Paraguay: Peña resigns after the fall of Ueno Bank, Congress refuses and opens his impeachment trial

Paraguayan President Santiago Peña resigned after the collapse of Ueno Bank left 3 million customers locked out of their accounts, but Congress rejected the resignation and opened impeachment proceedings against him, with a hearing set for Friday. The bank failure has frozen access to funds for roughly half the country's population, making it a systemic event for Paraguay's financial sector rather than an isolated bank run. Congress's refusal to accept the resignation means Peña will face a formal impeachment trial rather than exiting office, injecting political uncertainty into an already strained banking system. Investors should watch Friday's proceedings for signals on whether the government can stabilize Ueno's depositors and contain contagion to other Paraguayan banks.