Banking Crisis in Paraguay Sparks Political Turmoil as President Resigns

Paraguay is facing a major financial and political crisis following the collapse of Ueno Bank, one of the country's prominent digital lenders. The Central Bank of Paraguay intervened in the institution after discovering that its solvency ratio had fallen significantly below the legally required level. The move left nearly three million customers unable to access their accounts, triggering protests and widespread public concern. The bank had been managing approximately $850 million in public funds. Authorities have initiated measures to protect depositors and facilitate the return of eligible funds.

The banking crisis has also placed President Santiago Peña under intense political pressure. Peña had previously held a stake in Grupo Vázquez, the parent company of Ueno Bank, raising concerns over potential conflicts of interest. As investigations into the bank's financial irregularities continued and public protests intensified, Peña announced his resignation on November 5, citing the need to protect national stability, social peace and democratic institutions. His resignation is subject to parliamentary action, while the lower house voted in favour of impeachment proceedings shortly after his announcement.