Paraguay’s President Santiago Peña announced on Nov. 5 that he would resign as Ueno Bank’s collapse left millions unable to access their money, sparked days of protests and led lawmakers to advance impeachment proceedings against him.
The crisis worsened after the central bank took control of Ueno, a major online lender, saying the bank had a serious shortage of capital. The central bank’s action froze accounts for nearly three million customers. They included pensioners and other people who relied on the bank for payments.
In a video message, Peña said he was stepping down with the country’s stability and democratic institutions in mind. His announcement came after members of his own Colorado Party withdrew their support while demonstrations continued in Asunción. Lawmakers accused Peña of conflicts of interest and mishandling public funds linked to the bank.
Those allegations have not been proven. The lower house voted unanimously to impeach him shortly after he announced his resignation. The Senate would still have to approve his removal through impeachment.
Vice President Pedro Alliana was expected to succeed Peña if the resignation took effect.