Paraguayan President Resigns as Bank Collapse Sparks Mass Protests

By Staff, Agencies

Paraguayan President Santiago Pena resigned on Thursday following mass protests triggered by the collapse of Ueno Bank, a major lender previously backed by Pena and his administration. 

Announcing his resignation in a televised address, Pena said his decision was driven by the need to preserve national stability, social peace, and democratic institutions. 

His departure came after his right-wing Colorado Party withdrew its support and opposition lawmakers threatened impeachment proceedings.

The crisis erupted after Paraguay's central bank placed Ueno Bank under administration, leaving approximately three million customers unable to access their accounts. 

The regulator said the lender held less than half the legally required capital needed to protect depositors and maintain financial stability. Pena subsequently advanced legislation to reimburse affected customers, claiming the measure would cover 98% of depositors.

Public anger intensified over Pena's financial and political connections to the bank. He held shares in its parent company until 2025 and reportedly placed between $800 million and $850 million in public funds in Ueno Bank accounts, including approximately $380 million linked to the country's state pension and health fund. 

Protesters and opposition lawmakers have accused him of conflicts of interest, misuse of public money, and concealing warnings about the bank's financial condition. Clashes erupted in the capital, Asuncion, as demonstrations escalated.

Pena's resignation comes amid growing scrutiny of his political record and close ties with US President Donald Trump. 

His administration joined Washington's military operation against Caribbean drug cartels and signed an agreement to accept migrants rejected by the United States. 

Pena also maintained close ties with the Zionist entity, relocating Paraguay's embassy to Jerusalem in 2024 and pledging unconditional support for Benjamin Netanyahu. Paraguay also voted against three UN resolutions calling for a ceasefire in Gaza. 

Meanwhile, opposition lawmakers accused Pena's political patron, former President Horacio Cartes, of purchasing Pegasus spyware from the Zionist entity.

Despite Pena's departure, the Colorado Party remains in power, with Vice President Pedro Alliana set to assume the presidency. 

Meanwhile, eight senior Ueno executives have been detained, while more than two dozen bank officials and associates face charges in connection with the financial scandal.