Paraguayan President Santiago Peña has resigned following the intervention of digital lender Ueno Bank, which left nearly three million customers unable to access their accounts and triggered widespread protests and calls for his removal.
Peña announced his resignation on Thursday, November 5, saying he was stepping down to protect national stability, social peace and the country’s democratic institutions.
“I do so with the stability of our country, social peace and the need to preserve our democratic institutions in mind,” he said in a recorded address.
The resignation came as pressure mounted on the president, with opposition lawmakers pushing for impeachment proceedings and members of his own conservative Colorado Party withdrawing their support.
The crisis erupted after Paraguay’s central bank intervened in Ueno Bank, initiating a resolution process after discovering that the digital lender’s solvency ratio had fallen below half the legally required minimum.
The intervention left approximately three million customers, representing a significant portion of Paraguay’s 6.5 million population, unable to access their savings and other funds.
Ueno had rapidly expanded into one of the country’s major financial institutions, reportedly holding between $800 million and $850 million in public-sector funds, including money linked to state pension and healthcare institutions.
The bank’s crisis also raised questions about Peña’s previous business connections to its parent company, Grupo Vázquez. The president had been a shareholder in the group until March 2025, prompting lawmakers to accuse his administration of conflicts of interest, misuse of pension funds and attempts to cover up irregularities.
Peña denied wrongdoing, while promising that those responsible for financial irregularities would face justice. He also called for the recovery of depositors’ funds and the protection of public money.
The crisis has resulted in the detention of several Ueno executives as prosecutors investigate suspected financial misconduct. The central bank chief had also resigned earlier in the week following the controversy.
In a further political development, Paraguay’s lower house voted 78–0 to approve impeachment proceedings against Peña shortly after he announced his resignation. The matter was subsequently referred to the Senate.
Vice President Pedro Alliana is expected to succeed him, although the formal transition remains subject to the constitutional process surrounding Peña’s resignation and impeachment.
The banking crisis has shaken confidence in Paraguay’s financial system, with protesters demanding the return of their savings and accountability from officials connected to the bank’s intervention.