Santiago Peña of Paraguay Under House Arrest After His Removal as President.
Paraguay is currently experiencing a severe financial and political crisis triggered by the abrupt collapse and regulatory seizure of Ueno Bank on November 3, 2026. The event has locked out 3 million customers representing nearly 60 percent of the country’s adult population out of their savings and led to the immediate ousting of the nation’s president.
Former President Santiago Peña was officially placed under house arrest after the Senate impeached him on Nov 6, and the Attorney General’s Office ordered his arrest for alleged crimes related to the Ueno bank scandal. On November 7, 2026, prosecutors formally charged Peña with breach of trust and administration for personal gain.
The National Police confirmed the arrest and stated that the operation was carried out in compliance with an order from the Public Prosecutor’s Office. A police commissioner explained that Peña remains under house arrest and more police units will be deployed if necessary. The investigation extends to other actors linked to the Ueno case, including former directors of the Central Bank of Paraguay, while authorities continue with the proceedings to clarify responsibilities in the financial collapse.
The crisis was compounded by disclosures that Ueno Bank held between $800 million and $860 million in state and public pension funds. Roughly 32,000 pensioners were initially left without their payments, sparking massive nationwide protests.
