Collapse of digital bank ueno costs Paraguay's President Peña his office, yet Congress presses on with impeachment

Paraguayan President Santiago Peña stepped down on Thursday after the collapse of digital bank ueno. He announced his resignation in a video on social media in which he apologised but denied any responsibility for the crisis, VRT NWS reports. Interior Minister Enrique Riera delivered the resignation letter to Congress around midday, writes the Argentine newspaper El Ancasti. Under the constitution, Vice President Pedro Alliana takes over until the end of the term in August 2028, Canal 13 San Juan reports.

The central bank took over ueno on Tuesday because the bank lacked sufficient capital. More than 3 million customers, about half the population, have since been unable to access their money. According to VRT NWS, the bank also managed around 750 million euros in public money, including from pension funds. The head of the central bank has resigned and eight ueno board members have been arrested. The opposition accuses Peña of a conflict of interest, since he held shares through a holding company in the group behind the bank.

The resignation does not end the political process. According to El Ancasti, 78 members of the lower house voted unanimously for impeachment proceedings against Peña and against Alliana too, and the Senate must decide whether to accept the resignation or remove the president. If removed, Peña would lose his protection as a senator for life and come within reach of the criminal investigation opened by the attorney general's office. Congress must also elect a new vice president with an absolute majority of 63 votes.