Paraguay president resigns after bank locked millions out of their money

Paraguay’s president, Santiago Peña, has resigned after days of nationwide protests and an impeachment push over the collapse of Ueno Bank.

Peña announced his resignation on Thursday, November 5, 2026 in a video posted to X.

“I have made the decision to submit my resignation from the Presidency of the Republic. I do so with the stability of our country, social peace, and the need to preserve our democratic institutions in mind,” he said.

The crisis erupted after Paraguay’s central bank intervened in Ueno Bank, the country’s biggest digital lender, after it breached minimum solvency requirements.

The shutdown left nearly 3 million customers , almost half of Paraguay’s population,  unable to access their accounts.

Lawmakers accused Peña of conflict of interest, misuse of pension funds, and institutional cover-up linked to the bank’s collapse.

Ueno had grown quickly from a niche fintech player into a mid-tier bank administering close to $850 million in public funds, including money from the state pension institute.

Opposition lawmakers had already begun to file an impeachment motion against him, while protesters demanded his resignation.

Peña also lost backing from members of his own conservative Colorado Party.

Vice President Pedro Alliana is set to take office as his replacement, pending Congress’s decision to accept Peña’s resignation.

Peña, who took office in August 2023 for a five-year term, is an ally of US President Donald Trump.