Paraguay president quits amid banking scandal as lawmakers move to impeach him
Paraguayan President Santiago Peña resigned following a banking scandal involving the collapse of Ueno Bank and subsequent impeachment proceedings. The political crisis was triggered by allegations of risky lending and mismanagement, leading to a loss of support from his own party.
Why it matters
The collapse of a major digital lender and the resulting political instability highlight the risks of financial sector deregulation in emerging markets.
Paraguayan president Santiago Peña resigned on Thursday after the collapse of digital lender Ueno Bank triggered widespread protests, froze millions of dollars in deposits and cost him the backing of his ruling Colorado Party. Minutes after his announcement, the country's lower house voted 78-0 to impeach him, sending the charges to the Senate.According to The Associated Press (AP), congressional leaders were expected to accept Peña's resignation later on Thursday, potentially clearing the way for Vice President Pedro Alliana to take office without waiting for a Senate trial.Announcing his decision in a video posted on X, Peña said he was stepping down in the interest of “the stability of our country, social peace and the need to preserve our democratic institutions.”“I want to apologize to the people if I have failed them at any point,” he said.
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Paraguay President Resigns Following Collapse of Major Digital Bank
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