Paraguay’s President Santiago Peña has resigned following mounting political pressure over the collapse of a major digital bank that left nearly three million customers unable to access their money.
Peña announced his resignation in a recorded video address, saying he had decided to step down to protect national stability, social peace and democratic institutions.
The resignation followed widespread protests and moves by opposition lawmakers to impeach him over the collapse of Ueno Bank, one of Paraguay’s fastest-growing digital lenders.
The country’s central bank intervened and took control of Ueno after determining that it had failed to meet minimum solvency requirements.
The bank, which served around three million customers, had also been managing approximately US$850 million in public funds, raising concerns over the safety of government deposits and pension funds.
The banking crisis triggered demonstrations across Paraguay, with customers demanding access to their savings and protesters calling for the president’s resignation.
Peña also faced allegations of conflicts of interest because of his previous business ties to the bank’s former owner. He has denied wrongdoing.
Authorities have detained eight executives linked to the bank as investigations continue into its collapse.
Peña lost support from members of his own conservative Colorado Party, adding to the pressure on his administration.
Vice President Pedro Alliana is set to succeed Peña and complete the presidential term, which runs until 2028. (Newswire)