Paraguay President Santiago Peña Resigns After Bank Collapse
Paraguay President Santiago Peña resigned on Thursday, November 5, 2026, after the collapse of digital lender Ueno Bank left nearly three million customers unable to access their money and triggered nationwide protests and an impeachment push in Congress.
Peña announced his decision in a pre-recorded video address, saying he was stepping down with “the stability of our country, social peace and the need to preserve our democratic institutions in mind.” Vice President Pedro Alliana is set to take over as president for the remainder of Peña’s term, which was due to run until 2028.
What happened to Ueno Bank
Paraguay’s central bank took control of Ueno Bank on Tuesday, November 3, after finding that the lender had breached minimum solvency requirements. The bank’s solvency ratio had fallen to less than half of the legally required minimum, dropping to around 5.56 percent against a 12 percent requirement.
Ueno had grown quickly from a niche fintech player into a mid-tier bank administering close to $850 million in public funds. Its collapse left roughly three million customers — nearly half of Paraguay’s population of about 6.5 million — unable to withdraw or transfer their money. Pensioners were among those cut off from their savings, and some workers were reportedly left without wages.
The central bank said it intervened to “protect depositors and preserve the stability of the financial system.” The fallout also forced the resignation of the central bank’s own chief, Carlos Carvallo, on Tuesday, and prosecutors issued arrest warrants for eight Ueno executives, who later turned themselves in.
Impeachment pressure forced the decision
Opposition lawmakers submitted a request on Wednesday to impeach Peña, accusing him of conflicts of interest, misuse of pension funds and institutional cover-ups linked to the collapse of Ueno. Lawmakers said Peña had former business links to the conglomerate that controls Ueno Bank and remained a business partner of the group until March 2025.
The pressure intensified when Peña’s own ruling Colorado Party signalled it would back the impeachment proceedings. Soon after he submitted his resignation, the Chamber of Deputies voted unanimously, 78-0, to approve impeachment charges and forward them to the Senate. Congress was expected to accept the resignation, paving the way for Alliana to be sworn in without a Senate trial.
Peña, an ally of US President Donald Trump, was elected in April 2023 and took office in August 2023 for a five-year term. He had promised to repay 98 percent of depositors under an emergency law, with payment instructions due to begin on Thursday.
What happens next
The Senate must formally ratify Peña’s resignation, and lawmakers said the process would move quickly to ensure a swift transition. Alliana was expected to be sworn in within hours of the resignation being received by Congress.
The central bank has begun a process to transfer Ueno’s deposits and recoverable assets to other financial institutions before liquidating what remains. For millions of Paraguayans, the urgent question is when they will be able to access their savings again — and whether the political crisis ends with the change of president or deepens further.
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Source: Al Jazeera, Reuters and Khaleej Times, November 5, 2026.