Paraguayan President Santiago Peña announced his resignation after the collapse of Ueno Bank froze approximately 3 million customer accounts, sparked nationwide protests and prompted lawmakers from his own party to support impeachment.
By yourNEWS Media Newsroom
ASUNCIÓN, Paraguay — President Santiago Peña announced his resignation Thursday, Nov. 5, amid a deepening financial and political crisis following the collapse of Ueno Bank, a major digital lender with ties to his former business associates that held approximately $850 million in public funds.
The announcement came as lawmakers advanced impeachment proceedings against Peña, who had lost the support of key members of his ruling Colorado Party. However, his resignation remained pending congressional acceptance, leaving him provisionally in office while the impeachment process continued.
“I have decided to submit my resignation as President of the Republic. I am doing so with the stability of our country, social peace, and the need to preserve our democratic institutions in mind,” Peña said in a recorded address, according to EFE’s Nov. 5 report.
The crisis began Tuesday when Paraguay’s central bank intervened in Ueno Bank after determining that the institution had fallen below minimum solvency requirements. The intervention prevented approximately 3 million customers from accessing their accounts in a country with a population of roughly 6.5 million.
The sudden loss of access to savings and other funds triggered demonstrations in Asunción and elsewhere, with protesters demanding accountability from the government and financial regulators.
According to The Associated Press, Ueno had experienced rapid growth, becoming one of Paraguay’s most widely used financial institutions while receiving substantial deposits from government agencies.
Those public funds included approximately $380 million associated with Paraguay’s social security and health system, raising concerns about pension assets and other taxpayer-supported programs.
The bank’s failure also exposed questions about its lending practices, financial oversight and relationships with companies connected to its owners.
Paraguayan authorities have pursued criminal investigations involving bank executives, with eight senior officials facing legal action following the intervention.
Peña previously held a financial interest in Grupo Vázquez, the business group associated with Ueno. He has denied wrongdoing and maintained that he sold his stake in March 2025.
Opposition lawmakers accused the president of conflicts of interest, mishandling public pension funds and failing to ensure adequate regulatory oversight. Those allegations have not been established through a completed judicial proceeding.
The controversy intensified when former President Horacio Cartes, a powerful leader of the Colorado Party, withdrew his political support from Peña.
Members of the ruling party subsequently joined opposition lawmakers in supporting impeachment, leaving the president without the legislative backing needed to withstand the growing challenge.
The Chamber of Deputies approved impeachment charges Thursday, sending the matter to the Senate for consideration.
According to BBC News Mundo, lawmakers decided to continue impeachment proceedings despite Peña’s resignation announcement.
His departure was not immediately finalized because a congressional session intended to address the resignation lost the quorum necessary to proceed.
The legal uncertainty means Vice President Pedro Alliana, who would succeed Peña under Paraguay’s constitutional succession rules, had not automatically assumed the presidency.
Peña also addressed the financial consequences for depositors.
“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,” he said, according to Reuters.
Paraguay’s deposit insurance system covers eligible deposits up to approximately $38,000 per person, although the timing of repayments and the recovery of larger balances remain uncertain.
The banking crisis has also affected financial markets, with the Paraguayan guaraní weakening against the U.S. dollar and concerns emerging over the country’s reputation among foreign investors.
Peña, who took office in August 2023, had promoted Paraguay as a destination for international investment and maintained close relations with the United States, including President Donald Trump’s administration.
His resignation announcement marks a major political reversal for the conservative leader, whose administration had emphasized economic development and financial stability.
As of Friday, Nov. 6, the immediate question remained whether Congress would formally accept Peña’s resignation or proceed with an impeachment trial before the Senate.
The outcome will determine how the presidential transition proceeds while authorities attempt to stabilize the banking system and restore access to funds for millions of affected customers.
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