In a significant political development, Paraguay's President Santiago Peña has resigned from his position amid a growing crisis triggered by the collapse of Ueno Bank, a financial institution with which he had past ties. His resignation comes just a day after the lower house of Congress voted to initiate impeachment proceedings against him.

Peña's decision to step down was announced through a video message on social media platform X, where he expressed his desire to protect the stability of the nation and its democratic institutions. He stated, "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."

The political turmoil began when Ueno Bank went into insolvency, freezing operations and leaving millions of Paraguayans unable to access their funds. The bank's collapse has had far-reaching implications, as it held pension funds and public savings, which heightened public outrage and led to widespread protests demanding Peña's resignation.

Lawmakers quickly scrutinized Peña's connection to Ueno Bank, noting that he had been a shareholder in the company that owned the bank until the previous year. This revelation prompted accusations of conflicts of interest and misconduct, fueling calls for his impeachment. The opposition's push for his removal gained momentum as the lower house of Congress voted to pursue an impeachment trial, which ultimately prompted Peña to resign voluntarily.

Peña, who took office in 2023 as a member of the Colorado Party, faced increasing pressure from both the public and the legislature following the bank's failure. The crisis has resonated deeply with many Paraguayans, as the bank's insolvency directly impacted their savings and pensions, making the situation intensely personal for a large segment of the population.

In light of the unfolding events, Peña characterized his resignation as a necessary step to preserve social peace and avoid a prolonged constitutional battle that could further destabilize the country. His departure marks a pivotal moment in Paraguay's political landscape, as the nation grapples with the fallout from the banking crisis and seeks to restore confidence in its leadership and financial institutions.