Paraguay’s Peña resigns as congress pursues impeachment trial

Paraguay’s President Santiago Peña announced his resignation on Thursday after the collapse of Ueno Bank, a lender in which he was a shareholder until last year, prompted lawmakers in the lower house of congress to pursue an impeachment trial.

Why did Santiago Peña resign?

Ueno Bank entered an insolvency process that froze all its operations. Lawmakers accused Peña of conflicts of interest and misconduct over his former shareholding in the company that owned the bank. Peña rejected suggestions of impropriety.

In a video message posted on social media, Peña said: “I want to apologise to the people if at any point I failed.” He added: “It was never my intention to betray the trust you placed in me.” Peña had earlier said his resignation was intended to protect stability, social peace and democratic institutions.

Will Paraguay’s congress accept Peña’s resignation?

Paraguay’s congress must approve the resignation of a president. A special session convened on Thursday to address the resignation was adjourned in favour of continuing with the impeachment process instead. Congress has scheduled a special session for Friday, when Peña is expected to present his defence, according to Reuters news agency.

In a post on X, Peña confirmed he would appear for Senate impeachment proceedings, saying he would do so to “exercise my right to a defence”. He wrote: “I will provide the information requested of me. Citizens deserve to know the truth, without cover-ups and without anyone being above the law.”

How many customers does Ueno Bank have?

Ueno Bank has said it has about three million customers, equivalent to about 60% of Paraguay’s adult population. The bank held pensions and some other public funds, and after its collapse earlier this week millions of people could not access their accounts.

The Central Bank of Paraguay seized the digital lender. A new president of the Central Bank of Paraguay has been appointed, and congress has approved a process to pay depositors.

What happened outside Paraguay’s congress building?

Photos taken near Paraguay’s Congress building on Thursday show police officers clashing with protesters demanding that Peña be removed from office. People had taken to the streets to protest and call for his resignation after the bank collapsed.

Who is next in line for Paraguay’s presidency?

Vice President Pedro Alliana is next in line for the presidency after Peña. The Colorado Party dropped impeachment proceedings against Alliana. Peña won election in 2023 representing the ruling conservative Colorado Party, beating a centre-left challenger.

Frequently asked questions

Why did Santiago Peña resign as president of Paraguay?

Peña resigned after Ueno Bank, where he had been a shareholder until last year, entered an insolvency process that froze operations. Lawmakers accused him of conflicts of interest and misconduct, which he rejected, and the lower house of congress voted to pursue an impeachment trial.

Has Paraguay’s congress accepted Peña’s resignation?

No. Paraguay’s congress must approve a presidential resignation, and a special session convened on Thursday was adjourned in favour of continuing the impeachment process. Congress scheduled another special session for Friday, when Peña is expected to present his defence.

How many customers did Ueno Bank have when it collapsed?

Ueno Bank said it had about three million customers, equivalent to about 60% of Paraguay’s adult population. It held pensions and some other public funds, and millions of people could not access their accounts after the collapse.

Who is next in line for the presidency in Paraguay?

Vice President Pedro Alliana is next in line for the presidency after Peña. The Colorado Party dropped impeachment proceedings against Alliana.

With reporting from BBC News.

Stock image, not from the events described. Globe World — Jo%E3o%20Silas / Wikimedia Commons (CC0 1.0)