Paraguay’s Peña resigns after Ueno collapse as lawmakers pursue impeachment

Paraguay’s president, Santiago Peña, announced his resignation on November 5, 2026, after the collapse of Ueno Bank left millions of customers unable to access their money and prompted protests in Paraguay. Lawmakers subsequently approved impeachment charges against him and sent them to the Senate.¹²³

Resignation and impeachment

Peña said he was leaving office to safeguard the country’s stability, maintain peace and protect democratic institutions. “It was never my intention to betray the trust you placed in me,” he said. According to the BBC, lawmakers accused him of misconduct and conflicts of interest, allegations he rejected.¹²

NPR reported that the lower house voted 78-0 to send the charges to the Senate. Support for impeachment extended to Peña’s Colorado Party: its leader, former president Horacio Cartes, said removing Peña was necessary to re-establish institutional order, according to the Guardian.²³

The proceedings could affect Peña’s legal protections after leaving office. Opposition senators told NPR that accepting his resignation could allow him to become a senator for life and shield him from prosecution. The Guardian reported that Senate approval of impeachment would strip him of a Senate seat and parliamentary immunity.²³

Reports differed on the stage of the succession. The Guardian said Vice-president Pedro Alliana automatically took over, with the term running through August 2028. NPR reported that congressional leaders were expected to accept the resignation before Alliana was sworn in.²³

Frozen accounts and public money

Ueno reported a client base of approximately three million people, a figure equal to around three-fifths of Paraguay’s adults. The Guardian reported that the central bank placed the lender into resolution because of insolvency and froze customer deposits. The BBC said all operations had been suspended through an insolvency process.¹²³

Public institutions were also exposed. According to NPR, Ueno reported holding about $800 million in public deposits, roughly a quarter of its total. The Guardian put deposits from state and pension bodies at between $800 million and $850 million.²³

The BBC reported that Peña remained a shareholder in the bank’s parent company until last year. Peña said his involvement consisted of an investment in Ueno Holding and that he had sold all his shares. According to the Guardian, he dismissed reports of preferential treatment as a media effort to undermine his administration.¹³

Investigations and repayment

NPR’s account of inspections said Ueno lent substantial amounts to businesses linked to its owners, exceeding legal limits and lacking sufficient collateral. The central bank said corrections to the bank’s accounts reduced its capital to below half the statutory minimum. A lawyer for bank president Juan Manuel Gustale disputed assigning individual lending decisions to the president or board.²

NPR reported that prosecutors brought breach-of-trust and attempted-fraud charges against 27 people connected to the bank, including officials. Congress approved a depositor repayment process, the BBC reported. NPR said the central bank estimated deposit insurance would reimburse the entire balances of 97% of customers, with eligible small accounts first in line.¹²