President Alan Garcia has hinted vaguely that...

President Alan Garcia has hinted vaguely that he temporarily suspended government control of Peru’s 10 private banks to block the possibility of a coup. At the same time, Garcia demanded that Congress, controlled by his center-left Aprista Party, approve legislation that would make the expropriation of banks and other financial institutions legal. Garcia said his government lifted control of the banks in part to comply with a court order and also to prevent giving the opposition “a victory so they can knock on other doors, saying we have violated the constitution and caused the rupture of the democracy.” The Peruvian financial and business community has launched a campaign against the nationalization of banks and other financial services, accusing Garcia of ignoring previous promises.