Asunción, Paraguay — November 5, 2026
Paraguayan President Santiago Peña announced his resignation on Thursday, just days after the Central Bank of Paraguay shut down Ueno Bank in a midnight intervention over a severe solvency crisis. The move left nearly 3 million customers—roughly half the country’s adult population—unable to access their savings, salaries, and pensions, sparking widespread protests and a political firestorm.
In a video message posted on social media, Peña said he was stepping down “with the stability of our country, social peace, and the need to preserve our democratic institutions in mind.”
“Today my priority is only one thing: the peace of mind of the Paraguayans who entrusted their savings to our financial system,” he added. He also apologized to the public, stating it was never his intention to betray their trust.
The crisis erupted earlier this week when the Central Bank determined that Ueno’s solvency ratio had fallen below 50% of the required minimum following adjustments to its financial statements. The digital bank, which had grown rapidly from a fintech firm into a major player managing about $850 million in public funds (including pension payments), saw its operations frozen overnight. Customers suddenly found their apps, cards, and transfers offline.
Ueno served an estimated 2.8 to 3 million people in a nation of about 6.5 million. The freeze triggered three days of street protests in Asunción, with demonstrators demanding accountability and the return of their money.
Peña, who took office in August 2023, faced intense scrutiny over past ties to the bank. He had held shares in the holding company that controlled Ueno until selling them in 2025. Lawmakers accused him of conflicts of interest, alleged misuse of pension funds, and institutional cover-ups. The Central Bank’s former governor also resigned amid related conflict-of-interest allegations.
Minutes after Peña’s resignation announcement, Paraguay’s Chamber of Deputies voted unanimously (78-0) to advance impeachment proceedings against him on charges of “serious and systematic dereliction of duty.” The matter now heads to the Senate, which will decide whether to accept the resignation or pursue a full trial. A two-thirds majority would be needed for conviction and formal removal.
Vice President Pedro Alliana is expected to assume the presidency. Peña’s own Colorado Party largely abandoned him amid the growing scandal, sealing his political isolation.
Authorities have begun investigating bank executives, with several detentions reported. Depositors are covered by a guarantee fund up to a certain limit, but uncertainty remains over the full recovery of funds, especially public resources.
The sudden collapse of one of Paraguay’s largest digital lenders has shaken confidence in the financial system and raised questions about regulatory oversight in the South American nation.