Paraguay President Pena resigns after bank collapse
The gist
Paraguayan President Santiago Peña resigned Thursday after the collapse of digital lender ueno, which held close to $850 million in public funds.
The crisis has shaken Paraguay's image as a stable investment destination and left about 3 million customers locked out of accounts.
How it unfolded
- Mar 2025Peña was a shareholder of Grupo Vázquez, the group that owned ueno until March 2025.
- Nov 3, 2026Prosecutors issued arrest warrants for eight ueno executives, who later turned themselves in; courts froze their assets and placed some under house arrest. The fallout forced the resignation of Paraguay's central bank chief.
- Nov 4, 2026Protests against the government and ueno Bank took place in Asuncion, with clashes with riot police on the third day of demonstrations.
Key terms
- impeachment
- A process by which a legislative body charges a public official with misconduct, potentially leading to removal.
- lower house
- The lower chamber of a bicameral legislature, often holding more power than the upper house.
- sovereign international bond
- A bond issued by a national government to support public spending, paying periodic interest and repaying face value at maturity.
Source: Wikipedia