ASUNCIÓN, Paraguay: Paraguay's Senate has resumed impeachment proceedings against President Santiago Peña, despite his offer to resign after the collapse of digital lender Ueno Bank, which has triggered a major political crisis.

The Senate held an extraordinary meeting on November 6 to decide Peña's political future after he submitted his resignation on Thursday. However, lawmakers decided to continue with the impeachment process.

The crisis follows the collapse of Ueno Bank, a fast-growing digital lender with which Peña had previously done business.

On the evening of November 5, lawmakers acting as prosecutors formally filed impeachment charges against the president. The next stage requires Peña to present his defense. He has requested an additional 72 hours to prepare his response.

The political turmoil began earlier this week when Paraguay's central bank intervened in Ueno Bank after finding that the lender had breached minimum solvency requirements.

The intervention triggered a series of developments, including the central bank governor's resignation at the president's request.

Authorities also issued arrest warrants for eight Ueno executives. The executives later surrendered.

The banking crisis has raised serious questions about financial supervision and the links between the lender and senior political figures. It has also intensified pressure on Peña, whose government faces growing criticism for how it has handled the crisis.

Opposition senators demanded that Peña be removed rather than allowed to resign. They argue that resignation could make him a senator for life, giving him legal protections that might prevent prosecution if Attorney General Emiliano Rolón Fernández decides to bring charges.

Rolón has ordered three criminal investigations into the Ueno Bank crisis. The prosecutor's office said that these include allegations involving Peña and several current and former government officials.

The investigations will examine how authorities supervised the bank, how they handled its collapse, and why the public deposited money with the lender.

"Whatever the outcome of this process, I will act with responsibility and respect for the Constitution," Peña said in a post on X.

Peña, who held a stake in a company connected to Ueno until last year, expressed regret over the crisis but did not accept direct responsibility. The bank's collapse has left millions of depositors, pensioners and workers struggling to recover frozen savings and unpaid wages.

If Peña is removed, Vice President Pedro Alliana will take over as Paraguay's president.

From Popular Lender to Seized Bank

Ueno Bank grew from a little-known financial company into one of Paraguay's biggest banking names in less than five years. It claimed to have more than 60 percent of the country's adult population as customers.

The rapid rise of a bank linked to the president has raised questions about how it became so powerful despite repeated warnings about its lending practices.

The crisis has also exposed close links between Peña's Colorado Party, financial regulators and the country's business community. These relationships have raised concerns about institutional independence, even as Paraguay's steady economic management and strong growth helped it secure investment-grade credit ratings.

Protesters have blamed the ruling party for ordinary people's losses.