Paraguayan President Santiago Peña announced his resignation on Thursday after the collapse of Ueno Bank left nearly three million people unable to access their savings. Congress did not accept his departure, and impeachment proceedings against him continue.

The crisis began Tuesday when Paraguay's central bank intervened in the digital lender after discovering its solvency ratio had fallen below half the legal minimum. Ueno Bank served approximately 2.94 million customers, representing nearly 60 percent of the country's adult population. Its app, cards and transfers went dark, sparking protests in Asunción where retirees, workers and students demanded access to their money.

Peña held shares in Ueno's parent company until March 2025. He faced accusations of conflicts of interest after the bank was found to hold approximately $850 million in public-sector deposits, including $355 million from the Social Security Institute. Thirty-five lawmakers accused him of misuse of pension funds and failure to prevent financial misconduct.

The Chamber of Deputies voted unanimously, 78 to zero, on Thursday to impeach Peña, sending the charges to the Senate. But when Congress convened later that day to consider his resignation, the session lacked a quorum after members of Peña's Colorado Party withdrew. His resignation remains unaccepted and the impeachment process is ongoing.

As of Friday, Peña remains in office while the Senate weighs the charges, which require 30 of 45 votes for conviction. Prosecutors have opened criminal investigations into Peña regarding his oversight of Ueno Bank and have charged 27 bank officials over alleged financial irregularities.

Regulators found poorly documented loans to companies linked to the bank's owners and accounting problems that weakened Ueno's reported position. Eligible deposits are protected up to 228.3 million guaraníes, approximately $37,700, per depositor, and the central bank has begun arranging repayments.

In a video posted to X, Peña said he was stepping down in the interest of "the stability of our country, social peace and the need to preserve our democratic institutions." He added: "I want to apologize to the people if at any point I failed. It was never my intention to betray the trust you placed in me."

During the impeachment debate, ruling party deputy Alejandro Aquilera said: "We have more than three million Paraguayans who have been harmed, who feel betrayed, swindled, deceived." Protester Luis Pineda told reporters: "Santiago Peña and the Colorado Party have stolen all our savings."

The collapse has left 7,000 bank employees facing unpaid wages and disrupted pension payments processed through Ueno accounts. Vice President Pedro Alliana is next in line to succeed Peña if the Senate convicts him.