Paraguay’s Santiago Pena was a close ally of US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu
Paraguayan President Santiago Pena has resigned after the collapse of a major lender propped up by Pena and his government triggered mass protests.
Pena announced his resignation in a video address on Thursday, stating that he was stepping down “with the stability of our country, social peace, and the need to preserve our democratic institutions in mind.” Earlier on Thursday, Pena lost the backing of his right-wing Colorado party and was threatened with impeachment by the opposition.
Protests escalated into clashes on the streets of Asuncion on Wednesday, after the Paraguayan central bank placed Ueno Bank under administration, leaving its 3 million customers unable to access their accounts. A relatively new fintech company, Ueno Bank has only been operating since 2023, but serves two out of three adults in Paraguay, according to its website.
The central bank announced that Ueno Bank had less than half of the legally required capital necessary to protect depositors and preserve financial stability. This forced Pena to advance legislation to return depositors’ money, which he said would cover 98% of affected customers.
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