TCRLA_Public/020814.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

                   L A T I N   A M E R I C A

           Wednesday, August 14, 2002, Vol. 3, Issue 160



ARGENTINE BANKS: Econ Minister Counters Restriction Easing Plan
CORMINE: Liquidation Hinges On Andacollo's Operations
ENRON: Azurix To Deal With Argentine Lawsuit
NORTHERN ORION: Closes $2M Private Placement
PEREZ COMPANC: 2Q02 Results Show Marked Improvement
REPSOL YPF: Retains Olivieri As New Finance Director


FLAG TELECOM: Court Approves Reorganization Plan Disclosure
FOSTER WHEELER: New Credit Facility Delays Form 10-Q Filing


BRAZILIAN COMPANIES: Central Bank Extends Helping Hand
CELG: Eletrobras to Hand In Decision Before The End of the Week
METRORED: Brasil Telecom Advances In Its Acquisition Plans
NET SERVICOS: Officially Closes Public Distribution of Shares


AES GENER: Recent Downgrade Drags Down Subsidiary's Ratings
ENAMI: Government Expected To Reveal Debt Strategy


EMCALI: Gets Green Light To Pay Domestic Debts


PACIFICTEL: Owner Takes Draconian Measures To Avoid Collapse


GRUPO MEXICO: US Government Intervenes To Block Share Transfer
GRUPO TMM: Opens Cruise Ship Terminal to Enhance Services


BLADEX: Fitch Downgrades Ratings To 'BB+' on Market Risks


BANCO DE MONTEVIDEO: Owners Help Depositors Recoup Lost Savings

     - - - - - - - - - -


ARGENTINE BANKS: Econ Minister Counters Restriction Easing Plan
Argentine Economy Minister Roberto Lavagna denied reports that
the proposal he will be presenting to the IMF next week includes
a promise to end banking restrictions that have infuriated savers
and choked the economy, reports La Nacion newspaper.

Lavagna's statement came after Clarin, another Buenos Aires
newspaper, reported that the new proposal outlines lifting of all
withdrawal limits by September 30 for individuals with checking
and savings accounts as part of an agreement with the IMF for new
aid. The move would affect about ARS19.9 billion (US$5.5
billion), the paper said.

Argentina, which has limited account withdrawals since December,
is negotiating with the IMF to extend maturities on US$3 billion
of debt it owes it this year.

CORMINE: Liquidation Hinges On Andacollo's Operations
In a move characterized as part of a strategy in the process of
selling off Cormine's assets, the liquidator of the Neuquen
provincial mining corporation insisted that Andacollo Gold's
processing plant be producing at capacity before it is handed
over to the state.

Business News Americas relates that Cormine liquidator Hector
Agostino said he has set a target of January 2003 for the plant
to be operating at its capacity of 500t/d. He expects the plant,
which has never operated at more than 200t/d, will be reopened by
late September, initially processing 100t-200t/d.

Andacollo Gold was set up as a cooperative in 1995 when the
provincial government handed over the Erica and SofĦa gold mines
to 50 former Cormine employees. The plan, part of a program to
offload state assets, was expected to produce 2t of gold in seven
years, but never reached commercial operations.

In August of 2001, Andacollo Gold and the Neuquen government
signed an agreement under which the province pledged financial
assistance and to provide the Company with energy at a
preferential price. In return, Andacollo Gold pledged to use
local labor and to install, within nine months, a smelter.

Andacollo Gold now holds the concessions to Erica, Sofia, Julia,
Rosario and El Peludo mines. The company's headquarters have been
in Neuquen since December 1998, when it started mining the gold
veins with initial investment of US$2.5 million

Cormine has 107 mining properties, which are due to be sold off
before the company is formally dissolved. Buenos Aires-based
consultants Mabromata y Asociados is managing the Company's

CONTACTS:  Corporacion Minera del Neuquen (Cormine)
           Dr. Miguel Angel Bruna, President
           (8340)Zapala - Neuquen
           Tel. 54-299-430063

ENRON: Azurix To Deal With Argentine Lawsuit
Houston-based Azurix, bankrupt U.S. energy company Enron's water
utility, faces a lawsuit after it abandoned a 30-year concession
to provide drinking water in the Argentine province of Buenos

According to Reuters, Argentina's largest province said it would
file a US$600-million suit against Azurix, claiming that the
Enron subsidiary must pay damages for wrongfully abandoning the
concession in March.

Azurix, a wholly owned unit of Enron, was awarded the concession
in June 1999 under which it would pay the province US$439 million
to operate its water system. However, the Company decided to
return the concession to Buenos Aires after its analysis showed
that the conditions of the contract were not met.

"We paid US$438 million and invested US$200 million. The Company
was seeking small compensation, about a third from the province
of Buenos Aires, but it did not happen," an Azurix official had
said then.

Enron filed for bankruptcy protection early December 2001 in the
largest Chapter 11 case ever after Dynegy Inc. abandoned its
US$23 billion takeover of the Houston-based energy trader. Enron
listed about US$40 billion of debt, including off-balance-sheet
project financing.

CONTACTS:  Mark Palmer of Enron Corp., +1-713-853-4738
           Enron Corp.
           Investor Relations Dept.
           P.O. Box 1188, Suite 4926B
           Houston, TX 77251-1188
           (713) 853-3956

           Enron Corp.
           Public Relations Dept.
           P.O. Box 1188, Suite 4712
           Houston, TX 77251-1188
           (713) 853-5670

           100 King Street West
           P.O. Box 57159 Jackson Station
           Hamilton, Ontario
           L8P 4X1
           Phone: 888-776-7306
           Fax: 905-521-9613
           Stan Spencer,
           Senior VP, Marketing & Regional Operations
           Phone: 905-521-1988; 888-776-7306

           Phil Sidhwa, Regional Manager - Canada
           Phone: 905-521-1988; 888-776-7306

NORTHERN ORION: Closes $2M Private Placement
Northern Orion Explorations Ltd. ("Northern Orion") closed the
non-brokered private placement of 20 million Units, priced at
$0.10 per Unit as previously announced on July 15th. Each Unit
was composed of a Northern Orion common share plus a share
purchase warrant. Each warrant entitles the holder to purchase an
additional common share of Northern Orion over a two-year period
for a price per share of $0.13.

As disclosed in our July 11, 2002 release, Northern Orion has a
total contained metals amounting to approximately 8 billion
pounds of copper and 5 million ounces of gold in attributable
mineral resources in its three advanced projects. The Company's
principal objective is to maximize the economic potential of its
interest in the Agua Rica copper-gold-molybdenum project in
Argentina. In addition, Northern Orion is assessing a number of
potential opportunities that could provide the basis for
accretive transactions.

          David Cohen, President & CEO
          Tel: (604) 689-9663, Fax: (604) 434-1487,

PEREZ COMPANC: 2Q02 Results Show Marked Improvement
Perez Companc S.A. (Buenos Aires: PC NYSE: PC), controlling
shareholder with a 98.21% stake in Pecom EnergĦa S.A. (Buenos
Aires: PECO), announces both companies' results for the second
quarter ended June 30, 2002.

- Perez Companc S.A. (whose only asset is its equity interest in
Pecom EnergĦa S.A.) posted a net income of P$210 million ($0.098
per share and $0.985 per ADS) for the second quarter of 2002.

- Pecom EnergĦa S.A. posted a net income of P$191 million for the
second quarter of 2002 compared to P$135 million for the quarter
ended June 30, 2001.

- The National Securities Commission (Comisi˘n Nacional de
Valores (CNV)), through General Resolution No.272 dated July 25,
2002, required that financial statements presented after the
effective date of such resolution be inflation-adjusted.
Therefore, inflation adjustment regulations will be applied as
from this period.

Figures reported in 2001 financial statements presented for
comparative purposes have been restated in constant pesos as of
June 30, 2002.

- Pecom EnergĦa's net sales increased to P$1,097 million or 27.3%
in the second quarter of 2002 compared to P$862 million in 2001

- Pecom EnergĦa's gross profit increased to P$463 million or
60.2% in 2002 quarter compared to P$289 million in 2001 quarter.

- Pecom EnergĦa's operating income for 2002 quarter amounted to
P$385 million, P$65 million higher than income recorded in 2001
quarter. This 20.3% increase results from a P$174 million
improvement in gross profit and a P$1 million reduction in
exploration expenses offset by a P$13 million increase in
administrative and selling expenses, a P$85 million drop in
equity in operating earnings of affiliates and a P$12 million
drop in other operating income.

- Capital expenditures and contributions to affiliates amounted
to P$222 million in 2002 quarter compared to P$510 million in
2001 quarter.

Net sales increased P$235 million to P$1,097 million in 2002
quarter from P$862 million in 2001 quarter, primarily due to the
significant rise in the price of the main commodities. In the
prevailing inflationary scenario, the price of the main products
significantly increased in real terms on the basis of the
dollarization of funds from foreign operations and the alignment
of domestic prices with export reference prices. In such respect,
in the three-month period ended June 30, 2002, the price of crude
oil, styrene and polystyrene increased 60.8%, 72.4% and 46.8%,
respectively, in terms of pesos. Through the implementation of a
pro-active export-directed trade policy, the domestic recessive
market limitations were successfully offset. In 2002 quarter,
sales for the Oil and Gas Exploration and Production business
segment increased P$221 million while sales for the
Petrochemical, Refining and Other Investment business segments
increased P$98 million, P$33 million and P$27 million,
respectively. In contrast, sales revenues from the Electricity
segment declined P$32 million.

Gross profit increased P$174 million, to P$463 million in 2002
quarter from P$289 million in 2001 quarter, mainly as a result of
a P$127 million and P$69 million increase in the Oil and Gas
Exploration and Production and Petrochemicals business units,
respectively, attributable to increased marketing margins in
terms of pesos as a result of the peso devaluation. This, in
turn, was leveraged by improved competitiveness of production
costs in Argentina.

The P$13 million increase when comparing both quarters was mainly
attributable to:

- A P$17 million increase in the E&P business as a result of the
impact of devaluation on foreign operations. The ratio of
administrative and selling expenses to sales, however, remained
unchanged in both periods.

- A P$5 million increase in the Petrochemical business segment
mainly due to the effect of the peso devaluation on expenses
related to Brazil operations.


Other Income Net

Other Income, net recorded P$38 million and P$23 million losses,

In 2002 quarter, losses were primarily attributable to the

- P$29 million for contingencies related to contractual
commitments assumed with OCP in connection with the future
production of Block 31, in Ecuador, derived from delays in the
area development plan on account of a global reduction in the
Company's investment plan.
- P$6 million for tax on banking transactions.
- P$3 million for the sale of fixed assets.
In 2001 quarter, losses were primarily attributable to the
- P$6 million for tax on banking transactions.
- P$10 million for fees in connection with administrative
processes optimization and e-commerce strategy and project
- P$4 million for impairment of assets.

Equity in non-operating earnings of affiliates accounted for a
P$112 gain in 2002 quarter, which includes P$82 million for the
positive valuation of interest in Citelec and TGS, following a
negative shareholders' equity position as of March 31, 2002,
whereby they were recorded at zero value as of such date.
Excluding such effect, equity in non-operating earnings of
affiliates accounted for a P$30 million gain, primarily
determined by adjustment for inflation generated by the
significant borrowing monetary net positions of such companies,
which offset the impact of exchange differences and related
financial costs. In 2001 quarter, equity in non-operating
earnings of affiliates recorded a P$58 million loss, determined
by the impact of the respective financial liabilities and income

Financial income (expense) and holding gains (losses) increased
P$134 million, amounting to a P$232 million loss compared to a
P$98 million loss in 2001 quarter, primarily attributable to:

- A P$2,337 million loss for exchange differences resulting from
the effect of the significant peso devaluation on the foreign
currency borrowing monetary net position.

- A P$441 million loss as a result of translation and conversion.

- A P$111 million increase in net interest to P$198 million from
P$87 million in line with the significant increase in terms of
pesos in average indebtedness, primarily U.S. dollar denominated

- A P$2,759 million gain for exposure to inflation generated by
the significant borrowing monetary position, which offset nominal
losses for exchange differences and interest.

Income tax provision increased to P$40 million from P$4 million.
The 2002 quarter income tax primarily derives from foreign
operations income tax.

During the last 12 months, total assets increased P$2,991 million
or 25.3%. Total assets as of June 30, 2002, comprise fixed assets
(65.6%) and equity interest in companies (12.2%).

Total liabilities increased P$4,137 million. Liabilities as of
June 30, 2002 amount to P$10,179 million, 86.1% of which are
financial liabilities.


Oil And Gas Exploration And Production

- Combined sales of oil and gas slightly declined to 183.2
thousand BOE/d or 1.1% in 2002 quarter. Oil sales volumes
declined to 122.3 thousand barrels or 3.2 % in 2002 quarter. Gas
sales volumes increased to 365.6 million cubic feet per day or
3.5 % in 2002 quarter. Net sales for this business segment
increased to P$682 million or 47.9% in 2002 quarter, primarily
due to higher sales prices resulting from the peso devaluation.

- In Argentina, sales for the Oil and Gas Exploration and
Production segment increased to P$389 million or 31.4%. Net sales
of oil increased to P$330 million in 2002 quarter. This increase
primarily results from the significant rise in sales prices to
P$59.1 per barrel from P$37.9 per barrel mainly due to the peso
devaluation. As from the quarter of 2002 oil prices recovered
strongly in the domestic market. In such respect, since export
parity was taken as a reference the effects of the strong peso
devaluation were passed through to local prices. In contrast, in
the quarter of 2002, the 20% tax on exports became effective and
had an impact on the final price of export products. Such tax
accounted for a P$21 million lower revenue.

Daily sales volumes declined to 61.3 thousand barrels or 10.6%.
The 2001 quarter includes sales attributable to Pampa del
Castillo - La Guitarra area which was sold in October 2001.
Excluding Pampa del Castillo - La Guitarra, sales volumes
increased 4.1% compared to 2001 quarter. This was mainly due to
the development of Jagel de los Machos area and the result of
lifting activities in Medanito, Santa Cruz I and II and Puesto
Hern ndez.

Natural gas sales totaled P$59 million in both quarters. Daily
sales volumes slightly increased to 294.7 million cubic feet or
1.7% in 2002 quarter. Sales prices stated in constant currency
remained mostly unchanged in agreement with the provisions under
the Public Emergency Law that restricts the possibility of
increasing the price of gas sold in the domestic market,
specially as regards sales agreements entered into with
utilities. During the period under review, however, the Company
renegotiated the terms of certain gas sales agreements, specially
those entered into with exporting clients and the prices fixed
thereunder were adjusted based on the new economic context.

- Combined sales of oil and gas outside of Argentina increased to
P$293 million or 77.6% in 2002 quarter. Daily sales volumes of
oil and gas increased to 72.8 thousand BOE or 6.3%.
In Venezuela, the daily volume of oil sold increased to 48.7
thousand barrels or 8.2 % as a result of intensive drilling and
workover activities. Natural gas sales volumes increased 51.4% in
2002 quarter.

- Gross profit for this segment significantly increased to P$327
million or 63.5% in 2002 quarter. Gross margin increased to 47.9%
in 2002 quarter from 43.4% in 2001 quarter. The increase in gross
margin primarily resulted from the competitive improvement of
Argentine operations, with dollar denominated prices and a
structure of operating costs mostly denominated in pesos. In
addition, the peso devaluation had a positive impact on dollar
denominated gross profit for operations outside of Argentina.

- The ratio of Administrative and Selling expenses to sales
remained unchanged at 8% in both periods.

- Other Operating Income - net recorded a P$8 million loss in
2002 quarter, primarily attributable to the settlement of
commercial controversies and the payment of fines to contractors
for contract termination, as a consequence of investment-saving


The Company, as a crude oil producer, is exposed to the related
price-fluctuation risk. In such conditions, the Company uses
various derivative instruments to mitigate such risk. These
instruments are based on West Texas Intermediate (WTI) as
reference price, which is used mainly to determine the sales
price in the market.
Income (loss) generated by such instruments, used to hedge crude
oil price, are deferred until the related foreseen transaction is
recognized and are recorded in the income statement as an
integral part of hedged sales.

As of June 30, 2002, the Company's oil hedge agreements for year
2002 provide for hedging prices that change according to the WTI
actual price. The hedging volume is 45,500 bbl/d. For WTI prices
below 15 US$/bbl, the hedging price is 15.97 US$/bbl, while for
WTI prices equal or above 15 US$/bbl and equal or below 23
US$/bbl, the hedging price is 17.36 US$/bbl. For WTI prices of 24
US$/bbl, the hedging price is 17.84 US$/bbl. For WTI prices of 25
US$/bbl, the hedging price is 18.55 US$/bbl. For WTI prices above
25 US$/bbl, the hedging price increases US$1 per each dollar of
WTI price increase. Premiums paid were distributed among hedging

For the year 2003, option agreements provide a more flexible
structure. For WTI prices below 20 US$/bbl, the hedging price is
19.53 US$/bbl and the hedging volume amounts to 55,000 bbl/d. For
WTI prices equal to or above 20 US$/bbl and below 21 US$/bbl, the
hedging price is 18.14 US$/bbl and the hedging volume falls to
30,000 bbl/d. For WTI prices equal to or above 21 US$/bbl and
below or equal to 27 US$/bbl, the hedging price is 19.51 US$/bbl
and the hedging volume falls to 5,000 bbl/d. For WTI prices above
27 US$/bbl, the hedging volume increases to 40,000 bbl/d and the
hedging price is 25.05 US$/bbl. Premiums paid were distributed
among reported hedging prices.

For the January 2003 - December 2005 period, the Company carries
sold options for a volume of about 20.1 million barrels (an
average of 18,300 bbl/d) at an average exercise price of 19.71

- Operating income for 2002 quarter dropped P$23 million and
recorded a P$3 million loss compared to a P$20 million gain in
2001 quarter. In 2002 performance of this business segment was
significantly affected by the Argentine deep economic crisis and
the severe currency devaluation that resulted in a sharp
shrinkage in demand in addition to the impossibility of
protecting business margins on account of the strong political
pressure exerted by the Argentine Government to prevent a price
increase and ensure supply. In such respect, under Law 25,596 a
diesel oil supply emergency was declared and diesel oil imports
and sales were authorized without charging the fuel transfer tax
and a transportation sales price of Ps.0.75/liter was agreed upon
with leading refiners. Along these lines, tax rate on diesel oil
exports increased from 5% to 20%.

During 2002 quarter crude oil volumes processed increased 3.3% to
an average of 28,825 bbl/d.

- Net sales of refinery products increased 16.1% to P$238 million
in 2002 quarter from P$205 million in 2001 quarter, boosted by
local price increases and higher export volumes. Total sales
volumes dropped 8% compared to 2001 quarter. In spite of the
local market shrinkage and the lack of profitability, reduced
local sales (about 40% lower) were offset by a 144% significant
increase in exports.  Diesel oil and gasoline sales volumes
dropped 32% and 27%, respectively, in line with an 11% reduction
in local consumption. In addition, and limited by the virtual
interruption of most works in progress, asphalt sales volumes
declined 62%. Conversely, an increase was recorded in sales
volumes of paraffin products (110%), fuel oil (53%) and other
heavy products. As a reaction to the sharp shrinkage in the
domestic market and low prices in diesel oil used for
transportation, the trade policy was directed to local sales of
products with higher margins and to export markets. Along these
lines, a significant increase was recorded in diesel oil exports
(609%) mainly to bordering countries, heavy products exports to
the USA and paraffin products exports to the USA and Brazil.

- Gross profit dropped P$16 million to P$5 million in 2002
quarter from P$21 million in 2001 quarter. Gross margin decreased
from 10% in 2001 quarter to 3% in 2002 quarter. Express
Government initiatives and the gradual drop in the activity level
could curb the passing through of the increase in crude oil costs
to sales prices. In 2002 quarter, in spite of a 5% drop in
international reference prices, the average price of crude oil in
terms of pesos increased 46.3% to P$79/bbl, compared to P$54/ bbl
in 2001 quarter, reflecting the impact of devaluation. As a
consequence of crude oil cost behavior, diesel oil sales prices
increased 18%, heavy products 88%, aromatics and paraffins 29%,
medium distillates 23% and asphalts 16% while gasoline sales
prices dropped 6%.

- Equity in operating earnings of affiliates decreased to P$5
million from P$11million due to the following:

- Equity in earnings of RefinerĦa del Norte dropped to P$5
million from P$8 million, mainly due to a drop in marketing
margins, resulting from an increase in refining costs and reduced
export sales volumes, offset by an increase in diesel oil and
gasoline domestic sales volumes.

- Equity in earnings of EBR did not record significant income in
2002 quarter compared to a P$3 million gain in 2001 quarter.


- Operating income for the Petrochemical business segment
increased P$72 million to P$85 million in 2002 quarter from P$13
million in 2001 quarter, primarily due to higher sales prices of
styrenics resulting from the effect of the peso devaluation in
addition to higher international prices.

- Sales for 2002 quarter increased 49%.
Sales of styrenics in Argentina increased P$45 million to P$111
million from P$66 million. In 2002 quarter, the price of styrene
and polystyrene significantly rose by 72.4% and 43.8%,
respectively, as a consequence of the combined effect of the peso
devaluation and a rise in international reference prices, 39% and
24%, respectively, the latter resulting from operational
difficulties in certain USA and European plants. Average price of
rubber increased 40.8%.

It is worth noting that the implementation of an active trade
policy aimed at consolidating foreign markets allowed to overcome
the restrictions imposed by the domestic demand and resulted in
increased total sales volumes. Styrene and polystyrene sales
volumes rose 16.6%, primarily due to a 75% increase in styrene
volumes attributable to a 690% significant increase in exports
mainly to Brazil. This allowed to mitigate a 31% drop in the
domestic market. Total rubber sales volumes increased 4.7%. SBR
export volumes increased 13%, mainly to Brazil, Chile, USA and
Peru, offsetting a 12% drop in the domestic market, due to
increased competitive imports attributable to improved financing

Total fertilizers sales volumes significantly decreased due to a
reduced use of fertilizers, especially in the wheat sowing area.
The drop in sales volumes of fertilizers manufactured in the
Company's own plant was 4% and in resale fertilizers 72%. This
drop was offset by increased sales prices mainly as a result of
the passing through of higher costs due to the peso devaluation.

Innova sales for the period increased to P$143 million or 127%.
Styrene and polystyrene sales prices rose 102% and 76%,
respectively, as a result of the peso devaluation accompanied by
improved international prices. Styrene sales volumes in the
Brazilian market increased about 37% to 6.3 thousand tons, as a
result of the development of new customers. Polystyrene sales
volumes increased to 26.1 thousand tons or 13%, boosted by
increased export volumes, mainly to USA and Africa.

- Gross profit significantly increased to P$69 million. Gross
margin increased to 35% from 17%. The styrenics business both in
Argentina and Brazil was favorably affected by increased
international margins.

- Administrative and selling expenses increased 23% in 2002
quarter primarily due to the devaluation effects on Innova's

- Equity in operating earnings of affiliates is attributable to
equity in earnings of PetroquĦmica Cuyo. The improvement
primarily results from increased polypropylene marketing margins
and to a change in the mix of domestic and export sales.

- Net sales for the Hydrocarbon Marketing and Transportation
segment significantly dropped due to a reformulation of the
liquid processing business. Oil, gas and LPG brokerage operations
decreased to P$4 million from P$7 million mainly due to
conversion into pesos of gas operations and a 70% drop in oil
operations volumes, partially offset by improved prices since it
is a commodity marketed in dollars. In addition, 2001 quarter
includes an P$8 million income from gas processing activities. As
from 2002 fiscal year, liquid processing activities are developed
by the Oil and Gas Exploration and Production business unit.

- The change in equity operating earnings of affiliates was due
to the following:

- Equity in earnings of Oldelval S.A. decreased to P$3 million
from P$7 million, mainly due to the effect of pesification of
transportation agreements under the Public Emergency Law.
Effective as from June 2002, Oldelval has renegotiated said
agreements with oil producers, with a partial recognition of the
peso devaluation effects.

- Income from direct and indirect interest in CIESA and TGS
posted a P$53 million gain in 2001 quarter while no operating
results were reported in 2002 quarter.

- Net sales of electricity generation decreased to P$45 million
or 34% from P$68 million.
Net sales attributable to the Genelba Power Plant dropped to P$38
million or 32.1% in 2002 quarter from P$56 million in 2001
quarter. This drop resulted from the effects of tariff and
contract pesification that reduced to P$28.3 per MWh or 43.5% in
constant pesos the average price of energy and power delivered.
As regards electricity sales volumes, in 2002 quarter energy
delivered increased 20.5% totaling 1,330 GWh., as a consequence
of an improvement in the plant's operating availability factor
that increased to 82.2% from 67.2% attributable to the power
plant coming out of dispatch in 2001 on account of the high water
supply in the Comahue area. In spite of an about 3% drop in
energy demand, the Power Plant had increased power deliveries on
account of Genelba's improved costs compared to its competitors.
In both periods, the Power Plant operating availability was
approximately 95%.
Net sales attributable to the Pichi Pic£n Leuf£ Complex dropped
to P$7 million or 41.7% as a consequence of the combined effect
of lower prices and a drop in energy generation to 228 GWh from
349 GWh in 2001 quarter. Average prices in constant pesos dropped
to P$27 per MWh in 2002 from P$34.1 per MWh in 2001 quarter, due
to the beforementioned pesification, partially offset by the
application of area prices on account of restrictions on the
transportation capacity through the national grid during 2001
period. In the period under review, a P$1 million accrual was
recorded on account of the application of the Energy Support
Price Method.

Net sales of nuclear fuel elements and other products dropped to
P$11 million or 47.6%. During 2002 quarter this activity was
restricted on account of the shutdown of Atucha I and Embalse
nuclear power plants but was partially offset by increased sales
of other products to foreign markets.

- Gross profit for the generation business dropped to P$6 million
or 76% in 2002 quarter from P$25 million in 2001 quarter. Gross
margin declined to 13.3% in 2002 quarter from 36.8% in 2001
quarter, mainly affected by the distortions caused by
pesification within an inflationary context and a partially
dollarized cost structure.
As regards the nuclear fuel elements business, gross profit
increased to P$5 million or 25% in 2002 quarter from P$4 million
in 2001 quarter. Gross margin increased to 45.5% in 2002 quarter
from 19% in 2001 quarter, mainly due to an improvement derived
from price renegotiation and improved margins from exports of
other products.

- The change in equity in operating earnings of affiliates mainly
derived from the following:

- Equity in earnings of Distrilec Inversora, controlling company
of Edesur, recorded zero income in 2002 quarter compared to a
P$16 million gain in 2001 quarter. Sales revenues from Edesur
S.A. dropped 48.5% as a result of the combined effect of an about
45% decline in average sales prices in constant currency derived
from the tariff and contract pesification and a 4.7% shrinkage in
the demand for energy supplied by Edesur S.A..

- Equity in earnings of Citelec, controlling company of
Transener, recorded no operating income during 2002 quarter,
compared to a P$11 million gain during 2001 quarter.

-  Income from the farming activity increased to P$20 million or
66.7%. This improvement results from the combined effect of
improved prices as a consequence of the devaluation and increased
production volumes, since 2001 quarter was affected by a delayed
harvest and a drop in livestock sales, mainly resulting from
floods in the province of Buenos Aires. Income from the forestry
activity increased to P$30 million in 2002 quarter from P$11
million in 2001 quarter. This improvement results from the
combined effect of a 35% rise in sales volumes and increased
exports derived from improved international competitiveness
arising from devaluation.

- Equity in operating earnings of affiliates increased as a
result of the following:

- In 2002 quarter, equity in earnings of Cerro Vanguardia S.A.
increased to P$27 million compared to P$4 million in 2001
quarter. This significant increase resulted from a rise in the
price of gold in constant pesos. In July 2002, shareholding in
Cerro Vanguardia was sold.

-  Equity in earnings of Pecom Agra did not generate any income
in 2002 quarter since it was part of the asset swap approved in
2002 quarter compared to a P$16 million gain in 2001 quarter.

Pecom EnergĦa S.A., controlled by Perez Companc S.A., is the
largest independently owned energy company in the Latin American
region. Its business activities include oil and gas production
and transportation, refining and petrochemicals, power
generation, transmission and distribution as well as forestry
activities. Headquartered in Buenos Aires, the Company has
operations throughout Argentina, Brazil, Venezuela, Bolivia, Peru
and Ecuador.

To see financial statements:

          Maipo 1 - Piso 22 - C1084ABA
          Buenos Aires, Argentina
          Phone: (54-11) 4344-6000
          Fax: (54-11) 4344-6315

REPSOL YPF: Retains Olivieri As New Finance Director
As part of its efforts to improve its image in recession-plagued
Argentina, Spanish oil group Repsol YPF SA appointed Carlos
Olivieri as the new finance director of its Argentine YPF arm, La
Gaceta de los Negocios reports, citing unnamed Repsol YPF

Olivieri, who served as YPF finance director until it was fully
acquired by Repsol in 1999, will replace Carlos Alberto Felices,
who last month took over as CEO of Telecom Argentina.

Repsol recently cut off fuel supply in Argentina's Chubut and
Santa Cruz provinces after some 100 Argentine protesters blocked
the entrance to its Las Heras treatment plant, forcing its
tankers to stop their activities, eventually leading to the
suspension of its operations there.

With unemployment soaring over 21% as Argentina's recession
enters its fifth year, the workers are demanding 700 jobs from
Repsol and the government. A standoff outside a Repsol plant in
the southern province of Santa Cruz ended earlier last week with
about 80 jobs being granted.

Repsol YPF has already reported the occupation to Chubut province
courts, as well as informing the energy secretary and the
minister of the interior.

The Company, Argentina's largest energy company, employing close
to 8,500 workers and exporting US$1.83 billion worth of oil and
natural gas per year, is trying to improve its image in the
country by re-marketing YPF as an Argentine brand rather than

To see financial statements:

           Alfonso Cortina De Alcocer, Chairman & CEO
           Ramon Blanco Balin, Vice Chairman
           Carmelo De Las Morenas Lopez, CFO

           Their Address:
           Paseo de la Castellana 278
           28046 Madrid, Spain
           Phone   +34 91 348 81 00
           Home Page:
           Av. Roque S enz Pe a, 777.
           C.P 1364. Buenos Aires


FLAG TELECOM: Court Approves Reorganization Plan Disclosure
FLAG Telecom Holdings Limited (OTCBB:FTHLQ), along with its group
companies ("FLAG Telecom"), announced Monday that the U.S.
Bankruptcy Court for the Southern District of New York issued an
order approving the Disclosure Statement for the Plan of
Reorganization on August 8, 2002.

The Plan has the support of the company's primary creditors. The
Court order contains the procedures and timing for FLAG Telecom's
emergence from Chapter 11 and its parallel Bermuda insolvency
proceedings, which will be held within a similar timeframe to the
U.S. process.

This approval is another major milestone for FLAG Telecom in its
reorganization. The Plan must be confirmed at a Confirmation
Hearing. The hearing is scheduled for September 26, 2002.
Following confirmation, the company expects to emerge from
Chapter 11 on its previously expected date of October 7, 2002.

During the intervening period the creditors will go through the
formal process of voting on the Plan. FLAG Telecom expects to
complete this procedure and emerge from Chapter 11 with its
entire network intact and continue to service its customers
around the globe.

About the FLAG Telecom Group

The FLAG Telecom Group is a leading global network services
provider and independent carriers' carrier providing an
innovative range of products and services to the international
carrier community, ASPs and ISPs across an international network
platform designed to support the next generation of IP over
optical data networks. On April 12 and April 23, 2002, FLAG
Telecom Holdings Limited and certain of its subsidiaries filed
voluntary petitions for reorganization under Chapter 11 of the
United States Bankruptcy Code in the United States Bankruptcy
Court for the Southern District of New York. Also, FLAG Telecom
Holdings Limited and the other companies continue to operate
their businesses as Debtors In Possession under Chapter 11
protection. FLAG Telecom Holdings Limited and certain of its
Bermuda-registered subsidiaries - FLAG Limited, FLAG Atlantic
Limited and FLAG Asia Limited - filed parallel proceedings in
Bermuda to seek the appointment of provisional liquidators to
obtain a moratorium to preserve the companies from creditor
actions. Provisional liquidators were appointed and part of their
role is to oversee and liaise with the directors of the companies
in effecting a reorganization under Chapter 11.

          John Draheim
          Phone: +44 20 7317 0826
          Investor Relations
          David Morales
          Phone: +44 20 7317 0837

FOSTER WHEELER: New Credit Facility Delays Form 10-Q Filing
Foster Wheeler Ltd. (NYSE:FWC) announced Monday that it will
delay from August 12, 2002 to August 16, 2002 the filing of its
Form 10-Q for the period ended June 28, 2002 with the Securities
and Exchange Commission.

The company stated that it is taking this action while it
finalizes its new revolving credit facility.

Foster Wheeler Ltd. is a global company offering, through its
subsidiaries, a broad range of design, engineering, construction,
manufacturing, project development and management, research,
plant operation and environmental services. The corporation is
based in Hamilton, Bermuda, and its operational headquarters are
in Clinton, N.J. For more information about Foster Wheeler, visit
our World Wide Web site at

         John Doyle
         Phone: 908/730-4270
         Other Inquiries
         Phone: 908/730-4000


BRAZILIAN COMPANIES: Central Bank Extends Helping Hand
Brazil showed its willingness Monday to help distressed companies
recover from their depressing situations as a result of the steep
decline in the Real over recent weeks.

Amid mounting concerns about the success of the International
Monetary Fund's US$30-billion loan package, Brazil's central bank
chief Arminio Fraga pledged to lend money to embattled companies.

"We are studying forms to offer commercial credit lines through
the banking system with some type of conditionality."

The central bank would offer these credits for a very short-term,
it later told investors in a conference call.

In addition, funds from the Inter-American Development Bank and
the World Bank would be used to offer export financing through
the BNDES, the state development bank.

Several economists welcomed the central bank's unusual proposal
to extend commercial credit lines.

"It's very intelligent because it reduces pressure on the Real
and prevents delays in much-needed export revenues," said Carlos
Langoni, economist with the Getulio Vargas foundation, a national
think-tank, in Rio de Janeiro.

Commercial lines of credit also carry less risk of being abused
by speculators than direct cash injections into the currency
market, he added. Just over two weeks ago Paul O'Neill, US
treasury secretary, said Brazil, Uruguay and Argentina needed to
take measures to prevent international aid from ending up "in
Swiss bank accounts."

Extending commercial export credits involved relatively low-risk,
said Luiz Carlos Mendon?a de Barros, former BNDES chief.

"In exchange for these loans, the government would obtain the
guarantee of companies' receivables. Most exporters have a
healthy profit margin and strong international competitiveness,"
he added.

Yet the central bank, which ended its US$50 million daily sale of
dollars last week, would also renew direct intervention in the
currency market, Mr. Fraga said. "We are still living in a period
of high market volatility," he said.

Still, economists believe the central bank will not try to force
a significant strengthening of the currency, as a strong dollar
actually helps prevent capital flight and further stimulates

Alexandre Bassoli, chief economist of HSBC investment bank, in
Sao Paulo, said: "The central bank will act but we should not
expect it to correct the overshooting of the dollar, which helps
Brazil balance its external accounts."

CELG: Eletrobras to Hand In Decision Before The End of the Week
Eletrobras' decision whether to take control of Goias state power
company CELG (Companhia Energetica de Goias) will be known before
the end of the week. Thursday's meeting of the company's board
sets the stage for a final decision, Business News Americas
reports, citing Goias state planning & development secretary
Giuseppe Vecci. Subsequently, the deal worth about BRL400 million
would then be presented to Eletrobras and CELG shareholders for

Eletrobras, Brazil's federal power company, already owns 1.5% of
CELG shares; it would immediately pay BRL200 million for an
additional 49%. Eletrobras would retain an option to buy a
further 29% - increasing its total share in the company to 80% -
for BRL200 million more.

The Goias state government keeps any shares not bought by
Eletrobras. CELG has already drained its coffers and has debts of
about BRL1.2 million.

"We've been looking for a situation that is satisfactory for the
state of Goias and doesn't leave the federal government in a
difficult situation [with regards to other state-owned electric
power companies]," Vecci said.

"When the federal government was certain that this would just be
restricted to Goias, it issued a provisional decree authorizing
Eletrobras to buy the CELG shares," Vecci explained.

          Rua 2 - Qd. A-37 - Edificio Gileno Godoi
          Jardim Goias - Goiania - Goias
          CEP: 74805-180
          Phone:  (0XX62)   243-2222
          Fax:  (0XX62) 243-2100
          Home Page:
          Jose Walter Vazquez Filho,  President
          Phone: (0XX62) 243-1001
          Samuel Albernaz, Administrative Director
          Phone: (0XX62) 243-1031
          Javahe de Lima, Economic-Financial Dir./Investor
          Phone: (0XX62) 243-1041

METRORED: Brasil Telecom Advances In Its Acquisition Plans
Brazilian fixed line holding Brasil Telecom Participacoes
overcame its first hurdle in its quest to take control of
regional corporate communications provider MetroRed. Citing
Brasil Telecom CEO Carla Cico, Business News Americas reports
that the company's board of directors gave its approval to
proceed with the acquisition talks.

Edigimar Maximiliano, an equity analyst at local bank Unibanco,
suggested that acquiring MetroRed would give Brasil Telecom
infrastructure in the country's three most important cities of
Rio de Janeiro, Sao Paulo and Belo Horizonte.

Brasil Telecom is only eyeing MetroRed's assets in Brazil.
MetroRed's subsidiaries in Argentina and Mexico are not included
in the negotiations, Cico said.

"The big question will be the price of the deal," an unnamed
analyst told Business News Americas, adding, "At this point we
[analysts] don't have enough financial detail on the company
[MetroRed] to give an in-depth analysis."

Negotiations will involve the purchase of 19.9% of Metrored, with
an option to buy up the rest once local regulations that prevent
Brasil Telecom from buying more than 19.9% of other companies are
lifted, Cico said.

Brasil Telecom cannot buy 20% or more of any company until it has
met build-out goals mandated by the regulator Anatel.

MetroRed, which started operations in Brazil over metropolitan
fiber optic networks in 1998, is owned by US-based asset
management company Fidelity Investments.

          Luis Octavio Carvalho da Motta Veiga, Chairman
          Paulo Pedrao Rio Branco, CFO and Investor Relations
          Sia Sul, Asp, Lote D, Bloco B
          71215-000 Brasilia, D.F., Brazil
          Phone: +55-61-415-1414
          Fax: +55-61-415-1315

          METRORED (Brazil)
          Av. Guido Caloi, 1000
          Bloco 3 - CEP 05802-140
          Sao Paulo - SP - Brasil
          Tel: 0800-556733

NET SERVICOS: Officially Closes Public Distribution of Shares
Net Servi?os de Comunica?ao S.A. (Bovespa: PLIM4 and PLIM3;
Nasdaq: NETC; and Latibex: XNET), announced today the result of
the public distribution of shares. In total, 431,100,000 common
shares, no par value, within the limit of the authorized capital
as provided for in the Company By-laws (the "Common Shares") and
422,465,372 preferred shares, no par value, within the limit of
the authorized capital as provided for in the Company By-laws
(the "Preferred Shares") were distributed, at the price of R$
0.70 (seventy centavos) per Common Share and Preferred Share,
issued by Net Servi?os de Comunica?ao S.A., totaling R$ 597.5

In this public offer, the following amounts were capitalized: (i)
R$ 148.4 million in AFACs realized by Distel and Globopar; (ii)
R$ 114.6 million in loans contracted between the Company and
Bradesplan (controlled by Bradespar) and RBS Interativa S.A.
(related party of RBS); (iii) R$ 2.2 million in debts relative to
the programming held by RBS; (iv) R$ 79.2 million through the
delivery of 569 debentures of 2nd Issuing as payment, subscribed
by the signatories of the Recapitalization Protocol (v) R$ 174.7
million in Brazilian currency, subscribed by the signatories of
the Recapitalization Protocol; (vi) R$ 60.8 million through the
delivery of 431 debentures of 2nd Issuing as payment, subscribed
by third parties; and (vii) R$ 17.6 million in Brazilian
currency, subscribed by third parties.

In addition, 522 debentures of 2nd Issue were converted from 6 to
9 of August, at the price of R$ 0.70 per Share, with the issue of
97,585,029 Preferred Shares. Such conversions increased the
shareholders equity in R$ 68.3 million. The Private Issue, which
will total at least R$ 528.7 million, shall commence immediately
after the Special Shareholders' Meeting to be held on August 16,
2002, when the increase in the shareholders equity will be
decided. The following will be capitalized: (i) R$ 217.7 million
in AFACs realized by Distel and Globopar; (ii) R$ 155.2 million
in debts relative to the programming held by Romapar; (iii) R$
78.1 million through the delivery of 553 debentures of 2nd Issue
as payment for the subscription of the shares by Globopar; and
(iv) R$ 77.8 million through the delivery of 561 debentures of
2nd issue as payment for the subscription of the shares by
BNDESPAR, thus completing the total amount committed by the
signatories of the Recapitalization Protocol.

To see financial statements:

          CNPJ/MF n  00.108.786/0001-65
          NIRE n  35.300.177.240
          Companhia Aberta
          Rua Verbo Divino n  1.356 - 1 a, Sao Paulo-SP
          Leonardo P. Gomes Pereira
          Investor Relations and Chief Financial Officer


AES GENER: Recent Downgrade Drags Down Subsidiary's Ratings
Due to increasing financial commitments, including an increase in
the level of indebtedness, Chilean ratings agency Feller
downgraded the bonds of local power generator Essa to `A' from
`A+,' says Business News Americas. The downgrade also follows
Feller's downgrade on AES Gener in July from `AA-' to `A-.' AES
Gener owns 90% of Essa.

Feller, however, predicts a stable outlook for Essa due to its
commercial operating efficiency and financing agreements, which
are generating the cash flow required to meet debt payments,
although future classifications depend on AES Gener and Essa's
ability to meet financial commitments.

Essa owns and operates the 379MW Nueva Renca combined cycle
plant. The Santiago plant was Chile's first natural gas combined
cycle plant, and produces 2,830GWh/year for the central grid

          Mariano Sanchez Fontecilla 310 Piso 3
          Santiago de Chile
          Phone: (56-2) 6868900
          Fax: (56-2) 6868991
          Home Page:
          Robert Morgan, Chief Executive
          Laurence Golborne Riveros, Chief Financial Officer

ENAMI: Government Expected To Reveal Debt Strategy
Chile's state minerals company Enami is close to seeing a
solution to its debt problems.  Business News Americas reports
that the Chilean government will unveil, by August 23, its
strategy on how to deal with Enami's debt load of US$480 million,
much of which is short term.

Original plans involved offloading Enami's Ventanas smelter-
refinery to state copper corporation Codelco. However, reports
have it that the option has been scratched because Enami's
workers, as well as small and medium scale mining companies,
whose concentrates are processed at the plant, were angered by
it. They claimed that if Ventanas became part of Codelco, they
would not receive support from the state.

Enami's own plans for its restructuring, including cutting costs
and proposals for new government funding, were due to be
presented to President Ricardo Lagos Monday (Aug.12), senator
Ricardo Nunez was quoted as saying.

Union leaders had previously accused the government of wanting to
privatize Enami.

CONTACT:  ENAMI (Empresa Nacional de Mineria)
          MacIver 459,
          Santiago, Chile
          Phone: 637 52 78
                 637 50 00
          Fax:   637 54 52
          Home Page:
          Jorge Rodriguez Grossi, President


EMCALI: Gets Green Light To Pay Domestic Debts
Some of the domestic creditors of Emcali will soon start
receiving payments from Cali-based municipality utility.
The news comes after Colombia's public services regulator
approved an agreement that will allow Emcali to make the payment.

Emcali owes COP407 billion to domestic financial institutions.
Emcali CFO Jaime Alban told Business News Americas that this
week's agreement refers to COP201 billion of the Company's
domestic debt.

"What we have done is restructure 49% of the internal debt," he
said. Among the creditors included in the agreement are Colombian
banks Agrario, Cafetero, Pacifico, Colombia, FES and Interbanco.

While the agreement represents a positive step in saving the
indebted company, head regulator Diego Humberto Caycedo was
quoted by Colombian paper La Republica saying that many points
still need to be finalized.

A number of creditors were not included in the deal, he said,
adding that these creditors might be addressed with resources
generated from the Company's investment portfolio.

Moreover, the restructuring effort does not address issues such
as the company's pension liabilities and its collective
bargaining agreement with workers, he added.

In this light, Alban said they have been working with the social
security agency and have been able to achieve significant
reductions in pension liabilities. The Company is also about to
start renegotiating their labor agreement, he added.

On the international side, the company needs to work out debts
incurred from a venture jointly financed by a major Japanese
bank, Humberto said.

Alban said the debt from that joint venture was COP265 billion,
and may be resolved at some point in the future. However,
according to Alban: "There is no procedure for restructuring the
[foreign-held] debt because it is guaranteed by the national

Emcali, which the public services regulator intervened in April
2000 in an effort to save the Company from collapsing, has total
indebtedness of COP890 billion (US$341 million), of which COP483
billion are with foreign creditors.



PACIFICTEL: Owner Takes Draconian Measures To Avoid Collapse
Pacifictel's sole shareholder, the Ecudorian fund Fondo de
Solidariedad, announced drastic plans to keep the fixed
telephones company afloat. Measures include labor force
reduction, cutting unnecessary costs, improving the collection of
bills, and reviewing contracts to outsource international calls.

Pacifictel, which has 580,400 customers, has liabilities of
US$100 million and receivable bills of US$80 million. In a
previous TCR-LA report, Andres Mendoza, the firm's new president,
said that due to a poor financial outlook, the Company will
immediately hire an auditing company and focus on collecting
past-due bills.

The Company faces the greatest risk of getting intervened by the
telecom council, Conatel, for not fulfilling expansion plans and
improving service quality.


GRUPO MEXICO: US Government Intervenes To Block Share Transfer
Grupo Mexico SA's plans to transfer shares from one subsidiary to
another could be derailed after the U.S. Justice Department
lodged legal proceedings to block the move. The Justice
Department filed a motion Friday in the U.S. District Court for
the Western District of Washington state aimed at preventing
Asarco, part of Grupo Mexico, from selling its 54% stake in
Southern Peru Copper Corp (SPCC).

The Southern Peru sale, to Grupo Mexico's Americas Mining Corp,
is part of Grupo Mexico's financial restructuring, and the funds
raised would be used to pay off a US$450-million loan facility.
The restructuring involves bringing all the group's mining
operations under the umbrella of Americas Mining Corp, and Asarco
focusing on its US interests, which include three mines and a
copper smelter-refinery.

However, the Justice Department views the proposal as an attempt
to duck hundreds of millions of dollars in Superfund cleanup
obligations around the country. Asarco is liable for an estimated
US$60 million cleanup of arsenic contamination in Commencement
Bay and neighborhoods around the former site of a copper smelter
that operated for more than a century.

The government also alleges that Asarco's plans to sell the
shares below their value might force the U.S. unit, which owes
bondholders and banks US$985 million, into bankruptcy. That would
hurt the chances of Asarco's creditors, including the U.S., of
collecting on the debt.

"Not only does the transaction not provide full value for the
stock, this transfer is structured in a manner that is neither in
Asarco's best interests nor in the best interest of Asarco's
creditors," the complaint said. "Asarco is either presently
insolvent or will be rendered insolvent as a result of the

A ruling against Asarco would temporarily restrain the Company
from transferring its 54% stake in SPCC to Americas Mining Corp.,
Asarco's parent that is wholly owned by Grupo Mexico.

Grupo Mexico plans to continue with the transfer on Aug. 20
unless the court rules before then, said Hector Garcia de
Quevedo, the Company's director of investor relations.

           Avenida Baja California 200,
           Colonia Roma Sur
           06760 Mexico, D.F.
           Phone: +52-55-5264-7775
           Fax: +52-55-5264-7769
           German Larrea Mota-Velasco, Chairman & CEO
           Xavier Garcia de Quevedo Topete, President & COO

           Ave. Caminos del Inca 171
           Urb. Chacarilla del Estanque
           Santiago de Surco
           Lima 33, Peru
           Tel: +51 1 372 1414
           Fax: +51 1 372 0238
           Home Page:
           German Larrea Mota-Velasco, Chairman & CEO
           Oscar Gonzalez Rocha, President & Director General
           Daniel Tellechea Salido, VP - Finance

           ASARCO, INC.
           2575 E. Camelback Rd., Ste. 500
           Phoenix, AZ 85016
           Phone: 602-977-6500
           Fax: 602-977-6701
           Home Page:
           German Larea Mota-Velasco, Chairman & CEO
           Genaro Larrea Mota-Velasco, President
           Daniel Tellechea Salido, VP & CFO

GRUPO TMM: Opens Cruise Ship Terminal to Enhance Services
Grupo TMM (NYSE:TMM)(NYSE:TMM/L), the largest Latin American
multi-modal transportation and logistics company, and owner of
the controlling interest in Grupo Transportacion Ferroviaria
Mexicana, S.A. de C.V. (Grupo TFM), announced that its Ports and
Terminals division is formally opening a cruise ship terminal in
Progreso, located in the Yucatan Peninsula.

Luis Calvillo, executive vice president of Grupo TMM noted,
"Progreso is rapidly becoming an important international tourist
port, and international cruise lines are now arriving. Our Ports
and Terminals division, in conjunction with our partner,
Stevedoring Services of America, sees Progreso as an attractive
option for tourists. We expect to handle over 100 cruise ship
calls and over 125,000 passengers during the remainder of this
year, and over 200,000 passengers in 2003."

Additionally, Calvillo announced that the Scotia Prince ferry
will begin arriving on a weekly basis, starting at the end of
November of this year, at Progreso, from Tampa, Florida. This
development would not have been possible without the support of
the state government and the Ministry of Communications and
Transportation in Mexico.

Calvillo concluded, "We have invested $7 million at this port to
modernize and expand the facilities and will continue to seek new
business opportunities with major U.S. and European cruise ships

Headquartered in Mexico City, Grupo TMM is the premier Mexican
multimodal transportation company and logistics provider. Through
its branch offices and network of subsidiary companies, Grupo TMM
provides a dynamic combination of ocean and land transportation
services within Mexico. Grupo TMM also has the controlling
interest in Transportacion Ferroviaria Mexicana (TFM), which
operates Mexico's Northeast railway and carries over 40 percent
of the country's rail cargo. Visit Grupo TMM's web site at,and TFM's web site at sites offer Spanish/English language

         Brad Skinner, Investor Relations
         Phone: 011-525-55-629-8725
         Kristine  Walczak
         Phone: 312/726-3600


BLADEX: Fitch Downgrades Ratings To 'BB+' on Market Risks
Fitch Ratings downgraded the long-term and short-term foreign
currency debt ratings of Banco Latinoamericano de Exportaciones
(BLADEX) (NYSE: BLX) to 'BB+' from 'BBB-' and 'B' from 'F3',
respectively. The Individual rating has been downgraded to 'D/E'
from 'D' and has been removed from Rating Watch Negative. The
long-term debt rating has been removed from Rating Watch
Negative. The Rating Outlook is Stable. The Support rating is
affirmed at '4'.

The downgrade reflects the bank's heightened risk profile, partly
the byproduct of its departure from its original mission as a
trade finance lender in Latin America, as well as the overall
deterioration in its principal markets, Argentina and Brazil.
While we view positively management's stated intention to return
to its core expertise, trade finance lending, unsecured short-
and medium-term working capital loans to banks and corporations
accounted for 53% of the loan portfolio at end-June 2002.
Moreover, balance sheet reduction of roughly USD 2 billion in the
first half of 2002, the result of management's efforts to reduce
exposure in Brazil and Mexico, as well as a decline in funding,
has resulted in a growing concentration in unreserved non-trade
risks in Argentina, rated 'DDD' and Brazil, rated 'B+' and placed
on Rating Watch Negative recently.

In the first half of 2002, the bank posted losses of USD 299
million due mainly to provisioning for its Argentine exposure. As
a result, the bank's capital base declined to USD 291 million and
its risk adjusted capital ratio dropped to 11.9% from 17.1% at
end-2001. In response, management announced its plan to raise
capital by roughly USD 100 million among its Class A shareholders
and multilateral agencies. While we feel confident that this
capital raising exercise will result in the desired fresh capital
infusion, we believe that the capital levels which will be in
place following the exercise may prove inadequate to cushion
against the potential for further asset quality deterioration,
given the high geographic concentrations in Bladex's loan
portfolio, and are incompatible with investment grade ratings.

Bank management continues to proactively manage the reduction of
the balance sheet, with the largest exposure reductions in Brazil
(USD 795 million) and Mexico (USD 482 million) since end-2001.
The reduction of the bank's asset base has mirrored a drop in
funding, most notably, deposits, which dropped 55% during the
first six months of 2002 to USD 710.1 million. Positively, the
balance sheet reduction has fully funded the reduction in
liabilities, as Bladex's management has maintained an important
liquidity cushion in the range of USD 550-600 million, or 80% of
deposits, as the balance sheet is reduced, and remains committed
to maintaining a high degree of liquidity.

Brazil and Argentina concentrate 59% of the balance sheet risks.
Gross Argentine exposure declined modestly in the first half of
2002 and has stabilized at USD 961 million, the majority of which
has been placed on non-accrual status, and was reserved 48.6% at
end-June 2002. While the level of specific reserves against the
bank's Argentine exposure was the result of a careful review of
current outstandings, it is possible that further deterioration
in Argentina, or further pressures on other borrowers, could
require additional reserves at a time when the bank's capacity to
generate such reserves is strained by the profitability pressures
inherent in its reduced balance sheet. The unreserved portion of
Bladex's Argentine exposure is roughly USD 494 million, which
would account for roughly 126% of equity following the proposed
USD 100 million increase. The Brazilian exposure was reduced by
USD 795 million and stood at USD 1.7 billion at end-June 2002.
The current level of ratings assumes successful completion of the
capital increase, and Fitch Ratings will continue to monitor
Bladex's progress in light of events in its principal markets.

         Ricardo Chaves
         Phone: 212/908-0606
         Linda Hammel
         Phone: 212/908-0303
         Peter Shaw
         Phone: 212/908-0553


BANCO DE MONTEVIDEO: Owners Help Depositors Recoup Lost Savings
Depositors of Uruguay's Banco de Montevideo are to recover their
lost savings after the intervened local bank's shareholders took
a step to ensure the move.

Business News Americas reports that the Peirano Basso family,
whose members are some of the principal shareholders of Banco de
Montevideo, transferred control of assets worth US$50 million-
US$60 million, including US$10 million - US$12 million of
mortgaged properties, to the central bank to pay Montevideo's
liabilities. One family member, Juan Peirano, is also trying to
raise extra funds outside the country, the report adds.

Six former Montevideo board members, including three Peirano
brothers, were jailed Thursday on local judge Pablo Eguren's
orders, for lying about the bank's equity value.

A group of depositors sued the executives when they discovered
that some of the bank's deposits had been transferred to sister
bank Trade & Commerce Bank in the Cayman Islands without their
knowledge. The depositors were therefore unable to recover
deposits worth US$10 million when Montevideo was intervened by
the government in late June.

Banco de Montevideo had UYU11 billion (US$398 million) of assets
as of December and UYU8.7 billion of deposits. Before deposit
withdrawals started in December, the bank was already strapped
for cash after purchasing Caja Obrera from the government in
November last year.

          1399 - Montevideo
          Fax: 9162880
          Home Page:
          Contact: Sr. Marcelo Pestarino, President


S U B S C R I P T I O N   I N F O R M A T I O N

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