By Gonzalo Zegarra, CNN
(CNN) — Paraguayan President Santiago Peña resigned from office this Thursday after Ueno Bank was shut down in the middle of the night due to a solvency crisis, leaving thousands of customers unable to access their money and triggering a scandal.
“I have made the decision to submit my resignation from the Presidency of the Republic. I do so with the stability of our country, social peace, and the need to preserve our public institutions in mind,” he said in a message posted on social media.
“Today my priority is only one thing: the peace of mind of the Paraguayans who entrusted their savings to our financial system,” he added.
Paraguay’s Congress, which was beginning impeachment proceedings against Peña over the Ueno Bank scandal, will have to decide whether to accept or reject the resignation.
“History will judge and give due consideration to the events we are experiencing today,” Peña said. “I apologize to the people if I have failed them at any time.”
Paraguay’s Chamber of Deputies began a special session this Thursday to debate charges brought by 35 opposition lawmakers and ruling-party dissidents against Peña to trigger the impeachment mechanism provided for in Article 225 of the Constitution.
The charges accuse Peña of alleged “serious and systematic dereliction of duty” and proposed “removing from office” the president, who took power in August 2023 for a five-year term.
How the scandal unfolded
Paraguay’s president became embroiled in the crisis that erupted after the intervention of Ueno Bank, a private institution to which he has been linked to and which, during his administration, received millions in funds from public entities, including the Social Security Institute (IPS), which manages the pensions of most of the country’s workers.
CNN contacted the presidency before Peña’s resignation to ask about the allegations against him.
The Central Bank of Paraguay found that Ueno Bank’s solvency ratio—with 2.9 million customers in a country of 6.1 million people—had fallen below 50% of the required minimum, “as a result of adjustments made to its financial statements during the regularization process.”
As a result of the resolution or dissolution proceedings, the savings of thousands of customers were frozen at the financial institution, which is also known for sponsoring local soccer teams and Paraguay’s national team.
This is a developing story and will be updated.
The-CNN-Wire™ & © 2026 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.
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