Paraguayan President Santiago Peña has resigned amid a major banking crisis that has sparked nationwide protests and triggered impeachment proceedings against his administration.
Peña announced his resignation on Thursday, November 6, 2026, citing the need to protect national stability, social peace and democratic institutions.
The crisis centres on Ueno Bank, one of Paraguay’s largest lenders, which was placed under resolution by the central bank over insolvency concerns, freezing deposits belonging to approximately three million customers.
The move left hundreds of thousands of families struggling to access money for food and other essential expenses, triggering public outrage and street protests. Several bank executives were also arrested.
Ueno Bank experienced rapid growth after being acquired by Grupo Vázquez in 2021 and receiving authorisation to operate as a digital bank in late 2023.
It reportedly managed between $800 million and $850 million in deposits from state institutions and pension funds.
Peña has faced scrutiny over his previous shareholding links to Ueno Holding, the group associated with the bank, amid allegations that his administration favoured the lender in directing public and pension funds.
The 47-year-old economist, who assumed office in August 2023 for a five-year term, denied any wrongdoing, insisting that his involvement was purely an investment and that he had disposed of his shares.
Political pressure intensified after opposition lawmakers and members of his ruling Colorado Party backed an impeachment motion accusing him of misconduct and conflict of interest.
Former president Horacio Cartes, once an ally of Peña, also publicly endorsed the impeachment, saying the party could not support the alleged misuse of public, private and pensioners’ funds.
Shortly after Peña announced his resignation, Paraguay’s lower house unanimously approved the impeachment motion, sending it to the Senate for consideration.
In his resignation address, Peña apologised to Paraguayans if he had failed them and said his priority was ensuring that customers recover their savings.
The resignation must be accepted by Congress, after which Vice-President Pedro Alliana is expected to assume the presidency. Alliana has also faced allegations of involvement in the banking scandal, which he has denied.
If the Senate approves the impeachment proceedings, Peña could lose his parliamentary immunity and face potential criminal proceedings in ordinary courts.
