Paraguayan President Santiago Peña has resigned amid a political and financial crisis following the collapse of digital lender ueno, which left millions of customers unable to access their accounts and undermined confidence in the country’s banking system.
Peña stepped down shortly before lawmakers were expected to advance impeachment proceedings against him, following a loss of support within his conservative Colorado Party.
In a statement posted on social media, Peña said he would appear before the Senate proceedings to exercise his right to a defence.
He described accountability and providing explanations as responsibilities owed to the Paraguayan people. He also urged authorities to find a swift solution for customers affected by the lender’s collapse.
“Clarifying the facts and resolving the payments are obligations that must advance at the same time,” he said.
ueno Bank Collapse Triggers Financial Turmoil
The crisis began earlier in the week when Paraguay’s central bank intervened in ueno, saying the rapidly expanding digital lender had breached minimum solvency requirements.
Pakistan, UK Agree to Strengthen Counter-Terrorism and Anti-Narcotics Cooperation
The fallout prompted the departure of the central bank chief and arrest warrants for eight ueno executives, who later surrendered to authorities.
Ueno had grown from a fintech company into a mid-sized bank serving approximately three million customers in a country with a population of around 6.5 million.
The lender also administered approximately $850 million in public funds, including money linked to state institutions and pension schemes.
Its collapse left customers unable to access their accounts, intensifying public anger over savings, payments and benefits held with the institution.
Financial markets reacted to Peña’s resignation, with sovereign bond prices declining and the Paraguayan guarani weakening beyond 6,500 per US dollar before closing at 6,490.
According to the report, the currency lost nearly 5 per cent during the trading day.
Opposition Raises Conflict of Interest Allegations
Opposition lawmakers accused Peña of conflicts of interest, misuse of pension funds and helping protect ueno from scrutiny. The president denied wrongdoing, maintaining that the matter involved regulatory issues that should be addressed by the courts.
Elected in 2023, Peña had faced questions about his previous connections with Grupo Vazquez, the business group that owned ueno until March 2025.
He said he sold his stake in the group in March 2025 and denied any improper involvement in the bank’s affairs.
Vice President Pedro Alliana Faces Political Pressure
The crisis has also placed pressure on Vice President Pedro Alliana, who is next in line for the presidency.
Alliana has distanced himself from Peña in recent days and announced that he was suspending his own presidential ambitions until the financial turmoil is resolved.
The unfolding situation has raised concerns over Paraguay’s political stability, financial regulation and the protection of customers whose funds remain affected by the lender’s collapse.
