Published on November 5, 2026
Paraguay’s Congress has refused to accept the resignation of President Santiago Pena, continuing impeachment proceedings after the collapse of digital bank Ueno Bank.
President since 2023, Pena attempted to resign on Thursday when millions of Ueno customers still could not access their accounts.
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“I do so keeping in mind the stability of our country, social peace and the need to preserve our democratic institutions,” the conservative politician said in a recorded speech.
But the deputies refused to accept his resignation. The lower house voted 78-0 to impeach him, and the Senate opened impeachment proceedings, summoning him to appear on Friday.
A joint session of Congress called to consider the resignation lost its quorum after lawmakers from Pena’s Colorado party left as it became clear there were not enough votes to accept it.
Horacio Cartes, a leader of the Colorado Party, had issued a statement on social media saying the group supported Pena’s impeachment.
“We will not take sides with the theft of public, private and pension funds,” Cartes, a former president, wrote in his statement. “We need to think about the people and values we stand for in the Colorado Party.”
Denying Pena’s resignation risks increasing the legal risks he faces.
Usually in Paraguay, presidents who leave office become senators for life and enjoy some legal immunity from prosecution as members of the legislature.
But that status is not conferred if the president is found guilty in an impeachment trial.
The political crisis erupted earlier this week, when Paraguay’s central bank announced that Ueno had fallen below the legal solvency ratio. Once its accounts were rectified, the bank’s capital – the cushion that banks must maintain to absorb losses – was less than half the legal minimum.
Before its collapse, the company claimed to have around 3 million customers, in a country of 6.5 million people. Many have since lost access to their accounts and pensions paid through the bank.
As part of a resolution to address the bank’s collapse, Paraguay’s central bank voted to transfer remaining funds to other financial institutions.
But the central bank itself has been criticized for failing to properly regulate Ueno. Central bank president Carlos Carvallo has since resigned.
Pena himself previously held a stake in Ueno’s parent company, Grupo Vazquez, although he said he sold those shares in 2025.
Lawmakers, however, accused Pena of having a conflict of interest and questioned whether there was an institutional cover-up linked to the lender’s collapse.
“He is accused of, at the very least, negligence and complicity in covering up the fact that the bank was insolvent,” said Lucia Newman, Al Jazeera’s Latin America editor.
“As I speak, there are people outside who are urging Congress not to accept the president’s resignation because they say they want him to be tried and indicted.”
Until its demise, Ueno had rapidly grown from a niche company to a mid-tier bank administering nearly $850 million in public funds.
Paraguay’s attorney general also ordered three criminal investigations into the bank’s failure, which will focus on monitoring the lender and the placement of public funds in the institution. Pena said he would cooperate with investigators.
“My greatest wish is that the return of these funds is guaranteed, that the deposit guarantee fund fulfills its purpose and that public funds – as well as the resources that belong to all Paraguayans – are protected,” Pena added in his speech.
If Pena is ultimately removed from office, Vice President Pedro Alliana will likely take over as president.
Ueno has made no public statement on the matter.
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