In a significant political development, Paraguayan President Santiago Peña has resigned following a turbulent week marked by the collapse of Ueno Bank, a digital lender linked to his prior business interests. Peña made the announcement via a video message on social media, stating that his decision was aimed at safeguarding the stability of the nation, social peace, and democratic institutions.

Peña expressed remorse in his message, saying, "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." His resignation comes amid escalating pressure from Paraguay's lower house of Congress, which was reportedly moving to initiate impeachment proceedings against him over allegations of conflict of interest and misconduct related to the bank's operations.

The crisis surrounding Ueno Bank intensified when Paraguay’s Central Bank intervened earlier this week, placing the institution under resolution after discovering that its solvency ratio had fallen below the legally required minimum. This intervention has severely impacted approximately three million customers, many of whom have been unable to access their savings and funds. Ueno Bank was also responsible for managing hundreds of millions of dollars in public funds, including pension resources, raising further concerns about its financial practices.

Protests erupted in the capital, Asunción, with demonstrators calling for Peña's resignation as anger mounted over the bank's failure and its implications for ordinary citizens. In response to the crisis, authorities have begun making arrangements to compensate affected depositors. Reports indicate that eight executives from Ueno Bank have been detained, and their assets frozen as investigations into the bank’s operations continue.

Peña's resignation follows the earlier departure of Paraguay’s central bank governor, highlighting the severity of the situation. Opposition lawmakers had long accused Peña of a conflict of interest due to his previous ties with the bank's ownership, specifically his role as a shareholder in Grupo Vázquez, which owned Ueno Bank until 2025. Despite these allegations, Peña has consistently denied any wrongdoing, asserting that his past business relationship did not influence his presidential duties.

In his farewell message, Peña urged authorities to protect public funds and ensure that affected customers receive their money back. He stated, "I want the affected people to be guaranteed the return of those resources, that the Deposit Guarantee Fund fulfil its purpose and that public funds and resources belonging to all Paraguayans be protected."

With Peña stepping down, Vice-President Pedro Alliana is expected to take over the presidency, as the nation grapples with the fallout from this financial crisis and seeks to restore public trust in its institutions.