Santiago Peña steps down amid national financial turmoil
Asunción, 5 November 2026 — Paraguay’s president, Santiago Peña, has resigned following the collapse of Ueno Bank, weeks of mass protests, and an impending impeachment vote. His departure plunges the nation into uncharted political and economic instability as millions of depositors remain locked out of their savings.
In a national address, Peña cited the need to restore national stability and public trust as the reasons for his abrupt exit. « The preservation of Paraguay’s democratic institutions and social peace must take precedence, » he stated. The announcement came just hours before parliament prepared to vote on his removal.
The Ueno Bank collapse: a financial earthquake with political aftershocks
The crisis began when Paraguay’s central bank intervened to suspend operations at Ueno Bank, once the country’s third-largest financial institution, serving nearly three million customers in a nation of six million people.
Regulators revealed that Ueno Bank’s solvency ratio had fallen below the 50 per cent regulatory threshold, rendering it unable to meet withdrawal demands or fulfill payment obligations. The immediate effects were devastating: customers suddenly lost access to accounts, salary payments stalled, and public funds—including pension and social security deposits—were frozen.
In Asunción and other cities, depositors took to the streets in growing numbers. Retirees, workers, and small business owners joined demonstrations, not only protesting the loss of savings but also questioning the competence and integrity of the institutions meant to safeguard their money.
Public funds at risk: the unseen dimension of the crisis
What began as a banking scandal soon took on national significance. Ueno Bank had managed billions in public funds, including state pension reserves and social security payments. The freeze on these accounts affected hundreds of thousands of Paraguayan families who rely on monthly disbursements for survival.
As the crisis deepened, so did public anger. Social media became a platform for outrage, with hashtags like #AdóndeEstáMiDinero (Where is my money?) trending nationwide. The loss of faith in state institutions spread far beyond the banking sector.
Conflict of interest allegations fuel political fire
The president’s past ties to Ueno Bank’s parent company have intensified scrutiny. While Peña sold his shares in 2025, opposition leaders allege that his administration delayed regulatory action and failed to act on multiple early warnings about the bank’s deteriorating financial health.
Critics accuse him of favouring private interests over public welfare—charges that gained credibility after the resignation of Carlos Carvallo, the central bank governor, who had previously led Ueno Bank. His exit, along with other high-profile departures, has raised serious questions about regulatory oversight and institutional independence.
Parliament moves to impeach as political alliance crumbles
The final domino fell when the opposition formally initiated impeachment proceedings against Peña and his vice president, Pedro Alliana. The move came after key figures in the ruling Colorado Party withdrew their support, effectively stripping Peña of his parliamentary majority.
On the day of the resignation, the Chamber of Deputies voted to impeach Peña. The Senate is now expected to review the case in the coming days. His resignation, announced in the evening, momentarily halted proceedings—but not before cementing his legacy as the leader who presided over the country’s worst financial disaster in decades.Pedro Alliana inherits a nation in crisis
With Peña’s resignation, Alliana assumes the presidency at a historic low point. His immediate priorities include restoring financial stability, ensuring the repayment of depositors—particularly vulnerable retirees—and launching a full judicial inquiry into Ueno Bank’s collapse.
Government officials have pledged emergency measures to expedite refunds and guarantee public fund withdrawals. Investigators are expected to examine potential financial misconduct, insider deals, and regulatory failures that may have contributed to the disaster.Yet the deeper question remains: How could a country long seen as a model of economic stability and investor confidence suffer such a dramatic institutional failure?
For Peña, the collapse ends a presidency consumed by scandal. For Paraguay, the road to recovery will be long—and trust, once broken, is not easily restored.
The ripple effect: a nation at a crossroads
The resignation of Santiago Peña marks more than the end of an administration. It signals a turning point for Paraguay’s political and economic future. As investigations unfold and public anger simmers, the outcome could reshape the country’s democratic landscape for years to come.
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