Paraguay's President Santiago Peña has officially resigned his post, bowing out as a political firestorm erupted over the collapse of Ueno Bank.
The digital lender, which served approximately 60% of the nation's adult population and held critical public funds and pensions, entered an insolvency process earlier this week, leaving millions of citizens unable to access their accounts.
Lawmakers in the lower house of congress had already voted to pursue an impeachment trial against Peña, citing allegations of misconduct and conflicts of interest stemming from his former status as a shareholder in the company that owned the bank.
While Peña has denied any impropriety, the pressure from public protests and the legislative move toward impeachment made his position untenable. In a video message posted to social media, Peña claimed his resignation was intended to preserve social peace and democratic stability.
The central bank has since seized the lender, and Congress is working to establish a process to reimburse depositors. Peña, a member of the conservative Colorado Party, rose to power in 2023 after defeating a center-left challenger, but his term has now been cut short by this financial crisis.
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