Paraguayan president resigns amid banking crisis
What's the story
Paraguayan President Santiago Pena has resigned after a banking crisis left millions without access to their funds. The Central Bank's takeover of Ueno Bank, linked to Pena, froze deposits for around three million people, including pensioners, sparking nationwide protests. Demonstrators gathered outside Congress demanding the return of their money, with some clashing with police who used tear gas and water cannons.
Legal action
Lawmakers vote to initiate impeachment proceedings against Pena
In light of the crisis, lawmakers have unanimously voted to initiate impeachment proceedings against Pena.
The opposition has accused him of misconduct and a conflict of interest in his dealings with Ueno Bank.
Despite selling his shares in the bank last year, allegations lingered over favoritism toward Ueno in regulatory decisions.
Crisis management
Central bank intervened at Ueno Bank due to capital shortfall
The Central Bank intervened at Ueno Bank due to a severe capital shortfall, aiming to protect depositors and maintain financial stability.
Despite Pena's attempts to ease tensions by requesting the resignation of Central Bank president Carlos Carvallo and enacting a law limiting fund return time, public discontent remained high.
Long queues formed outside Ueno branches as people tried to withdraw their money, further fueling protests in Asuncion.
Succession plan
Pena announces resignation in a video posted on X
Pena, who served as finance minister before becoming president in 2023, announced his resignation in a video posted on X.
He apologized to the people of Paraguay for any failures and emphasized that his priority was "the peace of mind of Paraguayans who entrusted their savings to our financial system."
With Pena's resignation pending parliamentary approval, Vice President Pedro Alliana is set to take over leadership in Paraguay.