The President of Paraguay, Santiago Peña, announced his resignation on Thursday amid a financial crisis that led to the closure of Ueno Bank, an institution with about 2.9 million clients, leaving many savers without access to their deposits, sparking protests in the streets, and causing his own party to withdraw political support.
The resignation of the official, regarded as an ally of U.S. President Donald Trump, comes just eight days after his government voted in the United Nations against a resolution demanding the lifting of the U.S. embargo on Cuba.
According to information from the agency EFE, Peña announced his decision through a video published on X while Congress was debating the possibility of subjecting him to an impeachment trial.
"I have made the decision to submit my resignation as President of the Republic," declared the leader, who stated that he sought to preserve the stability of the country and apologized to the citizens.
The crisis began with the intervention of Ueno Bank, a financial institution with approximately 2.9 million clients that managed hundreds of millions of dollars from public institutions, including pension funds.
The Central Bank of Paraguay detected serious solvency issues and ordered the intervention of the entity. The measure left millions of people without access to their deposits and triggered protests against the Government.
Peña had been a shareholder of a group affiliated with the bank until 2025. The opposition accused him of a conflict of interest and of favoring the entity, allegations that will need to be addressed through the appropriate investigations.
The magnitude of the scandal is also related to the public resources deposited in Ueno Bank. According to Associated Press, the institution managed approximately 850 million dollars from state entities, including around 380 million from the Social Security Institute (IPS), which is responsible for managing retirement and health funds for Paraguayan workers.
The judicial investigation led to the arrest of eight senior managers and executives of the bank, including its president, Juan Manuel Gustale, and its CEO, Miguel Vázquez. The Prosecutor's Office is investigating alleged financial irregularities, including possible crimes involving breach of trust, related to operations that compromised the institution's solvency.
The crisis also reached Congress, where the Chamber of Deputies was debating an accusation to initiate impeachment proceedings against Peña. Although Associated Press reported a unanimous vote in favor of the procedure, the Paraguayan newspaper ABC Color noted that the legislators had declared a recess without voting on the accusation against the leader.
Vice President Pedro Alliana is the one who must assume the presidency to complete the constitutional term, which is set to last until August 2028.
A Trump ally who changed Paraguay's vote on Cuba
Peña's departure is also significant in the regional diplomatic landscape due to his approach towards Washington and his positions regarding the Cuban government.
The president participated on March 7th in the "Shield of the Americas" summit, called by Donald Trump in Miami to promote regional cooperation on security matters.
Moreover, on September 23, Peña publicly called for a "democratic transition" for Cuba, Venezuela, and Nicaragua, during an interview given to Martí Noticias on the sidelines of the United Nations General Assembly.
The then-president defended that his country should take an active role in the political change processes in the region and stated that the democratic transition he desired for Venezuela was "the same as what we want for Cuba."
More recently, on October 28, Paraguay voted for the second consecutive year against the UN resolution calling for the end of the U.S. embargo on Cuba, aligning itself with Washington's position.
The resolution was approved by 130 countries, while 17 voted against it and 25 abstained.
The Paraguayan newspaper ABC Color highlighted the shift in stance of Peña's government, which had supported the resolution against U.S. sanctions in 2023.
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