In a dramatic turn of events, Paraguayan President Santiago Pena announced his resignation on Thursday, following widespread protests triggered by the takeover of Ueno Bank. The bank's closure left millions of depositors without access to their funds, sparking anger and unrest across the nation.

The crisis began earlier this week when the Paraguayan Central Bank intervened, citing a severe capital shortfall at Ueno Bank. This decision affected approximately three million depositors, including many pensioners, leading to long lines at bank branches in the capital, Asunción, as people tried to withdraw their savings. Protests erupted on Tuesday and Wednesday nights, with demonstrators expressing their frustration over the government's handling of the situation.

In a video posted on social media platform X, Pena expressed his regret, stating, "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 emphasized that his priority was to ensure the peace of mind of Paraguayans who had entrusted their savings to the financial system.

The political fallout from the bank's closure was swift. Opposition lawmakers quickly moved to impeach Pena, accusing him of favoritism towards Ueno Bank in regulatory decisions. Members of his own Colorado Party joined the call for his removal, intensifying the pressure on the president. Deputy Alejandro Aquilera highlighted the plight of the affected citizens, stating, "We have more than three million Paraguayans who have been harmed, who feel betrayed, swindled, deceived."

In an effort to quell the unrest, Pena had requested the resignation of Carlos Carvallo, the president of the Central Bank, who complied. Additionally, he enacted legislation aimed at ensuring that most depositors would have their funds returned within five business days. However, these measures failed to placate the growing discontent, as demonstrators clashed with police, who resorted to using tear gas and water cannons to disperse the crowds.

Pena, who previously served as finance minister before taking office in 2023, faced mounting criticism over his handling of the financial crisis. Following his resignation, Vice President Pedro Alliana is set to assume the presidency and navigate the country through this turbulent period. As Paraguayans grapple with the fallout from the bank's closure, the new administration will need to act swiftly to restore confidence in the financial system and address the grievances of its citizens.