Paraguay president resigns and is impeached over bank collapse

Summarised from 8 outlets · Updated 5 Nov, 19:10 · Archive

Paraguay's President Santiago Peña resigned on Thursday and was impeached minutes later after the collapse of Ueno Bank froze millions of customers' accounts.

Paraguay's President Santiago Peña announced his resignation on Thursday amid mounting political pressure following the collapse of Ueno Bank, a digital lender that had grown into one of the country's largest financial institutions. The lower house of congress voted unanimously to impeach him minutes after his announcement. Vice President Pedro Alliana is set to take office.

Ueno Bank served approximately 2.94 million customers, roughly 60 per cent of Paraguay's adult population. The central bank ordered the bank into resolution or closure on Tuesday after determining its solvency ratio had fallen below half the required minimum. The intervention froze all customer accounts, leaving millions unable to access their savings, including pensioners who rely on those funds for living expenses.

The bank held substantial public funds. According to financial manager Gladys Vera, Paraguay's Social Security Institute, which manages pension and health care funds for most workers, held $355 million at the bank, representing about 9 per cent of its investments. The central bank said the bank held roughly $800 million in public-sector deposits, about a quarter of its total deposits, including money from operators of Paraguay's hydroelectric dams.

Lawmakers filed impeachment articles accusing Peña of conflicts of interest, misuse of pension funds and institutional cover-ups linked to Ueno. They cited two loans he received from the bank as evidence of improper financial gain. Peña sold his shares in Ueno Holding in April 2025, but had been a shareholder previously. The impeachment motion questioned his 2023 appointment of central bank chief Carlos Carvallo, who previously chaired Financiera Ueno. According to the articles, the central bank approved the company's conversion into a bank just 83 days after Carvallo's appointment.

The crisis sparked widespread public anger. Long lines of depositors attempting to withdraw money formed outside Ueno branches in Asuncion on Tuesday and Wednesday, while large protests demanding Peña's removal took place in the capital on both evenings. Paraguay's national football team released a letter demanding a forceful response from the government and justice system.

Peña announced his resignation in a video posted on social media, stating he was stepping down to protect stability, social peace and democratic institutions. "I want to apologise to the people if at any point I failed," he said. "It was never my intention to betray the trust you placed in me." His resignation followed the withdrawal of support by Congress President Basilio Nunez and ruling conservative Colorado Party leader Horacio Cartes. During the impeachment debate in congress, ruling party deputy Alejandro Aquilera said the party could not remain oblivious to the accusations, noting that over three million Paraguayans had been harmed and felt betrayed.

Ueno Bank had expanded rapidly under Peña's administration after receiving authorisation from the central bank in late 2023 to operate as a digital bank. It attracted customers with generous cash-back offers on groceries and sponsored Paraguay's national football team. Regulators investigating the bank found poorly documented lending and expenses wrongly accounted for as assets. Once corrected, the bank's capital fell below the legal minimum.

How it is being reported

• Paraguayan president resigns amid bank collapse leaving 3M people without access to bank accountsSantiago Peña resigned as president of Paraguay amid the Ueno Bank crisis and was later impeached over an alleged conflict of interest. Vice President Pedro Alliana will take office, while millions of Paraguayans wait to recover their deposits.Euronews · 5 Nov, 18:49
• Paraguay’s rightwing president resigns after savings of millions of people are frozen in banking crisisSantiago Peña’s administration had authorised Ueno Bank to drastically expand its operations before its collapse Paraguay’s rightwing president, Santiago Peña, resigned on Thursday after a political and financial crisis collapsed the South American country’s banking system in recent days. At the centre of the crisis is Ueno Bank, which in just a few years under Peña went from an obscure digital bank to one of the country’s largest lenders, claiming to have about 60% of Paraguay’s adult population as customers. Continue reading...The Guardian · 5 Nov, 18:48
• Paraguay's president is impeached minutes after resigning following a bank collapseParaguayan lawmakers voted to impeach President Santiago Peña minutes after his resignation, as the collapse of a digital bank tied to his government froze millions of people's savings.NPR · 5 Nov, 18:30
• Paraguay's president Peña impeached moments after resigning over banking scandalParaguay’s lower house voted unanimously to impeach President Santiago Peña on Thursday, just minutes after he announced his resignation on X. Protesters have rallied in the streets since the takeover of a bank linked to Peña blocked millions of people, including pensioners, from accessing their money.France 24 · 5 Nov, 17:33
• Paraguay President Pena resigns in wake of bank collapsePresident Pena, a Trump ally, had faced an impeachment motion and protests after the collapse of digital lender ueno.Al Jazeera · 5 Nov, 17:08
• Paraguay President Santiago Peña resignsThe move follows a bank collapse and after the lower house of congress voted in favour of pursuing an impeachment trial against him.BBC World · 5 Nov, 16:58
• Paraguay: President Pena resigns amid bank crisisParaguay's President Santiago Pena has resigned amid a crisis over his ties to collapsed lender Ueno. Millions of customers' accounts are frozen, with public pension and health care funds also tied up.DW News · 5 Nov, 16:28
• Paraguay bank crisis sparks impeachment bid, central bank turmoilParaguayan lawmakers filed impeachment charges against President Santiago Peña and Vice President Pedro Alliana related to the Ueno Bank collapse.UPI · 4 Nov, 18:16

In this story: Santiago Peña · Pedro Alliana · Ueno Bank · Paraguay · Colorado Party · Carlos Carvallo · Asuncion · Social Security Institute

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