Paraguay Congress Refuses Pena Resignation After Ueno Bank Collapse

Paraguay's political crisis deepened on Thursday after Congress refused to accept President Santiago Pena's attempted resignation, while the Senate pressed ahead with impeachment proceedings. Pena tried to step down as millions of customers of Ueno bank found themselves locked out of their accounts following the lender's sudden collapse amid public anger.

The joint session collapsed when Colorado Party lawmakers walked out and quorum was lost. Ueno claimed around three million customers in a country of 6.5 million and handled nearly 850 million dollars in public funds. The central bank said it fell below legal solvency levels, and its governor Carlos Carvallo resigned.

Lawmakers allege a conflict of interest because Pena once held a stake in Ueno's parent, Grupo Vazquez, which he says he sold in 2025. The attorney general has ordered three criminal investigations. If Pena is removed, Vice President Pedro Alliana would likely take over a nation scrambling to protect savers now.