In brief
President Santiago Peña resigned Thursday night following the sudden collapse of digital lender Ueno, and minutes later lawmakers impeached him, marking the fastest political turnaround in Paraguay’s recent history. The crisis, which left millions of customers unable to access funds, has ignited investigations into regulatory failures and allegations of conflict of interest tied to Peña’s former business ties.
In Paraguay on Thursday night, President Santiago Peña resigned after the sudden collapse of Ueno, one of the nation's largest digital banks, and minutes later lawmakers voted to impeach him.
The digital lender, launched in 2021, had grown to serve about 3 million customers and managed roughly $850 million in public funds before regulators found it had breached solvency requirements, prompting a swift intervention by the central bank.
According to Reuters, Peña, who was elected in 2023, stepped down amid mounting pressure and accusations that his former business ties to Grupo Vázquez, the bank’s controlling shareholder, had constituted a conflict of interest.
Minutes later, the Paraguayan legislature reached a vote that removed him from office, a move reported by the Associated Press, which notes that the impeachment followed an earlier legal battle that left the president’s departure uncertain.
The crash left millions unable to access accounts and triggered investigations into Ueno executives, with prosecutors issuing arrest warrants for eight top officials, while state authorities investigated the bank’s failure.
The rapid sequence of resignation and impeachment underscores the severity of the crisis, as lawmakers argue that the collapse exposed regulatory failures and undermined public confidence in the government, prompting calls for a comprehensive audit of financial oversight.
