Paraguay’s President Resigns as Ueno Bank Collapse Leaves Customers Locked Out

President Santiago Peña has announced he is leaving office, as pressure grew over his past business links to the group that owns failed digital lender Ueno Bank. In a video message on Thursday, he said the decision was meant to protect stability, social peace and democratic institutions, and that his priority is the savings of ordinary Paraguayans.

Ueno Bank Resolution and the Banking Crisis

On Tuesday, the central bank opened resolution proceedings after finding Ueno’s solvency ratio had dropped below half of the required minimum. Millions of customers have been unable to reach their money. Peña was a business partner of Grupo Vázquez, which controls the bank, until March 2025. He denies wrongdoing and says the matter started as a regulatory issue before becoming political.

Impeachment Pressure in Congress

Lawmakers were debating impeachment over alleged conflicts of interest, misuse of pension funds and institutional cover ups tied to the collapse.

Stablecoin Prices Jump in Paraguay

The crisis also pushed up demand for dollars. One peer to peer listing on Bybit offered USDt at 6,942 guaraníes, about 13% above the central bank’s Nov. 4 reference rate of 6,144.02.

Peña took office in August 2023 and his term was due to end in 2028. If Congress accepts the resignation, Vice President Pedro Alliana would serve the remaining time.