Paraguay President Santiago Peña Resigns Amid Ueno Bank Collapse
Paraguay's President Santiago Peña has resigned after the collapse of Ueno bank froze millions of accounts, tied up pension funds and triggered impeachment moves.
The update
Paraguay’s President Santiago Peña has resigned after the collapse of Ueno bank froze millions of customers’ accounts and triggered an impeachment drive against him. Peña announced his decision in a video message on social media on Thursday, apologising to Paraguayans and saying his resignation was meant to protect stability, social peace and democratic institutions. The digital lender’s insolvency this week froze all operations, leaving customers unable to access their money and bringing protesters onto the streets.
Why it matters
Peña was a shareholder in the company that owned Ueno until April 2025, and lawmakers accused him of conflicts of interest and misconduct. The bank held pension money: the Social Security Institute (IPS), which manages pension and health care funds for most Paraguayan workers, held $355 million there — 9 percent of its investments. Thirty-five opposition and ruling-party lawmakers filed impeachment articles in the 80-seat Chamber of Deputies, the lower house voted to pursue an impeachment trial, and Peña lost the support of Congress President Basilio Núñez and Colorado Party leader Horacio Cartes.
What to watch
Congress must now manage the succession and decide whether the impeachment process continues against a president who has already stepped down, while regulators work through Ueno’s insolvency and the question of when frozen deposits — including pension funds — will be released.
Sources
- bbc.co.uk — Peña’s video apology and resignation, the insolvency freeze and the lower house impeachment vote
- dw.com — the $355 million in IPS funds, the 35 impeachment articles, and the withdrawal of support by Núñez and Cartes
Correction (Nov 5, 2026): the featured image on this article was replaced with a photograph of President Santiago Peña; the image originally published was a generic breaking-news graphic that did not depict the story. The article text was also restored the same day after a technical error during that image correction briefly replaced it.
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