Paraguay’s President Resigns Amid Ueno Bank Crisis
World
Paraguayan President Santiago Peña announced his resignation amid the crisis surrounding Ueno Bank. However, the Chamber of Deputies rejected his resignation and backed impeachment proceedings. Congress will now decide his political future. The crisis deepened.
Peña announced his decision on November 5 in a video posted on X. He said he was acting to protect the country’s stability, social peace and democratic institutions. He also apologised to Paraguayans who felt he had let them down, saying he had never intended to betray their trust. He identified the return of Ueno Bank customers’ savings as a priority.
The political crisis erupted after the Central Bank of Paraguay intervened in Ueno Bank. On November 2, the regulator unanimously initiated a resolution process after adjustments to the bank’s financial statements showed its solvency ratio had fallen below half the legal minimum. Administrators were appointed to oversee the process, and the bank’s services were suspended, leaving customers unable to access their accounts.
Ueno had about 2.9 million customers, roughly 60% of Paraguay’s adult population, according to the EFE news agency. It also managed an estimated $800 million to $850 million in public funds, including money belonging to pension and health funds. The central bank has begun deposit-guarantee payments. In the first phase, eligible customers with deposits of up to 10 million guaraníes can receive compensation, subject to the regulator’s conditions.
Opposition lawmakers accused Peña of a conflict of interest and misuse of public funds because of his previous business ties to a group linked to Ueno. The president denied wrongdoing. Reuters reported that he said he had sold his stake in Grupo Vázquez in March 2025.
The bank’s collapse triggered protests by depositors, pensioners and workers. The Chamber of Deputies rejected Peña’s resignation and approved impeachment proceedings. The Senate must now decide the outcome. Vice-President Pedro Alliana would succeed Peña only if the resignation is formally accepted under the constitutional process.
The political crisis erupted after the Central Bank of Paraguay intervened in Ueno Bank. On November 2, the regulator unanimously initiated a resolution process after adjustments to the bank’s financial statements showed its solvency ratio had fallen below half the legal minimum. Administrators were appointed to oversee the process, and the bank’s services were suspended, leaving customers unable to access their accounts.
Ueno had about 2.9 million customers, roughly 60% of Paraguay’s adult population, according to the EFE news agency. It also managed an estimated $800 million to $850 million in public funds, including money belonging to pension and health funds. The central bank has begun deposit-guarantee payments. In the first phase, eligible customers with deposits of up to 10 million guaraníes can receive compensation, subject to the regulator’s conditions.
Opposition lawmakers accused Peña of a conflict of interest and misuse of public funds because of his previous business ties to a group linked to Ueno. The president denied wrongdoing. Reuters reported that he said he had sold his stake in Grupo Vázquez in March 2025.
The bank’s collapse triggered protests by depositors, pensioners and workers. The Chamber of Deputies rejected Peña’s resignation and approved impeachment proceedings. The Senate must now decide the outcome. Vice-President Pedro Alliana would succeed Peña only if the resignation is formally accepted under the constitutional process.
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