Paraguay's President Peña offers to resign after Ueno Bank collapse; Congress presses on with impeachment

Who's saying what

• President Santiago Peña

  He said he resigned with "the stability of our country, social peace and the need to preserve our democratic institutions in mind", and that his "greatest wish is that the return of those funds be guaranteed". He says he sold his stake in the bank's parent company in 2025 and that he will cooperate with investigators. After the resignation stalled he said: "I will appear and exercise my right to a defence."¹⁹

• The accusers in the Chamber of Deputies

  The charges allege poor performance of his duties, citing conflict of interest and his past stake in the bank's parent company. Opposition deputy Rocío Vallejo, one of the prosecutors, said the central bank gave Ueno "an immediate death sentence" without prior intervention (translated from Spanish). Lawmakers also question whether there was an institutional cover-up.¹²

• The Colorado Party leadership

  Former president and party leader Horacio Cartes backed the impeachment and said the party would not side with "the theft of public, private and pension funds". The Chamber rejected impeaching Vice President Pedro Alliana, 48 votes to 30, and the party has chosen him as its successor to Peña.¹⁴⁶

• Opposition senators

  Senator Esperanza Martínez called the crisis a "telenovela" and accused the ruling party of trying to shield Peña from prosecution. Opposition senators also filed a criminal complaint against Peña, central bank officials and ministers, alleging illicit enrichment and influence peddling.³⁶

• The central bank

  Board member Liana Caballero said: "We proceeded to close the entity" (translated from Spanish). The bank says 97% to 98% of retail savers should recover all their deposits. Critics say it did not regulate Ueno properly.¹⁵

• Prosecutors

  The attorney general ordered three criminal investigations, covering oversight of the lender and the placement of public funds, and on 5 November opened a new case against Peña; MercoPress reported no formal charges against him yet. Separately, 27 people have been charged over the bank, including eight senior executives. None has been convicted.¹⁵⁶⁹

• Ueno Bank

  Al Jazeera reports the bank has made no public statement.¹

What's next

The Senate summoned Peña or his defence for 10:00 on 6 November. He asked for 72 more hours, saying less than 12 was not enough; accusing deputy Rodrigo Blanco said the full Senate must decide. Senate president Basilio Núñez said the trial could end that day. No verdict had been reported when this was last checked. Removal needs 30 of 45 senators. If removed, Peña would lose the lifetime Senate seat and its immunity, and Alliana would be expected to serve until August 2028. For savers, Law 7745 allows an advance of up to 40 minimum wages, about 121.7 million guaraníes; the central bank began paying a first group on the night of 5 November, capped at 10 million guaraníes, about $1,565. Protests continue in Asunción, where clashes with police left at least one person injured.²³⁵⁷⁸⁹

The full story

Paraguay is in a banking and political crisis. Ueno Bank, a digital lender with about 2.9 million clients and close to $850 million in public funds, was closed by the central bank after its capital fell below half the legal minimum, leaving many people without access to savings and pensions. Lawmakers accuse President Santiago Peña, who once held a stake in the bank's parent company, of a conflict of interest; he says he sold it in 2025. He offered to resign on 5 November, but Congress did not accept it, and the Senate has opened an impeachment trial that needs 30 of 45 votes to remove him. Savers have begun to receive first emergency payments.

checked Nov 6, 2026