Paraguay: President Santiago Peña resigns after the collapse of Ueno Bank

Paraguay's president, Santiago Peña, announced his resignation on Thursday, November 5, 2026, as the Chamber of Deputies was debating whether to open impeachment proceedings against him, the Associated Press reports. He is accused of a conflict of interest over Ueno Bank, a digital bank with which he had close ties and which the Central Bank of Paraguay took over on Tuesday over solvency problems.

"I have made the decision to submit my resignation from the presidency of the Republic," Peña said in a video posted on X, saying he was acting for the country's stability and to preserve its democratic institutions. He apologized but did not take responsibility for the crisis, according to AP. Congress must now decide whether to accept the resignation, CNN notes.

Millions of savers locked out

Since the central bank stepped in, all Ueno Bank branches have been closed and its operations frozen. The bank had 2.9 million customers in a country of 6.1 million people, according to the EFE news agency. It also held about $850 million in public funds, including some $380 million belonging to the Social Security Institute (IPS), the state pension and health fund, according to AP. Savers protesting in Asunción were dispersed by police, according to Cubadebate.

Eight of the bank's executives have been arrested, including its chairman Juan Manuel Gustale and its CEO Federico Miguel Vázquez, until recently a business partner of Peña's, according to AP. The president had been a shareholder in Ueno Holding, EFE notes. On Wednesday he signed a law allowing part of the deposits to be repaid quickly, up to about $19,800 per customer, and named a new central bank governor after the resignation of Carlos Carvallo, a former head of Financiera Ueno.

Elected in April 2023 with 42.74% of the vote, Peña, 47, was due to stay in office until 2028. His mentor, former president Horacio Cartes, withdrew his support on Thursday and backed the impeachment process, according to EFE.