PARAGUAY PRESIDENT ANNOUNCES RESIGNATION AS BANK COLLAPSE SPARKS POLITICAL CRISIS
Paraguay’s President Santiago Peña announced his resignation on Thursday, 5 November, following the collapse of Ueno Bank, which left millions of customers unable to access their money and triggered protests.
The announcement came as Peña lost support within his ruling Colorado Party and faced mounting pressure from lawmakers seeking his removal.
However, his resignation had not yet taken legal effect. A joint congressional session called to consider it failed to reach a quorum, leaving him formally in office as impeachment proceedings advanced.
All 78 lawmakers present in the Chamber of Deputies voted to send the impeachment case to the Senate.
The crisis erupted after the central bank intervened in Ueno, a digital lender with approximately 2.9 million customers. The bank held substantial public deposits, including pension funds.
Lawmakers accused Peña of conflicts of interest and shielding the bank from scrutiny. He denied wrongdoing and said he had sold his stake in the bank’s former owner in March 2025.
Peña said his resignation was intended to protect national stability and democratic institutions. He subsequently confirmed that he would defend himself before the Senate.
Vice President Pedro Alliana would be next in line should Peña’s resignation be accepted or the Senate remove him.