admin
Paraguayan President Santiago Peña has resigned amid a political crisis triggered by the collapse of Ueno Bank, a digital lender linked to him.
Peña announced his resignation on Thursday, 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 Reuters, the resignation came as Paraguay’s lower house of congress moved to pursue an impeachment trial against Peña over allegations of conflicts of interest and misconduct linked to the bank.
Peña has denied wrongdoing and rejected suggestions that his past business ties to Ueno’s owner influenced his conduct as president.
Ueno Bank was reportedly placed under resolution by the Central Bank of Paraguay earlier this week after regulators found that its solvency ratio had fallen below the required minimum.
The intervention froze the accounts of 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, according to Reuters.
The crisis sparked protests in the capital, Asunción, with demonstrators demanding Peña’s resignation.
The central bank also intervened in the lender as authorities began arrangements to compensate depositors.
According to media reports, eight Ueno executives were detained and their assets frozen as investigations into the bank’s operations expanded.
Peña is said to have been a shareholder in Grupo Vázquez, the company that previously owned Ueno Bank, until 2025.
Opposition lawmakers accused him of a conflict of interest because of his previous relationship with the bank’s ownership and the government’s dealings with the lender.
The president has maintained that he did not engage in any wrongdoing.
In his resignation message, Peña said he wanted authorities to protect public funds and ensure affected customers recovered their money.
“I want the affected people to be guaranteed the return of those resources, that the Deposit Guarantee Fund fulfil its purpose and that public funds and resources belonging to all Paraguayans be protected,” he said.
His resignation followed the resignation of Paraguay’s central bank governor earlier in the crisis.
Reuters reported that Vice-President Pedro Alliana is expected to assume the presidency following Peña’s resignation.
