Paraguayan President Santiago Peña announced his resignation Thursday after the collapse of a major digital bank tied to his government triggered protests, froze millions in savings and cost him his party's support, according to NPR. Minutes later, the lower house voted 78-0 to impeach him, sending the charges to the Senate.
Congressional leaders were expected to accept his resignation later Thursday, clearing the way for Vice President Pedro Alliana to be sworn in without a Senate trial. Opposition senators demanded a trial, arguing that a resignation would preserve Peña's eligibility to become a senator for life, with legal protections against prosecution. In a video posted to X, Peña said he was stepping down for "the stability of our country, social peace and the need to preserve our democratic institutions."
The crisis at Ueno Bank turned Peña's long-ruling Colorado Party against him. Even his mentor, party leader and former President Horacio Cartes, backed impeachment, saying the party would not side with "the plundering of public and private funds and pensioners' money." Ueno claimed more than 60% of Paraguay's adults as customers and reported holding roughly $800 million in public deposits last month.
Regulators found poorly documented lending to companies linked to the bank's owners and expenses wrongly counted as assets, the central bank said. Ueno's capital then fell to less than half the legal minimum, and the central bank seized the lender Tuesday. A judge ordered six Ueno executives, including founder Miguel Vázquez and bank President Juan Manuel Gustale, jailed pending trial.