Paraguay President Santiago Peña Announces Resignation Amid Ueno Banking Crisis as Impeachment Trial Looms

Paraguay President Santiago Peña Announces Resignation Amid Banking Crisis as Impeachment Trial Looms

ASUNCIÓN, November 6, 2026 (VoM News): Paraguayan President Santiago Peña has announced his resignation amid a financial crisis triggered by the Central Bank’s takeover of Ueno Bank, which froze deposits belonging to around three million customers and sparked widespread protests across the country.

Peña announced his decision in a video message posted on X on Thursday, apologising to the public and saying he never intended to betray the trust placed in him. He added that his priority was restoring confidence among Paraguayans who had deposited their savings in the country’s banking system.

However, his resignation has not yet received parliamentary approval, leaving him technically in office.

The crisis intensified after the Central Bank seized Ueno Bank earlier this week, citing a severe capital shortfall and the need to protect depositors and maintain financial stability. The move left millions, including pensioners, unable to access their deposits.

Thousands of protesters gathered outside Congress in the capital, Asunción, demanding the return of their money and Peña’s departure. Earlier demonstrations witnessed clashes with police, who used tear gas and water cannons to disperse crowds.

Lawmakers unanimously approved the launch of impeachment proceedings against Peña, accusing him of misconduct and a conflict of interest involving the bank. The president previously held shares in a group controlling Ueno Bank but sold them last year.

An extraordinary parliamentary session called to decide whether to accept his resignation failed to reach a quorum. A subsequent session scheduled the impeachment trial for Friday morning.

Peña has said he will attend the proceedings. Vice President Pedro Alliana is expected to assume the presidency if the resignation is formally accepted or Peña is removed from office.

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