President Santiago Peña faces multiple criminal investigations and a potential impeachment trial after the collapse of Ueno Bank leaves millions of customers unable to access their savings.

ASUNCIÓN, PARAGUAY — November 5, 2026 — Paraguay is facing a major political and financial crisis after President Santiago Peña submitted his resignation amid criminal investigations and impeachment proceedings linked to the collapse of Ueno Bank, one of the country's major financial institutions.

The banking emergency has reportedly left millions of customers unable to access their money, triggering widespread concern, long lines outside financial institutions and public demonstrations.

According to the supplied CNN report, Paraguay's Attorney General has opened three criminal investigations involving Peña and other former officials over their alleged connections to the banking crisis.

Meanwhile, lawmakers have moved forward with impeachment proceedings, accusing the president of serious failures in the performance of his official duties.

Although Peña announced his decision to resign Thursday, Congress had not formally accepted his resignation at the time of the report, leaving his legal and political status unresolved.

Bank Collapse Triggers Nationwide Financial Alarm

The crisis began when Paraguayan authorities intervened in Ueno Bank following concerns about its financial stability.

The Central Bank of Paraguay reportedly determined that the institution's solvency ratio had fallen below half of the legally required minimum.

Regulators attributed the deterioration to adjustments made to the bank's financial statements during a regulatory process.

Authorities also identified alleged violations involving lending limits for companies connected to the institution.

Ueno Bank reportedly served approximately 2.9 million customers in a country with a population of around 6.1 million.

Its intervention therefore created significant disruption across Paraguay's financial system.

Customers faced restrictions on accessing their savings, while uncertainty about the bank's future fueled public anxiety.

The situation became especially sensitive because the institution had received substantial deposits from public organizations during Peña's administration.

Among those organizations was the Social Security Institute, known as IPS, which manages pension funds for a large portion of Paraguay's workforce.

Peña Faces Three Criminal Investigations

As the financial crisis intensified, Paraguay's Attorney General opened three criminal cases involving Peña and other former officials.

The investigations concern alleged misconduct connected to the Ueno Bank crisis.

Peña's reported relationship with the institution and the placement of public funds at the bank have become central issues in the controversy.

However, the opening of criminal investigations does not establish guilt.

Authorities must examine the evidence and determine whether any laws were violated.

The president has indicated that he intends to defend himself through the country's legal and constitutional processes.

Congress Moves Forward With Impeachment

The political situation escalated when opposition lawmakers and dissidents from the governing party introduced impeachment charges against Peña.

The proposal was supported by 35 lawmakers who accused the president of serious and repeated failures in carrying out his responsibilities.

Paraguay's Chamber of Deputies subsequently voted unanimously to initiate impeachment proceedings, according to the supplied report.

The Senate also announced plans to begin an impeachment trial.

The process created an unusual constitutional dispute because Peña submitted his resignation while lawmakers were debating the charges.

Both chambers of Congress convened a joint session to consider the resignation, but the meeting ended without a final decision after several lawmakers walked out.

As a result, lawmakers opposed to Peña maintained that he remained president until Congress formally accepted his resignation.

They argued that impeachment proceedings should continue.

Resignation Raises Questions About Legal Protections

The disagreement over Peña's resignation has important legal implications.

According to the report, accepting the president's resignation would provide him with certain immunity and legal protections.

Removal through impeachment, by contrast, would not provide those same protections.

This distinction has intensified the confrontation between Peña and lawmakers seeking his removal.

Senator Yolanda Paredes publicly called for criminal accountability, including the possibility of Peña's arrest.

However, such demands represent political statements rather than judicial findings.

Peña's Colorado Party holds majorities in both chambers of Congress, making the unfolding legislative process particularly significant.

Peña Says He Wants to Preserve National Stability

In a statement announcing his resignation, Peña said his decision was intended to protect Paraguay's stability and public institutions.

He also referred to the concerns of citizens whose savings had been affected by the banking emergency.

The president said he wanted to help preserve social peace during a period of financial uncertainty.

At the same time, he pledged to defend himself against the accusations through constitutional procedures.

Peña said he would present evidence and arguments during the impeachment process.

His statements indicate that, despite submitting his resignation, he intends to contest allegations of wrongdoing.

Who Is Santiago Peña?

Santiago Peña became president of Paraguay in August 2023 at the age of 44, making him one of the youngest leaders in the country's history.

Before entering the presidency, he held several important economic and financial positions.

He served as Paraguay's finance minister between 2015 and 2017 under former President Horacio Cartes.

He also worked as a director at the country's central bank.

His professional background in financial management has attracted additional attention as the banking crisis unfolds.

Internationally, Peña has maintained close political ties with the administration of U.S. President Donald Trump, particularly on security and immigration issues.

The current crisis represents a significant challenge to his presidency and political legacy.

Protests and Banking Restrictions Deepen Public Concerns

The intervention of Ueno Bank quickly became a nationwide issue because of the institution's large customer base.

Long lines formed outside financial institutions as customers sought information about their accounts and access to their money.

Public demonstrations also emerged amid concerns about savings, pensions and the stability of Paraguay's banking system.

The crisis has raised broader questions about financial supervision and the management of public funds.

Ueno Bank is also a prominent commercial sponsor in Paraguay, including through its association with local soccer clubs and the national team.

Its financial difficulties have therefore attracted attention beyond the banking sector.

Paraguay's Financial Reputation Faces a Major Challenge

The banking emergency comes at a sensitive time for Paraguay's economic development.

In recent years, the country has worked to strengthen its reputation as a regional financial and investment destination.

Paraguay achieved investment-grade credit ratings from two major international rating agencies, an important milestone in its efforts to attract foreign investment.

The collapse of a major financial institution could complicate those ambitions if confidence in the country's banking supervision and financial stability deteriorates.

The eventual impact will depend on how authorities manage the bank's resolution, protect eligible depositors and address the regulatory concerns raised by the crisis.

Key Developments in Paraguay's Political Crisis

IssueReported developmentPresidentSantiago PeñaPolitical partyColorado PartyBank involvedUeno BankReported customer baseApproximately 2.9 millionBanking problemSevere solvency deteriorationCriminal investigationsThree cases openedImpeachmentApproved for initiation by the lower chamberSenate proceedingsImpeachment trial announcedPresidential resignationSubmitted but not yet accepted by CongressPublic impactRestricted access to deposits, protests and financial uncertaintyMain unresolved questionsLegal responsibility, presidential status and bank resolution

What Happens Next?

Paraguay now faces several important decisions.

Congress must determine how to proceed with Peña's resignation and impeachment.

Prosecutors will continue examining allegations involving the president and other officials.

Financial regulators must also address the consequences of Ueno Bank's intervention and determine how customers' deposits will be handled.

The outcome of these processes will be important for political stability, public confidence and the country's financial reputation.

Final Thoughts: Paraguay Faces a Political and Financial Turning Point

The crisis surrounding Ueno Bank has developed into one of the most serious challenges of Santiago Peña's presidency.

What began as a banking solvency emergency has expanded into criminal investigations, impeachment proceedings and an unresolved presidential resignation.

Millions of customers have reportedly been affected, while lawmakers remain divided over how to address the president's legal and political future.

The central questions now concern the protection of depositors, accountability for the banking crisis and the constitutional process governing Peña's departure from office.

The coming decisions by Congress, prosecutors and financial authorities will shape Paraguay's response to the crisis and its efforts to restore confidence in public institutions.

Editor's note: This article is an English-language rewrite of the supplied CNN report by Gonzalo Zegarra and Michael Rios. The resignation, investigations, impeachment proceedings and banking figures are presented as reported in the source text and have not been independently verified or updated.