Paraguay President Resigns Amid Crisis Over Bank Collapse Leaving Millions Unable to Access Funds

Paraguayan President Santiago Peña has resigned from office on Thursday, November 5, 2026, amidst a severe national crisis ignited by the sudden collapse of the digital bank ueno. The Central Bank of Paraguay seized control of ueno earlier in the week after discovering its solvency ratio had fallen drastically below regulatory requirements. This intervention left approximately three million customers, representing about 60% of Paraguay's adult population, unable to access their funds, including a significant portion of the state pension fund.

The financial fallout quickly escalated into a political firestorm, with widespread protests erupting in the capital, Asunción, and opposition lawmakers initiating impeachment proceedings against President Peña. Accusations of conflicts of interest mounted due to Peña's prior business ties to the bank's controlling group, which he maintained until 2025. Eight ueno executives, including the chairman, were arrested on suspicion of fraud, and the Central Bank's president, Carlos Carvallo, also resigned at Peña's request, facing criticism over his past leadership of ueno and the bank's oversight.

In a public statement, President Peña announced his resignation, emphasizing his decision was made for the stability of the nation, to ensure social peace, and to protect democratic institutions. While apologizing to the public, he did not explicitly accept responsibility for the banking crisis, instead prioritizing the guarantee of depositors' recovered savings. Vice President Pedro Alliana is expected to assume the presidency.