Paraguayan President Santiago Peña has resigned following a political crisis sparked by the collapse of Ueno Bank, a digital lender previously linked to him.
Peña announced his resignation on Thursday, saying he wanted to safeguard the country’s stability, social peace 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 in a video message shared on social media.
According to Reuters, his resignation came as Paraguay’s lower house of Congress moved to pursue an impeachment trial over allegations of conflicts of interest and misconduct connected to the bank.
Peña has denied any wrongdoing, rejecting claims that his previous business relationship with Ueno’s owner influenced his actions as president.
Ueno Bank was reportedly placed under resolution by the Central Bank of Paraguay earlier in the week after regulators found that its solvency ratio had dropped below the required minimum.
The intervention froze the accounts of about three million customers, leaving many unable to access their savings and other funds.
According to Reuters, the bank had also managed hundreds of millions of dollars in public funds, including pension and other government resources.
The crisis triggered protests in the capital, Asunción, where demonstrators called for Peña to step down.
The central bank intervened in the lender as authorities began making arrangements to compensate depositors.
Media reports also said eight Ueno executives had been detained and their assets frozen as investigations into the bank’s operations widened.
Peña reportedly held shares in Grupo Vázquez, the company that previously owned Ueno Bank, until 2025.
Opposition lawmakers accused him of a conflict of interest because of his former ties to the bank’s ownership and the government’s dealings with the lender.
However, the president maintained that he had committed no wrongdoing.
In his resignation message, Peña urged authorities to protect public funds and ensure that affected customers recovered their money.
“I want the affected people to be guaranteed the return of those resources, that the Deposit Guarantee Fund fulfil its purpose and that public funds and resources belonging to all Paraguayans be protected,” he said.
His resignation followed that of Paraguay’s central bank governor earlier in the crisis.
Reuters reported that Vice-President Pedro Alliana is expected to take over as president following Peña’s departure.