Paraguayan President Santiago Peña resigned on Thursday amid growing calls for his removal following the collapse of digital lender ueno, which left millions of customers unable to access their accounts.
In a recorded video address, Peña stated he was resigning “with the stability of our country, social peace and the need to preserve our democratic institutions in mind.”
His departure comes as the opposition initiated an extraordinary session in Congress to begin the impeachment process, while protests demanding his resignation intensified. Earlier on Thursday, Peña lost support from members of his conservative party, leading to Vice President Pedro Alliana stepping in as his successor.
Lawmakers accused Peña of conflicts of interest, misusing pension funds, and covering up issues linked to ueno’s downfall. The bank, which rapidly expanded from a niche fintech to a mid-tier institution managing close to $850 million in public funds, was deemed insolvent by Paraguay’s central bank.
Al Jazeera’s Latin America editor, Lucia Newman, highlighted that Peña faces accusations of negligence and complicity in concealing the bank’s insolvency. “Congress is currently attempting to impeach both the president and vice president,” she noted, with protests occurring outside urging Congress to reject Peña’s resignation in favour of a trial.
The crisis has rendered ueno’s approximately 3 million customers unable to access their accounts in a country of 6.5 million. Peña expressed his hopes that the return of funds would be secured and public resources protected, but ueno has yet to issue a statement on the matter.
