Paraguayan President Santiago Peña announces resignation
President Santiago Peña of Paraguay announced his resignation on Thursday, November 5, 2026, following massive street protests and a banking crisis that froze the savings of millions of citizens. The pressure on the 47-year-old Peña, who is also an ally of US President Donald Trump, became quickly unsustainable.
The turmoil erupted when the Paraguayan central bank seized control of Ueno Bank after determining the institution failed to meet minimum capital requirements to protect against insolvency. Roughly 60 percent of the adult population found their accounts blocked.
How the Collapse of Ueno Bank Unfolded
The crisis escalated rapidly after the financial regulator placed the digital bank under supervision. NOS reported that the bank held less than half of its required minimum equity and lacked sufficient funds to meet direct payment obligations. Peña came to power in 2023 as one of the youngest presidents in Paraguayan history, and previously served as Minister of Finance in Paraguay between 2015 and 2017. His right-conservative Colorado Party has ruled the country almost uninterruptedly since 1947.
Regulators suspected the bank took excessive risks by issuing loans to its own owners and affiliated parties without adequate collateral or guarantees. De Standaard noted that government deposits under Peña had climbed past more than 800 million dollar, while critics pointed to potential conflicts of interest stemming from his former shareholder status in the parent group until the previous year, alongside the appointment of a former Ueno executive to head the central bank.
Protesters gathered in the capital of Asunción shouting that the government had stolen their savings. Opposition lawmakers accused Peña of conflicts of interest, poor financial oversight, pension fund abuse, and cover-ups related to the collapse.
Congress Advances Impeachment Despite Resignation Announcement
Addressing the nation in a video published on X, Peña announced his departure. Achter elke deposito schuilen jaren van inspanning, opoffering en familieplannen,
he stated, also offering an apology while noting it was never his intention to violate the trust placed in him.
Despite his resignation announcement, the Paraguayan Congress proceeded with an impeachment vote. NOS reported that the parliament voted unanimously to advance an impeachment process, which, if completed, would strip Peña of his immunity as a former head of state and open the path to potential criminal prosecution.
The political shockwaves hit the broader economy, causing the Paraguayan currency to drop more than 5 percent against the dollar while state bonds suffered heavy losses, according to De Standaard.
What Happens Next as Vice President Prepares to Take Over
The Paraguayan Congress must officially accept Peña’s resignation. Pedro Alliana is expected to take over leadership of the country following the transition.