Paraguayan president Santiago Pena resigned on Thursday after the central bank’s takeover of Ueno Bank, a lender linked to him, cut off almost half the population from their money.
The takeover two days earlier froze the deposits of about three million people, including pensioners, and sparked angry protests across the country. In the capital Asuncion, some protesters clashed with police, who used tear gas and water cannon.
Paraguay’s central bank said it took over Ueno because of a severe capital shortfall, to protect depositors and keep the financial system stable. Long queues formed outside Ueno branches in Asuncion as people tried to withdraw their money.
Opposition lawmakers had filed a request on Wednesday to impeach Pena, alleging misconduct and a conflict of interest in his dealings with the bank. Pena owned shares in a group that controlled the bank but sold them last year.
Announcing his resignation in a video on X, Pena apologised to Paraguayans if he had failed them at any point, and said it was never his intention to betray their trust.
Minutes later, lawmakers, including members of his own ruling party, unanimously approved the start of impeachment proceedings against him, while rejecting the same move against vice-president Pedro Alliana. Congress called an extraordinary session to decide whether to accept his resignation or press ahead with impeachment.