Paraguay’s President Santiago Peña has reportedly resigned amid mounting public outrage over a banking crisis that has left customers unable to access their money following the collapse of Ueno Bank.

According to Euro News, Paraguay’s central bank intervened in Ueno Bank on Tuesday, November 3, after its solvency ratio reportedly fell below 50 per cent, triggering liquidation proceedings.

The financial institution, which served nearly three million customers, reportedly held approximately US$850 million in public funds, including money belonging to the country’s Social Security Institute, which finances pension and healthcare programmes.

The bank’s closure disrupted access to deposits, with mobile banking services, payment cards and other transactions suspended. Frustrated customers reportedly gathered outside the bank’s headquarters in Asunción and its 75 branches nationwide, demanding access to their funds.

The crisis also intensified political pressure on Peña, with 35 lawmakers reportedly calling for an extraordinary parliamentary session to consider impeachment proceedings.

The president faced allegations of failing to adequately discharge his duties, including claims involving conflicts of interest and the mismanagement of pension funds.

Amid the fallout, Peña reportedly announced the departure of the central bank’s governor and called for judicial investigations to determine responsibility for the crisis.

Meanwhile, eight senior Ueno Bank executives, including chief executive Miguel Vázquez, were reportedly arrested as investigations into the institution’s collapse continued.

The economic repercussions have also extended to the retail sector, with the Association of Importers and Traders reportedly warning of a 35 per cent decline in sales at major retailers as restricted access to funds weighed on consumer spending.