Santiago Peña steps down amid Ueno Bank crisis that rattled Paraguay
Asunción, November 5, 2026 — Facing the collapse of Ueno Bank, surging public unrest, and an impending impeachment vote, Paraguayan president Santiago Peña announced his resignation on Thursday. His departure plunges the country into deeper political and financial uncertainty, with millions of depositors still seeking access to their frozen savings.
Ueno Bank’s implosion: from financial shockwave to national emergency
Paraguay’s central bank seized Ueno Bank after discovering severe solvency issues, triggering a crisis that escalated from a banking scandal to a full-blown national emergency. With nearly three million account holders in a population of just six million, the sudden closure left depositors unable to access funds, triggering immediate street protests and deepening social unrest.
The bank’s collapse took a far greater toll. Ueno Bank managed billions in public funds, including retirement pensions and social security payments. The freeze on withdrawals became a crisis of confidence in the nation’s entire financial system.
Public outrage ignites across Asunción
Pensioners, workers, and savers took to the streets, demanding accountability and immediate restitution. To many, the crisis wasn’t just about a single bank—it was a systemic failure of oversight and trust in institutions meant to protect their hard-earned money.
Shadows over leadership: Peña’s past ties fuel political backlash
The resignation comes amid growing scrutiny of President Peña’s former business links to the group that once controlled Ueno Bank. Though he sold his stake in 2025, questions persist about whether personal connections influenced regulatory decisions, allowed excessive risk exposure, or delayed necessary interventions.
The opposition has accused the president of prioritizing private interests over public welfare, particularly in handling the bank’s financial risks. These claims have eroded confidence in his leadership and contributed to the rapid erosion of political support.
Central bank chief resigns as scrutiny intensifies on supervisory failures
The crisis claimed another high-profile resignation: Carlos Carvallo, governor of Paraguay’s central bank, stepped down following criticism over his past executive role at Ueno Bank. His departure raised fresh concerns about the independence and effectiveness of financial oversight in the country.
Parliament moves to impeach as political support crumbles
Opposition lawmakers escalated pressure on Thursday by launching an impeachment procedure against President Peña and Vice President Pedro Alliana. Support crumbled within the ruling Colorado Party, stripping Peña of crucial backing just days before the vote.
Less than an hour after Peña’s resignation announcement, the Chamber of Deputies voted to impeach him, as confirmed by parliamentary records. The Senate is now set to review the charges under constitutional procedures.
Pedro Alliana inherits a nation on the brink
With Peña’s exit, Vice President Pedro Alliana will take the helm during one of Paraguay’s most volatile periods in decades. His immediate priorities include restoring public trust, guaranteeing depositor reimbursements, securing public funds, and clarifying accountability in the Ueno Bank collapse.
Government officials have pledged expedited payouts to affected depositors and launched judicial investigations into bank executives. Yet beyond the immediate emergency, the crisis raises a critical question: how did Paraguay—long touted as a model of economic stability—end up facing such a catastrophic institutional failure?
What comes next for Paraguay?
For Peña, this marks the abrupt end of a presidency overshadowed by scandal. For Paraguay, it signals a delicate transition where rebuilding public confidence may prove as vital as stabilizing the economy.
The fallout from this crisis could reshape the country’s political landscape for years to come, leaving a legacy of reform—or lingering distrust.
