Congress Rejects Peña’s Resignation: Lawmakers Block His Exit

Paraguay’s political order has been severely shaken by the sudden failure of Ueno, a fast-growing digital bank. What began as concerns over risky lending and insufficient capital has escalated into nationwide protests, an investigation by the attorney general and a constitutional crisis in the legislature.

Attorney general orders multiple criminal inquiries

On Thursday, Attorney General Emiliano Rolón Fernández instructed prosecutors to open three separate criminal probes linked to the Ueno collapse. The investigations will examine the actions of the state banking regulator, how authorities managed the bank’s failure and whether public funds were improperly placed at Ueno.

Officials under scrutiny include current and former members of the government; the attorney general’s move targets potential regulatory lapses and the handling of taxpayers’ money. President Peña said he will cooperate with investigators and posted on X that he will act responsibly and in accordance with the constitution regardless of the outcome.

Impeachment pushed forward after resignation bid fails

Facing growing calls for accountability, Peña had announced his intention to resign. But when the joint session of the Senate and Chamber of Deputies met to consider his letter of resignation, the body was no longer able to reach a quorum — members of Peña’s Colorado Party left the chamber, apparently recognizing they lacked the votes to approve the resignation.

Because the resignation could not be formally accepted, Peña remains in office and the Senate moved ahead to open an impeachment process that the lower house had already initiated unanimously over the banking crisis. The Senate has summoned Peña to appear on Friday; he has signalled on X that he will face the proceedings and present his defence.

Why the resignation mattered

If lawmakers had accepted Peña’s resignation, he would have avoided the impeachment process. Instead, with the resignation unapproved, the constitutional mechanism for removing a sitting president is now under way.

How Ueno went from fintech success story to crisis

Ueno rose rapidly in just a few years — from a small lender into one of Paraguay’s most prominent banks. Its sleek app and user-friendly services helped it amass roughly 2.9 million customers, a number that represents more than half of Paraguay’s adult population. The bank even became a sponsor of the national football team in 2023, and handled payments such as some pension disbursements.

Regional press reports later flagged aggressive, high-risk lending practices at Ueno. Lawmakers allied with former president Horacio Cartes pressed regulators to investigate, and it emerged that the bank did not hold the legally required level of equity capital.

Peña’s role and public reassurances

Santiago Peña — who until last year owned shares in a company linked to Ueno — expressed regret but denied responsibility for the bank’s collapse. He apologised “if I have ever disappointed people” while insisting that citizens’ savings are safe and that the financial system remains stable.

Reporting includes material from Anne Herrberg, ARD Rio de Janeiro.