Paraguayan President Santiago Peña has submitted his resignation after Ueno Bank’s collapse left roughly 3 million customers unable to access their accounts and prompted lawmakers to pursue impeachment. Summary Roughly 3 million Ueno customers have lost access to their accounts following the bank’s collapse. Initial guarantee payments cover eligible depositors with balances of up to 10 million guaraníes. Vice President Pedro Alliana would complete the presidential term if Congress accepts Peña’s resignation. A selected USDT listing carried a 13% premium over Paraguay’s previous daily dollar reference. According to Reuters, Peña announced his decision on Nov. 5 after losing support from members of his own conservative party, while opposition lawmakers sought his removal over the banking crisis. In his 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.” The outgoing president, an ally of U.S. President Donald Trump, said his priority was ensuring that depositors recovered their money and that public resources were protected. Reuters reported that Ueno administered close to $850 million in public funds. Paraguay’s presidential succession requires congressional action Lawmakers accused Peña of conflicts of interest, misuse of pension funds and institutional cover-ups connected to Ueno’s collapse, Reuters reported. The allegations accompanied protests demanding his departure and the return of customers’ savings. Peña’s announcement came while the Chamber of Deputies was holding an extraordinary session to consider impeachment. According to EFE, lawmakers had been debating for more than two hours when he delivered his address. Paraguay’s Constitution gives Congress the authority to accept or reject a president’s resignation under Article 202. Article 234 provides for the elected vice president to assume a vacant presidency and serve until the constitutional term ends. Vice President Pedro Alliana would therefore take over if Congress accepts the resignation. Peña took office in August 2023 for a five-year term scheduled to finish in 2028. Article 189 grants democratically elected former presidents lifetime Senate seats unless they have been convicted through impeachment. Lifetime senators may speak but cannot vote and do not count toward quorum. Ueno Bank’s solvency breach triggered resolution The Central Bank of Paraguay announced resolution proceedings on Nov. 3, following a unanimous board decision dated Nov. 2. Adjustments to Ueno’s financial statements during a regulatory regularization process had pushed its solvency ratio below half the required minimum, the central bank said. The regulator said administrators would examine the bank’s financial position, preserve its assets and carry out the resolution process under Paraguay’s deposit guarantee legislation. Ueno had previously disclosed regulatory demands involving loans to companies connected to its ownership group. In an Oct. 14 statement, the bank said it had complied with requirements issued on June 5 and July 24. Its account of the corrective measures included bringing specified companies into its related-party group, adjusting consolidated exposure and selling part of a loan portfolio. At the time, Ueno maintained that those measures had been completed within the deadlines and had not resulted in fines. It acknowledged a separate administrative proceeding concerning alleged indirect financing linked to a portfolio sale, while denying that the transaction broke regulations. ABC Color reported that eight executives connected to Ueno and associated companies were detained on Nov. 3. They included bank president Juan Manuel Gustale and Grupo Vázquez president Miguel Vázquez. Ueno depositor payments begin with smaller balances In its Nov. 5 payment notice, the central bank said the first group must meet three conditions: deposits totaling no more than 10 million guaraníes, no outstanding debts to Ueno, and an active account at another domestic bank or financial institution. Eligible customers whose combined deposits fall within that threshold will receive their full balance. The initial payment threshold is separate from the statutory insurance ceiling of 228.3 million guaraníes per depositor at each financial institution. Coverage applies to the combined deposits held at a bank, rather than separately to every account. The central bank said it would announce subsequent payment groups through official channels as the process advances. USDT asking prices vary across Paraguay listings The banking disruption coincided with elevated prices in selected peer-to-peer advertisements for Tether’s dollar-linked USDT. The Cryptonomist reported that one Bybit seller asked 6,942 guaraníes per USDT early on Nov. 5, approximately 13% above the central bank’s Nov. 4 dollar reference of 6,144.02 guaraníes. The figure represented an advertised selling price compared with the previous business day’s benchmark. Other offers on the same marketplace were substantially lower, including smaller listings near 5,000 guaraníes.
