Politics · Other · 2 hrs ago
Paraguay president resigns as lawmakers vote to impeach him after bank collapse
Paraguay’s President Santiago Peña resigned on Thursday after the collapse of Ueno Bank triggered a political crisis.
The bank, a major digital lender, was seized by the central bank after it was found to be insolvent, leaving about three million customers unable to access their accounts.
The lower house voted unanimously to impeach Peña minutes after he announced his resignation, and the case now goes to the Senate, where a two-thirds majority is needed to convict him.
Lawmakers accused Peña of conflicts of interest because he held a stake in a company linked to the bank until last year; he has rejected suggestions of wrongdoing.
The bank’s collapse froze millions of people’s savings, including public and pension funds, and protests followed in the capital, Asunción.
Vice-President Pedro Alliana was expected to take office later Thursday and serve the rest of Peña’s term through August 2028.
Congress approved a process to pay depositors, but the sources do not say when customers will regain access to their money.
Paraguay President Santiago Peña resigned on Thursday after the collapse of Ueno Bank triggered a political crisis.
The bank’s insolvency process froze access to accounts for about 3 million customers, according to reports.
Peña faced impeachment efforts and accusations of conflicts of interest linked to his past shareholding in the company that owned the bank.
He said he resigned to protect the country’s stability, social peace and democratic institutions.
Vice President Pedro Alliana is set to replace him, according to Al Jazeera.
- Who
- Santiago Peña, president of Paraguay, resigned.
- What
- He announced his resignation after Ueno Bank’s collapse and amid impeachment efforts.
- When
- Thursday, 5 November 2026.
- Where
- Paraguay.
- Why
- Peña said he wanted to protect stability, social peace and democratic institutions. Lawmakers accused him of conflicts of interest and misconduct linked to the bank.
Peña
Opposition lawmakers and protesters
Bank-related responsibility
Peña
Peña rejected suggestions of impropriety and said he had made an investment and disposed of his shares.
Opposition lawmakers and protesters
Lawmakers accused him of conflicts of interest and misconduct linked to the bank’s collapse.
Response to resignation
Peña
Peña said he resigned to protect stability, social peace and democratic institutions.
Opposition lawmakers and protesters
Some protesters urged Congress not to accept his resignation because they wanted him tried and impeached.
Grupo Vázquez bought Ueno, which had begun as a finance company in the 1970s.
Ueno received central bank authorisation to operate as a digital bank.
Paraguay’s central bank ordered Ueno into resolution over insolvency, freezing customers’ deposits.
Opposition lawmakers and members of Peña’s party filed an impeachment motion.
Peña announced his resignation in a video message.
- Customers
- About 3 million
- Share of adult population
- About 60%
- Public funds held
- Close to $850 million, according to Al Jazeera
- Central bank action
- Ueno was placed into an insolvency resolution process
- Successor
- Vice President Pedro Alliana
6 sources
Paraguay’s rightwing president resigns after savings of millions of people are frozen in banking crisis
Paraguay's president is impeached minutes after resigning following a bank collapse
Paraguay President Santiago Peña resigns after bank collapse
Paraguay's president Peña impeached moments after resigning over banking scandal
Paraguay President Pena resigns in wake of bank collapse
Paraguay’s President Pena resigns under mounting pressure from bank collapse
What people are saying
It was never my intention to betray the trust you placed in me.
I do so thinking of the stability of our country, social peace and the need to preserve our democratic institutions
We will not stand on the side of the theft of public, private and pensioners’ funds.
the biggest fraud carried out from political power in the democratic era