Paraguay President Santiago Peña resigns following Ueno Bank collapse
The resignation comes as the country's lower house votes to impeach the president after the digital lender's failure froze millions in deposits.
Paraguayan President Santiago Peña resigned on Thursday following the collapse of digital lender Ueno Bank, according to The Times of India. The bank's failure triggered widespread protests and the freezing of millions of dollars in deposits.
Minutes after the announcement, the lower house voted 78-0 to impeach Peña and sent the charges to the Senate. Congressional leaders were expected to accept the resignation later on Thursday, which could allow Vice President Pedro Alliana to take office without a Senate trial.
In a video posted on X, Peña stated he was stepping down to protect the stability of the country, social peace, and democratic institutions. He apologised to the people, saying he never intended to betray their trust.
The resignation occurred after Peña lost support from Colorado Party leader and former President Horacio Cartes. Cartes backed the impeachment, stating the party would not support the theft of public and private funds or money belonging to pensioners.
Ueno Bank, which had over three million customers, faced central bank intervention after regulators identified risky lending to companies linked to its controlling shareholder, Grupo Vázquez. The bank's capital fell below the legally required minimum after corrections were made to its accounts.
Prosecutors have charged 27 bank officials with breach of trust and attempted fraud. A judge ordered the imprisonment of six executives, including founder Miguel Vázquez and president Juan Manuel Gustale, pending trial.