Paraguay’s new president asks all ministers to resign amid bank crisis

Newly appointed Paraguayan president Pedro Alliana on Monday asked all ministers to resign as the country endures a major banking crisis that has locked millions of people out of their accounts.

Former vice-president Alliana took office on Friday when senators impeached Santiago Pena over the collapse of Ueno Bank, to which Pena is linked.

Alliana said he had instructed his new chief of staff Rolando de Barros to “ask ministers, secretaries and the highest state authorities who hold positions of trust to submit their resignations.”

“My goal is to strengthen coordination within the Government and ensure more efficient management,” he wrote on X, adding that “all institutions will continue to operate with complete normality.”

Almost three million people lost access to their money when Paraguay’s Central Bank seized Ueno on Nov 3, a move that triggered massive protests.

The Central Bank began restoring deposits Thursday through a guarantee fund, and by Saturday had returned about US$160 million to nearly 1.2 million people.

Pena, who came to power in 2023, owned shares in the bank’s holding company until he sold them last year.

He is accused of using his influence as president to steer millions in government deposits to Ueno and of hiding or downplaying its financial woes despite warnings about questionable loans and solvency issues.

Authorities placed the ex-leader under house arrest immediately after his impeachment and raided his home over the weekend as part of the probe into the bank collapse.