Paraguayan president Peña resigns amid banking crisis
The Lower House then voted unanimously for his removal; the Senate still has to consider the case.
Follow-up to: Paraguay pays advances to Ueno Bank depositors Thursday, 5 November 2026, 13:11
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Paraguayan President Santiago Peña resigned on Thursday under pressure from mass protests and a political crisis surrounding Ueno Bank. Shortly afterwards, the Lower House voted unanimously for his removal, sending the matter to the Senate.
According to news agency AP, Peña announced his resignation while parliament was debating impeachment proceedings. He said he had acted to protect the country’s stability, social peace and democratic institutions. Peña also apologised, but according to AP did not accept responsibility for the banking crisis.
Paraguay’s Lower House subsequently voted 78 to zero in favour of the impeachment charge. Members of Peña’s Colorado Party also supported the vote. The case now goes to the Senate, where according to AP a two-thirds majority is needed to formally remove him from office.
The immediate cause is the crisis surrounding Ueno Bank, a major digital bank placed under the central bank’s supervision on Tuesday. The measure blocked millions of customers’ access to their savings and led to three days of protests in the capital, Asunción. Paraguay had previously been known as a relatively stable destination for foreign investment.
According to AP, the central bank said the banking system as a whole is healthy. At the same time, EFE reported that Ueno had a solvency problem identified during an inspection and that the bank managed public funds during Peña’s government. Peña was linked until March 2025 to a company associated with Grupo Vázquez, Ueno’s owner, AP said.
Vice-President Pedro Alliana is expected to succeed Peña, according to AP, and serve out his term until August 2028. The formal transfer of power has not yet been completed, according to AP. For account holders, the key question remains how quickly they will regain access to their money; the central bank had previously announced advances and payments through other banks, but the political crisis makes the further resolution uncertain.
Also show the region and a close-up
One story, several perspectives
What is established
- Peña resigned during parliamentary impeachment proceedings.
- The Lower House voted unanimously in favour of the impeachment charge.
- The political crisis followed the intervention at Ueno Bank and protests by account holders.
- The Senate still has to consider the case.
Left
Arguments From a left-wing perspective, the crisis shows that financial institutions with political ties must be subject to strict, independent oversight and that savers and pensioners need protection.
Values Public accountability, social protection and equality for account holders.
Consequences Without the recovery of savings and effective oversight, trust in banks and government could decline further; stricter rules may limit financial risks but also make credit more expensive.
Centre
Arguments The institutional priority is an orderly succession, an independent assessment of Ueno Bank and protection of the payments system, without prejudging political or criminal responsibility.
Values The rule of law, financial stability and continuity of government.
Consequences A careful Senate process could limit escalation, but may prolong uncertainty over the government and the resolution of the bank’s affairs.
Right
Arguments This perspective emphasises governmental responsibility, the protection of property rights and the risk that political interference and state intervention could undermine the confidence of savers and investors.
Values Individual responsibility, economic freedom and institutional reliability.
Consequences According to this right-wing view, a swift, clear resolution is needed to prevent capital flight and further damage to the business climate; political retribution must not, in this view, weaken the banking system.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The core facts were confirmed by AP and EFE and date from 5 November 2026. Unconfirmed subsequent steps are marked as uncertain and were not presented as established news.
- confirmed Santiago Peña resigned as president of Paraguay on 5 November. — Reported by AP and EFE. source
- confirmed Paraguay’s Lower House voted 78-0 in favour of impeachment proceedings. — AP gives the result of the vote. source
- confirmed The case goes to the Senate, where a two-thirds majority is needed for formal removal. — AP describes the constitutional next step. source
- confirmed Ueno Bank was placed under the central bank’s supervision on Tuesday and customers lost access to their savings. — AP describes the bank intervention and its consequences for customers. source
- uncertain Pedro Alliana is expected to succeed Peña until August 2028. — AP reports this as the expected succession; the formal transfer had not yet been completed in the source. source
Editor's note
Peña’s resignation, the unanimous vote in the Lower House and the referral to the Senate are certain. The formal transfer of power and further payments to account holders had not yet been fully confirmed in the sources consulted.Sources
The story so far
- Thursday, 5 November 2026, 13:11 Paraguay pays advances to Ueno Bank depositors
- Thursday, 5 November 2026, 19:10 Paraguayan president Peña resigns amid banking crisis (this article)
More on this in Dutch media
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