The leader of Paraguay has left office on Nov 5 as the nation grapples with the insolvency of its most prominent digital lender. Santiago Peña’s resignation follows days of violent protests in Asunción and mounting pressure from opposition lawmakers over his former ties to Ueno Bank, the institution whose sudden failure froze the funds of millions and left the capital’s retail sector partially paralyzed.
The Central Bank of Paraguay took over the lender on Nov 3 after its solvency ratio plunged to less than 50% of the regulatory minimum, locking out approximately 3 million users, or 60% of the country’s adult population. The crisis has endangered $380 million in state health and pension fund assets and led to the arrest of eight high-level executives, including founder Miguel Vázquez, amid allegations that the bank was used to funnel customer money into other businesses owned by the parent company, Grupo Vázquez.