Paraguay President Santiago Pena resigns amid banking crisis and protests
The resignation follows a Central Bank takeover of Ueno Bank that froze deposits for approximately three million people.
Paraguayan President Santiago Pena resigned on Thursday, November 5, 2026, after a banking crisis led to widespread chaos, according to The Hindu. The resignation follows the Central Bank's seizure of Ueno Bank two days earlier, which froze the deposits of about three million people, including pensioners.
Thousands of protesters gathered outside Congress in Asuncion on Thursday to demonstrate against Pena. Earlier protests involved clashes with police, who used water cannons and tear gas on the crowds. Protester Andres Maldonado told AFP that his family ran out of money and called Pena a criminal.
Lawmakers voted unanimously on Thursday to launch impeachment proceedings against Pena, alleging misconduct and a conflict of interest regarding his ties to the bank. Pena, who owned shares in a group that controlled the bank but sold them last year, said in a video on X that he did not intend to betray the trust of the people.
The Central Bank stated it took over Ueno Bank due to a severe capital shortfall to protect depositors and preserve financial stability. Pena had previously requested the resignation of Central Bank president Carlos Carvallo and set a five-day limit for the return of funds, but these measures did not resolve the situation.
An extraordinary session of Congress failed to reach a quorum on Thursday to decide on the resignation or the impeachment process. However, a later session scheduled the impeachment trial to begin on Friday, November 6, 2026.
Opposition lawmaker Raul Benitez alleged a criminal scheme was set up to drain the bank under the protection of institutions Pena controlled. Vice President Pedro Alliana is expected to take over as leader of the country.