Paraguay President Santiago Peña Resigns Amid Ueno Bank Collapse and Impeachment Proceedings

Santiago Peña became president of Paraguay in 2023 as the candidate for the conservative Colorado Party. His administration faced early scrutiny regarding his business ties to the Vázquez Group, which controlled the digital lender Ueno Bank. The president held a financial stake in a company linked to the group until 2025. Ueno Bank served approximately 3 million customers, a figure that represented nearly half of Paraguay's total population. The bank collapsed, triggering widespread public protests, and the Colorado Party subsequently withdrew its political support for the president.

The US Treasury imposed sanctions on Horacio Cartes in 2023. Cartes, a former Paraguayan president and the leader of the Colorado Party, faced these measures following various bribery allegations. The Trump administration lifted these sanctions in 2025. The central bank seized Ueno Bank in November 2026 because of its insolvency. This regulatory action froze the savings of approximately 3 million customers. The collapse led to a formal impeachment vote against the president on November 5, 2026.

1. The Paraguayan lower house voted 78-0 to impeach President Santiago Peña on November 5, 2026. The vote followed his resignation announcement. The chamber forwarded the charges to the Senate for review. Peña resigned after losing the support of his political mentor, Colorado Party leader Horacio Cartes. Cartes backed the impeachment proceedings against the president.

2. The Central Bank of Paraguay intervened to seize Ueno Bank after discovering that the lender's capital fell below half of the legally required minimum.

3. Prosecutors charged 27 bank officials and associates with breach of trust and attempted fraud following the bank's collapse. A judge ordered the detention of six executives pending trial. The detainees include founder Miguel Vázquez and president Juan Manuel Gustale.

4. The Colorado Party ended impeachment proceedings against Vice President Pedro Alliana. Alliana became the successor to the presidency following the resignation of President Santiago Peña.

1. The collapse of Ueno Bank froze all operations and impacted approximately three million customers, which accounts for about 60% of Paraguay's adult population. The Labour Ministry estimates that the bank's failure has affected around 7,000 direct and indirect jobs.

2. Ueno Bank held approximately $800 million in public deposits. These assets included funds from state institutions, pension-related bodies, and operators of the country's hydroelectric dams. The central bank intervened only after the lender's capital fell below half of the legally required minimum.

3. Lawmakers accused President Peña of misconduct and conflicts of interest linked to his financial ties with Ueno Bank. Peña held shares in the bank's parent company until 2025.

4. Ueno Bank collapsed, triggering protests across Paraguay. President Santiago Peña apologized for failing to prevent the financial crisis. Observers described the event as the worst in decades. The bank served more than 3 million customers. This figure represents a significant share of Paraguay's 6.5 million population.