Paraguayan President Resigns Amid Conflict of Interest Allegations Following Ueno Bank Bankruptcy - Thairath English

The President of Paraguay announced his resignation following allegations of conflicts of interest involving Ueno Bank, which recently filed for bankruptcy.

Foreign news agencies reported on 5 Nov 2026 that Santiago Peña, President of Paraguay, has resigned amid a political crisis sparked by the bankruptcy of a bank connected to him.

“I apologize to the people if at any time I have disappointed you,” he said in a video message shared on social media. “It was never my intention to betray the trust you placed in me.”

The crisis erupted after Ueno Bank entered bankruptcy proceedings, halting all operations. Legislators accused Peña, who was a shareholder in the company owning the bank until last year, of conflicts of interest and dereliction of duty.

There is also information that Peña received a special loan from this bank to build a private vacation home, and that investments in certificates of deposit (CDA) with this bank surged dramatically during his presidency.

Peña is further accused of having the government invest over $355 million from the public social security fund (IPS) and pension funds into Ueno Bank during his tenure, representing a large proportion that risked the country’s savings system.

Peña denied all allegations but chose to resign after members of parliament, including opposition and some government representatives, voted to support an impeachment inquiry against him.

In a video posted on X, Peña said his resignation was to protect the stability, peace, and democratic institutions of society.

Ueno Bank revealed it had about 3 million customers, approximately 60% of Paraguay’s adult population. The bank also managed pension and other public funds, but after declaring bankruptcy earlier this week, millions of people lost access to their accounts.

The central bank has now taken control of Ueno Bank’s operations, and parliament has approved reimbursement procedures for depositors. Nevertheless, angry citizens continue to protest in the streets, demanding Peña’s resignation.

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