Paraguayan President Santiago Pena has resigned amid mounting political pressure following the collapse of digital lender Ueno Bank, which left nearly half the country's population unable to access their bank accounts.

Axar.az reports, citing Reuters, that Pena announced his decision in a recorded video address on Thursday, saying he was stepping down to preserve the country's stability, social peace and democratic institutions.

"I have made the decision to submit my resignation from the Presidency of the Republic. I do so with the stability of our country, social peace, and the need to preserve our public institutions in mind,” Pena said.

The banking crisis has triggered widespread political fallout, including the resignation of the central bank governor and the detention of eight Ueno executives. The lender had been managing nearly $850 million in public funds.

"My greatest wish is that the return of those funds be guaranteed, that the deposit guarantee fund fulfill its ‌purpose, ⁠and that public funds - as well as the resources that belong to all Paraguayans - be protected," Pena said in his address.

Pena faced accusations of conflicts of interest and alleged institutional cover-ups due to his previous business ties to Grupo Vazquez, which owned Ueno until March 2025. He has repeatedly denied any wrongdoing.

The opposition had been preparing impeachment proceedings, while protesters called for his resignation. Pena's departure requires Senate ratification.

Vice President Pedro Alliana is expected to succeed him.