President Peña resigns amid national financial crisis
Paraguayan President Santiago Peña announced his resignation on Thursday, November 5, 2026, following days of nationwide protests sparked by the crisis at the digital bank Ueno. The president’s departure follows a move by the Paraguayan Central Bank to place the institution under supervision, locking roughly 3 million customers—about 60 percent of the country’s adult population—out of their accounts, NOS Nieuws reported. Peña, 47, stated in a video message that he was stepping down to prevent further instability in the country. While he offered apologies for the chaos, he did not accept personal responsibility for the bank’s failure, according to NOS Nieuws. His resignation now awaits formal acceptance by the Paraguayan Congress.
Central Bank freezes assets as the bank faces insolvency
The crisis at Ueno began when financial regulators determined the bank’s solvency ratio had fallen below half of the mandatory legal minimum. According to NRC, the Central Bank of Paraguay had warned months earlier about the risks posed by “excessive lending” to entities affiliated with Ueno’s owners. Reports indicate that these loans were granted without adequate collateral, leading to a critical shortage of funds for the bank’s daily obligations.
The fallout has been widespread. In addition to individual depositors, the state pension and healthcare fund IPS held a significant portion of assets in Ueno bonds and deposits, Welingelichte Kringen noted. About 32,000 retirees reportedly received their monthly benefits through the bank. As of November 5, the government had proposed a emergency measure to compensate depositors up to 17,000 euros, though reports from VRT Nieuws suggest it remains unclear if these payments have been successfully processed.
Congress initiates impeachment proceedings
Despite Peña’s offer to resign, the Paraguayan Chamber of Deputies voted unanimously to begin an impeachment process shortly after his announcement. VRT Nieuws reported that eight top bank officials, including founder and major shareholder Miguel Vazquez, have already been arrested. The political pressure on Peña was compounded by allegations of conflict of interest. While the president denied being a direct shareholder of the bank itself, records cited by Welingelichte Kringen show he held shares in Ueno Holding until March 2025. Opposition lawmakers have accused him of oversight failures and the misuse of public pension funds.
The path forward for the Paraguayan government
The fate of the current administration now rests with the Senate, which must decide whether to continue the impeachment proceedings or accept the president’s voluntary resignation. If the process moves forward, it would mark the second time in recent history that a Paraguayan leader has been removed; the country previously impeached Fernando Lugo in 2012. Pedro Alliana is expected to assume the presidency following Peña’s departure.
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Frequently asked questions about the Ueno Bank crisis
How much of the lost savings is protected by the state?
The Central Bank of Paraguay’s guarantee fund covers a specific amount of guaraní per account, which is approximately 33,000 euros. According to preliminary data cited by Welingelichte Kringen, this threshold covers about 97 percent of individual depositors.
Why was the bank allowed to operate with such high risk?
Orkun Saka, a professor of financial economics at the University of London, told the BBC that the crisis resulted from a system where the bank, the regulator, and the presidency were “so closely intertwined that none of them seemed capable of keeping the others in check.”
What happens to the president if he is formally impeached?
If the Senate moves forward with the impeachment procedure rather than accepting his resignation, Peña would lose the special protection and immunity afforded to a former head of state. This would allow the Public Prosecutor’s Office to proceed with a criminal investigation regarding his potential role in the bank’s management.
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Did you know?
Santiago Peña, a conservative economist who previously worked for the International Monetary Fund, was elected in 2023 as one of the youngest presidents in Paraguay’s history, representing the Colorado Party that has held power in the country almost continuously since 1947.
More on President Peña
Paraguay President Santiago Peña Resigns After Ueno Bank Collapse • Santiago Peña resigns as Paraguay president following central bank seizure of Ueno Bank. • Impeachment motion advanced in congress amid public protests over the crisis. • Ueno Bank collapse affects millions… pic.twitter.com/CrqlwYA6pL