A banking crisis has erupted in Paraguay, triggering protests after millions of depositors, including pensioners, reportedly lost access to their money. Ueno Bank SA, one of the country’s largest and fastest-growing digital lenders, reportedly collapsed amid a severe insolvency crisis in the country.
Paraguay’s opposition had earlier moved to impeach the President the Central Bank’s takeover of the major lender, which has links to him, news agency AFP reported.
The Central Bank said it intervened in Ueno Bank due to a severe capital shortfall, with the move aimed at “protecting depositors and preserving the stability of the financial system”. Days after the bank collapse triggered chaos, Paraguay President Santiago Peña resigned on Thursday.
Pena announced his resignation in a video posted to X where he said he was stepping down to preserve the country’s stability and democratic institutions as massive protests rocked Asuncion city for a third day. The collapse has sent shockwaves across Paraguay, with depositors left unable to access their savings and bank accounts. “I have made the decision to submit my resignation as president of the republic. Pena also offered an apology but stopped short of accepting responsibility for the banking crisis.
Ueno says it has more than three million customers, nearly half of Paraguay’s population, and manages millions of dollars in pension funds and other state funds, according to AFP. I do so thinking of the stability of our country, social peace and the need to preserve our democratic institutions,” he said. “I also want to apologize to the people if I have failed them at any point,” he said. “It was never my intention to betray the trust they placed in me.”
