Paraguay president resigns after bank collapse crisis

Summarised from 2 outlets · Updated 5 Nov, 17:51 · Archive

Paraguayan President Santiago Pena has resigned following the collapse of digital lender Ueno, which left nearly half the population without access to bank accounts.

Paraguayan President Santiago Pena has resigned following the collapse of Ueno, a digital lender to which he had former business links. The bank's collapse left nearly half Paraguay's population without access to their bank accounts. Pena announced his resignation in a recorded video address on Thursday, saying he was acting 'with the stability of our country, social peace and the need to preserve our democratic institutions in mind'.

The fallout from Ueno's collapse has been severe. Paraguay's central bank chief resigned on Tuesday and eight Ueno executives were detained. The crisis has damaged Paraguay's reputation as a stable destination for foreign investment, particularly from neighbouring Brazil. MPs had accused Pena of conflicts of interest, misuse of pension funds and institutional cover-ups. Ueno had grown from a fintech player into a mid-tier bank administering almost US$850 million in public funds.

Pena had faced intense pressure to resign. The opposition called an extraordinary session to begin impeachment proceedings, and he lost backing from members of his own conservative party. His decision to step down must be ratified by the senate, which politicians said would move quickly to ensure a swift transition. Vice President Pedro Alliana is expected to be sworn in after Congress officially receives the resignation.

Paraguay president resigns after bank collapse crisis — Image: The West Australian

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How it is being reported

Paraguay president resigns following bank collapseParaguayan President Santiago Pena has quit after about half the population was left without access to bank accounts following the collapse of lender Ueno.The West Australian · 5 Nov, 17:28
Paraguay president resigns following bank collapseParaguayan President Santiago Pena has quit after about half the population was left without access to bank accounts following the collapse of lender Ueno.Perth Now · 5 Nov, 17:28

In this story: Santiago Pena · Pedro Alliana · Ueno · Paraguay

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