World : Paraguay's President Resigns Amid Ueno Bank Crisis, Impeachment Pressure

Paraguayan President Santiago Peña tendered his resignation on Thursday, amid the collapse of Ueno Bank and the threatened takeover by Congress. However, just minutes after his resignation, the Chamber of Deputies unanimously voted to impeach him, aiming to prevent him from assuming a lifetime Senate seat with immunity upon leaving office.

The final decision lies with the Senate. In a video posted on social media, Peña stated, "I have decided to submit my resignation from the Presidency of the Republic. I do so with the stability of our country, social peace, and the need to preserve our democratic institutions in mind. My greatest wish is that the return of those funds is guaranteed."

Interior Minister Enrique Riera formally submitted Peña's resignation to Congress around 1:30 p.m., with the impeachment charges then approved by all 78 deputies present less than an hour later. The impeachment now moves to the Senate, where a two-thirds majority is required for removal. Peña's party withdrew its support, leading to a crisis accelerated when his main political backer, former President Horacio Cartes, endorsed the impeachment.

Prosecutors announced plans to open proceedings against Peña, with opposition lawmakers expanding a criminal complaint alleging illicit enrichment, money laundering, influence peddling, and other offenses, targeting Economy Minister Óscar Lovera, former Central Bank president Carlos Carvallo, and other officials. No formal charges have been brought against Peña yet.

The crisis began on Tuesday when the Central Bank took over Ueno Bank, Paraguay's largest digital bank, over insolvency and irregular loans to Vázquez Group-owned companies, freezing its deposits, including millions of public and pension funds. Peña, a 47-year-old economist, faces the prospect of becoming a lifetime senator if the impeachment is rejected by Congress, losing parliamentary immunity in the process.