Paraguayan President Resigns Over Digital Bank Collapse

President Santiago Peña announced his resignation Thursday, amid mounting pressure over the collapse of digital lender Ueno Bank, which left millions of customers without access to their accounts.

Paraguayan President Santiago Peña said:

I do so with the stability of our country, social peace and the need to preserve our democratic institutions in mind.

Xinhua reported that Peña apologized to the public if he had failed them and expressed hope that depositors’ savings would be returned and public funds protected.

Both Xinhua and Al Jazeera note that Ueno Bank had roughly 3 million customers and that the Central Bank has begun resolution proceedings after finding its solvency ratio fell below the required minimum. The bank’s applications and cards stopped working following the intervention.

Lawmakers in Paraguay have debated an impeachment motion against Peña and Vice‑President Pedro Alliana, and Alliana is set to succeed Peña, according to both outlets.

Xinhua added that former President Horacio Cartes, Peña’s political mentor and leader of the ruling Colorado Party, backed the impeachment, that the central bank chief Carlos Carvallo resigned at Peña’s request, and that prosecutors have ordered the arrest of eight Ueno Bank executives, all of whom were subsequently detained.

Al Jazeera said that Peña is an ally of former U.S. President Donald Trump, and that lawmakers accuse him of conflict of interest, misuse of pension funds and covering up the bank’s insolvency. The outlet also highlighted that Ueno had grown to manage close to $850 million in public funds.

Reuters reported that Peña had resigned after the Ueno collapse triggered a political and financial crisis in Paraguay.

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