Asuncion: Paraguayan President Santiago Peña resigned following the collapse of a prominent digital lender to which he had former business links, putting him under intense pressure as nearly half the population was left without access to their bank accounts.
He was resigning “with the stability of our country, social peace, and the need to preserve our democratic institutions in mind”, Peña said in a recorded video address on Thursday.
The fallout from the collapse of the bank, called ueno, has already led to the resignation of Paraguay’s central bank chief and the detention of eight ueno executives.
The crisis has undermined Paraguay’s hard-won reputation as a stable destination for foreign investment, especially from neighbouring Brazil. Paraguay’s sovereign international bond prices tumbled following news of the resignation.
Source: The Age · Ellie Busby
At a glance
- Topic
- World
- Country
- 🇦🇺 AU
- Publisher language
- EN
- Added to Allnira