Paraguayan President Santiago Peña announced his resignation Thursday amid a deepening political crisis triggered by the collapse of digital lender Ueno Bank.

In a video posted to X, Peña said he was stepping down to preserve the country’s stability, social peace and democratic institutions. He added that his priority was protecting Paraguayans who had entrusted their savings to the financial system.

Paraguay’s central bank announced resolution proceedings for Ueno Bank on Tuesday after finding that its solvency ratio had fallen below half of the regulatory minimum.

Peña faced mounting political scrutiny over his former business ties to Grupo Vázquez, the conglomerate that controls Ueno Bank. He remained a business partner of the group until March 2025, according to AP.

Peña has denied any wrongdoing, arguing that the controversy began as a regulatory matter before escalating into a political dispute.

The banking crisis also coincided with elevated asking prices for Tether’s USDt on Bybit’s Paraguay-facing peer-to-peer marketplace. One listing viewed early Thursday offered USDt at 6,942 Paraguayan guaraníes, approximately 13% above the central bank’s Nov. 4 dollar reference rate of 6,144.02 guaraníes per US dollar.

His resignation came as lawmakers debated impeachment proceedings over alleged conflicts of interest, misuse of pension funds and institutional cover-ups linked to Ueno Bank’s collapse, according to Reuters.

Peña, who was elected in April 2023 and took office that August, was serving a five-year term scheduled to end in 2028. Under Paraguay’s Constitution, Vice President Pedro Alliana would succeed him for the remainder of the term if Congress accepts his resignation.

This is a developing story. We will update this article as more information becomes available.