Conservative President Santiago Peña of Paraguay resigned on Thursday amid a spiraling banking crisis and looming impeachment proceedings linked to the collapse of one of the nation’s largest financial institutions. The turmoil left nearly 3 million customers unable to access their money, triggering violent street protests in the capital.
Bank Seizure Sparks National Crisis
The Central Bank of Paraguay seized Ueno Bank on Tuesday after its solvency index plummeted to just 5.56%—far below the required 12% threshold—forcing regulators to freeze all assets in an attempt to recover an estimated $260 million in accounting discrepancies. Opposition lawmakers accused Peña of corruption, alleging his administration enabled the bank’s mismanagement and misused pension funds.
Protests Erupt as Financial System Crumbles
Angry depositors, including retirees suddenly cut off from their life savings, took to the streets of Asunción, setting fires and clashing with authorities. Paraguayan media reported arrest warrants for 27 senior bank executives, including former CEO Miguel Vázquez, as authorities scrambled to contain unrest.
A Sudden Exit for a Conservative Champion
Peña, a staunch U.S. ally who once shared a stage with Donald Trump and championed Paraguay’s economic independence from China, stayed silent on the corruption allegations in his resignation video. “No office is more important than the stability of the republic,” he said, framing his departure as a sacrifice for national peace. His abrupt exit caps a presidency that made Paraguay a regional anchor for conservative policies—until its financial house of cards collapsed.
Source: www.breitbart.com — https://www.breitbart.com/latin-america/2026/11/05/conservative-president-santiago-pena-of-paraguay-resigns-over-bank-crisis-leaving-millions-without-access-to-funds/