Paraguay President Pena resigns in wake of bank collapse | Business and Economy News

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Paraguayan President Santiago Pena resigned on Thursday after calls for his removal swelled following the collapse of digital lender ueno that left millions of customers unable ‌to access their accounts.

“I do so with the stability of our country, social peace and the need to preserve our democratic institutions in mind,” he said in a video recorded address on Thursday.

Pena, an ally of US President Donald Trump, is stepping down after the ⁠opposition called an extraordinary session to begin the process of filing an impeachment motion in Congress, and as protesters demanded his resignation.

Earlier on Thursday Pena lost backing from members of his own conservative party. Vice President Pedro Alliana is set to take office as his replacement.

Lawmakers had accused Pena of conflicts of interest, misuse of pension funds and institutional cover-ups linked to the collapse of ueno, which had grown ‌quickly ⁠from a niche fintech player into a mid-tier bank administering close to $850 million in public funds.

“He is accused of negligence at the very least and complicity in covering up the fact that the bank was insolvent,” said Al Jazeera’s Latin America editor Lucia Newman.

“The congress right now is tying to impeach the president and the vice president, this session is underway,” she added. “As a I speak, there are people outside urging congress not to accept the resignation of the president because they say that they want him tried and impeached.”

Paraguay’s central bank intervened in ueno after determining ⁠that it had breached minimum solvency requirements, setting off a crisis that has left the company’s roughly 3 million customers, in a ⁠country of 6.5 million people, unable to access accounts.

“My greatest wish is that the return of those funds be guaranteed, that the deposit guarantee fund fulfill its purpose, and that ⁠public funds – as well as the resources that belong to all Paraguayans – be protected,” Pena added in his address.

Ueno has made no public statement on the issue.