Paraguay’s President Santiago Peña Resigns and Is Impeached Amid Ueno Bank Collapse

President Santiago Peña’s resignation and impeachment

On 5 November 2026, Paraguayan President Santiago Peña announced his resignation via a video message on X. The announcement came after the Central Bank seized Ueno Bank, a digital bank linked to Peña, and placed it into insolvency proceedings. The takeover froze the bank’s operations and left roughly three million Paraguayans, including pensioners, unable to access their savings. Minutes after Peña’s resignation, the lower house of Congress convened a special session. Lawmakers voted unanimously to launch an impeachment trial against the former president. The vote was held while the formal approval of Peña’s resignation was still pending, meaning he remains in office provisionally.

Background

Santiago Peña took office in 2023. Until the previous year, he was a shareholder in the company that owned Ueno Bank. When the bank entered insolvency, lawmakers accused Peña of a conflict of interest and alleged misconduct in his dealings with the institution. The Central Bank’s seizure of the bank was the first major financial crisis in Paraguay in recent years and triggered widespread public anger. Protests erupted across the country. Thousands of Paraguayans gathered outside the Congress building on 5 November to demand Peña’s removal. Police responded with tear gas and water cannons, and clashes with demonstrators were reported. The protests were fueled by the fact that the bank’s collapse had prevented millions from accessing their money.

Why it matters

The crisis has had a direct impact on the Paraguayan population. With deposits frozen, many citizens, particularly pensioners, have lost access to their savings. The government’s inability to resolve the banking issue has eroded public trust in the administration. The impeachment proceedings signal a significant shift in Paraguay’s political landscape, as the president faces potential removal from office and possible criminal charges for alleged misconduct. The decision to impeach Peña also highlights the role of conflict of interest allegations in Latin American politics. The unanimous vote by Congress underscores the severity with which the legislature views the president’s ties to Ueno Bank.

What happens next

Congress has scheduled a special session for 6 November, during which Peña is expected to present his defence. The impeachment trial will proceed even though his resignation has not yet been formally accepted. If the trial concludes with a conviction, Peña will be removed from office and Vice President Pedro Alliana will assume the presidency. The outcome of the trial will determine whether Peña faces further legal consequences for his alleged misconduct.