In brief
On Thursday, November 5 2026, President Santiago Peña resigned in Asunción after the digital lender Ueno Bank imploded, leaving millions of customers without access to deposits. Lawmakers quickly filed impeachment motions against Peña and Vice‑President Alliana, while the Central Bank of Paraguay began resolution proceedings. The crisis also prompted the resignation of the central bank chief and the arrest of eight Ueno executives.
On Thursday, November 5 2026, Paraguayan President Santiago Peña announced his resignation in a video posted on X, saying he stepped down "to safeguard national stability, social peace and democratic institutions" as the collapse of digital lender Ueno Bank left millions of customers unable to reach their accounts.
In the same address, Peña apologized to the public and expressed hope that depositors’ savings would be returned and that public funds were protected, a sentiment echoed in local media reports.
Central Bank Intervention
The Central Bank of Paraguay began resolution proceedings on Tuesday, two days before Peña’s resignation, after finding Ueno Bank’s solvency ratio had fallen to less than half the required minimum.
Its intervention forced Ueno’s applications and cards to stop functioning, halting access for roughly 3 million customers in a country of 6.5 million people, according to local media.
Political Fallout
A group of 35 lawmakers submitted a proposal to initiate impeachment proceedings against Peña and Vice‑President Pedro Alliana on Wednesday, accusing the president of conflicts of interest stemming from his former stake in Ueno Holding.
Peña, who took office in August 2023 for a term that would end in 2028, held shares in Ueno Holding until 2025.
Former President Horacio Cartes, Peña’s political mentor and leader of the ruling Colorado Party, announced support for impeachment the same day Peña stepped down, intensifying the political pressure.
At Peña’s request, the Central Bank chief Carlos Carvallo resigned, and prosecutors ordered the arrest of eight Ueno Bank executives, who were subsequently detained, according to local media.
Vice‑President Pedro Alliana is set to succeed Peña as president, a development confirmed by Al Jazeera’s coverage of the proceedings.
Al Jazeera’s Latin America editor Lucia Newman criticised “neglect and complicity in covering up the fact that the bank was insolvent,” adding that Congress was "trying to impeach the president and the vice‑president, this session is underway." She noted that some people outside the parliament urged that the president not be accepted as resigned so the impeachment could proceed.
In his video, Peña stated, "My greatest wish is that the return of those funds be guaranteed, that the deposit guarantee fund fulfill its purpose, and that public funds – as well as the resources that belong to all Paraguayans – be protected."
"I do so with the stability of our country, social peace and the need to preserve our democratic institutions in mind," he added, echoing the sentiment expressed in the Xinhua report.
While Ueno has yet to issue a public statement, the bank’s rapid ascent from a niche fintech player to a mid‑tier bank that administered close to $850 million in public funds has drawn scrutiny and contributed to the crisis’s severity.
Lawmakers accused Peña of misuse of pension funds and institutional cover‑ups linked to the collapse, thrusting the nation into a political impasse that may see the president’s resignation formally reviewed in Congress.
As the country braces for further developments, the resolution process for Ueno Bank will determine whether the deposits of its millions of customers can be restored and whether Paraguay’s banking system will remain stable.
