Paraguay President Santiago Peña resigns amid Ueno Bank collapse

President Santiago Peña of Paraguay announced his resignation after the collapse of Ueno Bank, a digital lender that served roughly three million customers – about 60% of the adult population. He delivered the message in a video posted on social media, saying, "I want to apologise to the people if at any point I failed," and adding, "It was never my intention to betray the trust you placed in me." The lower house of Congress voted 78‑0 to start impeachment proceedings and a Senate hearing was scheduled for Friday.

Lawmakers said Peña had a conflict of interest because he owned shares in the bank’s parent company until last year. He rejected any misconduct, posting on X that he would “exercise my right to a defence” and stating, "I will provide the information requested of me. Citizens deserve to know the truth, without cover-ups and without anyone being above the law." A joint congressional session to consider his resignation lost its quorum after members of the Colorado Party walked out, so the resignation was not accepted.

Demonstrators gathered outside the Congress building, and police clashed with protesters demanding his removal. The central bank had taken control of Ueno after it fell below the legal solvency ratio, prompting the resignation of its head, Carlos Carvallo. A new central bank president has been appointed and a plan to repay depositors was approved by Congress.

Horacio Cartes, a senior Colorado Party leader and former president, posted on social media that the party would not support any theft of public, private or pension funds and backed the impeachment. Al Jazeera’s Latin America editor Lucia Newman said Peña is “accused of negligence at the very least and complicity in covering up the fact that the bank was insolvent.” The attorney general has opened three criminal investigations into the collapse, and Peña said he would cooperate, adding, "My greatest wish is that the return of those funds be guaranteed, that the deposit guarantee fund fulfil its purpose, and that public funds – as well as the resources that belong to all Paraguayans – be protected."

If the impeachment leads to his removal, Vice President Pedro Alliana is expected to assume the presidency.