Paraguay’s Peña resigns amid ueno bank crisis

Peña said on social media that he would appear before the Senate proceedings to “exercise my right to a defense.” He said accountability and explanations were responsibilities owed to Paraguayans, and urged officials to resolve payments while clarifying what happened. Lawmakers had moved toward impeachment after Peña lost support within his conservative Colorado Party.

The turmoil began when the central bank intervened in ueno, saying the fast-growing digital bank had breached minimum solvency requirements. Arrest warrants were issued for eight executives, who later turned themselves in. Ueno, which served about 3 million customers in a country of 6.5 million, also administered roughly $850 million in public funds, including money linked to state institutions and pensions.

Sovereign bond prices fell after Peña’s resignation. The guarani weakened past 6,500 per dollar before closing at 6,490, down nearly 5% on the day. Customers have been unable to access accounts used for savings, payments and benefits.

Opposition lawmakers accused Peña of conflicts of interest, misuse of pension funds and shielding ueno from scrutiny. He denied wrongdoing and said the matter should be handled by the courts. Peña, elected in 2023, has faced questions about his former ties to Grupo Vazquez, which owned ueno until March 2025. He has said he sold his stake that month and had no improper role in the bank’s affairs. Vice President Pedro Alliana, next in line to succeed him, has distanced himself from Peña and said he was pausing his own presidential ambitions until the crisis is resolved.