In brief
Paraguay’s President Santiago Peña resigned on Thursday, November 5, 2026, after the swift collapse of the digital lender Ueno, and minutes later was impeached by lawmakers. The crisis stemmed from Ueno’s alleged excessive lending tied to Grupo Vázquez and the president’s reported past stake in the company. Legal investigations are now underway as Paraguayan institutions grapple with the fallout.
On Thursday, November 5, 2026, Paraguay’s President Santiago Peña resigned after the sudden collapse of the digital bank Ueno, and minutes later the legislature voted to impeach him, the AP reported.
The Ueno Bank, a digital lender launched in 2021, had grown rapidly to about 3 million customers—nearly half the country’s population—administering roughly $850 million in public funds, according to Reuters. The bank’s expansion raised regulatory concerns, and Paraguay’s central bank intervened after finding that Ueno had breached minimum solvency requirements, leading to a crisis that temporarily denied millions of customers access to their accounts.
President Peña, an economist elected in 2023, has faced scrutiny because of his past business ties to the Grupo Vázquez holding company, which controls Ueno. Peña has said he sold his stake in the group in March 2025, but Reuters notes that opposition lawmakers accuse him of conflict of interest, misuse of pension funds, and institutional cover‑up. Peña has denied any improper ties and says the controversy should be addressed in courts.
Following the bank’s failure, prosecutors announced on Thursday that they were investigating Peña and other officials, and later issued arrest warrants for eight Ueno executives. Peña has not yet been taken in for questioning, Reuters reported.
Minutes after his resignation, the Paraguayan legislature moved swiftly to unseat him. The impeachment vote was interpreted by the AP as a direct response to the banking crisis that has rattled the nation’s economy and eroded public trust in its leadership.
The rapid sequence of resignation and impeachment underscores the gravity of the crisis. Earlier in the week, a vote by lawmakers had already removed Peña from office, but the impeachment solidified the transition, signaling a decisive shift in Paraguay’s political landscape.
Legal proceedings continue as prosecutors investigate key figures linked to the bank’s collapse, and Paraguayan authorities work to restore confidence in the financial system. The country now faces a complex path toward political stability and economic recovery following the recent turmoil.
