Jubilant Peruvians held celebratory street parties throughout the country last night after the beleaguered President Alberto Fujimori resigned by e-mail on a visit to Japan.
The current crisis was started by a video last September which showed Mr Fujimori's spy chief, Mr Vladimiro Montesinos, handing over cash to an opposition deputy in return for parliamentary support.
In the weeks that followed, Mr Fujimori agreed to cut short his five-year presidency to just one year, with fresh elections due next April, apparently defusing the crisis. However, it was revealed last month that serving Peruvian military officials facilitated an arms shipment to Colombian guerrillas, undermining crucial US support for the regime.
The immediate motive behind yesterday's resignation was a shift in the balance of power in Peru's Congress, where anti-Fujimori deputies established a working majority last week, allowing them to begin impeachment proceedings against Mr Fujimori, on the grounds of "moral unfitness".
Swiss investigators discovered foreign bank accounts containing at least $58 million in illicit funds allegedly laundered by Mr Montesinos, who is believed to be in hiding in Peru. Mr Montesinos is also under investigation at home on charges of directing state-sponsored death squads and skimming profits from the cocaine trade during his 10 years as Mr Fujimori's leading aide.
Under the Peruvian constitution, the first vice-president takes over when the president resigns. But the First Vice-President, Mr Francisco Tudela, resigned last month after Mr Montesinos returned to Peru on October 23rd, following a failed asylum attempt in Panama.
Mr Tudela, who is out of the country, stood down after complaining that Mr Fujimori was not in control of Mr Montesinos and his allies.
"The constitution dictates that if the president has resigned, and if the first vice-president has resigned, then the second vice-president assumes office," said Mr Ricardo Marquez, the interim Peruvian president
But analysts pointed out that Congress has yet to accept Mr Tudela's resignation, casting doubt on the presidential successor. The opposition, which now controls Congress, wants the Congress president, Mr Valentin Paniagua, to take Mr Fujimori's place instead of Mr Marquez, a low-profile figure seen as a Fujimori yes-man.
Dozens of protesters gathered outside Mr Marquez's home yesterday, demanding that he step down and be replaced by Mr Valentin Paniagua, whose appointment as head of Congress last week precipitated the impeachment proceedings against Mr Fujimori.
Mr Paniagua enjoys the backing of Mr Alejandro Toledo, the opposition candidate who pulled out of the election runoff last July, citing state-backed fraud and intimidation.
In response to the criticism, Mr Marquez yesterday offered to form a "consensus cabinet".
The son of Japanese immigrants, Mr Fujimori has a one-year visa for Japan and if he desired could take out citizenship. Japan's Foreign Ministry would not say how long Mr Fujimori would be allowed to stay in the country, although an official said his visa was good for a year.
Late yesterday evening opposition deputies were still debating whether to accept Mr Fujimori's resignation or proceed with plans to impeach him.