Santiago Peña, the President of Paraguay, resigned on Thursday due to mounting pressures from the collapse of the digital bank Oeuno. This banking crisis has resulted in customer account freezes and millions of people being unable to access their funds. Additionally, Oeuno, which provided services such as pension payments, is now facing serious financial problems.
Reasons for Resignation
Peña's resignation came after the support of the President of Congress, Basilio Núñez, and the leader of the Colorado conservative party, Horacio Cartes, was withdrawn. Furthermore, 35 opposition representatives and members of the ruling party accused Peña of conflicts of interest, misuse of pension funds, and covering up government institutions by presenting impeachment articles in the House of Representatives.
Peña sold his shares in Oeuno Holding, which included Oeuno Bank, in April 2025. Representatives also pointed to two loans he had taken from Oeuno Bank, considering this part of the allegations of financial misconduct.
Impact of the Banking Crisis on Customers
Oeuno Bank, which served approximately 2.94 million customers, equivalent to 60% of Paraguay's adult population, is facing a serious crisis. According to the CFO, Gladys Vera, IPS, which manages the pension and health funds of most Paraguayan workers, had about $355 million in Oeuno Bank, constituting nearly 9% of its investments.
The Central Bank of Paraguay initiated the process of resolution or closure of this bank on Tuesday after reviewing Oeuno's settlement capacity ratio, which had fallen below half of the minimum required. This crisis caused the Oeuno app, card payments, and bank transfers to stop, and the branches of this bank were closed while customers lined up outside, unable to withdraw their savings.
A number of Oeuno employees and other affiliated companies gathered in front of the Ministry of Labor on Thursday, demanding payment of their overdue salaries and benefits. Additionally, retirees, borrowers, and employees took to the streets in Asunción the day before, calling for Peña's impeachment and holding placards that read "Return our money."
Authorities arrested eight senior executives, including Miguel Vázquez, the founder of Oeuno, and Juan Manuel Gustale, the bank's president. Furthermore, 27 banking officials and business associates were brought to court on various charges, including breach of trust and attempted fraud.
In a video message on Wednesday, Peña attempted to reassure customers and promised to pass a law for the rapid return of funds to savers. The banking crisis also prevented him from attending the Ibero-American summit in Madrid.
Peña, a conservative economist, was appointed as the President of Paraguay in August 2023 for a five-year term.
