Trump-ally Paraguayan president resigns after one of the local banks collapses
Paraguayan President Santiago Peña announced his resignation amidst a political crisis triggered by the collapse of local bank Ueno. This financial institution ceased operations and came under the management of the country's Central Bank, CNN reports .

As a result of the bank's collapse, almost three million clients who kept their savings at Ueno lost access to their accounts. This sparked protests, with participants demanding Peña's resignation. Until last year, he was a shareholder of the group of companies that controlled the bank.
In a video address, the president apologized to the citizens if he did not meet their expectations, and stated that he never intended to betray the people who entrusted him.
Earlier, the lower house of the Paraguayan parliament voted to initiate impeachment proceedings against Peña. Even the president's own party supported his removal from office. Peña is accused of misappropriation of funds, conflict of interest, and withholding information related to the collapse of Ueno bank.
Vice President Pedro Alliana will now assume the presidency.
47-year-old Santiago Peña served as president of Paraguay since August 2023, representing the traditional conservative National Republican Association, or "Colorado" party. Previously, he worked as the country's Minister of Finance and a member of the Central Bank's board, and also collaborated with the International Monetary Fund.
Peña was considered one of Donald Trump's key allies in Latin America; US Secretary of State Marco Rubio cited Paraguay as an example for Washington's allies in the region.
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