Paraguay's President Santiago Peña Resigns After Bank Collapse Crisis

Paraguayan President Santiago Peña announced his resignation on Thursday, November 5, 2026, after a political crisis set off by the collapse of a bank linked to him. Reuters He said he made the decision to submit his resignation with the stability of the country and social peace in mind. CNN

The collapse involved Ueno Bank, which Reuters describes as a digital lender. The bank entered insolvency, a formal legal process for an institution that cannot meet its debts, and that process froze all of its operations. BBC Thousands of customers were left unable to access their accounts, and the crisis drew protests, according to DW.

Political pressure on Peña had been building before his announcement. On Wednesday, opposition lawmakers pressed ahead with efforts to impeach him. Reuters Impeachment is the process by which legislators bring formal charges against a senior official with the aim of removing them from office. Paraguay's lower house of Congress voted in favour of pursuing an impeachment trial against him, and on Thursday Congress began a session to debate his impeachment and removal. Reuters

In a video message posted on social media, Peña addressed the public directly. "I want to apologise to the people if at any point I failed," he said. BBC

The crisis also reached the country's central bank. According to state media, Marco Aurelio González Maldonado presented his resignation as a full member of the bank's Board of Directors on November 4. Medios del Estado The same day, Peña sent the Chamber of Senators a request for a constitutional agreement, the Senate approval the constitution requires, to designate a new president and directors of the Central Bank of Paraguay. Medios del Estado He also signed Decree No. 7196, dated November 4, 2026, designating Pedro Acosta as a new member of the bank's board. Medios del Estado