Despite all the coup rumors, the army favors the Constitution.

In the face of occasional coup rumors, Mr. Brizola last month even suggested bringing forward the next presidential elections, but the idea won little support.

Gen Kayani last month dismissed coup rumors as speculation and said the army supported democracy.

Before and after this statement, coup rumors have been a part of daily life in Panama.

The coup rumor floated in with about a half-hour left to trade, pushing the already depressed price down an additional 60 cents.

Having validated the coup rumors and considering the troop movements, the Government took a number of pre-emptive measures.

Though she had previously been at pains to play down the coup rumors, she presented a tough face on Tuesday.

With Mr. Garcia blocking all attempts to bring about policy changes through constitutional means, politicians here said, the political environment was ripe for coup rumors.

Accumulated grievances and coup rumors have virtually paralyzed counterinsurgency operations.

In another statement, she criticized the press for publicizing coup rumors, which in fact frequently come from Government and military officials.