US embassy cable - 05ASUNCION458

UNCLAS ASUNCION 000458 
 
SIPDIS 
 
DEPT OF TREASURY WASHDC 
DEPT OF COMMERCE WASHDC 
DEPT OF JUSTICE WASHDC 
NATIONAL SECURITY COUNCIL WASHINGTON DC 
USSOUTHCOMMAND MIAMI FL 
 
STATE FOR WHA/BSC, WHA/EPSC, EB/IFD/OMA 
STATE PASS TO USTR FOR SCRONIN, LYANG 
TREASURY FOR OSIA MAUREEN WAFER 
COMMERCE ITA SARAH COOK 
NSC FOR MIKE DEMPSEY 
SOUTHCOM FOR POLAD 
USAID FOR AA/LAC ADOLFO FRANCO 
 
E.O. 12958: N/A 
TAGS: ECON, EFIN, EINV, PGOV, PREL, PINR, PA 
SUBJECT: PARAGUAY'S CENTRAL BANK PRESIDENT RESIGNS 
AFTER SHOOTING INCIDENT 
 
 
1.  Angel Gabriel Gonzalez Caceres, the President of 
the Central Bank of Paraguay, resigned on April 4 after 
coming under fire for a shooting incident at his home 
on March 30.  Gonzalez faces a criminal investigation 
into the incident and although he said he doesn't fear 
the outcome, he also deemed it inappropriate for the 
BCP president to be subject to a judicial 
investigation.  Local analysts, including the resident 
representative of the IMF, do not anticipate any 
significant policy changes. 
 
2.  On March 30, near midnight, a group of retired 
bankers angry over pension cuts showed up in front of 
Gonzalez's house with a mariachi band, which proceeded 
to play a Mexican song called "The King."  According to 
the protesters, Gonzalez emerged from his house wearing 
a bulletproof vest and carrying a handgun.  While their 
versions differ, both the protesters and Gonzalez 
acknowledge that a shot was fired.  One protester 
reportedly went to the hospital complaining of hearing 
damage and a public prosecutor is investigating. 
Gonzalez said repeated protests, some with coffins 
bearing his name, were traumatizing his children, but 
apologized for his conduct. 
 
3.  Some Embassy contacts at the Ministry of Finance 
expressed relief at the departure of Gonzalez, whom 
they viewed as a micromanager who had over-personalized 
the position of central bank president.  The interim 
President will be Venicio Sanchez, the longest-serving 
member of the Board of Directors.  Gonzalez will be in 
vacation status until President Duarte issues a decree 
accepting the resignation.   President Duarte will 
nominate a permanent replacement, who must then be 
approved by the Senate.  The normal term for a BCP 
President is five years.   Most past BCP Presidents 
have been technocrats rather than politicians, but 
President Duarte's choice of nominee will be 
instructive. 
 
KEANE