by El Reportero’s news services
Fernando Lugo
The threat of impeachment had been hanging like a sword of Damocles over the head of Paraguay’s president, Fernando Lugo, almost from the moment he took power in August 2008, said Latin News.
“On June 22, with some nine months to go until the next presidential election, the blade fell swiftly and bloodlessly. Lugo’s impeachment in a congress controlled by the political opposition and a senior coalition partner he progressively alienated raises big questions on both the domestic political and regional geopolitical stages.”
South America to seat Paraguay at the bench of the accused
ASUNCION, Paraguay – The Paraguayan government will be charged to day in absentia during the Summit of South American Heads of State and Government in Argentina, as an international reaction to the parliamentary coup that dismissed Constitutional President Fernando Lugo.
The meeting, to be extended until tomorrow, was convened by the Southern Common Market (MERCOSUR), but will also include the presence of the heads of state belonging to the Union of South American Nations (UNASUR).
Paraguay belongs to both integration blocs and even presided over the pro tempore presidency of UNASUR until constitutional order was broken in order to remove Lugo from office.
The political-parliamentary plot caused international denunciation of the Paraguayan government, for denying its president due process and the right to defense.
For Paraguay, this event means political isolation with the withdrawal from the country of a great number of ambassadors accredited to the government and particular economic friction with its two largest neighbors: Brazil and Argentina.
Already separated from MERCOSUR through a decision from its members, Paraguay lost the right to continue presiding over the UNASUR. Paraguay’s estimated trade and economic difficulties are calculated within that framework.
The Center for Analysis and Dissemination of the Paraguayan Economy assessed the possible scenarios that Asuncion would face due to possible sanctions, according to MERCOSUR’s rules.
The first is the suspension of its participation in MERCOSUR bodies, possibly followed by a prohibition of funding from the Structural Convergence Fund and the suspension of all existing rights in the Treaty of the bloc.
The remaining measures, if approved, could affect the $608 million USD allocated to the country and constitute 32 percent of capital expenditure from the Paraguayan General Budget for this year.
Cubans benefit with new credit policy
With the implementation of a new Cuban credit policy, more than 47,000 people have received bank financing in the country, mainly for activities related to home construction and repair, authorities of the sector stated.
Since the 289 Decree-Law was put into effect on Dec. 20, 2011, small farmers, self-employed and non-state workers, and natural people can access to credits for activities such as the development of selfefforts constructive labors. Cuban Central Bank vice president Francisco Mayobre described the credit policy as a complex process that implies a joint and organized action of many sectors of economy.
This is even more important if we take into account that for a first time in many years the country has established a group of credit facilities to individuals to operate current accounts and issue payment instruments not used in the country so far, Mayobre told the press.
According to the executive, bank draft and cash are the only easiest payment instruments to be accepted by merchandise or service sellers, the former has the guarantee of being issued by the bank, and cash is immediate cash payment.
Other forms of payment included in the decree-law, such as debit cards, could be used by individuals, but it only depends on the conditions created for acceptance, especially by trade and service entities. (Prensa Latina contributed to this report).
