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Paraguayan President Santiago Pe\u00f1a has submitted his resignation after Ueno Bank\u2019s collapse left roughly 3 million customers unable to access their accounts and prompted lawmakers to pursue impeachment.<\/p>\n
\n Summary<\/span>\n <\/p>\n <\/p>\n According<\/a> to Reuters, Pe\u00f1a announced his decision on Nov. 5 after losing support from members of his own conservative party, while opposition lawmakers sought his removal over the banking crisis.<\/p>\n In his recorded address, Pe\u00f1a said he was stepping down with \u201cthe stability of our country, social peace, and the need to preserve our democratic institutions in mind.\u201d<\/p>\n The outgoing president, an ally of U.S. President Donald Trump, said his priority was ensuring that depositors recovered their money and that public resources were protected. Reuters reported that Ueno administered close to $850 million in public funds.<\/p>\n <\/p>\n Lawmakers accused Pe\u00f1a of conflicts of interest, misuse of pension funds and institutional cover-ups connected to Ueno\u2019s collapse, Reuters reported. The allegations accompanied protests demanding his departure and the return of customers\u2019 savings.<\/p>\n Pe\u00f1a\u2019s announcement came while the Chamber of Deputies was holding an extraordinary session to consider impeachment. According to EFE, lawmakers had been debating for more than two hours when he delivered his address.<\/p>\n Paraguay\u2019s Constitution<\/a> gives Congress the authority to accept or reject a president\u2019s resignation under Article 202. Article 234 provides for the elected vice president to assume a vacant presidency and serve until the constitutional term ends.<\/p>\n Vice President Pedro Alliana would therefore take over if Congress accepts the resignation. Pe\u00f1a took office in August 2023 for a five-year term scheduled to finish in 2028.<\/p>\n Article 189 grants democratically elected former presidents lifetime Senate seats unless they have been convicted through impeachment. Lifetime senators may speak but cannot vote and do not count toward quorum.<\/p>\n The Central Bank of Paraguay announced resolution proceedings<\/a> on Nov. 3, following a unanimous board decision dated Nov. 2.<\/p>\n Adjustments to Ueno\u2019s financial statements during a regulatory regularization process had pushed its solvency ratio below half the required minimum, the central bank said.<\/p>\n The regulator said administrators would examine the bank\u2019s financial position, preserve its assets and carry out the resolution process under Paraguay\u2019s deposit guarantee legislation.<\/p>\n Ueno had previously disclosed regulatory demands involving loans to companies connected to its ownership group. In an Oct. 14 statement<\/a>, the bank said it had complied with requirements issued on June 5 and July 24.<\/p>\n Its account of the corrective measures included bringing specified companies into its related-party group, adjusting consolidated exposure and selling part of a loan portfolio.<\/p>\n At the time, Ueno maintained that those measures had been completed within the deadlines and had not resulted in fines. It acknowledged a separate administrative proceeding concerning alleged indirect financing linked to a portfolio sale, while denying that the transaction broke regulations.<\/p>\n ABC Color reported that eight executives connected to Ueno and associated companies were detained on Nov. 3. They included bank president Juan Manuel Gustale and Grupo V\u00e1zquez president Miguel V\u00e1zquez.<\/p>\n\n\n
Paraguay\u2019s presidential succession requires congressional action<\/h2>\n
Ueno Bank\u2019s solvency breach triggered resolution<\/h2>\n
Ueno depositor payments begin with smaller balances<\/h2>\n