Paraguay's President Santiago Peña resigns over bank collapse scandal

Paraguay's President Santiago Peña has resigned amid a political crisis caused by the collapse of a bank he was previously linked to.
What happened
In a video message posted on X, Peña said he was stepping down to protect the country's stability and democratic institutions, a day after opposition lawmakers requested his impeachment and the lower house of Congress voted to begin proceedings, according to reports on Thursday, 5 November 2026. He apologised to the people if he had failed them at any point, saying it was never his intention to betray their trust.
The bank collapse
The crisis began when Ueno Bank collapsed and froze its operations, reportedly leaving large numbers of customers unable to access their accounts. Lawmakers accused Peña of conflicts of interest, pointing to his past shareholding in the company that owned the bank.
Background
Peña, an economist and former finance minister, took office in August 2023 as a member of the long-dominant Colorado Party. Under Paraguay's constitution, the vice-president takes over when a president leaves office before the end of the term.
What happens next
Attention now turns to who will lead the country for the rest of the term, and to investigations into the bank's collapse and whether depositors will recover their money.
- Peña resigned after impeachment proceedings began.
- The crisis followed the collapse of Ueno Bank.
- He apologised to Paraguayans.

