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[Paraguayan President Resigns Amid Bank Collapse, Political and Financial Turmoil Escalates] (1) Paraguayan President Santiago Peña resigned on Thursday after the collapse of Ueno Bank, a bank closely associated with him, which led to his impeachment by Congress. Paraguay is a key US ally in South America, and this incident has dealt a blow to its export-driven economy. (2) Ueno Bank, Paraguay's fifth-largest bank by assets, has frozen $850 million in deposits, affecting 3 million customers in a country with a total population of only 7.1 million. Demonstrations erupted in the capital, Asunción, as depositors were unable to withdraw their funds. (3) The House of Representatives has initiated impeachment proceedings and is debating whether to accept his resignation. If accepted, Peña will gain a lifetime senator seat and judicial immunity; if impeached, he will face prosecution. The Attorney General's Office has launched a criminal investigation against him. (4) Peña Nieto indirectly held a large number of shares in Ueno, but stated that he had severed ties with the bank and its holding group; after the central bank took over Ueno, he demanded the resignation of the central bank governor who had previously served as a Ueno executive, several bank executives were arrested, and the leader of the Colorado Party, Cartes, also publicly called for his removal. (5) According to the constitution, Vice President Pedro Aliana will succeed Peña Nieto; he is expected to maintain close relations with the United States. (6) Lawmakers, analysts, and business leaders downplayed the impact of the bank failure on the Paraguayan economy, calling it a single bank failure rather than a systemic crisis; however, they acknowledged that the incident exposed the country's weak institutions and excessively close ties between government and business. (7) The deposit guarantee fund is expected to be launched to protect most individual depositors, but support is limited; the price of Ueno's previously issued $350 million bonds has fallen sharply. This incident may also affect Paraguay's investment reputation, and the 2028 presidential election will be a major test for the ruling Colorado Party.