By Daniela Desantis
ASUNCION, Nov 5 (Reuters) - Paraguayan President Santiago Peña resigned on Thursday as calls for his removal swelled following the collapse of digital lender ueno that left millions of customers unable to access their accounts.
"I do so with the stability of our country, social peace, and the need to preserve our democratic institutions in mind," he said in a video recorded address on Thursday.
Peña, an ally of US President Donald Trump, is stepping down after the opposition called
an extraordinary session to begin the process of filing an impeachment motion in Congress, and as protesters demanded his resignation.
Earlier on Thursday Peña lost backing from members of his own conservative party. Vice President Pedro Alliana is set to take office as his replacement.
Lawmakers had accused Peña of conflicts of interest, misuse of pension funds and institutional cover-ups linked to the collapse of ueno, which had grown quickly from a niche fintech player into a mid-tier bank administering close to $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," Peña added in his address.
Paraguay's central bank intervened in ueno after determining that it had breached minimum solvency requirements, setting off a crisis that has left the company's roughly 3 million customers, in a country of 6.5 million people, unable to access accounts.
Ueno has made no public statement on the issue.
(Reporting by Daniela Desantis, Additional reporting by Natalia Siniawski and Aida Peleaz-Fernandez, Editing by Daina Beth Solomon)
