QUICK TAKE | How a Bank Collapse Pushed Paraguay’s Santiago Peña to the Brink. Seven Things to Know

1. Who is Santiago Peña?

Peña is Paraguay’s president. A former IMF economist, he served on the country’s central bank board and as finance minister before winning the presidency in 2023 as the Colorado Party’s candidate.

2. Why did Santiago Peña offer to resign?

Ueno Bank’s collapse brought protesters onto the streets of Asunción and cost Peña the backing of his own party. He submitted his resignation on November 5, saying he wanted to preserve stability. Congress lost its quorum before it could vote on the resignation, leaving him in office.

3. What went wrong at Ueno Bank?

Corrections to Ueno’s accounts showed that its capital ratio, a measure of its cushion against losses, had fallen below half the legal minimum. Paraguay’s central bank stepped in. When the lender suspended operations, customers could no longer withdraw or transfer their money. Ueno had about three million customers.

4. Why is Peña under scrutiny?

Peña held a stake in Grupo Vázquez, the business group behind Ueno. He says he sold it in March 2025 and denies wrongdoing. Lawmakers allege conflicts of interest and misuse of pension funds. Reuters reported that Ueno administered roughly $850 million in public funds, including pension-related money.

5. Why did the Senate put him on trial anyway?

The lower house voted 78–0 to impeach him. Under Paraguay’s constitution, elected former presidents get a lifetime Senate seat with speaking rights and no vote. A conviction would cost Peña that seat. Opposition lawmakers argued that accepting his resignation could preserve the parliamentary protections that come with it.

6. Are Ueno’s customers getting their money back?

The first deposit guarantee payments began on November 5. They went to eligible customers with up to 10 million guaraníes in deposits, no outstanding debt to Ueno and an account at another financial institution to receive the money.

7. How many votes would remove Peña?

The Senate needs 30 of its 45 members to vote to remove him. Peña said he would appear to defend himself, and the Senate scheduled his defence for November 6. If removed, he would be succeeded by Vice-President Pedro Alliana. The lower house rejected a separate bid to impeach Alliana.