Banking crisis in Paraguay forces president to resign

Paraguayan President Santiago Peña announced his resignation following a financial scandal involving Ueno Bank and widespread public protests. He also apologized to the country's citizens.

The crisis began after Ueno Bank, linked to a company in which Peña had previously held shares, encountered serious financial difficulties. The bank's management is accused of granting large loans to companies connected to its owners without sufficient collateral.

Paraguay's Central Bank took control of Ueno Bank, leaving nearly 3 million customers unable to access their accounts. This represents almost half of the country's population. The situation sparked mass protests demanding the president's resignation.

Opposition lawmakers proposed impeachment proceedings against Peña, who also lost the support of some members of his own party.

Peña stated that he had decided to resign to preserve national stability and social peace. He also emphasized the need to guarantee the return of citizens' savings held at the bank.

Vice President Pedro Alliana is expected to succeed him, subject to the constitutional process. Peña's presidential term was originally scheduled to end in August 2028.