Paraguay’s political and financial crisis – sparked by the central bank’s takeover of Ueno Bank over severe solvency problems and the political crisis surrounding the possible removal of President Santiago Peña – enters its fourth day on Friday, 6 November 2026. The Senate is scheduled to hear Peña’s defence, with Peña himself requesting a later deadline on Friday morning, as street pressure continued to build around Paraguay’s dual crisis.
Demonstrators had gathered outside Congress in Asunción on Thursday, demanding full accountability for the bank’s collapse and insisting that impeachment proceedings continue so those allegedly responsible face prosecution.
Paraguay’s dual crisis: What happened before
Thursday, 5 November 2026, marked another significant day in Paraguay’s Ueno Bank crisis, with developments affecting depositors, bank executives and the country’s political leadership. The Banco Central del Paraguay (BCP) began notifying customers about deposit repayments, while courts considered criminal charges against bank officials. President Santiago Peña announced his resignation, although the political process surrounding his departure remained unresolved on Thursday evening.
The developments followed the BCP’s decision on Tuesday, 3 November, to begin resolving Ueno Bank after identifying serious solvency problems. The intervention suspended the bank’s operations, leaving customers temporarily unable to access their accounts and raising concerns about public funds deposited with the institution.
Ueno Bank payments: What customers need to know
Deposit repayments: The BCP announced, and started, payments to Ueno Bank customers with deposits of up to ₲10 million (approximately US$1,500). To qualify for the first stage, depositors must have no outstanding debts with Ueno Bank and an active account at another financial institution. Eligible customers will receive their deposits in full. The BCP will announce subsequent payment groups through its official channels.
Official notifications: Customers should receive information from fgdpagos@bcp.gov.py identifying their assigned financial institution. Those who have not received a notification can consult the BCP’s official payment information channels.
Criminal charges and investigations
Three new investigations involving government officials: Attorney General Emiliano Rolón ordered three investigations into alleged irregularities involving banking supervision, Ueno Bank’s resolution and public deposits. The complaints involve President Santiago Peña, Vice-President Pedro Alliana and other government officials. The investigations remain ongoing, and no criminal responsibility has been established.
Peña’s resignation and Paraguay’s political future
President Santiago Peña announced his resignation: Peña released a recorded statement on Thursday announcing his decision to leave office. He said the decision was intended to protect national stability, social peace and democratic institutions. Peña’s resignation was not accepted by Congress, so he remained formally president while the impeachment process continued.
Congress advances impeachment proceedings: The Chamber of Deputies unanimously approved the accusation against Peña, with 78 votes. The case then moved to the Senate, where lawmakers discussed continuing the impeachment process despite his resignation announcement.
Resignation remains unresolved: Congress did not reach the quorum required to consider Peña’s resignation on Thursday. Lawmakers continued considering impeachment, which is legally distinct from accepting a presidential resignation. Accepting it would have made Peña a lifetime senator with parliamentary immunity, complicating any later criminal proceedings. Opposition lawmakers and others preferred rejection so the full impeachment could proceed and potentially strip those protections.
Vice-President Pedro Alliana in line to succeed: Under Paraguay’s constitutional succession rules, Alliana would assume the presidency if Peña’s departure takes effect. His potential succession has become a central question as the political crisis continues.
Protests outside Congress: Demonstrators gathered again in Asunción on Thursday, demanding accountability over the bank’s collapse. Protesters called for the impeachment process to continue and for those responsible for alleged irregularities to face judicial proceedings.
What happens next for Paraguay?
Friday, 6 November, is expected to bring further developments in the impeachment proceedings. Peña’s defence has been scheduled for 10:00, with the Senate responsible for determining the next steps in the process, although Peña himself requested a later deadline.
For Ueno Bank customers, the immediate priority remains the recovery of their deposits. The BCP will continue coordinating payments through the Deposit Guarantee Fund, while investigations into the bank’s financial management and the placement of public resources proceed separately. The coming decisions will determine both the country’s presidential transition and the next stages of the financial crisis.
