Paraguayan President Santiago Peña has announced his resignation amid a severe banking crisis sparked by the collapse of Ueno Bank, prioritizing national stability and the protection of citizens' savings over his political office.
President Santiago Peña Resigns Amid Banking Crisis
Paraguayan President Santiago Peña has submitted his resignation amid a major banking crisis triggered by the collapse of private lender Ueno Bank, saying the stability of the country, social peace and protection of democratic institutions must take precedence over any individual or political office.
In a video message posted on X, Peña said he had decided to step down in the interest of safeguarding Paraguay's institutional stability, as the banking crisis left thousands of customers unable to access their savings. "I have made the decision to submit my resignation from the Presidency of the Republic. I do so thinking of the stability of our country, of social peace, and of the necessity to preserve our democratic institutions," he said.
Focus on Financial Stability and Public Trust
Emphasising the impact of the crisis on ordinary citizens, Peña said his immediate priority was ensuring the protection and return of deposits entrusted to the country's financial system. "Today, my priority is only one: the peace of mind of the Paraguayans who entrusted their savings to our financial system," he added.
Peña also apologised to citizens if he had failed to fulfil their expectations, saying he had undertaken the responsibility of leading the country with the determination to work for Paraguay. "History will be responsible for judging and putting into proper perspective the events we are living through today," he said.
Political Pressure and Impeachment Proceedings
As per CNN, his resignation came amid mounting political pressure, with Paraguay's Chamber of Deputies unanimously voting to initiate impeachment proceedings during a special session. The motion followed charges filed by 35 opposition lawmakers and ruling-party dissidents, accusing the president of alleged "serious and systematic dereliction of duty". The Senate will determine whether the impeachment proceedings will move forward or whether to accept his resignation.
The controversy centres on Ueno Bank, a private financial institution linked to Peña, which reportedly received millions in deposits from public entities, including the Social Security Institute (IPS), during his administration. According to CNN, the Central Bank of Paraguay found that the bank's solvency ratio had fallen below 50 per cent of the required minimum following adjustments to its financial statements during the regularisation process. The bank, which reportedly serves around 2.9 million customers in a country of 6.1 million people, subsequently faced resolution or dissolution proceedings, leaving thousands of depositors concerned over their savings. Peña assumed office in August 2023 for a five-year term. (ANI)
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