Paraguay Lawmakers Reject Peña’s Resignation, Seek Impeachment
Ueno Bank’s collapse sparked a political crisis for Paraguay as ties to the digital lender engulfed President Peña.
Paraguay’s Senate has officially summoned President Santiago Peña to appear before Congress on Friday as part of impeachment proceedings, following the collapse of Ueno Bank, a digital lender linked to Peña and his family.
Peña resigned on Thursday, but Paraguay’s Congress refused to accept the resignation.
The political crisis escalated after Ueno, which served about 60% of Paraguay’s bank customers, succumbed to alleged insider lending and a capital shortfall, leaving millions of customers unable to access their accounts.
A Nov. 6 investigation by Paraguayan newspaper Última Hora found that Peña declared ownership of shares in Ueno Holding — valued at approximately $800,000 — and deposits at Ueno Bank, before reporting the sale of those shares in 2025.
Luxembourg-based U Holdings S.à r.l., established in 2023 by Federico Miguel Vázquez, whose Grupo Vázquez controls Ueno Bank, also lists Peña’s brother, Francisco Peña Palacios, as a major stakeholder.
So far, Paraguayan prosecutors have ordered the arrest of senior executives and businessmen linked to Ueno, including Vázquez. It’s unclear whether Vázquez was arrested at the time of reporting.
What Peña Announced
In an address to the nation, Peña said he had decided to resign, citing the need to preserve Paraguay’s political stability. He also apologized to the Paraguayan people and called for the return of funds to customers affected by Ueno Bank’s collapse, according to Agencia EFE, Spain’s national news agency.
“I do so with the stability of our country, social peace, and the need to preserve our democratic institutions in mind,” Peña said.
So far, the bank has administered approximately $850 million in public funds.
What Happens Next?
Ueno Bank will continue to be subject to central bank intervention after regulators found that its solvency ratio had fallen below legal requirements.
Despite announcing his resignation, Peña denies wrongdoing and agreed to appear before the Senate to defend himself in the impeachment proceedings.
The controversy also put Vice President Pedro Alliana in the spotlight as the constitutional successor to the president.
Anthony Noto covers corporate finance and private credit. Contact him at anoto@gfmag.com.