Paraguay President Peña Resigns Amid Ueno Bank Crisis

Paraguay entered a political crisis Thursday, November 5, 2026, after President Santiago Peña submitted his resignation amid mounting pressure over the collapse of Ueno Bank. The private bank's financial troubles left millions of customers unable to access their money and prompted lawmakers to begin impeachment proceedings against the president.

Congress must now decide whether to accept or reject Peña's resignation. The controversy centers on the bank's financial stability and its connections to the president's administration, which has faced scrutiny over public funds deposited at the institution.

Peña announced his decision in a social media message, citing national stability, social peace and the protection of public institutions as his priorities.

"I have made the decision to submit my resignation from the Presidency of the Republic. I do so with the stability of our country, social peace, and the need to preserve our public institutions in mind," said Peña.

The president also addressed customers whose savings were affected by the bank's crisis, emphasizing the importance of restoring confidence in the country's financial system.

"Today my priority is only one thing: the peace of mind of the Paraguayans who entrusted their savings to our financial system," he added.

Peña also acknowledged the political consequences of the unfolding crisis and expressed regret over his performance in office.

"History will judge and give due consideration to the events we are experiencing today," Peña said. "I apologize to the people if I have failed them at any time."

The resignation came as Paraguay's Chamber of Deputies convened a special session Thursday to consider charges filed by 35 opposition lawmakers and members of the ruling party who broke ranks.

The lawmakers invoked Article 225 of Paraguay's Constitution, which establishes the procedure for impeaching a president. Their allegations include serious and systematic neglect of official duties and call for Peña's removal from office.

Peña took office in August 2023 for a five-year presidential term. The impeachment initiative emerged as the Ueno Bank controversy intensified and raised questions about the administration's relationship with the financial institution.

Ueno Bank had approximately 2.9 million customers in a country with a population of 6.1 million, according to figures cited by CNN. The Central Bank of Paraguay determined that the institution's solvency ratio had fallen below 50% of the legally required minimum.

According to the Central Bank of Paraguay, the decline resulted from adjustments made to the bank's financial statements during its regularization process.

The authorities subsequently initiated resolution or dissolution proceedings, leaving thousands of customers unable to access their savings. The situation triggered widespread concern over the institution's financial condition.

The controversy also involves the bank's relationship with public institutions. During Peña's administration, Ueno Bank received millions in funds from government entities, including the Social Security Institute (IPS), which manages pension funds for most Paraguayan workers.

The president had also been linked to the private financial institution, placing his administration under scrutiny as the banking crisis developed. CNN said it contacted the presidency before Peña announced his resignation to seek a response to the allegations.