Paraguayan president resigns after bank collapse
Santiago Peña steps down following insolvency of major lender linked to his government, as Congress pursues impeachment.
At a glance
- Ueno Bank entered insolvency, freezing all operations and triggering the political crisis
- Peña was a shareholder in the company owning the bank until last year
- Congress voted to pursue impeachment before considering his resignation
- Peña denies impropriety and says he will defend himself at impeachment proceedings
Paraguayan President Santiago Peña announced his resignation on Thursday after the collapse of Ueno Bank, a major commercial lender, triggered a political crisis. Peña, who held a stake in the company that owned the bank until last year, faced accusations of conflicts of interest and misconduct from lawmakers. He denied wrongdoing in a video message apologising to citizens.
Paraguay's lower house voted to pursue impeachment proceedings against Peña. Congress adjourned a special session on Thursday to continue with the impeachment process, scheduling another session for Friday when Peña is expected to present his defence. Peña confirmed he would appear for Senate impeachment proceedings to exercise his right to a defence.
Why it matters
The collapse of a major financial institution linked to a sitting president's interests has destabilised Paraguay's government and prompted rare impeachment proceedings.
Original reporting
- Saudi Gazette — LatestBank collapse takes down Trump ally in Paraguay
This brief was written with AI assistance from the reports listed above and checked against our editorial policy. Spotted an error? Request a correction.
