Paraguayan President Santiago Peña has submitted his resignation amid criminal investigations into the collapse of Ueno Bank, a private institution reportedly linked to him.
The bank, which had approximately 2.9 million customers in a country of 6.1 million people, was shut down following a financial crisis, leaving millions unable to access their savings and triggering protests.
Paraguay’s Attorney General, Emiliano Rolón Fernández, ordered three criminal investigations into the bank’s supervision, the placement of public funds in the institution and the actions of government officials.
The Central Bank reportedly found that Ueno Bank’s solvency ratio had fallen below 50 per cent of the required minimum. Authorities also accused the institution of violating lending limits involving related companies.
The Chamber of Deputies unanimously approved impeachment proceedings against Peña, accusing him of “serious and systematic dereliction of duty.” The Senate also announced an impeachment trial.
Peña announced his resignation, citing the need to protect the country’s stability, social peace and public institutions.
“I have made the decision to submit my resignation from the Presidency of the Republic. I do so with the stability of our country, social peace, and the need to preserve our public institutions in mind,” he said.
However, lawmakers adjourned a session to decide whether to accept his resignation after some members walked out. His opponents insisted that he must remain in office until the matter is resolved and face justice.
Peña said he would appear before the Senate and defend himself with evidence. Senator Yolanda Paredes, however, called for his arrest and pretrial detention.
His office dismissed rumours that he had fled the country, insisting that he remained in the capital.
Meanwhile, the Central Bank announced that it would begin processing guaranteed payments to eligible Ueno Bank customers in stages.
