 2028.
The crisis has raised wider questions over financial regulation, political connections and investor confidence in Paraguay, although authorities have said the issue is isolated to ueno rather than the broader banking system.