Photo: Francarballopy via Wikimedia Commons, CC BY-SA 4.0
Updated November 7, 2026 (ET).
Santiago Peña entered Paraguay’s presidency with a résumé built around economics and finance. He has now been removed from office in a crisis centered on a bank with links to his past business interests.
Paraguay’s Senate impeached Peña on Friday, November 6, 2026, after Ueno Bank’s collapse left an estimated three million depositors unable to access their money, according to the BBC. All 44 senators present voted for removal; one was absent. Peña, who had offered to resign the previous day, denied wrongdoing. Vice President Pedro Alliana was sworn in as his successor.
The BBC reported that Peña was placed under house arrest after his removal. In a subsequent development, ABC Color reported on November 7 that he had arrived at the prosecutor’s office for questioning after spending the night at the Presidential Escort Regiment’s barracks, where he had been moved for security. ABC said he did not yet face a formal indictment at the time of its report. Political impeachment is not the same as a criminal conviction.
Santiago Peña: Quick facts
Full name: Santiago Peña Palacios.
Born: November 16, 1978, in Asunción, Paraguay.
Age: 47 as of November 7, 2026.
Known for: Former president of Paraguay; former finance minister and IMF economist.
Education: Economics at the Catholic University of Nuestra Señora de la Asunción; master’s in public administration from Columbia University.
Presidency: Took office August 15, 2023; removed November 6, 2026.
Latest news: Removed amid the Ueno Bank crisis and brought to prosecutors for questioning.
What did Santiago Peña do before becoming president?
Peña’s professional background was in economic institutions, not just electoral politics. The United Nations’ Economic Commission for Latin America and the Caribbean records his work at Paraguay’s central bank and the International Monetary Fund in Washington, D.C. He served as Paraguay’s finance minister from 2015 to 2017.
His World Bank biography, written during his time as finance minister, describes an economist who worked at the central bank from 2000 to 2009 and then at the IMF, focusing on West Africa, until 2012. He returned to Paraguay to join the central bank’s board and led the team preparing the country’s financial-inclusion strategy, launched in December 2014.
That background is central to understanding the current crisis: his career included both financial policymaking and efforts to broaden access to banking. The collapse of a bank serving millions of depositors therefore cuts directly across the expertise that had helped define his public life.
What was Peña’s connection to Ueno Bank?
The distinction between owning a bank and owning shares in a related holding company matters. BBC Mundo’s account says Peña held shares in Ueno Holding, a company linked to Grupo Vázquez, Ueno Bank’s principal shareholder. He said he sold that participation in March 2025 and maintained that he had not been a direct shareholder in the bank.
The BBC’s English-language report describes him as having held shares in the company that owned the bank until last year. This page does not treat those ties as proof that he caused the collapse or committed a crime.
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Why was Santiago Peña impeached?
According to the BBC, the impeachment allegations included conflicts of interest, manipulation of regulatory oversight, diversion of pension funds, and an institutional cover-up involving the central bank. These were allegations underlying his removal, not criminal findings established by this page.
Peña denied wrongdoing. His lawyer, Ricardo Preda, called the allegations a reckless accusation, according to the BBC. The Senate nevertheless voted unanimously among those present to remove him rather than accept his offered resignation.
The banking crisis and the criminal investigation are still developing. The estimated three million people affected should not be turned into an exact audited count, and the outcome of the November 7 questioning should not be assumed.
Frequently asked questions about Santiago Peña
Is Santiago Peña still president of Paraguay?
No. The Senate removed him on November 6, 2026. Pedro Alliana was sworn in as his successor.
Did Peña work for the IMF?
Yes. His World Bank biography describes him as an IMF economist focused on West Africa before he returned to Paraguay in 2012.
Is Santiago Peña under house arrest?
The BBC reported house arrest following his removal. ABC Color subsequently reported that he spent the night at military barracks for security and arrived at the prosecutor’s office on November 7. His location and legal restrictions should be rechecked before publication.
Has Peña been convicted of a crime?
The sources cited here do not establish a criminal conviction. The Senate’s political decision to remove him is distinct from the criminal investigation. ABC reported that a formal indictment was still pending when its November 7 story appeared.
Further reading
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