In brief
President Santiago Peña announced his resignation on November 5, 2026, over the collapse of the digital lender Ueno Bank. The Central Bank began resolution proceedings after Ueno’s solvency ratio fell below half the required minimum, and 35 lawmakers have moved to impeach Peña and Vice President Pedro Alliana. The crisis exposed gaps in financial oversight and raised questions about the president’s former stake in the bank.
On November 5, 2026, Paraguay’s President Santiago Peña announced his resignation, following the collapse of the digital lender Ueno Bank that had left almost 3 million customers unable to access their accounts. The move came amid mounting pressure from lawmakers, former President Horacio Cartes, and the public as the crisis threatened national stability and democratic institutions.
Xinhua reported that Peña addressed the nation via a video posted on X, stating, "I have decided to submit my resignation as president of the republic," the outlet noted. He added that he wanted to safeguard national stability, social peace, and democratic institutions, and he apologized to the public if he had failed them.
"I have decided to submit my resignation as president of the republic," said Peña in his video statement.
Addressing the same channel, local media echoed Peña’s apology, highlighting that he had hoped depositors’ savings would be returned and public funds protected.
In the days that preceded the resignation, Paraguay’s Central Bank announced it had begun resolution proceedings for Ueno Bank after a review revealed the institution’s solvency ratio was less than half the legal minimum. During the intervention, the bank’s applications and card services stopped working entirely.
An 35‑member committee of lawmakers submitted a proposal to initiate impeachment proceedings against Peña and Vice President Pedro Alliana. Their accusations focused on conflicts of interest, citing Peña’s prior stake in Ueno Holding until 2025, as reported by Xinhua.
Political Turmoil Intensifies
Support for impeachment grew stronger early Thursday when former President Horacio Cartes, a key figure in the ruling Colorado Party and Peña’s political mentor, publicly announced he backed the motion to remove the president and the vice president. The endorsement reflected broader concerns within the party about Peña’s management of the banking crisis.
At Peña’s request, the Central Bank chief Carlos Carvallo resigned. Meanwhile, prosecutors moved to arrest eight Ueno Bank executives; all were subsequently detained, local media reported.
The Ueno Bank collapse has far-reaching implications. With nearly three million users, the bank’s failure wiped out access to millions of deposits, forcing families and small businesses to seek alternative means of financial support.
Paraguay’s electoral calendar is also at stake. Peña’s term, which began in August 2023 and was set to end in 2028, was abruptly cut short, raising questions about succession procedures, possible early elections, and the integrity of upcoming electoral processes.
Lawmakers have staged multiple readings of the impeachment proposal, with a recent vote currently in progress. Should the motion pass, the Supreme Court would likely be asked to review the constitutionality of a president’s removal outside of impeachment conditions.
Public accountability remains a key concern. The crisis underscores the need for stronger regulatory frameworks for digital financial services and for clearer disclosure requirements for public officials with business interests, a point echoed by opposition leaders who have criticized Peña’s ownership stake in Ueno Holding.
The resolution of Ueno Bank could set a precedent for how Paraguay handles digital banking failures. Speakers at recent press conferences have urged the Central Bank to expedite the return of deposits, noting that any delay risks undermining public trust in the nation’s financial system.
As Paraguay moves forward, the political and economic fallout from this crisis will continue to ripple through its democratic institutions, underscoring the fragile balance between innovation, regulation, and public trust.
