President of Paraguay resigns amid banking crisis

The president of Paraguay, Santiago Peña, announced his resignation amid a banking crisis that has affected millions of depositors and sparked protests across the country. The collapse of Ueno Bank led to the intervention of the Central Bank, which took control of the financial institution due to a significant capital shortfall, resulting in the freezing of customer accounts, including pension and healthcare funds.

The Paraguayan opposition had submitted a motion to impeach the president, alleging that he maintained ties with Ueno Bank, worsening the political situation. This motion, supported by 35 legislators, was forwarded to the Speaker of the Chamber of Deputies and was set to be debated in Congress, where at least 53 votes would be needed to proceed to the Senate.

With increasing pressure and the possibility of impeachment, Santiago Peña decided to resign. His departure was announced in a video statement, where he noted the seriousness of the situation and the looming political crisis due to the bank intervention.

Following the resignation, opposition lawmakers expressed that they would not accept Peña's departure and would continue to pursue an impeachment process. This reaction reflects the turbulence and division within the government, with various parties uniting around the issue, highlighting the complexity of the crisis.

The banking crisis has affected nearly half of the Paraguayan population, with the Central Bank reporting that the capital shortage was the main reason for the intervention. This episode was not only a financial shock but also a crisis of confidence in Peña's administration.

The events surrounding Ueno Bank, which had close ties to the president, raised serious questions about transparency and accountability in the Paraguayan banking sector. The crisis continues to evolve, with lawmakers and the public waiting for the next steps in the country's political situation.