Bank collapse takes down a president and Trump ally in Paraguay

Demonstrators protest near the Paraguayan Congress following an extraordinary session by lawmakers to debate the resignation of President Santiago Pena, whom the opposition blames for a crisis triggered by the collapse of the digital lender Ueno that left millions of customers unable to access their accounts, in Asuncion on Thursday. | REUTERS

Nov 6, 2026

Paraguayan President Santiago Pena submitted his resignation Thursday after the collapse of a major commercial bank with ties to his government plunged the South American nation into turmoil.

Regulators seized Ueno Bank early Tuesday, freezing the savings of millions of Paraguayans, including pensioners, and sparking widespread protests in a country where roughly 1 in 3 people held deposits at the lender.

A tumultuous day in the capital Asuncion descended into confusion by late afternoon, when the Senate failed to reach a quorum on scheduled votes to determine whether to accept Pena’s resignation or remove him forcibly instead. Local broadcaster ABC showed images of protesters clashing with police nearby.

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