Paraguay's President Santiago Peña Resigns Amid Banking Crisis

Santiago Peña, the President of Paraguay, resigned from office due to a political crisis stemming from the collapse of Ueno Bank, where he had previously held shares. In a video message, Peña expressed his resignation was to safeguard the nation's stability and democratic institutions, occurring a day after opposition lawmakers requested his impeachment and the lower house of Congress voted to initiate those proceedings.

The crisis escalated after Ueno Bank entered insolvency, affecting pension and public funds, which left millions of Paraguayans unable to access their savings. This led to widespread protests demanding Peña's resignation.

Lawmakers scrutinized Peña's ties to the bank, accusing him of conflicts of interest and misconduct. Peña, who took office in 2023 as a candidate of the Colorado Party, stated that his decision to resign was to prevent a prolonged constitutional battle that could destabilize the country.