Paraguayan President Santiago Peña has stepped down following a political crisis over the collapse of Ueno Bank, a digital financial institution previously linked to him.
Peña announced his decision on Thursday in a video shared on social media, explaining that his resignation was aimed at safeguarding the country’s stability, democratic institutions and social peace.
“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.
According to Reuters, his resignation came as lawmakers in Paraguay’s lower chamber prepared to initiate impeachment proceedings over allegations of misconduct and conflicts of interest involving the bank.
However, Peña has denied any wrongdoing, insisting that his former business relationship with Ueno’s owner did not influence his actions as president.
Ueno Bank was reportedly taken over by the Central Bank of Paraguay earlier this week after regulators discovered that its solvency ratio had dropped below the legally required threshold.
The development affected approximately three million customers, whose accounts were frozen, preventing them from accessing their savings and other funds.
Reuters reported that the financial institution was also responsible for managing hundreds of millions of dollars in public resources, including government and pension funds.
The bank’s collapse triggered demonstrations in the capital, Asunción, where protesters called for Peña to leave office.
Meanwhile, financial regulators moved to intervene in the bank’s operations and put measures in place to reimburse affected depositors.
Media reports also indicated that eight executives of the bank had been arrested, while their assets were frozen as investigations into its financial activities intensified.
Peña reportedly held shares in Grupo Vázquez, the former parent company of Ueno Bank, until 2025.
His previous association with the company became a major issue for opposition lawmakers, who questioned whether his business interests influenced government transactions with the lender.
Despite the allegations, the outgoing president has continued to maintain his innocence.
In his farewell address, Peña called on authorities to ensure that affected customers received their money and that public resources were properly protected.
“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 departure came shortly after the country’s central bank governor also resigned amid the unfolding financial crisis.
Reuters reported that Vice-President Pedro Alliana is expected to take over as president following Peña’s resignation.
