Paraguay President Resigns After Ueno Bank Collapse

 Paraguay President Santiago Peña Resigns After Ueno Bank Collapse Triggers Political Crisis

Paraguayan President Santiago Peña has resigned following a major banking crisis involving Ueno Bank, which left millions of customers unable to access their money and triggered widespread protests and calls for his removal.

Peña announced his decision on Thursday, November 5, saying he was stepping down to protect the country's stability, maintain social peace and preserve public institutions.

In a statement shared on social media, he apologised to the people of Paraguay if he had failed them and said his priority was restoring confidence among citizens who had trusted the country's financial system with their savings.

Bank Collapse Sparks Political Fallout

The crisis began after Paraguay's Central Bank intervened in Ueno Bank, a major private financial institution, following concerns about its financial stability.

The bank reportedly had around 2.9 million customers in a country with a population of approximately 6.1 million.

Regulators found that its solvency ratio had fallen below half of the required minimum after adjustments were made to its financial statements. The intervention left thousands of customers unable to access their savings, while long queues formed outside banks and protests spread across the country.

Authorities also raised concerns about loans issued to companies linked to the bank's owners.

Lawmakers Move to Impeach the President

Peña's resignation came as lawmakers were preparing impeachment proceedings against him over allegations connected to the bank's operations and its relationship with public institutions.

Thirty-five opposition lawmakers and members of the ruling party's dissident faction had brought forward accusations of serious and systematic failure to perform his duties.

The allegations included concerns about conflicts of interest and the handling of public funds deposited with the bank. Peña's resignation statement did not directly address the accusations.

Following his announcement, Paraguay's Chamber of Deputies voted unanimously to advance the impeachment process. The matter was then expected to be considered by the Senate.

Questions Over Links Between the Bank and Government

Ueno Bank had become one of Paraguay's prominent financial institutions and reportedly received substantial deposits from public entities during Peña's administration.

These included funds associated with the Social Security Institute, which manages pension arrangements for many workers in the country.

Peña had previously been linked to the business group associated with the bank, although the allegations against him have not, by themselves, established criminal wrongdoing.

The banking crisis has raised broader questions about financial supervision, public-sector deposits and the relationship between political leaders and private financial institutions.

What Happens Next?

Peña took office in August 2023 for a five-year presidential term. His resignation has created a major political transition, with Vice-President Pedro Alliana expected to assume the presidency.

The crisis has also put pressure on Paraguay's financial authorities to protect depositors and restore confidence in the banking system.

As investigations and political proceedings continue, the government faces the challenge of addressing customers' concerns and determining the future of Ueno Bank.

The situation remains developing, with further decisions expected from Paraguay's political and financial authorities.

Sources:

1. CNN – Paraguay President Santiago Peña Resigns Amid Ueno Bank Crisis

   https://kvia.com/news/noticias/cnn-spanish/2026/11/05/santiago-pena-renuncia-a-la-presidencia-de-paraguay-en-medio-de-la-crisis-por-el-cierre-de-ueno-bank/

2. Reuters – What Is Ueno Bank and How Did It Trigger Paraguay's Political Crisis?

   https://www.reuters.com/business/finance/what-is-ueno-bank-how-did-it-trigger-paraguays-political-crisis-2026-11-05/

3. Al Jazeera – Paraguay President Peña Resigns in Wake of Bank Collapse

   https://www.aljazeera.com/economy/2026/11/5/paraguay-president-pena-resigns-in-wake-of-bank-collapse