Paraguay's President Peña resigns amid banking crisis and impeachment threat
Paraguayan President Santiago Peña has announced his resignation following a political crisis triggered by the collapse of Ueno Bank, a financial institution previously linked to him.
In a video message posted his social media, Peña apologised to citizens and said his decision was aimed at preserving political stability 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.
His resignation follows a vote by Paraguay's lower house of Congress to pursue impeachment proceedings over allegations of conflicts of interest and misconduct linked to the bank's collapse.
Peña, who reportedly held shares in the company that owned Ueno Bank until last year, has denied any wrongdoing.
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The crisis erupted after the bank entered insolvency proceedings, freezing operations and leaving millions of customers unable to access their savings.
Ueno Bank says it serves approximately three million customers, equivalent to about 60% of Paraguay's adult population, and holds pension funds and other public deposits.
Paraguay's central bank subsequently took control of the digital lender, while angry depositors took to the streets demanding access to their money and Peña's resignation.
This story is written and edited by the Global South World team, you can contact us here.
