Paraguay president resigns after digital bank collapse freezes millions in savings

Paraguayan President Santiago Peña resigned on November 5, 2026, following the collapse of Ueno Bank.

The central bank closed and took control of Ueno because it could not pay its debts. Millions of customer accounts and public pension funds managed by the Social Security Institute were frozen. Ueno held hundreds of millions of dollars in government money.

Peña previously owned part of a company linked to the bank. He lost support from Congress President Basilio Nunez and Colorado Party leader Horacio Cartes. Lawmakers were discussing removing him from office when he resigned.