Paraguay’s Peña resigns as congress moves to impeach him

Paraguay’s President Santiago Peña announced his resignation on Thursday, after the collapse of Ueno Bank, a digital lender he was linked to, and as the lower house of congress voted in favour of pursuing an impeachment trial against him.

“I want to apologise to the people if at any point I failed,” Peña said in a video message on social media. “It was never my intention to betray the trust you placed in me.”

What happened to Ueno Bank?

Ueno Bank entered an insolvency process that froze all operations. The Central Bank of Paraguay seized the digital lender, which says it has about three million customers, equivalent to roughly 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. A new president of the Central Bank of Paraguay has been appointed, and Congress has approved a process to pay depositors.

Why did lawmakers move to impeach Peña?

Peña was a shareholder until last year in the company that owned Ueno Bank. Lawmakers accused him of conflicts of interest and misconduct. Peña rejected suggestions of impropriety and said he was resigning to protect stability, social peace and democratic institutions.

Photographs taken near Paraguay’s Congress building on Thursday showed police officers clashing with protesters demanding that Peña be removed from office.

What happens next?

Paraguay’s congress must approve the resignation of a president. A special session convened on Thursday to address his resignation was adjourned in favour of continuing with the impeachment process, and 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, adding that 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.”

Who is next in line for the presidency?

The Colorado Party dropped impeachment proceedings against Vice President Pedro Alliana, who is next in line for the presidency after Peña. Peña won the 2023 election for the ruling conservative Colorado Party, beating a centre-left challenger. In Brazil, Lula won re-election after overturning a first-round defeat.

Separately in the region, the United States has urged Venezuela to release 322 remaining political prisoners.

Frequently asked questions

Why did Paraguay’s Santiago Peña resign?

Peña announced his resignation on Thursday after the collapse of Ueno Bank, a digital lender in which he had been a shareholder until last year, and as the lower house of congress voted in favour of pursuing an impeachment trial against him.

What happens to Peña’s resignation now?

Paraguay’s congress must approve the resignation of a president. A special session on Thursday was adjourned in favour of continuing the impeachment process, and congress has scheduled another session for Friday, when Peña is expected to present his defence.

Who takes over if Peña leaves office?

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

How many customers does Ueno Bank have?

Ueno Bank says it has about three million customers, equivalent to roughly 60% of Paraguay’s adult population.

With reporting from BBC News.

Stock image, not from the events described. City Skyline — Joe deSousa / Wikimedia Commons (CC0 1.0)