Vice-President Pedro Alliana will take office following the resignation of Santiago Peña amid a political crisis.
Paraguayan President Santiago Peña resigned on Thursday following the collapse of digital lender Ueno Bank, which left millions of customers unable to access their accounts, according to reports by BBC News, BusinessLine and Times Now.
The resignation follows a political crisis after the central bank intervened in Ueno Bank for breaching minimum solvency requirements. The bank, which held pensions and public funds, has approximately 3 million customers, representing about 60 per cent of Paraguay's adult population.
Lawmakers have alleged that Peña, who was a shareholder in the company that owned the bank until last year, was involved in misconduct, institutional cover-ups and the improper use of pension funds. Peña has rejected suggestions of impropriety.
In a video message on social media, Peña stated he was stepping down to protect democratic institutions, social peace and the stability of the country. He also expressed a wish that the return of funds be guaranteed and that public resources be protected.
The decision comes after the lower house of Congress voted to pursue an impeachment trial and protesters took to the streets. Peña, an ally of US President Donald Trump, had lost the support of members of his own conservative Colorado Party earlier on Thursday.
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 for the Central Bank of Paraguay has been appointed.
