Paraguayan President Santiago Pena resigned on November 5, 2026, after the government takeover of Ueno Bank blocked nearly half the population from accessing their money. The Central Bank seized control of the bank two days earlier, freezing deposits for about three million people, including pensioners, and sparking widespread protests across the country.
Thousands of Paraguayans gathered outside Congress to demand Pena’s resignation, chanting “Give back the money.” Protests turned violent as police used tear gas and water cannons to disperse crowds. A 21-year-old student protester, Andres Maldonado, said his family ran out of money and accused Pena of betrayal.
Lawmakers unanimously voted to impeach Pena, accusing him of misconduct and conflicts of interest linked to the bank. Pena, who remains in power until parliament approves his resignation, apologized to the nation and promised to attend his impeachment trial set to begin on November 6. He stated his goal was “the peace of mind of Paraguayans” who saved their money in the financial system.
The Central Bank claimed it took over Ueno due to a lack of funds to protect depositors. However, many bank customers, like 26-year-old Nadia Gonzalez, were left without access to loans for homes and other needs. Pena had previously tried to ease tensions by requesting the resignation of Central Bank President Carlos Carvallo and setting a five-day deadline for returning deposits, but these measures failed to resolve the crisis.
Congress held an extraordinary session on November 5 to decide whether to accept Pena’s resignation or proceed with impeachment. While the session did not reach a quorum, lawmakers scheduled the trial to begin the next day. Opposition leader Raul Benitez accused Pena of setting up a “criminal scheme” to drain the bank under his control as president.
Vice President Pedro Alliana is expected to take over as interim leader during the crisis.