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Paraguayan President Santiago Peña announced his resignation on November 5 in a video message distributed on social media as Congress prepared to debate his impeachment over the collapse of Ueno Bank. “I have made the decision to submit my resignation from the Presidency of the Republic. I do so with the stability of our country, social peace, and the need to preserve our public institutions in mind,” he said in the statement carried by CNN and other outlets. Peña added that he wanted to apologize if he had failed the people at any point and that it was never his intention to betray their trust while stressing that his priority was reassuring those who had placed savings in the financial system.
The move came after the lower house of Congress began an extraordinary session to consider charges of serious dereliction of duty brought by 35 lawmakers including members of his own Colorado Party with all blocs indicating they would support launching the impeachment process. Vice President Pedro Alliana is positioned to assume the presidency once Congress accepts the resignation according to reports from Bloomberg and Reuters. The resignation halts what appeared to be an inevitable removal from office following days of street protests over the bank’s failure.
Paraguay’s Central Bank had intervened in Ueno Bank on November 3 after determining that the lender’s solvency ratio had fallen below 50 percent of the legal minimum following adjustments to its financial statements. The action froze operations for roughly 2.9 million customers in a country of approximately 6.1 million people leaving many unable to access deposits including pension payments. Ueno Bank had been managing around 850 million dollars in public funds among them 355 million dollars from the Instituto de Previsión Social that oversees worker pensions and healthcare.
The bank which had expanded quickly as a digital platform and sponsored local football teams including the national squad had been unable to meet a required reserve of about 70 million dollars according to regulatory findings reported across regional media. Eight senior executives including CEO and founder Miguel Vázquez were arrested as authorities opened an investigation into possible financial misconduct. The Central Bank of Paraguay emphasized that the resolution process would allow for potential transfer of deposits to healthier institutions before any final liquidation.
Peña who won election in 2023 as the candidate of the conservative Colorado Party had maintained business ties to the Grupo Vázquez conglomerate that owned Ueno Bank serving as a shareholder until March 2025. He had also appointed a former Ueno executive to lead the Central Bank a decision that fueled opposition accusations of conflicts of interest and regulatory lapses. Lawmakers further alleged misuse of public pension resources and institutional cover-ups in the months leading to the bank’s intervention.
The crisis has shaken confidence in one of South America’s faster-growing economies which has drawn foreign investment and deepened ties with the United States as highlighted in coverage by The Wall Street Journal. Protesters demanded accountability while the government moved to activate the deposit guarantee fund that is expected to cover the vast majority of private accounts. Officials have pledged to ensure the return of public funds to protect pensioners and state resources amid the unfolding economic fallout.
