President Santiago Peña of Paraguay resigned on Thursday amid mounting pressure over the collapse of Ueno Bank, a financial institution linked to him.

Millions of Paraguayans were locked out of their accounts earlier this week after Ueno Bank froze operations amid efforts to manage its insolvency. The development triggered calls for Mr Peña to step down.

The president announced his resignation in a social media video on Thursday, after lawmakers overwhelmingly voted to impeach him.

“I want to apologise to the people if at any point I failed,” Mr Peña said in the video message. “It was never my intention to betray the trust you placed in me.”

“I do so with the stability of our country, social peace, and the need to preserve our democratic institutions in mind,” Mr Peña explained.

Ueno Bank, which has three million customers, held government funds and pension assets before its collapse earlier this week, leaving customers stranded and unable to access their money.

Paraguay has a population of about seven million, including children, meaning the bank’s collapse affected 60 per cent of the country’s adult population.

The anger drove millions of customers to occupy the streets, calling for Mr Peña’s resignation.

Mr Peña was accused of misusing pension funds and covering up the collapse, as lawmakers alleged a connection between the president and the bank’s failure.

Until last year, the president was a major shareholder in the company that owns the bank.

Mr Peña has denied all corruption claims.

“My greatest wish is that the return of those funds be guaranteed, that the deposit guarantee fund fulfil its purpose, and that ⁠public funds, as well as the resources that belong to all Paraguayans, be protected,” Mr Peña said in the video message.