Paraguay President Santiago Peña Resigns After Ueno Bank Collapse Freezes Millions of Accounts

Paraguayan President Santiago Peña resigned on November 5, 2026, hours after the digital bank Ueno collapsed and froze the accounts of millions of customers. Minutes after the resignation, the Chamber of Deputies voted to impeach him.

Ueno, a fintech institution closely associated with government-backed digital-payment initiatives, had grown rapidly by offering high-yield accounts and integrated services for public benefits. On November 4 the bank halted withdrawals. By the morning of November 5 regulators confirmed that a large portion of customer deposits could not be located. Estimates circulating among financial authorities placed the shortfall in the range of several hundred million dollars.

Peña, who took office in 2023, had promoted digital banking as a tool for financial inclusion. Several senior officials in his administration held advisory or board roles connected to Ueno or its parent entities. Opposition lawmakers argued that the government had failed to supervise the institution adequately and that public funds may have been exposed. Peña denied personal wrongdoing and said he was stepping aside to allow an orderly investigation.

The impeachment vote proceeded despite the resignation because the constitution permits Congress to remove a president even after he has left office, primarily to bar him from future public positions and to trigger certain accountability procedures. The lower house approved the measure by a wide margin. The Senate is expected to complete the process within days.

The Central Bank of Paraguay placed Ueno under administrative intervention on November 5 and began an emergency assessment of remaining assets. Deposit-insurance coverage in Paraguay is limited; most retail accounts exceed the insured threshold. Authorities have not yet announced a timeline for partial restitution. Thousands of customers gathered outside bank branches and government buildings in Asunción demanding access to their funds.

Peña's resignation leaves Vice President Pedro Alliana as acting president until Congress or the electoral calendar produces a successor. Alliana has said the priority is to stabilize the financial system and to publish a full accounting of Ueno's liabilities. The episode is the largest bank failure in Paraguay since the 1990s and the first to involve a primarily digital institution.

Regional observers noted that several other Latin American countries have expanded digital-payment systems with varying degrees of regulatory oversight. Paraguay's case is distinct because of the direct promotional role played by the executive branch. The International Monetary Fund and the Inter-American Development Bank, both of which have programs in Paraguay, have requested briefings from the finance ministry.

The political consequences extend beyond the presidency. Several members of Peña's Colorado Party hold seats in Congress and face primary challenges in the coming months. The opposition has called for a broader inquiry into public contracts awarded to technology firms linked to the former administration. No criminal charges have been filed against Peña or other officials as of November 6.

Financial markets in Asunción remained closed on November 5. When trading resumes, analysts expect pressure on the guaraní and on sovereign bond spreads. The Central Bank has indicated it stands ready to provide liquidity to solvent institutions but will not extend extraordinary support to Ueno itself.

The combination of a sudden bank failure, a presidential resignation, and an immediate impeachment vote is without recent precedent in Paraguay. The sequence compressed into less than 24 hours and left millions of account holders without access to their savings while the political system reorganized itself.