Santiago Peña announces resignation during Paraguay’s banking crisis
Paraguayan President Santiago Peña announced that he would submit his resignation as lawmakers debated impeachment after the intervention and closure of Ueno Bank. The crisis has frozen customers’ savings and raised questions about public deposits. Peña apologised and called for funds to be returned; Vice-President Pedro Alliana is the potential constitutional successor.
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The resignation message interrupts impeachment debate
Paraguayan President Santiago Peña announced on 5 November that he would submit his resignation amid the crisis over Ueno Bank. His announcement came as the Chamber of Deputies met in an extraordinary session to consider removing him from office. The intervention and closure of the bank had already turned into a political crisis.[1], [2]
The congressional debate had been running for more than 2 hours when Peña released his video. He said his decision was intended to safeguard national stability, social peace and democratic institutions. The president had also cancelled his appearance at the Ibero-American leaders’ summit in Madrid after the banking crisis erupted.[1]
Public deposits are caught in the bank’s closure
Ueno is a private bank linked to Peña. During his presidency public institutions placed substantial deposits there, including the Social Security Institute, which manages retirement savings for much of Paraguay’s workforce. The intervention froze many customers’ savings. Questions about those public funds and presidential political responsibility have accompanied the dispute over the bank.[1]
In his appeal, Peña called on the Deposit Guarantee Fund to carry out its role and urged the return of money to people affected by the closure. He demanded protection for public resources and Paraguayans’ savings. The extent of his links to Ueno, and whether an offence occurred, remain matters for investigation and judicial proceedings.[1]
A group of 35 deputies brought the impeachment request, which also names Alliana. The accusation alleges a conflict of interest arising from Peña’s shareholding in Ueno Holding until 2025. The request therefore concerns both members of the presidential leadership as lawmakers consider the consequences of the banking crisis.[2]
Peña apologises as succession procedures loom
The president apologised to the population, saying he had never intended to betray its trust. He presented his decision as respecting the constitution and democratic institutions, and described the period as one of the hardest of his life. Those are Peña’s explanations for stepping aside. Vice-President Pedro Alliana is the potential successor under the constitution; the resignation announcement precedes the relevant congressional procedures and any transfer of presidential authority. Peña had used social media to address the public following Tuesday’s bank intervention.[1]
