Paraguay President Pena resigns in wake of bank collapse
Paraguayan President Santiago Pena resigned on Thursday following the collapse of digital lender ueno, which left millions unable to access their accounts.
Pena's resignation came after opposition lawmakers called an extraordinary session to begin impeachment proceedings and protesters demanded his removal. The president, an ally of US President Donald Trump, lost backing from members of his own conservative party earlier on Thursday.
Bank collapse details
Ueno, which grew quickly from a niche fintech player into a mid-tier bank administering close to $850 million in public funds, collapsed after Paraguay's central bank intervened, determining it had breached minimum solvency requirements. The crisis left the company's roughly 3 million customers, nearly half of Paraguay's 6.5 million population, unable to access their accounts.
He is accused of negligence at the very least and complicity in covering up the fact that the bank was insolvent.
Political fallout
Lawmakers had accused Pena of conflicts of interest, misuse of pension funds and institutional cover-ups linked to ueno's collapse. In his resignation address, Pena emphasized his decision was made with the stability of the country, social peace and the preservation of democratic institutions in mind.
The congress is currently attempting to impeach both the president and vice president, with protesters outside urging lawmakers not to accept Pena's resignation, insisting they want him tried and impeached instead.
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