Paraguayan President Resigns After Ueno Bank Collapse

Paraguayan President Santiago Peña announced his resignation amid a severe institutional crisis. The decision follows the collapse of Ueno Bank, a financial institution placed into liquidation by the country's Central Bank due to a solvency deficit.

The Chamber of Deputies approved the start of impeachment proceedings against Peña with 78 votes in favor. Opposition lawmakers allege conflicts of interest and misconduct, noting that the president was a shareholder in the bank's parent company until last year.

The closure of Ueno Bank affected approximately 3 million customers and locked about 850 million dollars in deposits. These frozen assets include public funds and money from the Social Security Institute, which sparked widespread street protests.

Peña stated that his departure aims to preserve social peace and the stability of democratic institutions. The Paraguayan Senate must still vote on the impeachment measure to determine the former leader's political future and prevent him from retaining legal immunity.

The government is now seeking to enact laws to accelerate the recovery of funds for affected depositors. The case exposes weaknesses in the management of state funds and local banking regulation.