Paraguay's President Santiago Peña resigns after collapse of Ueno bank

Paraguay's President Santiago Peña resigned on Thursday 5 November 2026. The reasons were the crisis around the online bank Ueno and the lower house of parliament's decision to start impeachment proceedings.

The bank's collapse

The Central Bank of Paraguay took control of Ueno on Tuesday 3 November 2026 and placed it in insolvency proceedings. According to Polish media citing news agencies, around 3 million customers, almost half of the country's 6.5 million people, lost the ability to withdraw their money. In mid-2026 Ueno had 2.94 million customers.

The bank also administered public funds of almost 850 million dollars.

Allegations against the president

Peña, 47, previously finance minister among other roles, held shares in the holding company that controlled Ueno until 2025. The opposition accused him of a conflict of interest, illegal use of pension funds and trying to conceal facts about the bank. Protesters also called for his resignation.

The opposition called an extraordinary session of parliament to begin impeachment. The president stepped down before the procedure was completed. In a video message he said he was doing so for the country's stability, social peace and the need to preserve democratic institutions.

What happens next

Vice-president Pedro Alliana is to take over the duties of head of state. The sources do not yet say how the situation will affect customers' access to their money.

British context

Peña made an official visit to the UK, as reported by the government in London. He was received by King Charles III at Windsor, and a UK–Paraguay Charter of Friendship was signed. Events in Paraguay have no direct consequences for people living in the UK.