Asuncion (Paraguay) (AFP) – The President of Paraguay, Santiago Peña, announced his resignation on Thursday, in the wake of a banking scandal which degenerated into a political crisis, at the same time as deputies debated impeachment proceedings against him.

Published on: 05/11/2026 - 18:56

“I have made the decision to present my resignation from the Presidency of the Republic,” announced Santiago Peña, in power since 2023, in a video on the social network

The announcement comes 48 hours after the outbreak of a banking crisis, which saw the Central Bank of Paraguay (BCP) place Ueno Bank, a financial entity with 2.94 million customers, under supervision, whose deposits were temporarily frozen.

Until last year, Mr. Peña had shares in a holding company owning this bank, which has grown rapidly in recent years.

At the time of his announcement, the deputies were debating, in an extraordinary session, an impeachment procedure, almost all speaking in favor, including the group of the president's Colorado Party (conservative), which had a majority in the chamber.

The impeachment request, filed Wednesday by the opposition, accused President Peña of "poor exercise of his functions" and "conflict of interest."

Among the deputies of Santiago Peña's Colorado Party lending their support on Thursday to an impeachment procedure, Alejandro Aguilar estimated that a reimbursement, in progress, of injured savers "does not erase the facts, the harm caused to the Paraguayan people and to the financial system".

"I know that he (Peña) has lost the legitimacy to govern. I know that the president, unfortunately, will no longer be able to build consensus to continue his government. And yes, I know that he is politically responsible for what happened," he said.

In opposition, MP Enrique Buzarquis denounced "the worst scam in the history of Paraguay" and estimated that Santiago Peña "cannot remain president for another minute."

“Tranquility of the Paraguayans”

In the wake of Ueno being placed under supervision, the president of the BCP, Carlos Carvallo, who previously headed this same entity before taking the head of the Central Bank in 2023, announced his resignation, requested by President Peña.

Eight Ueno executives were placed in pre-trial detention, and proceedings have been initiated against around twenty other people since Tuesday.

As of Wednesday, Parliament adopted an express law, promulgated immediately, which provides for first payments, "from the next 24 hours", to injured savers.

These advances could reach up to the equivalent of “40 minimum monthly salaries”, according to the law published by the head of state on X, or 121 million guaranis (nearly 20,000 dollars).

The BCP, for its part, has assured several times since Tuesday that “the national financial system maintains adequate levels of solvency and liquidity”.

This did not prevent demonstrations in Asuncion, Tuesday in front of Ueno agencies, Wednesday near Parliament, bringing together hundreds of people, including angry savers, shouting “Santi fuera!” (Santi outside), “Santi tiene miedo!” (Santi is afraid), noted AFP.

Wednesday's mobilization gave rise to clashes between demonstrators and the police, who used water cannons and tear gas.

“Today I have only one priority: the peace of mind of Paraguayans who have entrusted their savings to our financial system,” Mr. Peña said in his resignation message.

“I want to ask the people’s forgiveness if, at any point, I failed. I never intended to betray the trust you had placed in me,” he said.

Santiago Peña was comfortably elected in 2023. This economist, notably with the BCP and the International Monetary Fund, embodied the young generation of the Colorado Party, hegemonic for seven decades over Paraguayan politics.

© 2026 AFP

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