Paraguayan President Santiago Peña Resigns as Lower House Impeaches Him Over Bank Collapse

Paraguayan President Santiago Peña said on Thursday that he would step down after the collapse of Ueno Bank, a digital lender linked to his administration, triggered mass protests and frozen savings for millions of people. Minutes later, the lower house voted unanimously to impeach him and sent the charges to the Senate. Congressional leaders were set to decide later that day whether to accept his resignation, which would allow Vice-President Pedro Alliana to assume the presidency without a Senate trial.

Attorney General Emiliano Rolón Fernández announced three criminal investigations into the bank’s failure, including possible misconduct by Peña and other current and former officials. The probes will examine oversight of the bank, handling of its collapse and the placement of public funds in the institution.

Opposition senators argued that allowing Peña to resign would preserve his eligibility for a lifetime senate seat, which they said could shield him from prosecution. Colorado Party leader and former president Horacio Cartes, who had mentored Peña, supported impeachment, stating the party would not tolerate "the plundering of public and private funds and pensioners' money."

Peña apologized to depositors, saying, "It was never my intention to betray the trust they placed in me," and emphasized his priority was to ensure that savers recovered their money.

Hundreds of Ueno Bank employees and workers from its parent conglomerate protested outside the Labour Ministry, demanding severance and unpaid wages. The day before, retirees, depositors, students and other citizens gathered in Asunción, chanting slogans such as "We want your head, Peña!" and calling for his impeachment.

Ueno Bank, which obtained its banking licence in 2023, had rapidly expanded, offering cash-back incentives and sponsoring the national soccer team. Public money, including state pension and health-fund deposits, flowed into the bank, and Peña appointed former Ueno executive Carlos Carvallo to head the central bank, the regulator of the lender.

In June, central-bank inspectors reported risky lending to insiders, and in September 2025 the bank transferred nearly $39 million to three companies linked to its owners. After regulators found poorly documented loans and mis-recorded expenses, Ueno’s capital fell below the legal minimum, prompting the central bank to seize the institution on Tuesday and plan the transfer of customer accounts to other banks.

Eight senior Ueno executives, including founder Miguel Vázquez and president Juan Manuel Gustale, were detained, and 27 bank officials and business associates were charged with breach of trust and attempted fraud. Lawyers for the detainees said they needed time to review the allegations.