Paraguayan President on Thursday after the failure of a digital bank that froze the savings of millions of customers, leading to protests and impeachment proceedings.
Peña said he would step down in a televised speech to “defend stability and democratic institutions”.
‘With the stability of our country, peace in our society and the need to defend our democratic institutions in mind,’ he added.
Ueno Bank, which was subjected to the central bank’s control after regulators discovered the bank was short of the minimum required capital, has about 3 million customers, the bank reported in a website document seen by Reuters. Its public funds, including deposits linked to state and pension bodies, stand at about $850 million.
Customers could no longer reach their accounts and savings as the bank collapsed and many demonstrated in the capital Asunción. Several high-ranking bank executives were also detained as the authorities probe into possible financial irregularities.
Penya, who previously invested in the bank’s parent company, denied any wrongdoing, but opposition members and his fellow conservative Colorado Party suspended their backing and instead supported impeachment.
Vice-President Pedro Alliana is to replace Peña, in accordance with the constitutional norm.
The resignation is a blow to the politician, who assumed the post in August 2023.
