Paraguayan President Santiago Peña has announced his resignation amid mounting political pressure following the collapse of major digital lender Ueno Bank, which triggered protests and widespread concern over frozen deposits.
Peña made the announcement on Thursday, November 5, as lawmakers debated his impeachment following days of demonstrations in the capital, Asunción.
However, the political crisis escalated further when Paraguay’s lower house voted unanimously, 78-0, to impeach him just minutes after his resignation announcement.
The impeachment proceedings were linked to concerns surrounding the bank’s collapse and the government’s handling of the crisis.
Ueno Bank had held approximately 800 million US dollars in public deposits and served more than 60 per cent of adults in the country, according to reports.
Its collapse left customers struggling to access savings, wages and other funds, prompting protests by affected account holders.
The crisis also drew attention to Peña’s previous connection to a company linked to the lender, although he stopped short of accepting responsibility for the bank’s failure.
The impeachment process was subsequently referred to the Senate, where a two-thirds majority is required to convict the president and formally remove him from office.
The developments have plunged Paraguay into a major political and financial crisis, raising questions about banking oversight and the protection of depositors.
