By Paul Joseph
Paraguayan President Santiago Peña has announced his resignation amid a financial crisis triggered by the shutdown of Ueno Bank, which left millions of customers unable to access their savings and sparked calls for his impeachment.
Peña announced his decision in a statement posted on social media on Thursday, saying he was stepping down to protect national stability, social peace and public institutions.
“I have made the decision to submit my resignation from the Presidency of the Republic. I do so with the stability of our country, social peace, and the need to preserve our public institutions in mind,” he said.
His resignation came as lawmakers considered allegations of “serious and systematic dereliction of duty” over his alleged dealings with the troubled financial institution.
The impeachment motion was brought by 35 opposition lawmakers and members of the ruling party, who proposed removing him from office despite his five-year tenure, which began in August 2023.
Shortly after Peña announced his decision, Paraguay’s Chamber of Deputies unanimously voted to initiate impeachment proceedings, while the Senate was expected to determine whether the process would proceed.
Both chambers of Congress were also scheduled to meet in a joint session to consider his resignation.
The outcome could determine whether Peña leaves office through resignation or impeachment, with the two options carrying different legal consequences, including the question of immunity and special protections.
However, Senator Yolanda Paredes rejected the possibility of accepting his resignation, insisting that the president should face criminal accountability.
“This guy, Santiago Peña, needs to be jailed. An arrest warrant must be issued,” she told reporters.
The crisis followed the intervention of Ueno Bank by Paraguay’s Central Bank after the financial institution reportedly violated lending limits involving related companies.
The Central Bank said the bank’s solvency ratio had fallen below 50 per cent of the required minimum following adjustments to its financial statements during a regularisation process.
Ueno Bank reportedly had approximately 2.9 million customers in a country with a population of about 6.1 million, leaving thousands of account holders affected by the proceedings.
The institution had also received substantial funds from public entities during Peña’s administration, including the Social Security Institute, which manages pension contributions for most Paraguayan workers.
The bank’s intervention triggered long queues at financial institutions, public anxiety and street protests over two days before Peña announced his resignation.
In his resignation statement, the president said his immediate concern was restoring confidence among citizens who entrusted their savings to the country’s financial system.
He also apologised to Paraguayans if he had failed them, adding that history would eventually judge the circumstances surrounding the crisis.
Peña, 47, assumed office in August 2023 at the age of 44, becoming one of the youngest presidents in Paraguay’s history.
Before becoming president, he served as Finance Minister between 2015 and 2017 under former President Horacio Cartes and also worked as a director of the country’s Central Bank.
He belongs to the ruling right-wing Colorado Party, which holds a majority in both chambers of Congress.
The unfolding crisis has also raised concerns about Paraguay’s efforts to establish itself as a regional financial hub following its recent attainment of investment-grade status from major international credit rating agencies.
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