Paraguay President Peña Resigns After Bank Collapse

Paraguay President Santiago Peña has announced his resignation after a political crisis triggered by the collapse of a bank linked to him.

According to a BBC report, in a video message posted on social media, Peña apologised to citizens and said he never intended to betray their trust.

“I want to apologise to the people if at any point I failed. It was never my intention to betray the trust you placed in me,” he said.

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The crisis followed the collapse of Ueno Bank, which entered an insolvency process and suspended all operations. The bank’s failure left millions of customers unable to access their accounts.

Lawmakers accused Peña of a conflict of interest and misconduct because he held shares in the company that owned the bank until last year.

However, the president has rejected allegations of wrongdoing. His resignation came after Paraguay’s lower house of Congress voted to pursue an impeachment trial.

Peña said he decided to step down to protect the country’s stability, social peace and democratic institutions. Ueno Bank has about three million customers, representing roughly 60 per cent of Paraguay’s adult population. It also held pension funds and other public funds.

Following the bank’s collapse earlier this week, the central bank seized the digital lender. The development triggered street protests, with citizens demanding Peña’s resignation.

Meanwhile, the Central Bank of Paraguay has appointed a new president. Congress has also approved a process to compensate depositors.

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Deborah Akwa

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