Vice-President Pedro Alliana will replace Peña after lawmakers moved to initiate impeachment proceedings.
Paraguayan President Santiago Peña resigned on Thursday following a political crisis triggered by the insolvency of Ueno Bank, according to reports by BBC News, BusinessLine and Times Now. The digital lender's collapse has prevented approximately 3 million customers from accessing their funds.
Peña, an ally of US President Donald Trump, announced his decision in a video message on social media. He stated he was stepping down to protect the country's stability, social peace, and democratic institutions. He also apologised to the public, saying it was never his intention to betray their trust.
The resignation follows a vote by the lower house of Congress to pursue an impeachment trial. Lawmakers have accused Peña of misconduct, institutional cover-ups, misuse of pension funds, and conflicts of interest. Peña, who was a shareholder in the company that owned the bank until last year, has rejected suggestions of impropriety.
The crisis began after the central bank intervened in Ueno Bank for breaching minimum solvency requirements. The bank administered nearly $850 million in public funds. Protesters have taken to the streets to demand his removal, while Peña also lost the support of members within his own conservative Colorado Party.
Vice-President Pedro Alliana is set to take office as the new president. Meanwhile, Congress has approved a process to pay depositors, and a new president has been appointed to the Central Bank of Paraguay.
