Paraguayan President Santiago Peña tendered his resignation on Nov. 5 following the collapse of digital lender Ueno Bank, which left nearly 3 million customers unable to access their funds, sparked protests, and set off impeachment proceedings amid a national financial crisis.
Peña said he was resigning to preserve national stability. But the Chamber of Deputies voted unanimously among 78 lawmakers present to impeach him. A congressional session on accepting his resignation ended without a quorum, leaving the Senate to consider the case. Vice President Pedro Alliana is next in line to succeed him.
Paraguay’s central bank seized the lender on Nov. 3 after finding its solvency ratio had fallen below half the legal minimum. Customers were locked out of banking apps and could not withdraw or transfer funds. The crisis disrupted access to savings and payments across a country of 6.5 million people.
Ueno also held between $800 million and $850 million in public deposits, including about $380 million from Paraguay’s state pension and health fund. Regulators had warned the lender about excessive loans to companies linked to its owners. Prosecutors pursued bank executives over suspected financial offenses.
Peña faced scrutiny over his former business ties to Grupo Vázquez, which owns Ueno. He said he sold his stake in March 2025 and denied wrongdoing. Lawmakers accused his administration of conflicts of interest and shielding the bank from oversight.
“Behind every deposit are years of hard work, sacrifice and family dreams,”
Peña said in his resignation address, urging authorities to return customers’ money.
Paraguayan economist Luis Rojas criticized the lender’s rapid growth under weak oversight. “There was preferential treatment, which raised a lot of suspicions,” he told the Associated Press.
The central bank’s deposit guarantee covers up to approximately $38,000 per person, enough to fully protect an estimated 97% of Ueno depositors. Authorities have begun arranging payments and transfers to other banks as households await access to their funds.
