International 06 November 2026
Paraguay President Santiago Peña Resigns Amid Massive Public Outrage Following Digital Bank Collapse
Why in the News?
Paraguayan President **Santiago Peña** resigned from office amidst severe political turmoil and widespread public protests triggered by the collapse of **Banco Uno**, a major digital bank where millions of citizens' savings and substantial public funds were stuck.
Key Features / Major Points:
- Collapse of Banco Uno:
- Paraguay's central bank took control of Banco Uno after its solvency ratio plunged well below the legally mandated minimum threshold, triggering resolution proceedings.
- The digital bank serves approximately 3 million customers, accounting for nearly 60% of Paraguay's adult population.
- An estimated **$800 to $850 million** in government and public funds, including $380 million in pension and health funds, were locked in the institution.
- Presidential Resignation & Protests:
- Following three consecutive days of fierce anti-government protests in the capital, Asunción, and mounting impeachment proceedings in parliament, President Peña announced his resignation via a video message.
- Financial Irregularities:
- The bank's failure was attributed to regulatory violations, including unauthorized loans extended to entities connected to its owners. Notably, President Peña had been a business partner in the bank's parent group until 2025.
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Static GK Facts:
- Republic of Paraguay:
- Location: **South America** (A landlocked country).
- Capital: **Asunción** | Currency: **Paraguayan Guaraní (PYG)**.
- Deposit Guarantee:
- The central bank announced a deposit guarantee scheme covering up to 228 million Guaraníes (approx. $38,000) per depositor.
One-Liner Quiz (All Competitive Exams):
Q: Which country's President, Santiago Peña, resigned following the collapse of the digital bank Banco Uno?
A: Paraguay
Q: What is the capital city and official currency of Paraguay?
A: Capital: Asunción | Currency: Guaraní
Q: Is Paraguay a coastal nation or a landlocked country in South America?
A: Landlocked Country
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