Paraguay Lawmakers Reject Peña’s Resignation, Seek Impeachment

Paraguay's Senate has demanded President Santiago Peña appear before Congress for impeachment hearings, following the collapse of Ueno Bank, a digital lender associated with Peña and his family. Peña vacated the office on Thursday, yet the country's legislature declined to acknowledge his resignation. Tensions intensified after investigations revealed Ueno's misconduct, including alleged insider lending and a capital shortfall, leaving countless customers unable to access their accounts.

A parliamentary probe disclosed that Peña had falsely claimed ownership and deposits in Ueno before disclosing the sale of his shares in 2025. Luxembourg-based U Holdings S.à r.l., founded in 2023 by Federico Miguel Vázquez, who oversees Ueno Bank, also lists Peña’s brother, Francisco Peña Palacios, as a significant shareholder.

Thus far, Paraguayan authorities have issued arrest warrants for senior Ueno officials and businessmen, though it is uncertain if Vázquez has been apprehended. In a televised address, Peña announced his resignation, citing the necessity to maintain Paraguay's political stability and apologizing to the nation's populace. He urged the restitution of funds to customers impacted by Ueno Bank's failure.

Ueno Bank remains under the watchful eye of the central bank due to its solvency ratio falling beneath legal standards. Despite his resignation, Peña maintains his innocence and agreed to appear before the Senate to participate in the impeachment process. The conflict has also thrust Vice President Pedro Alliana into the spotlight as the presidential line of succession.