Paraguay president resigns before impeachment vote after digital lender collapse

Resignation precedes trial proceedings

President Pena stepped down hours before lawmakers moved to launch formal impeachment proceedings. He stated in a social media post that he would appear before the Senate to exercise his right to a defence. Lawmakers voted unanimously on Thursday to begin the process alleging misconduct and conflict of interest regarding his ties to the bank.

Bank failure freezes millions

The collapse of Ueno Bank froze access to deposits for approximately three million customers across the country. Regulators ordered the institution into resolution on Monday after uncovering excessive lending and accounting irregularities. Authorities issued arrest warrants for eight top executives while the central bank seized control of the digital lender.

Protests erupt in Asuncion

Thousands of people gathered outside Congress to demand the president's removal and the return of their savings. Demonstrators clashed with police who used tear gas and water cannons against the crowd. Protesters shouted slogans demanding accountability as the political crisis deepened over the frozen funds.