Paraguayan President Santiago Peña has resigned amid a political crisis triggered by the collapse of Ueno Bank, a digital lender previously linked to him.
Peña announced his resignation on Thursday, November 5, saying he wanted to protect the country’s stability, social peace and democratic institutions.
“I want to apologise to the people if at any point I failed. It was never my intention to betray the trust you placed in me,” he said in a video message posted on social media.
According to TheCable, citing Reuters, Peña’s resignation came as Paraguay’s lower house of congress moved towards pursuing an impeachment trial over alleged conflicts of interest and misconduct linked to the bank.
Bank Collapse Sparks Political Crisis
Ueno Bank was reportedly placed under resolution by Paraguay’s central bank earlier in the week after regulators found that its solvency ratio had fallen below the required minimum.
The intervention froze accounts belonging to about three million customers, leaving many unable to access their savings and other funds.
The bank had also administered hundreds of millions of dollars in public funds, including pension and other government resources, Reuters reported.
The crisis triggered protests in the capital, Asunción, with demonstrators demanding Peña’s resignation.
Authorities began arrangements to compensate depositors, while reports indicated that eight Ueno executives had been detained and their assets frozen as investigations into the bank’s operations expanded.
Peña Denies Wrongdoing
Peña reportedly held shares in Grupo Vázquez, the company that previously owned Ueno Bank, until 2025.
Opposition lawmakers accused him of a conflict of interest over his previous business relationship with the bank’s ownership and the government’s dealings with the lender.
However, Peña denied wrongdoing and rejected claims that his former business ties influenced his conduct as president.
In his resignation message, he called for affected customers to recover their money and for public funds to be protected.
He said authorities must ensure that the Deposit Guarantee Fund fulfils its purpose and safeguards resources belonging to Paraguayans.
Vice-President Expected to Take Over
Peña’s resignation followed the earlier resignation of Paraguay’s central bank governor during the crisis.
Reuters reported that Vice-President Pedro Alliana is expected to assume the presidency following Peña’s departure.