Who Is Santiago Peña? Paraguay’s IMF-Trained President Facing Impeachment Over Ueno Bank Crisis

Santiago Peña built his political identity around economic expertise. A former Central Bank economist and International Monetary Fund (IMF) official, he promised investment, jobs and fiscal discipline when he became Paraguay’s president in August 2023.

Three years later, his government is engulfed by a crisis over Ueno Bank, linked to a company in which he previously held a stake. Peña offered to resign on November 5, 2026, as lawmakers moved to impeach him. Both chambers rejected his resignation offer, and the Senate proceeded with impeachment proceedings.

The crisis has exposed the contradiction between Peña’s technocratic image and questions about conflicts of interest and financial oversight. His record also includes strong growth and a defence of Paraguay’s ties with Taiwan.

From economist to presidential candidate

Born in Asunción on November 16, 1978, Peña studied economics at the Catholic University of Our Lady of the Assumption and public administration at Columbia University. He became a father at 17; he and his wife, Leticia Ocampos, have two children.

He joined Paraguay’s Central Bank in 2000, working in monetary and financial studies. In 2009, he moved to Washington to work in the IMF’s Africa Department. Returning in 2012, he joined the Central Bank’s board, helped prepare a financial-inclusion strategy and taught economic theory.

In January 2015, then-president Horacio Cartes appointed him finance minister. Peña resigned in 2017 to seek the party’s presidential nomination but lost to Mario Abdo Benítez. He returned in 2022, won the Colorado primary and secured 42.74 per cent in the April 2023 election, defeating Efraín Alegre. Paraguay has no presidential run-off. The Colorado Party has governed since 1947, except for 2008–13.

Reuters’ 2023 profile captured the question surrounding Peña’s political rise: was he Cartes’s “puppet or pragmatist”? A businessman who knew him told Reuters: “He is not a politician who wants a revolution, he wants evolution.” Peña told Reuters: “I’m aware I have no margin for error ... We are constantly going to be scrutinized in every decision.” He added: “We have a debt we owe to the people.” He also promised 500,000 jobs in five years. His authority nevertheless depended on Cartes, who remained influential after leaving office.

The Cartes connection

Peña took office on August 15, 2023, as Paraguay’s youngest president of the democratic era. His administration promoted agriculture, manufacturing, hydroelectric power and low taxes to attract investment. But his association with Cartes complicated his claim to represent a break from established political networks.

The United States sanctioned Cartes over allegations of significant corruption and links to terrorism, which he denied.

Economic policy and Taiwan

Peña defended Paraguay’s diplomatic recognition of Taiwan; Paraguay is Taiwan’s only South American ally. During a May 2026 visit to Taipei, he reaffirmed the relationship, and Taiwan approved Paraguayan poultry exports. China has urged Paraguay to switch recognition. Reuters has reported that some politicians and business leaders argue that establishing ties with Beijing could bring greater economic benefits. Peña maintained that ties with Taiwan should continue.

The IMF reported that Paraguay’s economy grew 6.6 per cent in 2025 and 5.8 per cent year on year in the first quarter of 2026. It forecast 4.4 per cent growth for 2026. But the IMF projected the fiscal deficit would rise from 2 per cent of GDP in 2025 to 3.5 per cent in 2026, partly because the government was clearing unpaid public bills accumulated over previous years. The IMF estimated those arrears at about $1.3 billion, roughly 2 per cent of GDP, accumulated between 2023 and 2025. It urged stronger public financial management, greater Central Bank autonomy and better anti-corruption institutions.

Ueno Bank and the political crisis

Ueno began as a digital lender in 2021 and secured a banking licence in 2023, after which it expanded rapidly. It claimed about three million customers and administered $850 million in public funds. Regulators intervened after adjustments to its accounts left its solvency ratio below half the legal minimum.

Ueno’s services were suspended, cutting off access to accounts. The Associated Press reported that inspectors identified risky insider lending, inadequately documented loans and expenses improperly recorded as assets.

The political connection was Peña’s previous stake in Grupo Vázquez, Ueno’s parent company. He said he sold it in March 2025 and denied having a direct investment in Ueno. Questions widened because Peña had appointed Carlos Carvallo, a former head of Financiera Ueno, to lead the Central Bank. Carvallo resigned after the intervention. Opposition lawmakers accused Peña of a conflict of interest, misuse of pension funds and shielding the bank from scrutiny. These remain allegations, not findings of guilt.

The state pension and social security institute, IPS, said it had around $355 million invested in Ueno, about 9 per cent of its investment portfolio. The bank also handled payments for approximately 32,000 pensioners. The Central Bank’s statutory deposit guarantee covers up to 75 minimum monthly salaries per depositor, per institution, equivalent to around 228.3 million guaraníes. Separately, Congress approved an emergency advance of up to 40 minimum salaries for affected depositors, with overdue debts deducted from the amount. Payments began in stages, initially covering eligible customers with deposits of up to 10 million guaraníes. The Central Bank said it would pursue mechanisms to protect balances above the statutory limit. AP reported that the arrangements were expected to cover the full balances of about 97 per cent of Ueno’s customers.

The crisis split Peña’s party. Cartes’s camp wanted Peña’s resignation accepted and Vice-President Pedro Alliana installed; lawmakers instead advanced impeachment proceedings. On November 5, Peña submitted a resignation letter, saying he acted “with the stability of our country, social peace, and the need to preserve our democratic institutions in mind”. The Chamber of Deputies approved impeachment by 78 votes, sending the charges to the Senate. Both chambers rejected his resignation offer, and the Senate proceeded with an impeachment trial.

Accepting the resignation could have made Peña a senator for life, with legal protections that could potentially shield him from prosecution; impeachment could leave him exposed to criminal proceedings. Prosecutors have opened three investigations into regulatory oversight, the handling of Ueno’s failure and public funds deposited there. Peña is also among those being investigated. Separately, 27 bank officials and associates have been charged; several executives were ordered detained pending trial. Charges are not convictions.

Peña’s presidency is not formally over, but the crisis has damaged his technocratic credentials. His economic record now sits alongside unresolved questions about political patronage, financial supervision and his former business interests. The Senate will decide his political fate, while prosecutors continue investigating the bank’s collapse and the role of public officials in the crisis.