Paraguay president resigns after collapse of Ueno digital bank

Paraguayan President Santiago Peña announced his resignation Thursday amid a deepening political crisis triggered by the collapse of digital lender Ueno Bank.

In a video posted to X, Peña said he was stepping down to preserve the country’s stability, social peace and democratic institutions. He added that his priority was protecting Paraguayans who had entrusted their savings to the financial system.

Paraguay’s central bank announced resolution proceedings for Ueno Bank on Tuesday after finding that its solvency ratio had fallen below half of the regulatory minimum.

Peña faced mounting political scrutiny over his former business ties to Grupo Vázquez, the conglomerate that controls Ueno Bank. He remained a business partner of the group until March 2025, according to AP.