The US urges preserving peace and democratic institutions in Paraguay after the political crisis

The US calls for calm and institutional respect in Paraguay after Peña’s resignation and the crisis over the collapse of Ueno Bank.

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U.S. authorities have demanded this Friday "to maintain the peace" and "to respect democratic institutions" in Paraguay, after the political crisis triggered by the resignation of the president, Santiago Peña, presented amid the collapse of the financial entity Ueno Bank.

In an official statement, the U.S. Embassy has expressed its "solidarity with the Paraguayan people" and has underscored that the United States is a country "friend and historical ally of the Republic of Paraguay."

At the same time, the diplomatic mission has appealed to "social restraint and constitutional compliance" in the context of the 'impeachment' process opened against Peña, once Congress rejected accepting his resignation on the grounds that it was a subterfuge to assume the post of lifetime senator, an honorary position reserved for former Paraguayan presidents that entails maintaining immunity.

"We encourage, as a friend and ally of Paraguay, that the Paraguayan authorities and people maintain the peace and respect their democratic institutions," the note released by the Embassy states.

Peña was a shareholder of Ueno Holding, which owns Ueno Bank, until March 2025. During his time at the helm of the Executive, the private financial entity received substantial resources from public funds, a fact that has fueled the controversy.

The Central Bank announced on Tuesday the start of a procedure to dissolve Ueno Bank after finding that its solvency ratio had fallen below half of the minimum threshold required by regulations.

Since that moment, the opposition has pointed to Peña for alleged conflicts of interest, for allowing the improper use of pension funds, and for concealing possible irregularities linked to the entity.