Paraguay’s Peña resigns amid Ueno Bank crisis

In a recorded address, Peña said he was stepping down with “the stability of our country, social peace, and the need to preserve our democratic institutions in mind.” He said his priority was to ensure depositors recovered their money and public resources were protected. Reuters reported that Ueno administered close to $850 million in public funds.

The Chamber of Deputies was in an extraordinary session considering impeachment when Peña spoke. EFE reported that lawmakers had been debating for more than two hours. They accused him of conflicts of interest, misuse of pension funds and institutional cover-ups linked to the bank’s collapse, Reuters reported. Protests also called for his departure and the return of customers’ savings.

Congress must accept or reject the resignation under Article 202 of Paraguay’s Constitution. If it accepts, Vice President Pedro Alliana would assume the presidency and serve through the end of Peña’s term in 2028. Peña took office in August 2023. Under Article 189, former elected presidents hold lifetime Senate seats unless convicted through impeachment; they may speak but cannot vote or count toward quorum.

The Central Bank of Paraguay began resolution proceedings on Nov. 3, after a unanimous board decision the previous day. It said adjustments to Ueno’s financial statements during a regulatory regularization process had pushed the bank’s solvency ratio below half the required minimum. Administrators are to examine its finances, preserve assets and manage the process under deposit-guarantee legislation.

The central bank’s Nov. 5 notice set initial payments for depositors with total balances of up to 10 million guaraníes, no outstanding Ueno debts and an active account at another domestic financial institution. Those eligible will receive their full balance. This first-payment limit is distinct from the statutory insurance ceiling of 228.3 million guaraníes per depositor at each institution. Further payment groups will be announced through official channels.

Separately, The Cryptonomist reported that a Bybit seller asked 6,942 guaraníes per USDT early on Nov. 5, about 13% above the central bank’s Nov. 4 dollar reference of 6,144.02 guaraníes. Other offers on the marketplace were substantially lower, including smaller listings near 5,000 guaraníes.