Bank collapse brings down Israel's friend: Paraguay's president resigns and is impeached

Paraguay's President Santiago Peña resigned following the collapse of Ueno Bank, which left about three million customers without access to their accounts. The House of Representatives voted unanimously to impeach him minutes after the announcement. His deputy, Pedro Alliana, will replace him.

Paraguay's President Santiago Peña announced his resignation today (Thursday) against the backdrop of the collapse of the digital bank Ueno, which left about three million customers without access to their accounts. Minutes after the announcement, the House of Representatives voted unanimously to impeach him. His deputy, Pedro Alliana, is expected to succeed him, and a proposal to also impeach him was shelved. The central bank took over Ueno on Tuesday due to a severe capital shortage; inspectors found loans that were poorly documented and expenses recorded as assets. The financial institution held about $800 million in public deposits. Peña, considered a friend of Israel, reopened Paraguay's embassy in Jerusalem in December 2024. The article notes that until last year, Peña held shares in a company linked to Ueno's holding company, and appointed the former president of the body that preceded the bank to head the regulator.