In brief
In Asunción on Thursday, President Santiago Peña announced his resignation following the collapse of digital bank Ueno, which froze accounts of nearly three million customers. Lawmakers began an impeachment motion accusing Peña of conflicts of interest tied to his former stake in Ueno Holding, and Vice President Pedro Alliana is set to take office. Minutes later, Congress voted to impeach Peña, sealing his political downfall.
In Asunción on Thursday, President Santiago Peña announced his resignation in a video posted on X, citing the need to safeguard national stability, social peace and democratic institutions after the digital lender Ueno Bank collapsed and left millions of customers unable to access their accounts. "I have decided to submit my resignation as president of the republic," Peña said, adding that he hoped depositors’ savings would eventually be returned and public funds protected.
The central bank began resolution proceedings after finding that Ueno’s solvency ratio had fallen to less than half the required minimum, and the bank’s applications and cards stopped working following the intervention. It had nearly 3 million customers as of June, a figure that represents a sizable share of Paraguay’s 6.5‑million population.
Lawmakers quickly moved to examine the president’s ties to the failed bank. A group of 35 parliamentarians submitted a proposal to impeach Peña and Vice President Pedro Alliana, accusing the president of conflicts of interest stemming from his previous stake in Ueno Holding until 2025. Former President Horacio Cartes, Peña’s political mentor and a leading figure in the ruling Colorado Party, publicly announced his support for the impeachment motion.
In addition to the political fallout, the central bank’s chief Carlos Carvallo resigned at Peña’s request, and prosecutors ordered the arrest of eight Ueno Bank executives; all were subsequently detained. The digital lender had grown rapidly from a niche fintech venture into a mid‑tier bank that administered close to $850 million in public funds, a development that has intensified scrutiny of the administration’s oversight.
Vice President Pedro Alliana is poised to become the new head of state upon the official completion of Peña’s resignation. The constitutional line of succession was invoked instantly, ensuring that the executive office would not remain vacant as public confidence eroded.
In a surprising rapid turn of events, minutes after Peña stepped down, Parliament voted to impeach him. The motion, reportedly carried by a narrow margin, formally removed him from office and froze his assets pending further investigation, signifying the gravity of the crisis and the speed of the political response.
Protests spilled onto the streets of Asunción and other cities, with demonstrators calling for an end to the perceived crisis management and for guarantees that customers’ funds would be restored. "My greatest wish is that the return of those funds be guaranteed, that the deposit guarantee fund fulfill its purpose, and that public funds – as well as the resources that belong to all Paraguayans – be protected," Peña declared in his resignation address, a plea that echoed in the chants of those demanding accountability.
The resolution of Ueno Bank and the new leadership under Alliana will test Paraguay’s financial regulatory framework and its capacity to restore public trust after what has become the country’s most significant banking crisis in recent history.
