Paraguay president resigns after collapse of Ueno digital bank

Santiago Peña stepped down amid mounting scrutiny over his former ties to Ueno Bank’s parent company, as the lender’s collapse left millions of customers unable to access their funds.

Paraguayan President Santiago Peña announced his resignation Thursday amid a deepening political crisis triggered by the collapse of digital lender Ueno Bank.

In a video posted to X, Peña said he was stepping down to preserve the country’s stability, social peace and democratic institutions. He added that his priority was protecting Paraguayans who had entrusted their savings to the financial system.

Paraguay’s central bank announced resolution proceedings for Ueno Bank on Tuesday after finding that its solvency ratio had fallen below half of the regulatory minimum.

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