Paraguay: President Peña resigns, crisis over collapse of a digital bank.

Paraguayan President Santiago Peña submitted his resignation on Thursday, engulfed by a political crisis triggered by the collapse of the digital bank Ueno Bank. The crisis froze millions of dollars in deposits and cost Peña the support of his party, the Colorado Party.

Immediately after the resignation announcement, the lower house of Parliament unanimously voted (78-0) to initiate impeachment proceedings, referring the charges to the Senate. Lawmakers also rejected Peña's resignation, a move that could expose him to criminal prosecution by stripping him of the legal immunities associated with his office.

The political crisis in Paraguay originated from the collapse of Ueno Bank, a major digital credit institution. The bank's failure led to the freezing of substantial amounts of money deposited by citizens, triggering a wave of popular protests.

The situation quickly eroded political support for President Peña within his own ruling party, the Colorado Party, which has traditionally dominated Paraguayan politics. If the Senate proceeds with impeachment, Vice President Pedro Alliana will assume the presidency. The banking crisis has thus triggered severe institutional instability in a country with a frequently turbulent political history.