Paraguayan President Santiago Peña has resigned following a financial and political crisis triggered by the collapse of digital lender Ueno Bank, which left millions of customers unable to access their money.
Peña announced his resignation in a video message on Thursday, saying his decision was aimed at protecting the country's stability and democratic institutions.
“I do so with the stability of our country, social peace, and the need to preserve our democratic institutions in mind,” he said.
According to Reuters, his resignation came as lawmakers prepared to impeach him over allegations of misconduct and conflict of interest linked to the bank.
Ueno Bank was placed under the control of Paraguay's Central Bank after regulators found that its financial position had fallen below the required solvency level.
The development affected about three million customers, while the lender was also holding hundreds of millions of dollars in public funds, including pension resources.
The crisis sparked protests in the capital, Asunción, with demonstrators demanding the president's removal and the return of their savings.
Peña had previously been a shareholder in Grupo Vázquez, the company that owned Ueno Bank, but said he sold his interest in March 2025.
He denied any wrongdoing.
“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.
He also urged authorities to ensure affected customers recovered their money and public funds were protected.
“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 added.
Paraguay's lower house subsequently approved an impeachment motion against Peña.
Vice-President Pedro Alliana is expected to succeed him, subject to the constitutional process.
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