Santiago Peña resigned from the presidency of Paraguay after banking crisis

Published at: 05/11/2026 01:06 PM

The president of Paraguay, Santiago Peña, resigned from office this Thursday after the scandal and the protests sparked by the intervention of Ueno Bank, a financial institution with which he had business ties and whose collapse affected about three million savers.

The crisis originated last Tuesday when the Central Bank of Paraguay (BCP) intervened the institution when it detected that its solvency index fell below 50% of the required legal minimum. According to the regulatory body, the fall was caused by “adjustments made to their financial statements during the regularization process”, leaving thousands of citizens with their accounts frozen and their savings and retirees at risk.

The measure generated street protests, where citizens repudiated the situation and demanded answers to what they described as an act of corruption. The demonstrations led to numerous arrests by the authorities. In parallel, the Chamber of Deputies was debating the beginning of an impeachment trial against Peña, a procedure that would be evaluated by the Senate.

The president's resignation came about after the ruling Colorado Party withdrew its support and backed political prosecution. The organization argued that it will not tolerate “the theft of public, private and retiree funds.”

Faced with this scenario of institutional crisis, Vice President Pedro Alliana is expected to assume the Presidency of the Republic. Alliana had been sworn in in that position in August 2023, along with the now former president Peña.

Mazo News Team