The President of South American country Paraguay, Santiago Pena, has resigned from his post on Thursday. After the banking crisis in the country, the deposits of around 30 lakh people were frozen. Enraged by this, thousands of people took to the streets and started protesting against the President. Stuck money also includes the money of the elderly and pensioners. The Central Bank of Paraguay took over Ueno Bank two days ago. The bank was severely short of funds. The central bank said the move was taken to protect people’s deposits and safeguard the country’s banking system.
Thousands of protesters gathered outside Parliament on Thursday. They were chanting ‘Give us back our money’. Earlier during the protest there was a clash between police and people. Police fired tear gas shells and used water cannons to disperse the crowd. Andres Maldonado, a 21-year-old student, said his family had no money left. He called the President a criminal and said he should be sent to jail.
Queridos compatriots:
Because we live in an hour of anxiety and uncertainty. Those who speak speak clearly and calmly.
Before political justice continues, I will submit and exercise my right of defense. It was done with arguments and proofs respecting the constitution or institutions of the republic.
And when I make my decision, I will exercise that right. Not because of a matter of personal pride, but to account and explain is also a responsibility to the people of Paraguay.
Cooperate fully with competent institutions to clarify what happened, determine responsibilities and hold violators to justice. Please provide me the required information. Citizens deserve to know the truth, unencumbered and above no law.
But I want to make something very clear: Paying lawyers does not depend on what happens to me. My discussion of continuity in cargo cannot paralyze the solutions that affected families need.
My priority was to promote the necessary measures, within the law and in coordination with the responsible institutions, so that the aherists could recover their savings. Clarification of facts and settlement of payment obligations should proceed at the same time. There can be no excuse for posting another.
Let us maintain peace and tranquility. Citizenship claims deserve to be heard and addressed with respect, clear information and concrete action.
My personal fortune is no greater than in Paraguay. Anyone who sees to the outcome of this process will act with responsibility and respect for the Constitution. My commitment is with the truth, with the institutions and, above all, with the Paraguayan families.
That God will bow down to Paraguay.
—Santiago Pena (@santipenap) November 5, 2026
Preparation of impeachment of the President
Lawmakers unanimously decided to start impeachment proceedings against President Peña on Thursday. He is accused of taking wrong decisions in bank related matters and benefiting his personal interests. Pena had shares in the group controlling Ueno Bank. However, he sold his shares last year.
As the crisis escalated, he called for the resignation of central bank chief Carlos Carvalho. Carvalho resigned. Pena also promised to return people’s money within five days, but that did not ease the anger of the people. The President announced the resignation by releasing a video on social media. He said that he did not intend to break the trust of the people. His first priority is to give relief to people who deposited their savings in banks.
The loan taken to buy the house was also not received
Nadia Gonzalez, 26, said the bank approved a loan for her to buy her first home, but did not release the money. Now they have no place to stay. Long queues of people to withdraw money were seen outside bank branches on Tuesday and Wednesday.
A special session of parliament was called on Thursday to decide on the president’s resignation, but the required number of MPs did not turn up. So no decision could be taken in the meeting. Later, it was decided to start the impeachment trial on Friday morning. Vice President Pedro Aliana will assume the presidency.
Opposition MP Raul Benitez alleged that the money was withdrawn from the bank under the president’s protection. At the same time, ruling party MP Darlis Maidana said that efforts would be made to conclude the hearing on Friday itself, so as to regain public confidence.
