Asuncion (Paraguay) (AFP) - Paraguay's President Santiago Peña resigned after about half the population was unable to access their savings, and thousands took to the streets Thursday in angry protests.

Published on: 06/11/2026 - 09:21

Congress postponed a decision on Peña's resignation while the procedures for his removal continue, which means that he will remain in his position temporarily.

The Central Bank's takeover on Tuesday of Ueno Bank, which is linked to Benya, led to the freezing of the deposits of about three million people, including retirees, and sparked angry demonstrations across the country.

Thousands demonstrated in Paraguay in front of the Congress building on Thursday, to protest against Peña, whose resignation is still pending.

The demonstrators chanted, "Return the money," according to what Agence France-Presse journalists reported. Previous demonstrations witnessed confrontations with the police, who used tear gas and water cannons to disperse the crowds.

"My family has run out of money, and we no longer have any money," Andres Maldonado, a 21-year-old student participating in the protests, told AFP.

Representatives voted unanimously on Thursday to begin impeachment proceedings against Peña in light of the crisis, accusing him of misconduct and a conflict of interest.

The right-wing president said in a video clip he posted on the “X” platform in which he announced his resignation, “I would like to apologize to the people if I fell short at any stage. I had absolutely no intention of betraying the trust you placed in me.”

He added that his priority was to "reassure Paraguayan citizens who have placed their savings in our financial system."

Peña later confirmed that he "will appear" before the Senate and "will exercise his right to defend" himself during an impeachment trial that may be held on Friday.

His Interior Minister, Enrique Riera, also resigned on Thursday, according to a decree published by local media, and Carlos Benitez was appointed as his acting successor.

"We have nowhere to live"

The Central Bank explained that it took control of Ueno Bank due to a severe shortage of capital, with the aim of "protecting depositors and maintaining the stability of the financial system."

Nadia Gonzalez, a 26-year-old mother of three, told AFP, “Ueno (Bank) agreed to give us a loan to buy our first house. But the money was not spent, and now we have no place to live.”

Long queues of people seeking to withdraw their money from Oeno branches extended through the streets of the capital, Asuncion, on Tuesday and Wednesday.

Peña previously owned shares in a group that controlled Ueno Bank, but sold them last year.

He tried to calm the tension by requesting the resignation of Central Bank Governor Carlos Carvalho, who responded, and setting a five-day deadline for the return of the funds. But neither measure was enough.

Congress called for an extraordinary session of its two chambers on Thursday to decide whether to accept or reject Peña’s resignation and proceed with the procedures for his removal.

But the session was not held due to lack of a quorum, so voting did not take place.

A subsequent extraordinary session on Friday morning set the date for the start of the parliamentary trial.

Opposition MP Raul Benitez said, "A criminal scheme was set up here to drain the bank's funds, by protecting institutions that he (Peña) controlled in his capacity as president of the republic."

A senator from the ruling party, Derlis Maidana, told reporters that the goal is to conclude the trial on Friday “to reassure citizens.”

The presidency will now pass to Vice President Pedro Aliana to lead this South American country.

© 2026 AFP

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