Paraguay President Santiago Peña announces resignation amid Ueno crisis

Paraguay’s President Santiago Peña announced in a video message on 5 November that he was resigning, as the collapse of lender Ueno left millions unable to access their accounts and lawmakers pursued impeachment. Peña said he had the country’s stability, social peace and democratic institutions in mind, and apologized to the public, according to the BBC and Al Jazeera.

The announcement came amid a fast-moving political crisis. The Rio Times reported that Congress had received Peña’s resignation letter but had not formally accepted it as of its report. Al Jazeera said Vice President Pedro Alliana was set to take office, but the timing and formal status of a transfer remained unclear.

Why lawmakers sought Peña’s impeachment

The BBC said lawmakers voted in favour of pursuing an impeachment trial, while Al Jazeera described a session underway. The accounts differ on the chamber’s procedural step; neither establishes that a trial or removal vote had been completed.

Ueno customers and public funds affected

Paraguay’s central bank intervened after determining that Ueno had breached minimum solvency requirements. Deutsche Welle reported that on 3 November it ordered a resolution or closure process after Ueno’s solvency ratio fell below half the required minimum. Ueno served about 2.94 million customers, roughly 60% of Paraguay’s adult population, according to DW. Frozen operations left millions unable to access accounts: the app, card payments and transfers stopped working, branches closed and customers queued to withdraw savings.

Ueno also held substantial public money. DW reported about $800 million in public-sector deposits as of October; Al Jazeera described close to $850 million in public funds. DW said the bank’s accounts were used to process pension payments and included funds from operators of Paraguay’s large hydroelectric dams.

Retirees, depositors, students and workers marched in Asunción on 4 November demanding Peña’s impeachment, DW reported. On 5 November, hundreds of employees of Ueno and other companies in its parent conglomerate protested over unpaid wages and severance.

DW reported that authorities detained eight senior executives and prosecutors charged 27 bank officials and business associates with offenses including breach of trust and attempted fraud. Lawyers for several detainees said they needed time to review the allegations before commenting.

What happens to Ueno depositors’ funds

Peña said he wanted depositors’ funds returned through the Deposit Guarantee Fund. The Rio Times reported that payout amounts and dates had not been confirmed, while Al Jazeera said Ueno had made no public statement on the issue.