Paraguay president impeached minutes after resigning amid bank collapse

Paraguayan President Santiago Peña resigned amid a crisis caused by the collapse of digital lender Ueno, which left millions of customers unable to access their accounts, according to Al Jazeera and DW English.

Minutes after Peña announced his resignation, Paraguay's lower house voted unanimously to impeach him, as reported by France 24 and NPR World. The impeachment followed accusations of conflicts of interest and negligence related to the bank's failure.

The central bank took control of Ueno due to a severe capital shortfall, freezing accounts of around three million depositors, including pensioners, as noted by France 24. This triggered widespread protests in the capital and beyond.

Peña, who took office in 2023 and was an ally of former US President Donald Trump, lost support from his own Colorado Party amid the crisis. Vice President Pedro Alliana is expected to succeed him, according to Al Jazeera.

Lawmakers accused Peña of favoritism towards Ueno in regulatory and pension fund decisions, with some calling for him to be tried despite his resignation. The situation has raised concerns about the stability of Paraguay's financial system and democratic institutions.