Paraguayan President Santiago Peña resigns following Ueno Bank collapse

On Thursday, November 5, 2026, the President of Paraguay, 47-year-old Santiago Peña, announced his resignation following a deepening political and economic crisis triggered by the collapse of Ueno Bank. The crisis began on Tuesday when the Central Bank of Paraguay seized control of the digital financial institution due to a severe capital deficit, effectively locking nearly three million customers out of their accounts. The institution held approximately 850 million dollars in public funds, exacerbating public anger.

The situation led to widespread protests in the capital, Asunción, and intense pressure from both the political opposition and members of Peña's own Colorado Party. Opposition lawmakers initiated impeachment proceedings on Wednesday, citing conflict of interest and misconduct regarding the President's past business ties to the bank. In a video statement, Peña apologized to the public and stated that his departure was necessary to ensure national stability, social peace, and the protection of democratic institutions.

While the President has announced his departure, the country faces a volatile period as the Central Bank continues to manage the fallout of the bank's failure. Political instability persists as the government navigates the legal and economic consequences of the collapse, and citizens await further clarification on the accessibility of their frozen funds.