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Economy / Paraguay

PARAGUAY

October 2011 | Ratings Update

The Paraguayan government deployed military troops to the city of Concepción in an effort to crack down against the Ejército del Pueblo Paraguayo (EPP), a left-wing military group responsible for an outbreak of killings, kidnappings and other violent attacks in the region. Despite some resistance from President Fernando Lugo, who insisted the matter had to be dealt with by police forces, the Paraguayan parliament approved a state-of-exception bill, which is expected to remain in place until mid-December. Given the authorities' swift reaction to the EPP attacks, we believe an escalation of violence in the region is

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