International • • • 🌿 Progressive

Clientes preocupados frente a una sucursal bancaria cerrada en Asunción con la bandera de Paraguay
Imagen alusiva: clientes ante una sucursal cerrada en medio de la crisis bancaria paraguaya. · EPM

Santiago Peña resigns in Paraguay after Ueno Bank closure

Santiago Peña resigned as president of Paraguay after the closure of Ueno Bank, which froze accounts of almost 3 million clients and more than US$800 million…

Santiago Peña has presented his resignation as president of Paraguay in a message to citizens, amid the serious banking crisis unleashed by the closure of Ueno Bank. --- The context --- The crisis erupted on Tuesday, November 3 with the closure of Ueno, an institution with almost 3 million clients, one third of the 6 million inhabitants of the country, a scale that magnified the social impact of the measure. --- The facts --- The Central Bank ordered the closure and the decision froze the accounts of private clients, State funds and pensioners' funds. The institution managed more than US$800 million in public money. The authority opened a resolution procedure after finding that solvency stood below 50% of the required minimum. --- The positions --- In his message, Peña explained that he is resigning with the stability of the country, social peace and the preservation of democratic institutions in mind. According to the president, the decision seeks to preserve institutional and democratic stability. --- What remains unknown --- The source does not detail the timetable of the resolution procedure or when the frozen funds will be released. It also does not specify the guarantees for public resources and pensioners' savings during the intervention. --- Unanswered questions --- When will clients regain access to their accounts? How will State funds and pensioners' savings be protected? What will the Central Bank do to contain the crisis? --- EPM analysis --- With one third of the population linked to the closed institution, the resolution ordered by the Central Bank will be decisive for confidence in the financial system and for social peace in the country. 📌 EPM Take: In EPM's view, Peña's exit seeks to contain the political cost of a crisis that already hits millions of savers and the State itself, but its real effect will depend on the authorities protecting every frozen fund, reporting with transparency and restoring confidence in the Paraguayan financial system as soon as possible without sacrificing the democratic stability that the president himself invoked when announcing his decision to step down.
📤 Share on Telegram

¿Te gustó este artículo? Recibe cobertura global en tu correo.

Suscríbete gratis / Subscribe free