Paraguay’s largest bank failed this week:
Paraguayan President Santiago Pena has resigned after the collapse of a major lender propped up by Pena and his government triggered mass protests.
Pena announced his resignation in a video address on Thursday, stating that he was stepping down “with the stability of our country, social peace, and the need to preserve our democratic institutions in mind.” Earlier on Thursday, Pena lost the backing of his right-wing Colorado party and was threatened with impeachment by the opposition.
Protests escalated into clashes on the streets of Asuncion on Wednesday, after the Paraguayan central bank placed Ueno Bank under administration, leaving its 3 million customers unable to access their accounts. A relatively new fintech company, Ueno Bank has only been operating since 2023, but serves two out of three adults in Paraguay, according to its website.
Some are relating this to the 2008 Bear Stearns failure. It’s hard to imagine that a South American bank is as significant as a historic Wall Street player, but then, the global financial structure appears to be a lot more fragile today.