Paraguay's President Pena Resigns Amidst Financial Crisis Following Digital Lender ueno Collapse

Paraguayan President Santiago Pena announced his resignation on Thursday, following mounting pressure and calls for his removal following the collapse of digital lender ueno. The failure of ueno has left millions of customers unable to access their accounts.

In a video address, Pena stated, “I do so with the stability of our country, social peace and the need to preserve our democratic institutions in mind.” His decision comes as the opposition initiated an extraordinary session to file an impeachment motion in Congress, and as protesters demanded his resignation. Earlier on Thursday, Pena had lost the support of members of his own conservative party.

Vice President Pedro Alliana is expected to assume the presidency. Lawmakers had leveled accusations against Pena, including conflicts of interest, misuse of pension funds, and institutional cover-ups related to the collapse of ueno. The fintech company had rapidly expanded from a niche player to a mid-tier bank managing approximately $850 million in public funds.

Al Jazeera’s Latin America editor Lucia Newman commented, “He is accused of negligence at the very least and complicity in covering up the fact that the bank was insolvent.” She added, “The congress right now is tying to impeach the president and the vice president, this session is underway. As I speak, there are people outside urging congress not to accept the resignation of the president because they say that they want him tried and impeached.”

Paraguay’s central bank intervened in ueno after determining it had violated minimum solvency requirements. This intervention triggered a crisis affecting the bank's approximately 3 million customers in a nation of 6.5 million people, rendering their accounts inaccessible.

Pena concluded his address by expressing, “My greatest wish is that the return of those funds be guaranteed, that the deposit guarantee fund fulfill its purpose, and that public funds – as well as the resources that belong to all Paraguayans – be protected.” Ueno has not yet issued a public statement regarding the situation.