Paraguayan President Santiago Peña resigned on Thursday following a political and financial crisis triggered by the collapse of Ueno Bank. The digital lender, which grew rapidly under Peña's administration to claim roughly 60% of the adult population as customers, left millions of people unable to access their savings.
The central bank took control of Ueno Bank on Tuesday, citing a severe capital shortfall and an accounting black hole that has drained public funds. The collapse has frozen the accounts of millions of customers, including pensioners and public health care funds, plunging the South American nation into social turmoil and its worst institutional crisis in years.
Shortly after Peña announced his resignation on X, the lower house voted unanimously to impeach him over an alleged conflict of interest and ties to the collapsed lender. Impeachment charges were also filed against Vice President Pedro Alliana, who will take office as millions of Paraguayans wait to recover their deposits.
Protests have roiled the streets as citizens scramble for their money. The downfall of the president, a Trump ally, rattles a fast-growing South American economy that has attracted investors and forged close ties with the United States.