Paraguay's President Santiago Pena resigns amid banking scandal

Paraguay's President Santiago Peña has resigned amidst a political crisis triggered by the collapse of a bank he was involved with. In a video posted online, he expressed remorse for any perceived failure and denied accusations of betrayal of public trust. The turmoil began when Ueno Bank entered into insolvency, halting all operations, prompting lawmakers to accuse Peña of conflicts of interest due to his previous ownership in the bank's parent company.

Despite rejecting claims of wrongdoing, Peña's resignation follows a vote by Paraguay's lower house of congress to launch an impeachment trial. However, the congress adjourned for now, rescheduling a special session for Friday to allow Peña to defend himself in Senate impeachment proceedings he vowed to attend. With Ueno Bank holding assets for approximately three million customers, around 60% of Paraguay's adult population, the institution's collapse left many without access to their funds.

The central bank seized control of the bank, and protesters gathered outside the Congress demanding Peña's removal. Congress has approved a plan to compensate depositors. Peña, a conservative Colorado Party member, won the 2023 election and was succeeded by Vice President Pedro Alliana in the line of succession.