Trump Loses Another Ally in Latin America as Paraguay’s President Resigns
Paraguayan President Santiago Peña has resigned following intense political pressure triggered by the sudden collapse of Ueno, one of the nation’s leading digital banks. Facing a severe liquidity crisis, the central bank took control of Ueno on Tuesday, freezing millions of customer accounts and sparking massive street protests in Asunción. In an emotional video message announcing his departure, Mr. Peña stated, ‘For the sake of the nation’s stability, I am stepping down. This is one of the most difficult moments of my life. If I have ever failed to meet your expectations, I ask the people of the country for forgiveness.’
Shortly after his resignation address, the House of Representatives unanimously approved an impeachment motion against the 47-year-old conservative economist, accusing him of gross negligence in his duties. The political crisis escalated amid serious allegations that, after taking office, Mr. Peña appointed former Ueno head Carlos Carvalho to lead the central bank, which then granted the institution a full banking license. Public trust eroded rapidly following revelations that the bank allegedly violated financial regulations by issuing about $150 million in questionable loans to its own officials and affiliated entities.
The fallout intensified as law enforcement authorities arrested several top executives, including Chief Executive Officer Miguel Vásquez, on fraud charges after the bank halted operations. As millions of citizens remained locked out of their funds via apps and ATMs, the scandal dealt a heavy blow to the conservative administration. Mr. Peña’s downfall mirrors broader regional political shifts, concluding the tenure of a prominent U.S. ally amidst deep public outrage and demands for institutional accountability across the country.
