Paraguayan President Santiago Peña resigned from office this Thursday after Ueno Bank was shut down in the middle of the night due to a solvency crisis, leaving millions of customers unable to access their money and triggering a scandal.
”I have made the decision to submit my resignation from the Presidency of the Republic. I do so with the stability of our country, social peace, and the need to preserve our public institutions in mind,” he said in a message posted on social media.
It comes as Peña faces charges from lawmakers of “serious and systematic dereliction of duty” in connection with his dealings with the bank.
”Today my priority is only one thing: the peace of mind of the Paraguayans who entrusted their savings to our financial system,” he added.
”History will judge and give due consideration to the events we are experiencing today,” Peña said. “I apologize to the people if I have failed them at any time.”
Peña submitted his resignation while lawmakers were debating charges brought against him by 35 opposition lawmakers and ruling-party dissidents. The charges proposed “removing from office” the president, who took power in August 2023 for a five-year term.
Soon after he announced he would resign, Paraguay’s Chamber of Deputies voted unanimously to trigger impeachment proceedings. The Senate will determine whether the proceedings will move forward.
Both chambers of Congress will convene in a joint session this afternoon to consider his resignation. If lawmakers accept it, he will have immunity and special protections; if they remove him from power, he won’t.
Senator Yolanda Paredes insisted that lawmakers would not accept his resignation.
”This guy, Santiago Peña, needs to be jailed. An arrest warrant must be issued … pretrial detention, straight to jail,” she told reporters.
Peña’s party, the right-wing Colorado Party, has a majority in both houses of Congress.
Peña entered office as one of the youngest presidents in Paraguayan history at the age of 44. He served as Minister of Finance from 2015 to 2017 during the presidency of Horacio Cartes and also served as a director of the Central Bank. He is one of the staunchest allies of US President Donald Trump’s administration and has aligned with Trump’s political priorities, particularly on immigration and security.
Paraguay’s president became embroiled in the crisis that erupted after the intervention of Ueno Bank, a private institution to which he has been linked and which, during his administration, received millions in funds from public entities, including the Social Security Institute (IPS), which manages the pensions of most of the country’s workers.
CNN contacted the presidency before Peña’s resignation to ask about the allegations against him.
The Central Bank of Paraguay found that Ueno Bank’s solvency ratio — with 2.9 million customers in a country of 6.1 million people — had fallen below 50% of the required minimum, “as a result of adjustments made to its financial statements during the regularization process.”
As a result of the resolution or dissolution proceedings, the savings of thousands of customers were frozen at the financial institution, which is also known for sponsoring local soccer teams and Paraguay’s national team.
Paraguay was shaken by Tuesday’s intervention of Ueno, an institution that, according to authorities, violated limits on loans to related companies.
Peña announced his resignation after two days of long lines at banks, anxiety and street protests.
The country has been trying to position itself as a regional financial hub by capitalizing on the investment-grade status it attained in recent years, after receiving approval from two of the world’s leading rating agencies.