Paraguay's president resigns after digital bank collapse

Paraguayan President Santiago Peña stepped down on Thursday after Ueno Bank, the country's leading digital bank, collapsed. The central bank has taken control of the bank, which had fallen into financial crisis.

The public took to the streets of the capital, Asunción, in protest after news of the bank's troubles broke. President Peña announced his resignation in a video message posted on social media platform X, even as an impeachment motion against him was being debated in parliament.

In the video, he apologized to the nation for the crisis and said that returning depositors' money was his first priority. He also claimed he had not betrayed the people.

The controversy has largely been attributed to Peña's close ties with Ueno Bank. He had previously been an investor in the bank's holding company and had appointed the bank's former chairman, Carlos Carvallo, as head of the central bank, the regulatory body.

More than 60 percent of Paraguay's adults are reported to be customers of the digital bank. Its collapse has put more than 100 billion rupees in public savings at risk.

About USD 800 million in public funds — including government pensions, health funds and hydropower project money — is also reported to be at risk.