Paraguay's president resigns over bank collapse as Senate presses impeachment

Overview

Updated 1 hour ago

On November 5, 2026, Santiago Peña resigned as president of Paraguay after the collapse of Ueno Bank froze the accounts of nearly 3 million people. Hours later, the Chamber of Deputies voted unanimously to impeach him. The Senate then declined to accept his resignation, leaving him in office and on trial.

The refusal is the mechanism. Accepting the resignation would have made Peña a senator-for-life with parliamentary immunity, shielding him from the criminal inquiry into his past stake in the bank's holding company. By continuing the impeachment, Congress keeps him exposed to prosecution — but only if two-thirds of the Senate votes to remove him.

Why it matters

Paraguay's Congress is using an impeachment trial to strip a president of the immunity his own resignation would have granted him.

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Key Indicators

3 million

Ueno Bank clients cut off

Customers left without access to their money after the central bank took control.

$850M

Deposits held at Ueno

Includes public funds and money from the social security institute.

30 of 45

Senate votes needed to remove Peña

Two-thirds of the 45-member Senate must vote to convict.

50%

Minimum solvency ratio Ueno missed

The central bank intervened after the bank fell below the legal threshold.

Voices

Curated perspectives — historical figures and your fellow readers.

People Involved

Santiago Pena

President of Paraguay (resigned, resignation not accepted)

On trial in the Senate; remains in office pending the outcome

Pedro Alliana

Vice President of Paraguay

Next in line to the presidency

Carlos Carvallo

Former president of the Central Bank of Paraguay

Resigned November 3, 2026

Basilio Núñez

President of the Senate and of Congress

Running the impeachment trial

Organizations Involved

Ueno Bank

Digital bank

Under central bank intervention; operations frozen

One of Paraguay's largest banks, intervened after falling below the legal solvency minimum.

Banco Central del Paraguay

Central bank

Intervened Ueno Bank; its president resigned

Paraguay's central bank, which took control of Ueno after a solvency shortfall.

Congress of Paraguay

Legislature

Trying Peña in the Senate

Paraguay's bicameral legislature, now running the impeachment trial.

Partido Colorado

Political party

Peña's party; split over his fate

Paraguay's dominant party, to which both Peña and Alliana belong.

Timeline

7 events Latest: Today

Tap a bar to jump to that date

November 2026
Peña's defense hearing
Today Legal

Peña and his lawyers are scheduled to present arguments before the Senate.
Today • 10:00 local
Peña resigns
Resignation

Santiago Peña announces his resignation amid the bank crisis and street protests.
Yesterday
Deputies vote to impeach
Legal

The Chamber of Deputies unanimously approves impeachment charges and sends them to the Senate.
Yesterday
Resignation vote loses quorum
Legal

Colorado Party deputies walk out of the joint session, leaving Congress without the quorum to accept or reject Peña's resignation.
Yesterday
Senate opens trial
Legal

The Senate convenes as a tribunal, hears the charges, and summons Peña to defend himself the next morning.
Yesterday
Central bank seizes Ueno Bank
Financial

The Banco Central del Paraguay intervenes Ueno after its solvency ratio falls below the 50% minimum, freezing accounts for nearly 3 million clients.
3 days ago • Early morning
Central bank chief resigns
Resignation

Carlos Carvallo steps down as president of the Central Bank of Paraguay the same day as the intervention.
3 days ago

Scenarios

Senate removes Peña, opening the door to prosecution

Possible Resolves by End of 2026

Discussed by: Opposition senators and Paraguayan outlets including ABC Color

If 30 of the 45 senators vote to convict, Peña is removed and loses the immunity that a senator-for-life seat would have given him. The case then passes to prosecutors. The opposition's decision to reject his resignation was designed to reach exactly this outcome.

Senate falls short, Peña stays in office

Unlikely Resolves by End of 2026

Discussed by: Paraguayan political analysts cited by BBC Mundo and France 24

If the conviction vote fails to reach two-thirds, Peña is not removed. Because his resignation was never accepted, he would remain president — an outcome that would leave the bank crisis unresolved politically and likely trigger further protests.

Congress accepts resignation, Peña becomes senator-for-life

Unlikely Resolves by End of 2026

Discussed by: BBC Mundo, citing the constitutional immunity rules

If Congress reverses course and accepts the resignation, Peña automatically becomes a senator-for-life with parliamentary immunity. Prosecutors would then need a parliamentary majority to strip that protection before pursuing charges. Opposition legislators rejected this path on November 5.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

June 2012

Impeachment of Fernando Lugo (2012)

Paraguay's Congress impeached President Fernando Lugo over his handling of a land eviction that left 17 people dead. The process moved from charges to removal in about 24 hours, and Vice President Federico Franco took over.

Then

Lugo was removed within a day; Paraguay was suspended from regional blocs over the speed of the process.

Now

The episode became the reference point for how fast Paraguay's impeachment mechanism can move, and for the regional backlash it can trigger.

Why this matters now

It shows how quickly a Paraguayan impeachment can conclude — and why the current Senate timetable could compress into days rather than months.

August 1974

Resignation of Richard Nixon (1974)

Facing near-certain impeachment over the Watergate scandal, U.S. President Richard Nixon resigned before the House could vote on articles. His successor, Gerald Ford, later pardoned him.

Then

Nixon left office and avoided removal by the Senate.

Now

The pardon became a lasting political controversy and shaped how later executives weighed resignation against trial.

Why this matters now

Peña tried the resignation route first. Paraguay's Congress closed it off, forcing the trial Nixon avoided.

2016

Impeachment of Dilma Rousseff (2016)

Brazil's Senate removed President Dilma Rousseff for fiscal violations after a lengthy process. She was convicted but not barred from future office in a separate vote.

Then

Vice President Michel Temer took office; Rousseff's party denounced the process as a coup.

Now

The case set a regional precedent for removing a president through Congress rather than the courts.

Why this matters now

It illustrates the regional pattern of legislatures, not courts, deciding a president's fate — the mechanism now at work in Asunción.