Paraguayan President Santiago Peña resigned on Thursday, November 5, 2026, only for Congress to reject the maneuver and press ahead with impeachment proceedings. The abrupt political crisis followed the spectacular collapse of digital lender Ueno Bank, an unravelling that froze the savings of millions of customers and instantly severed the conservative politician’s ties with his own ruling Colorado Party.
A Rapid Rise and Sudden Freezing of Public Funds
The political explosion erupted earlier in the week when the central bank ordered Ueno into resolution. Inspectors discovered its capital had plummeted to less than half the legal minimum. It claimed about 60% of Paraguay’s adult population as customers, administering close to $850m in public funds. Some three million people lost access to bank accounts. The bank’s collapse also left 7,000 employees impacted by unpaid wages.
Here in #Taiwan, watching with concern the growing financial and political crisis in #Paraguay, the one country in South America that has diplomatic relations with the Republic of China 🇹🇼.#TaiwanCanHelp? If it doesn’t, China might offer to.https://t.co/gtR4YNDiCL
Peña Defends Departure by Citing Institutional Stability
In a recorded address, Peña defended his departure by pointing to institutional stability.
Dear compatriots, today I address you at one of the most difficult moments of my life,
Peña said in the video message.
[Paraguay’s president quits after millions of people’s savings frozen in bank crisis] “Santiago Peña’s rightwing administration had authorised Ueno Bank to drastically expand operations before collapse“https://t.co/yuycS6Kl3g””
I do so with the stability of our country, social peace and the need to preserve our democratic institutions in mind,
the 47-year-old former International Monetary Fund economist said. He also added, I also want to apologise to the people if at any point I failed them … But today my priority is only one thing: the peace of mind of Paraguayans who trusted their savings to our financial system … My greatest wish is that the return of those funds is guaranteed.
Lawmakers in the lower house immediately rebuffed the gesture, voting 78-0 to impeach him and sending the charges to the Senate. During the debate, ruling party deputy Alejandro Aquilera stated, In the face of these accusations, I can’t pretend to be oblivious.
Horacio Cartes Spearheads Political Abandonment of Peña
The political abandonment was spearheaded by Horacio Cartes, a former president and leader in the Colorado Party. Even Peña’s mentor backed impeachment, saying the party would not side with the plundering of public and private funds and pensioners’ money.
We will not side with the theft of public, private and pension funds,
Cartes wrote in a social media statement supporting the impeachment, adding, We must think of the people and the values we uphold in the Colorado Party.
If only we had a technology where you could access your money 24/7 and you don't have to trust anyone https://t.co/sMKZaYM8TI
Opposition figures joined the chorus. Senator Rafael Filizzola labeled the disaster the biggest fraud carried out from political power in the democratic era.
Outside the legislature, protesters marched on Wednesday, with participant Luis Pineda declaring, Santiago Peña and the Colorado Party have stolen all our savings.
Inspectors Flag Risky Insider Lending Patterns at Lender
Inspectors had previously flagged a pattern of risky insider lending, including nearly $39 million extended to three companies tied to Ueno’s owners on a single day in September 2025. Peña had previously held a stake in Ueno’s parent company, Grupo Vázquez, though he said he sold those shares in 2025, and he repeatedly brushed off the warnings as a smear campaign that was spooking the public. Prosecutors have since detained eight senior executives, including founder Miguel Vázquez and bank president Juan Manuel Gustale, while ordering three criminal investigations into the lender’s collapse.
Here in #Taiwan, a disappointment for Pres. @ChingteLai and his foreign policy team @chia_lung @josephwutw @bikhim which had put a lot of effort into ensuring now disgraced #Paraguay Pres. @SantiPenap maintained diplo relations.https://t.co/X58SUJAFjPhttps://t.co/4sr4K47WeT pic.twitter.com/WMSUc3cIbH
Senate Summons Peña to Face Impeachment Trial
Denying the resignation strips Peña of the legal immunity he would have ordinarily enjoyed as a senator for life upon leaving office. The Senate summoned him to appear on Friday, November 6, 2026, to face the impeachment trial. If the upper house convicts him, Vice President Pedro Alliana is expected to assume the presidency.
