Paraguayan President Santiago Peña has reportedly stepped down amid a political crisis triggered by the collapse of Ueno Bank, a digital lender allegedly tied to his former business interests.
In a video message shared on social media on Thursday, Peña announced his resignation, stating that his decision was aimed at safeguarding the country’s stability, social peace, and democratic institutions.
“I want to apologize to the people if at any point I fail. It was never my intention to betray the trust you placed in me,” he said.
According to Reuters, the resignation came after Paraguay’s lower house of Congress moved to pursue impeachment proceedings against Peña over allegations of conflict of interest and misconduct related to the bank.
Peña has denied any wrongdoing and rejected suggestions that his past business ties to Ueno’s owner influenced his conduct as president.
Reports indicate that Ueno Bank was placed under resolution by Paraguay’s Central Bank earlier in the week, after regulators found its solvency ratio had dropped below the required minimum.
The intervention reportedly affected the accounts of roughly three million customers, leaving many unable to access their savings and other funds.
Reuters reported that the bank had also managed hundreds of millions of dollars in public funds, including pension and other government resources.
The development sparked protests in the capital, Asunción, where demonstrators demanded Peña’s resignation.
Authorities then began making arrangements to compensate affected depositors, while reports indicated that eight Ueno executives had been detained and their assets frozen as investigations into the bank’s operations broadened.
Peña was said to have held shares in Grupo Vázquez, the company that previously owned Ueno Bank, until 2025.
Opposition lawmakers had accused him of a conflict of interest over his earlier ties to the bank’s ownership and the government’s dealings with the lender.
The president, however, insisted that he had committed no wrongdoing.
In his resignation message, Peña urged authorities to protect public funds and to ensure that affected customers got their money back.
“I want the affected people to be guaranteed the return of those resources, that the Deposit Guarantee Fund fulfill its purpose, and that public funds and resources belonging to all Paraguayans be protected,” he said.
His reported resignation followed that of Paraguay’s central bank governor earlier in the crisis.
Reuters reported that Vice President Pedro Alliana was expected to take over the presidency after Peña’s departure.
