Paraguay president resigns and is impeached after Ueno Bank collapse

Paraguayan President Santiago Peña resigned on November 5, 2026 after the regulatory collapse of digital lender Ueno Bank froze deposits for nearly 3 million customers. Regulators seized the bank following severe capital shortfalls and unauthorized insider loans. The scandal triggered mass street protests, criminal charges against bank executives, and public abandonment by ruling Colorado Party leader Horacio Cartes. Shortly after Peña announced his exit, the lower house voted 78-0 to impeach him, setting up Vice President Pedro Alliana to assume office.

Santiago Peña resigns from presidency

• ▪Santiago Peña stated in a resignation video posted on X that he was stepping down to preserve national stability, social peace, and Paraguay's democratic institutions
• ▪Santiago Peña announced his resignation as President of Paraguay

Congress impeaches Santiago Peña

• ▪Vice President Pedro Alliana automatically assumes the Paraguayan presidency to complete Santiago Peña's constitutional term ending in August 2028
• ▪Paraguay's Chamber of Deputies voted 78-0 to impeach Santiago Peña
• ▪Under the Paraguayan Constitution, former presidents become lifetime senators with parliamentary immunity unless removed from office through impeachment

Colorado Party leaders endorse impeachment

• ▪Former President Horacio Cartes, leader of the ruling Colorado Party, publicly endorsed Santiago Peña's impeachment
• ▪Horacio Cartes stated that the Colorado Party would not support the plunder of public, private, and pension funds

Central bank seizes Ueno Bank

• ▪The Central Bank of Paraguay seized digital lender Ueno Bank
• ▪Regulators found that Ueno Bank extended uncollateralized loans to group-owned companies exceeding legal limits and misclassified bank expenses as assets

Santiago Peña's ties to Ueno Bank

• ▪Before his resignation, Santiago Peña appointed former Financiera Ueno head Carlos Carvallo to lead the Central Bank of Paraguay
• ▪35 opposition lawmakers and ruling-party dissidents accused Santiago Peña of serious and systematic dereliction of duty regarding his ties to Ueno Bank

Impact of Ueno Bank freeze and protests

• ▪Thousands of protesters clashed with riot police outside Paraguay's Congress in Asunción following the freeze on Ueno Bank savings and 7,000 affected bank jobs
• ▪Emergency legislation passed requires Paraguay's state deposit insurance fund to begin repaying smaller Ueno Bank accounts up to $1,600
• ▪Paraguay's central bank intervention into Ueno Bank frozen digital accounts, payment cards, and branch access for approximately 3 million Ueno Bank customers across Paraguay

Legal actions against Ueno Bank executives

• ▪A Paraguayan judge placed two Ueno Bank associates under house arrest on November 5, 2026, following criminal charges brought against bank officials
• ▪Paraguayan prosecutors charged 27 Ueno Bank associates with breach of trust and attempted fraud, resulting in court-ordered jail time for six bank executives