Paraguay’s President Announces Resignation as Bank Collapse Sparks Crisis

President announces resignation

November 5, 2026 · 12:40 p.m. Central

Paraguayan President Santiago Peña announced Thursday that he would resign as the collapse of a major bank froze customers’ money and drove protesters into the streets. Minutes later, the country’s lower house voted unanimously to impeach him.

The 78–0 impeachment vote sent charges to the Senate; it did not itself remove Peña from office. Congress was expected to consider his resignation later Thursday, with Vice President Pedro Alliana expected to succeed him if it is accepted, The Associated Press reported.

Peña announced his decision in a video on X while lawmakers debated impeachment, citing the country’s stability and democratic institutions. Reuters also reported his resignation announcement.

A bank failure reaches the presidency

Paraguay’s central bank took over Ueno Bank on Tuesday after finding problems in its accounts, according to AP. The closure left customers without access to their savings, wages and pensions while officials worked to move accounts and repay depositors.

Peña had held a stake until last year in a company related to the bank, AP reported. He apologized in his announcement but did not accept responsibility for the crisis. The announcement and his prior financial connection do not establish criminal wrongdoing.

Demonstrators returned to the streets of Asunción for a third day as the political crisis deepened. Authorities have detained bank executives and brought charges against officials and business associates, AP reported; charges are allegations, and lawyers for several detainees said they needed time to review them.

What happens next

AP reported that Congress was expected to formally accept the resignation at 5 p.m. Paraguay time Thursday and that Alliana was expected to be sworn in an hour later. Those steps had not been independently confirmed as completed at this article’s reporting cutoff.

Separately, conviction on impeachment charges would require a two-thirds Senate majority, AP reported. The immediate question for bank customers is when they can access their money and how the authorities’ transfer process will work.

Where the political crisis is unfolding

The star marks the approximate Asunción, Paraguay area.

How the crisis developed

Dates are local to Paraguay.

1. November 3 The central bank seized Ueno Bank, according to AP.
2. November 4 Customers and other demonstrators protested in Asunción as officials worked on access to deposits.
3. November 5 Peña announced his resignation; the lower house then voted 78–0 to impeach him, sending the matter to the Senate.

The president’s statement

Peña posted a video statement on X. AP and Reuters reported that he announced his resignation in that statement.

Read the president’s original post on X

Open the original post if the embed does not load.

Sources and visual credits

Associated Press · Reuters · Peña on X.

Hero and thumbnail: generated conceptual illustration, not a photograph or reconstruction. Map: OpenStreetMap contributors, ODbL.