Paraguayan President Santiago Peña announced plans to resign as lawmakers advanced impeachment proceedings amid a banking crisis tied to Banco Ueno. (Foto: Instagram)
Paraguayan President Santiago Peña announced Thursday, Nov. 5, that he had decided to resign, as lawmakers moved forward with impeachment proceedings against him. The announcement came amid political and banking turmoil following the closure of Banco Ueno, Paraguay’s largest digital bank. Peña said his decision was intended to protect the country’s stability and democratic institutions, but Congress must decide whether to accept his resignation.
In a statement posted on social media, Peña said he had decided to submit his resignation as president. He cited the country’s stability, social peace and the need to preserve democratic institutions, adding that he was acting with respect for Paraguay’s Constitution and its democratic and institutional processes.
Peña still must formally submit his resignation to Congress, which will determine whether to accept it. If lawmakers reject the resignation, they could continue the impeachment process. Paraguay’s Chamber of Deputies approved opening impeachment proceedings against Peña on Thursday. The request was filed by 35 lawmakers after the banking crisis surrounding Banco Ueno.
The bank’s collapse has particular significance for Peña: The economist by training was a shareholder in Ueno Holding until March 2025. The holding company is connected to the group that controls Banco Ueno. The crisis also affected the leadership of the Central Bank of Paraguay. Carlos Carvallo, who had led the monetary authority since 2023, resigned. Before taking that position, Carvallo had served as president of Banco Ueno.
The Central Bank of Paraguay ordered Banco Ueno’s closure on Nov. 3, deeming it insolvent, meaning it could not meet its financial obligations. The regulator suspended the bank’s operations and began a resolution process for the digital lender.
Paraguay’s Public Prosecutor’s Office also requested a criminal investigation into the bank and sought the arrest of two of its executives. The investigation concerns suspicions about the bank’s management and loans made to companies tied to its controlling group. Those loans may have compromised the bank’s assets, according to the allegations under investigation.
