Paraguay President Santiago Peña Resigns Amid Ueno Bank Collapse That Freezes Millions of Accounts

Paraguayan President Santiago Peña resigned on Thursday, November 5, 2026, following the collapse of digital lender Ueno Bank, which froze access to accounts for millions of customers and sparked a political and financial crisis. Peña announced the decision in a recorded video address, stating that he was stepping down with the stability of the country, social peace, and the preservation of democratic institutions in mind. The resignation came as lawmakers moved forward with impeachment proceedings and as protests continued in the capital, Asunción. Vice President Pedro Alliana is next in line to assume the presidency, though the process remained subject to further congressional action at the time of reporting. The Bank Collapse Paraguay’s central bank intervened in Ueno Bank earlier in the week after determining that the lender’s solvency ratio had fallen below half the legally required minimum. The intervention froze customer deposits, prevented access through the bank’s app, and halted transfers and withdrawals. Ueno, which had grown rapidly after receiving its banking license in 2023, reported roughly 2.9 to 3 million customers—equivalent to a large share of the country’s adult population of about 6.5 million. The freeze affected ordinary depositors, including pensioners, and disrupted access to wages and public funds held at the institution. Eight Ueno executives were detained as investigations proceeded, and the central bank chief resigned earlier in the week. Crowds formed outside closed branches, and demonstrations broke out demanding the return of funds. Peña’s Ties and Political Fallout Peña, a former International Monetary Fund economist and ally of U.S. President Donald Trump, had previously held shares in Ueno’s parent holding company, which he sold in 2025. Critics pointed to the placement of substantial public deposits at the bank during his presidency, the appointment of a former Ueno executive to lead the central bank, and questions of oversight. Opposition lawmakers and some members of Peña’s own Colorado Party withdrew support as the crisis deepened. Minutes after the resignation announcement, the lower house voted unanimously to approve impeachment proceedings against Peña. The Senate was expected to consider the resignation and related measures. Peña said he would participate in the proceedings and defend himself. Paraguay’s attorney general opened criminal investigations related to the bank’s collapse and the handling of public funds. Broader Impact The episode has raised questions about financial supervision, conflicts of interest, and public confidence in Paraguay’s banking system. The central bank stated that the intervention was intended to protect depositors and financial stability. Deposit insurance covers balances up to a certain threshold, though larger accounts face greater uncertainty as resolution proceeds. Protests reflected immediate hardship for households that relied on the frozen accounts for daily expenses. What to Watch Whether the Senate accepts Peña’s resignation or proceeds with impeachment. The transition of power to Vice President Pedro Alliana. Progress on restoring access to customer deposits and the resolution of Ueno Bank. Criminal investigations involving former officials and bank executives. Further protests or political realignment within the Colorado Party. Regional and international reactions to the crisis. President Santiago Peña’s resignation follows the collapse of Ueno Bank, which left millions of Paraguayans without access to their accounts and triggered impeachment proceedings and public unrest. The situation remains fluid as lawmakers address the political and financial fallout. Digital8Hub will track further developments in Paraguay.