In brief
President Santiago Peña resigned Thursday as the digital lender Ueno collapsed, leaving millions of Paraguayans unable to access their money. Lawmakers moved quickly to impeach him and his vice president, Pedro Alliana, while the central bank began resolution proceedings for the failed bank. The crisis also saw the arrest of eight Ueno executives and the resignation of the central bank chief.
On Thursday, November 5, 2026, Paraguay’s President Santiago Peña announced his resignation as the country plunged into a crisis after the digital lender Ueno Bank collapsed and froze the accounts of almost 3 million customers, roughly half the nation’s population.
In a video posted to X, Peña said, “I have decided to submit my resignation as president of the republic,” and added that he hoped depositors’ savings would be returned and public funds protected.
“I do so with the stability of our country, social peace and the need to preserve our democratic institutions in mind,” Peña told viewers in a recorded address.
Peña’s statement followed a growing outcry over his former stake in Ueno Holding until 2025, which lawmakers say created a conflict of interest that helped the bank grow into a mid‑tier lender handling close to $850 million in public funds.
Isaac Manuel, a senior lawmaker, said the 35‑member group had already submitted a proposal to start impeachment proceedings against Peña and Vice President Pedro Alliana. The petition was welcomed by former President Horacio Cartes, who publicly urged Congress to vote for removal.
Alliana was slated to take office after Peña stepped down, but the impeachment motion still requires a vote. Critics argue that averting the president’s resignation could result in a more forceful removal if the Congress moves quickly.
The Central Bank of Paraguay announced that it had begun resolution proceedings for Ueno after determining the bank’s solvency ratio had fallen below the required minimum. The intervention caused the bank’s card and app services to shut down, leaving millions of users without access.
Prosecutors ordered the arrest of eight Ueno executives, all of whom were later detained. At Peña’s request, the central bank chief Carlos Carvallo resigned, signaling a broader shake‑up in the country’s financial oversight.
