Santiago Peña, the right-wing president of the South American country of Paraguay, has resigned. He took the decision on Thursday after the country’s banking system collapsed in recent days. At the centre of the crisis is Ueno Bank.
During Peña’s term the bank grew very quickly into one of the country’s largest lenders, and it claimed nearly 60 per cent of the country’s adult population as its customers.
When the central bank took control of the bank on Monday because it was at risk of bankruptcy, the deposits of about three million customers were frozen. Hundreds of families unable to withdraw money for food and daily needs were left in severe hardship, and after bank officials were arrested, large protests broke out across the capital.
Peña, 47, a supporter of Donald Trump, came to power in August 2023. Parliament had voted unanimously to begin impeachment proceedings against the former finance minister over allegations of irregularities and conflict of interest.
There was fierce criticism over links to Peña’s former shareholding in the deposit of 800 million to 850 million US dollars (about Tk 9,918 crore to Tk 10,538 crore) of state funds and pension money in Ueno Bank.
After lawmakers, including former president Horacio Cartes of his own party, came out in favour of impeachment, Peña announced his resignation in a video message, saying that protecting the country’s stability and making sure ordinary people get their savings back should now be the priority.
Peña was known as one of US President Donald Trump’s main allies in the region. Soon after his resignation, the lower house of Congress passed the impeachment motion and sent it to the Senate. If the Senate approves it, Peña could lose his parliamentary immunity and face criminal trial in the ordinary courts.
বাংলায় মূল প্রতিবেদন পড়ুন · Read the original Bengali report