TLDR
- Paraguayan President Santiago Peña announced his resignation after Ueno Bank’s collapse froze about three million accounts.
- The lower house voted 78-0 to impeach Peña minutes after his announcement.
- The central bank set a deposit guarantee of up to 228.3 million guaraníes, about $36,000, per depositor.
- First payments will go to small accounts holding no more than 10 million guaraníes.
- Peña is expected to present his defense at a special session of Congress on Friday.
Paraguay’s central bank has begun laying out how it will repay depositors of Ueno Bank, the digital lender whose collapse this week cut off about three million customers. The failure has already cost President Santiago Peña his job, after he announced his resignation on Thursday.
Peña’s exit did not end the political fight. Minutes after his announcement, the lower house of Congress voted 78-0 to impeach him, sending the charges to the Senate, according to AP.
How the Bank Failure Unfolded
The central bank placed Ueno into resolution on November 3 after regulators found its solvency ratio had fallen below half the legal minimum. The move followed accounting changes to the bank’s financial statements and shut down its app, cards and transfers.
Ueno has said it serves about three million customers, or roughly 60% of Paraguay’s adult population. It also held around $800 million in public-sector deposits, including pension and health funds, according to AP.
Lawmakers accused Peña of conflicts of interest and misconduct. He was a shareholder until last year in a company linked to the bank’s owners.
Peña has denied any wrongdoing and rejected suggestions of impropriety. He said he sold his stake in March 2025, according to Reuters.
“I want to apologise to the people if at any point I failed,” Peña said in a video message on social media. “It was never my intention to betray the trust you placed in me.”
He said he was stepping down to protect stability, social peace and democratic institutions. He also said he wanted the Deposit Guarantee Fund, Paraguay’s version of the U.S. FDIC, to ensure funds are returned.
Mensaje del Presidente de la República, Santiago Peña, al pueblo paraguayo. pic.twitter.com/RBz6IfFV9L
— Santiago Peña (@SantiPenap) November 5, 2026
Depositor Payments and the Bitcoin Debate
The central bank has announced a deposit guarantee of up to 228.3 million guaraníes per depositor, or about $36,000. A new central bank president has been appointed, and Congress has approved a process to pay depositors.
The first payments will go to depositors holding no more than 10 million guaraníes. Eligible customers must also have no debts with Ueno and hold an account at another financial institution.
The central bank says Ueno’s failure is an isolated case and not a sign of a wider banking collapse. Still, protesters gathered near the Congress building on Thursday, and police clashed with crowds demanding Peña’s removal.
“Santiago Peña and the Colorado Party have stolen all our savings,” protester Luis Pineda told AP. “We are fed up with 70 years of plunder.”
The freeze has also renewed a long-running argument among Bitcoin supporters about self-custody. A holder who controls a wallet’s private keys can move funds without needing a bank or exchange to unlock an account.
Self-custody carries its own risks. Lost keys cannot be recovered, theft is possible, and Bitcoin’s price can swing sharply.
Peña won the 2023 election as the candidate of the ruling conservative Colorado Party. The party dropped impeachment proceedings against Vice President Pedro Alliana, who is next in line for the presidency.
Paraguay’s Congress must approve a president’s resignation. A special session on Thursday to address it was adjourned so lawmakers could continue the impeachment process instead.
Congress has scheduled a special session for Friday, when Peña is expected to present his defense, according to Reuters. In a post on X, Peña confirmed he would appear to “exercise my right to a defence.”
