Paraguayan President Santiago Pena Resigns Amid Banking Crisis and Impeachment Move

Paraguayan President Santiago Pena announced his resignation on Thursday, November 5, 2026, following the Central Bank’s takeover of Ueno Bank, which blocked access to funds for roughly three million people. The seizure, justified by the bank’s severe capital shortfall, sparked nationwide demonstrations and prompted lawmakers to launch impeachment proceedings alleging misconduct and a conflict of interest.

Thousands gathered outside Congress demanding the return of their money, with protestors chanting “Give back the money.” Police responded with tear gas and water cannons. A 21-year-old student, Andres Maldonado, told AFP, “My family ran out of money, we don’t have any cash. Santi (Pena) is a criminal, he has to go to jail.”

In a video posted on X, Pena said, “It was never my intention to betray the trust you placed in me,” and added that his priority was “the peace of mind of Paraguayans who entrusted their savings to our financial system.”

The Central Bank said the takeover aimed to protect depositors and preserve financial stability. A 26-year-old mother of three, Nadia Gonzalez, explained, “Ueno approved a loan for us to buy our first house. But the funds were never disbursed, and now we have nowhere to live.”

Congress convened an extraordinary session to consider Pena’s resignation, but the meeting failed to reach a quorum, delaying a vote. An additional session scheduled the impeachment trial to begin on Friday, November 6, 2026, with the ruling party seeking a swift conclusion to reassure the public. Opposition lawmaker Raul Benitez accused Pena of orchestrating a “criminal scheme” to drain the bank, while Senator Derlis Maidana said the rapid trial aims to calm public concerns.

Vice President Pedro Alliana is expected to assume the presidency pending parliamentary approval of the resignation.