Paraguay president steps down amid impeachment threat over bank collapse

Paraguayan President Santiago Peña resigned on Thursday following the collapse of digital lender ueno, to which he had former business links, Reuters reports.

Peña said in a video address he was resigning “with the stability of our country, social peace, and the need to preserve our democratic institutions in mind.”

The bank’s collapse left about three million customers, nearly half of Paraguay’s 6.5 million people, unable to access their accounts.

It also forced the central bank chief to resign on Tuesday, while eight ueno executives were detained.

The opposition had moved to begin impeachment proceedings as protesters demanded Peña’s resignation, and he lost backing within his own party.

The Senate must ratify his resignation, and Vice President Pedro Alliana is expected to be sworn in.

Lawmakers accused him of conflicts of interest, misuse of pension funds and institutional cover-ups.

Peña, who has rejected suggestions of improper ties, was a shareholder of Grupo Vázquez, which owned the bank until March 2025.