Paraguay President Santiago Peña resigns amid banking crisis and protests
The resignation follows the collapse of Ueno Bank SA, which has locked millions of depositors out of their accounts.
Paraguay President Santiago Peña resigned on Thursday, November 5, 2026, following a banking crisis and three days of protests, according to reports from Hindustan Times and Pragativadi.
The crisis was triggered by the collapse of Ueno Bank SA, a digital lender that manages accounts for more than three million customers, representing nearly half of the country's population.
The Central Bank intervened in the lender due to a severe capital shortfall, an action aimed at protecting depositors and preserving financial stability.
The bank also manages millions of dollars in state funds and pension funds.
Peña announced his resignation in a video on X, stating he was stepping down to preserve the country's stability, social peace, and democratic institutions.
He offered an apology to the people but did not accept responsibility for the crisis, noting his priority was ensuring depositors recovered their savings.
The political situation escalated after opposition lawmakers moved to impeach Peña for alleged misconduct and conflict of interest, noting his previous links to the group controlling the bank.
Central Bank President Carlos Carvallo, who previously chaired Ueno Bank, resigned on Tuesday at the request of Peña.
Protests have occurred in Asuncion and Ciudad del Este as depositors, including pensioners, have been unable to access their money.
Peña has enacted a law to allow savers to withdraw part of guarantee funds in the shortest possible time.