Oviedo Cleared

Ex General Lino Oviedo has been cleared by the supreme court to run in April's presidential election, after his sentence for plotting a coup in the last decade was overturned. The decision will divide the opposition between those that support Oviedo, and those behind the ex-bishop Fernando Lugo, most likely to the benefit of the ruling Partido Colorado candidate, who will be elected in December. Opinion polls suggest the three-way contest - if it remains that way - will be closely fought. We expect short-term political risk to increase as the vote draws closer, with the potential for a weak

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