Paraguay's president resigns as $800m bank collapse spirals into impeachment
A bank holding more than $800 million in Paraguayan public deposits collapsed. Congress rejected President Peña's resignation and moved forward with impeachment.
Paraguay's Ueno Bank held more than $800 million in public deposits. The bank served more than 60 per cent of the country's adults.
The bank collapsed this week. Regulators found excessive loans to companies linked to its controlling shareholder.
Assets were recorded incorrectly. The central bank took control on Tuesday.
President Santiago Peña quit via social media minutes before Congress was about to vote on impeachment. But lawmakers unanimously rejected his resignation.
They are continuing with the trial anyway. The attorney general ordered three criminal investigations.
One focuses on the bank. Another focuses on the president's ties to it.
The third focuses on how officials handled its failure. Eight of Ueno's top executives face arrest warrants.
- $800 million
- Public deposits held
- Over 60 per cent of country's adults
- Population served
- 8
- Executives with arrest warrants
- 3
- Criminal investigations
Why it mattersMillions of Paraguayans lost access to their savings in the collapsed bank. This has pushed the US-allied country into a political crisis.
AustraliaNo direct Australian effect yet, but the collapse could affect Paraguay's regional stability and may be monitored by Australian financial regulators watching banking contagion risks.
✓ Claims checked against the source and corrected before publish. checked 2 h ago
