[REVISION HISTORY]

Ueno Bank crisis leads to resignation and impeachment of PEA

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2026-11-06 16:26 UTC → 2026-11-06 22:49 UTC · added ~~removed~~

The financial crisis triggered by the Central Bank of Paraguay (BCP) intervention of Ueno Bank has escalated into a major political upheaval. Following the bank’s solvency ratio falling below 50% of the required minimum, the resulting freeze on approximately $850 million in public funds and the impact on nearly 3 million customers led to intense political pressure. The crisis involves significant public resources, including approximately $355 million linked to the Social Security Institute (IPS). On November 4, 2026, President Santiago Peña resigned from office, citing the necessity to preserve national stability, social peace, and democratic institutions. His resignation follows impeachment proceedings initiated by 35 opposition lawmakers, who alleged conflicts of interest due to Peña’s former ties as a shareholder and director of the group controlling Ueno Bank. Although Peña submitted his resignation, the Chamber of Deputies voted to proceed with the impeachment, passing the case to the Senate. Recent developments indicate that ~~a joint session intended to consider his~~ the banking collapse has prompted the resignation ~~failed to reach a quorum due to~~ of Central Bank President Carlos Carvallo. Public indignation has manifested in mass protests in Asuncion and other cities, with demonstrators demanding the ~~departure~~ return of ~~several ruling party legislators. Consequently, while~~ their savings. While Peña submitted his resignation, he remains formally in office as the impeachment process continues. If found guilty, he could lose the lifelong senate status typically granted to former presidents under the Paraguayan Constitution. ~~In response to the banking collapse, the BCP has begun distributing deposit guarantees of up to 10 million Guaraníes to eligible savers.~~ The ~~government has also proposed a new emergency law to expedite fund returns and has moved to appoint new leadership at the Central Bank. Additionally, the~~ State Prosecutor's Office ~~has incorporated Peña into a fiscal investigation regarding the bank's financial irregularities. The Public Ministry is investigating~~ continues to investigate potential financial irregularities, including a “simulated credit sale scheme,” and has implicated 27 individuals.

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