Paraguayan President Santiago Peña resigned Thursday as lawmakers advanced impeachment proceedings amid a crisis surrounding Banco Ueno. (Foto: Instagram)
Paraguayan President Santiago Peña resigned on Thursday, Nov. 5, as Congress moved forward with an impeachment case against him. His departure comes amid a political and banking crisis following the dissolution of Banco Ueno, the country’s largest digital bank.
Vice President Pedro Alianna is taking over the government, according to the report. Paraguayan media said Congress must decide whether to accept Peña’s resignation; he is expected to submit it formally to the legislature. If lawmakers reject the resignation, Congress could continue the impeachment process.
The Chamber of Deputies approved opening impeachment proceedings against Peña on Thursday. The request was filed by 35 lawmakers after the banking crisis surrounding Banco Ueno. The dissolution has drawn particular attention to Peña because the economist was a shareholder in Ueno Holding until March 2025. The company is connected to the group that controls the bank.
The turmoil has also affected the leadership of Paraguay’s central bank. Carlos Carvallo, who had led the Central Bank of Paraguay since 2023, resigned. Before taking that post, Carvallo was president of Banco Ueno.
The Central Bank of Paraguay ordered Banco Ueno’s dissolution on Nov. 3, deeming it insolvent, meaning it could not meet its financial obligations. The regulator suspended the bank’s operations and began a resolution process. Separately, the country’s Public Prosecutor’s Office requested a criminal investigation and sought the arrest of two bank executives. The inquiry concerns suspicions about the bank’s management and loans to companies linked to its controlling group, which investigators say may have weakened the bank’s assets.
