Paraguay's President Santiago Peña announced his resignation after the crisis that hit the country's financial system. The crisis arose after the Central Bank of Paraguay suspended operations at Ueno, the country's largest digital bank, and placed it under external administration.
Reasons for the resignation and consequences for citizens
The collapse of Ueno bank cut off access to accounts and payments for nearly three million people who kept their savings in the financial institution. As a result, protests broke out in the country, with participants demanding Peña's resignation. Peña is also accused of a conflict of interest and of concealing facts related to the bank's collapse.
Official statements and political context
In his address, Peña said he was making this decision to preserve stability, public calm and democratic institutions. He also apologized to the people, saying he had never intended to betray the trust placed in him. According to Knews.kg, the lower house of Paraguay's Congress had earlier voted to begin impeachment proceedings against the president, with even lawmakers from his own party supporting it.
Transfer of powers
As a result of these events, Vice President Pedro Alliana will take over as head of state. Paraguay's parliament convened an emergency session to discuss removing both the president and Vice President Pedro Alliana from office.
