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Economy / Paraguay

Lugo Accuses Opposition Of Coup Attempt

September 2008 | Risk Summary

In a sign that the political risk in Paraguay looks likely to remain firmly on the agenda over the medium term, President Fernando Lugo addressed the nation on September 1 to accuse his predecessor, Nicanor Duarte, and former general Lino Oviedo of plotting a coup against the new government. While Lugo and Oviedo have denied the claim, this is an illustration of the lack of trust between rival parties. Meanwhile, Brazilian President Luiz Inácio Lula da Silva has stated that he is unwilling to yield to Lugo's demands regarding the fees Brazil pays Paraguay on the energy supplies it receives

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