/raid1/www/Hosts/bankrupt/TCRLA_Public/020816.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

           Friday, August 16, 2002, Vol. 3, Issue 162

                           Headlines



A R G E N T I N A

BANEX: Defrauding Customers With Counterfeit Bills
METROGAS: Fitch Issues Positive Comments On Interest Payment
SCOTIABANK QUILMES: Two More Banks Express Purchase Interest
TELEFONICA DE ARGENTINA: Analyst Declares Technically Bankrupt


B E R M U D A

DOV PHARMACEUTICAL: Net Loss Doubles In 2Q02 Results
ESG REINSURANCE: Fitch Cuts Financial Strength Ratings To 'BB-'
STIRLING COOKE: 2Q02 Results Show Increasing Losses


B R A Z I L

CESP: Dumps Arthur Andersen, Retains Deloitte Touche Tohmatsu
KLABIN: S&P Lowers Local Currency Rating Over Liquidity Crunch
NII HOLDINGS: Reports Widening Net Loss In 2Q02
PETROLIFERA MARLIM: Moody's Downgrades Medium-term Notes To `B2'


C O L O M B I A

SEVEN SEAS: Reserve Revisions, Writedowns Thwart 2Q02 Results


D O M I N I C A N   R E P U B L I C

AES CORP: Dominican Operations Slated for February 2003


M E X I C O

CFE: Issues More Debt To Subsidize Lack of Public Funds
CINTRA: May Delay Sale Once Again on US Airways' Bankruptcy


P E R U

SIDERPERU: Continues To Restructure Liabilities


T R I N I D A D   &   T O B A G O

BWIA: To Embark on Massive Restructuring This Week
BWIA: Further Layoffs May Lead To Another Conflict


U R U G U A Y

BANCO DE MONTEVIDEO: Sale Draws Three Foreign Investors
URUGUAYAN BANKS: Central Bank Launches Deposit Return Plan


     - - - - - - - - - -

=================
A R G E N T I N A
=================

BANEX: Defrauding Customers With Counterfeit Bills
--------------------------------------------------
Argentine bank Banex is now in hot water after several of its
branches got busted by police officials for distributing
counterfeit bills to customers. According to an EFE report,
Argentine authorities seized three Banex branch managers and
seven bank tellers after Federal Judge Jorge Ballestero issued
arrest warrants for them for their alleged involvement in the
scheme.

Furthermore, authorities revealed that they seized counterfeit
ARS20 bills (US$5.50), seals and documents in raids carried out
at five Banex bank branches.

The seized banking officials are scheduled for questionuing by
Judge Ballestero. Guilty parties could face up to 15 years
imprisonment under Argentine law.

The investigation began after retirees complained of receiving
counterfeit money when cashing their pension checks at the bank.

Banex is the product of a merger between Banco San Luis and Banco
Exprinter. It has 41 branches throughout the capital, central and
western Argentina.


METROGAS: Fitch Issues Positive Comments On Interest Payment
------------------------------------------------------------
Fitch Ratings views the announcement by MetroGas S.A. that it
paid all of the interest accrued on its financial obligations
since April 30, 2002, as a strong indication of management's
commitment to apply any excess cash flow to fulfill its financial
obligations. The payment, covering bank and capital market debt,
was funded by the early cancellation of a currency swap due in
September 2002. The termination generated an estimated US$13.2
million for the company.

Funds were distributed as follows: i) series A notes: US$5.7
million, including US$4.9 million due on April 4 and US$800,000
accrued as of April 30; ii) series B notes: EUR4.8 million, not
yet due; iii) series C notes: US$1.4 million, due May 5, iv)
foreign bank debt: US$2.3 million. Following these payments,
MetroGas remains in default on interest obligations for the
series C notes totaling US$2.5 million, and bank debt for US$1.7
million. On April 2, 2002, Fitch placed MetroGas' rating in
default, following the company's missed interest payment under
its US$100 million series A notes.

Regulated market participants, including MetroGas, have been
trying to negotiate revenue recovery mechanisms to offset the
effective expropriation of value following peso-fication and the
suspension of regulated tariff adjustments. The central objective
of these negotiations is first and foremost, to ensure sufficient
cash flow generation to fund ongoing operations, and second, if
possible, to afford a balance to service existing debt
obligations. These negotiations, however, have been slow and
yielded little in the way of meaningful benefits. No material
negotiations have occurred since the new Minister of Economy was
appointed in May 2002. As a result, Fitch believes that no
material tariff relief will come until after the March 2003
elections and even then only after the new administration has
completed a review of the situation. Thus, any workable plan with
the government is at least 12 months away. Fitch believes that
MetroGas will not be in a position to restructure its debt until
a new tariff scheme is approved and the medium-to-long-term cash
flow of the company can be adequately estimated.

MetroGas is the largest of eight natural gas distribution
companies. MetroGas is 70%-owned by Gas Argentino S.A., 10%-owned
by employees and 20% is traded in the Buenos Aires Stock
Exchange. Gas Argentino S.A. is a consortium composed by British
Gas PLS (54.7%), and Repsol-YPF (45.3%).

CONTACT: FITCH RATINGS
         In Buenos Aires:
         Ana Paula Ares
         Fernando Torres
         Phone: +54 11 4327-2444,
         In New York:
         Alejandro Bertuol
         Phone: 212/908-0393
         In Chicago:
         Jason T. Todd
         Phone: 312/368-3217

         METROGAS
         Alberto Alfredo Alvarez, President
         William Harvey Adamson, First VP
         Gen. Director Enrique Barruti, HR Director
         Fernando Aceiro New Bus. Director
         Luis Domenech Admin. and Fin. Director

         Their Address:
         G. Araoz de Lamadrid 1360
         1267 Buenos Aires, Argentina
         Phone: (800) 422-2066
         Fax: (201) 262-2541
         Email: info@metrogas.com.ar


SCOTIABANK QUILMES: Two More Banks Express Purchase Interest
------------------------------------------------------------
Apparently Argentine bank Banco Comafi's offer to buy the
operations of Scotiabank Quilmes, the local unit of Canada's No.
4 bank, Bank of Nova Scotia, won't go unchallenged.

Reports have it that state-controlled Banco Hipotecario and Banco
Frances, held by Spain's Banco Bilbao Vizcaya Argentaria, are
considering competing offers for Scotiabank.

Bankers revealed Tuesday that Banco Comafi offered ARS275 million
(US$76 million) to buy the cash-strapped local arm of Canada's
Scotiabank. Argentina's Central Bank was due to decide by
Wednesday morning whether to approve the sale of Scotiabank
Quilmes. The sale figure represents a fraction of what
Argentina's 12th largest bank was worth before liquidity problems
forced it to suspend most of its operations in April.

The suspension expires on Friday. If Scotiabank Quilmes is not
sold by then the Central Bank has to auction it off. Bankers at
Hipotecario and Frances, however, have denied the reports.

"Even if Banco Frances did make a counter proposal, the fact
Banco Comafi has virtually no retail outlets now means a Comafi
buyout would mean fewer job losses than a sale to Frances,"
another banker familiar with the talks said.

Scotiabank Quilmes' downfall came after last year's run on nearly
a quarter of all deposits in the midst of a four-year recession.
In March, its parent effectively wrote the entire unit off by
taking a CAD540 million (US$345 million) charge. The bank's
failure is the highest profile collapse in this year's savings-
freeze crisis.

LATIN AMERICAN CONTACTS:

           SCOTIABANK QUILMES
           Alan Macdonald
           Chief Executive Officer
           Phone: (54-11) 4338-8000
           Fax: (54-11) 4338-8033
           Mail: 6th Floor
           Gral. J.D. Peron 564
           (C1038AAL) Buenos Aires

           Roy D. Scott
           Vice-President and Managing Director, Latin America
           Phone: (54-11) 4394-8726
           Fax: (54-11) 4328-1901
           Mail: P.O. Box 3955
           C1000WBN Correo Central
           Buenos Aires, Argentina
           E-mail: scotiarep@sinectis.com.ar


TELEFONICA DE ARGENTINA: Analyst Declares Technically Bankrupt
--------------------------------------------------------------
Telefonica de Argentina SA (TASA), a unit of Telefonica SA,
reported a negative equity at the end of the first half leaving
the Company technically bankrupt, according to an analyst.

In an AFX report, the Company said its equity position at the end
of first half stood at negative EUR426 million.

"The negative equity leaves TASA technically bankrupt, although
this is not an exception in Argentina," an analyst at a leading
Spanish bank said.

He noted that local legislation allows companies with negative
equity to continue operating and to continue quoting on the local
stock exchange.

"But at some point Telefonica will have to recapitalize its
subsidiary," he added.

Also, the Company reported a loss of EUR737 million at the end of
the first half due to the devaluation of the peso and the
recession affecting Argentina.

In an effort to curb the losses at its unit, Telefonica has begun
restructuring, including the cost cutting measures and strict
control over unpaid bills.

CONTACT:  TELEFONICA DE ARGENTINA
          Tucuman 1, 18th Floor, 1049
          Buenos Aires, Argentina
          Phone: (212) 688-6840
          Home Page: http://www.telefonica.com.ar
          Contacts:
          Carlos Fernandez-Prida Mendez Nunez, Chairman
          Paul Burton Savoldelli, Vice Chairman
          Fernando Raul Borio, Secretary



=============
B E R M U D A
=============

DOV PHARMACEUTICAL: Net Loss Doubles In 2Q02 Results
----------------------------------------------------
DOV Pharmaceutical, Inc. (Nasdaq: DOVP) announced Wednesday
results for the second quarter ending June 30, 2002.

Second Quarter 2002 Performance

For the second quarter of 2002, the Company reported a net loss
of $3.8 million, or $0.32 per share, compared with a net loss of
$1.8 million, or $0.37 per share, for the comparable period last
year. For the six months ended June 30, 2002, the Company
reported a net loss of $7.7 million, or $0.91 per share, compared
with a net loss of $3.6 million, or $0.74 per share, for the
comparable period last year. The per share amounts for both the
second quarter of 2002 and the six month period ended June 30,
2002 reflect the additional shares outstanding as a result of the
Company's initial public offering completed on April 30, 2002. At
June 30, 2002, cash and cash equivalents totaled $66.0 million.

The increases in net loss for the quarter and year-to-date period
were primarily the result of an increase in the Company's
operating expenses of $1.6 million for the second quarter of 2002
and $2.9 million for the six months ended June 30, 2002 as the
Company advanced its products through clinical and preclinical
trials and added new employees to support its expanded
operations. The Company also incurred an increase in non-cash
interest expense of $228,000 in the second quarter 2002 and
$897,000 for the six months ended June 30, 2002 related primarily
to the increase in value of the Company's stock. In addition, the
Company reported an increase in other expense, net of $794,000
related to a decrease in the value of investments during the six-
month period ended June 30, 2002.

    Recent Highlights:

    August 2002

* The Company reported positive Phase II clinical trial results
  for bicifadine, its non-narcotic analgesic.

* The Company completed dosing in its Phase Ib multiple dose
  ranging clinical trial for DOV 216,303, its lead product
  candidate for the treatment of depression.

    July 2002

* The Company initiated three-month carcinogincity studies for
  both bicifadine and ocinaplon.

* The Company amended its license agreement with Biovail
  Laboratories Incorporated in connection with a consent order
  between the FTC and Biovail Corporation.  This amendment, which
  is subject to FTC approval, returns to the Company all license
  rights, including the right to grant to others an exclusive or
  non-exclusive license and receive royalties, to practice the
  DOV diltiazem patent in the Tiazac field.  The Tiazac field is
  defined as a drug product approved for sale pursuant to
  Biovail's new drug application (NDA) 20-401 or any generic
  drug product seeking approval by referencing Biovail's NDA
  20-401.  The amendment maintains the agreement between the
  Company and Biovail to develop, manufacture and market a new
  drug product approved for sale under an NDA other than
  Biovail's existing NDA 20-401.

* The Company continued its planned Phase I program for
  bicifadine and completed dosing in a Phase I fed/fasted
  pharmacokinetic clinical trial.

* Stephen J. Petti, R.N., B.S.N., B.B.A., Vice President of Drug
  Development resigned from DOV for personal reasons.  The
  Company intends to secure his replacement shortly.

"We are pleased to announce so many exciting highlights for the
Company," said Dr. Arnold Lippa, Chief Executive Officer of DOV
Pharmaceutical. "Recent developments reflect the dedicated
efforts and contributions of our multifaceted team. We look
forward to continued progress in our research and development
programs and the achievement of future milestones. On behalf of
the board, I thank Steve Petti for his many substantial
contributions to the growth of DOV over the past few years. We
wish only the best for him," said Dr. Arnold Lippa.

DOV is a biopharmaceutical company focused on the discovery,
acquisition, development and commercialization of novel drug
candidates for central nervous system, cardiovascular and
urological disorders. The Company has five product candidates in
clinical trials addressing therapeutic indications with
significant unmet needs.

Statements in this press release that are not historical facts
constitute forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act. These forward-looking
statements include statements of our expectations and intentions
with respect to the progress of our clinical trial programs for
bicifadine, ocinaplon, DOV diltiazem and DOV 216,303. We caution
you that forward-looking statements are inherently uncertain and
are simply point-in-time estimates based on a combination of
facts and factors currently known by us about which we cannot be
certain or even relatively certain. Actual results or events will
surely differ and may differ materially from our forward-looking
statements as a result of many factors, some of which we may not
be able to predict or may not be within our control. Such factors
may also materially adversely affect our ability to achieve our
objectives and to successfully develop and commercialize our
product candidates, including our ability to:

* demonstrate the safety and efficacy of product candidates at
  each stage of development;

* meet our development schedule for our product candidates,
  including with respect to clinical trial initiation, enrollment
  and completion;

* meet applicable regulatory standards and receive required
  regulatory approvals on our anticipated time schedule or at
  all;

* meet obligations and required milestones under our license and
  other agreements;

* obtain substantial additional funds;

* obtain and maintain all necessary patents or licenses; and

* produce drug candidates in commercial quantities at reasonable
  costs and compete successfully against other products and
companies.

Factors that may cause our actual results to differ materially
from our forward-looking statements include (i) one or more of
our product candidates could be shown to cause harmful side
effects, (ii) one or more of our product candidates may not
exhibit the expected therapeutic results, (iii) we or the FDA may
suspend one or more of our clinical trials, (iv) patient
recruitment may be slower than expected or patients may drop out
of our clinical trials, (v) we may not receive regulatory
approval for our product candidates or approval may be delayed,
(vi) our success depends on the performance of our licensees and
collaborative partners, who among other things may not fulfill
their obligations to us and (vii) recent securities class action
litigation may cause us to become subject to liability or become
a distraction to our management. You should also refer to the
risks discussed in our other filings with the Securities and
Exchange Commission, including those contained in our final
prospectus dated April 24, 2002. We qualify all our forward-
looking statements by these cautionary statements. There may also
be other material factors that may materially affect our forward-
looking statements and our future results. As a result of the
foregoing, readers should not place undue reliance on our
forward-looking statements. We do not undertake any obligation
and do not intend to update any forward-looking statement.

To see financial statements:
http://bankrupt.com/misc/DOV_Pharmaceutical.doc

CONTACT:  DOV PHARMACEUTICAL, INC.
          Barbara Duncan, Chief Financial Officer
          Tel.: +1-201-968-0980

          Corporate Communications:
          Kathleen Eppolito of Scientia Communications, Inc.
          Tel. +1-718-281-1809
          URL: http://www.dovpharm.com


ESG REINSURANCE: Fitch Cuts Financial Strength Ratings To 'BB-'
---------------------------------------------------------------
Fitch Ratings, the international rating agency, has lowered the
Insurer Financial Strength Ratings of ESG Reinsurance Bermuda
Limited, ESG Reinsurance Ireland Limited and European Specialty
Ruckversicherung AG, the principal reinsurance subsidiaries of
ESG Re Limited, Bermuda to 'BB-' (BB minus) from 'BB+'. The
ratings have been placed on Negative RatingWatch.

The ratings action follows ESG Re's recently reported loss of
USD23.2 million for the quarter ended June 2002, the main
contributors to which were an increase in loss reserves of USD13m
- primarily arising from Norwegian occupational accident business
underwritten in 1998 - unrealized foreign exchange losses of
USD2.4m and a foreign currency translation adjustment of USD4.1m.
The impact on the group's balance sheet was to reduce
shareholder's funds to USD 71.8 million, 24.4% below the level of
USD 95.1 million reported at December 2001.

Operating performance of ESG Re for the first six months of 2002
has fallen below the agency's expectations. The group has
recorded an underwriting loss of USD31.1m for this period that is
reflected in an uncompetitive combined ratio of 180% (2001 full
year: 133.2%). In noting that such performance has resulted from
loss making portfolios of business underwritten in 1998, 1999 and
2000, Chris Waterman, a Director in the agency's insurance group,
said that "The run-off of this historic book of business
continues to negatively affect earnings and, although the current
management team has taken steps to rectify the problem, tangible
evidence that the revised strategy is effective has not been
reflected in bottom line profitability."

Poor operating performance and the consequent erosion of the
group's capital base has weakened ESG Re's liquidity: the current
liquidity ratio (cash + invested assets / net liabilities) has
reduced to 39.0% at June 2002 compared to 61.5% in 1999. The
company is therefore dependent upon the realization of premium
balances receivable (USD187.8 million) and reinsurance
recoverable on incurred losses (USD43.8m) in order to meet all of
its liabilities. An additional feature of the erosion of the
group's capital base and poor operating results is ESG Re's
limited financial flexibility. In Fitch's view, it is unlikely
that additional funding could be obtained by the group from its
shareholders in the near-term should the need arise

Offsetting these negative rating factors is remedial action taken
by the ESG Re's management team, which has been exiting
unprofitable lines of business and imposing strict underwriting
criteria and controls since September 1999. By focusing on growth
in profitable direct marketing and bancassurance lines, seeking
diversification and managing legacy issues, ESG has been
restructured in such a way that it is better positioned to
generate profitable returns in the future. This strategy is
beginning to show signs of success, with the 2001 and 2002
underwriting years currently showing a technical profit although
at a relatively early stage in their development.

Current capitalization levels at ESG are considered by Fitch to
be good and sufficient to support the group's short-term revenue
targets. Although shareholders' equity has declined during recent
years, net premium written has declined at a faster rate,
resulting in improvements to the solvency margin (shareholders'
equity to net written premium) that stood at 88.1% at June 2002
(on an adjusted annualized basis), up from 83.7% at the end of
2001. While capital is currently sufficient to support short-term
growth plans, future adequacy will be dependent upon the non-
recurrence of earnings drags arising from legacy issues.

Fitch will meet with the company's senior management team in
September 2002 with a view to resolving the Negative Rating Watch
as soon as possible.

CONTACT:  Chris Waterman, London
          Phone: +44 (0)20 7417 6328
          E-mail: chris.waterman@fitchratings.com
          David Wharrier, London
          Phone: +44 (0)20 7417 6327
          E-mail: david.wharrier@fitchratings.com



STIRLING COOKE: 2Q02 Results Show Increasing Losses
---------------------------------------------------
Stirling Cooke Brown Holdings Limited (Nasdaq: SCBHF) reported
Wednesday results for the second quarter ended June 30, 2002. The
Company reported a net loss from all operations of $2.7 million
for the second quarter, compared to a net loss from all
operations of $2.3 million for the same period in 2001. Net loss
from all operations was $7.0 million for the first six months of
2002, compared to a net loss from all operations of $4.2 million
for the same period in 2001. On a per-share basis, the diluted
net loss was $0.28 for the second quarter ended June 30, 2002,
compared with diluted net loss per share of $0.24 for the
corresponding quarter of 2001. Diluted net loss per share from
all operations was $0.73 for the first six months of 2002,
compared with diluted net loss per share from all operations of
$0.44 for the corresponding period of 2001.

The Company reported a net loss from continuing operations of
$6.9 million for the second quarter, compared to a net loss from
continuing operations of $1.1 million for the same period in
2001. Net loss from continuing operations was $10.4 million for
the first six months of 2002, compared to a net loss from
continuing operations of $2.6 million for the same period in
2001. The Company reported a diluted net loss from continuing
operations of $0.73 per share for the second quarter and $1.10
for the first six months of 2002, compared with diluted net loss
per share from continuing operations of $0.12 and $0.28 for the
corresponding periods of 2001.

The results for the year continued to be affected by adverse
factors which impacted the Company's results last year. The
program business segment suffered increased losses for the
quarter, primarily due to a further charge of $4.0 million for
estimated costs that the Company projects it will pay in
connection with its indemnification of its major issuing company
for losses in excess of a specific loss ratio on business
produced by the program business segment during 2000. The Company
also continued to incur costs pertaining to reinsurance-related
disputes in which the Company and others are involved, including
certain litigation in London, the unanticipated duration of which
has placed a significant strain on the cash resources of the
Company. However, the Company benefited from the sale of its
wholly owned reinsurance segment, which resulted in the
elimination of $4.8 million of accumulated deficit in the second
quarter.

The Company understands that the trial currently under way in
London is likely to conclude during the fourth quarter of 2002
and, in the interim, is pursuing efforts both to reduce the
ongoing cash outlays required in order to fund the defense of the
litigation, and to secure additional capital, possibly through
the sale of certain assets of the Company. If successful, the
Company believes that these efforts will prove sufficient to
enable it to avoid serious constriction in its cash resources.
The Company further remains cautiously optimistic that a
successful result will be achieved in the litigation itself. In
that event, the Company believes that, pursuant to U.K. law, it
will secure a recovery of some portion of the costs and expenses
incurred in the litigation and that it will be able to recognize
significant income, the recognition of which thus far has been
deferred pending developments both in the litigation and in the
reinsurance disputes in which the Company is currently involved.
The ability to recognize such income, together with the
elimination of the significant cash demands necessitated by the
London litigation, should help restore the Company to a more
adequate cash position. No assurance can be given, however, as to
the results of the Company's efforts to secure additional cash
resources or as to the outcome of the litigation in London.

For the quarter ended June 30, 2002, total revenues from
continuing operations were $11.8 million, a decrease of $0.1
million from $11.9 million in the second quarter of 2001. For the
six months ended June 30, 2002, total revenues from continuing
operations were $22.3 million, a decrease of $1.0 million from
$23.3 million in the same period of 2001. The decline in revenues
from continuing operations in 2002 reflected capacity shortage
and margin contraction in the brokerage and program business
segments. This decline was partially offset by increased net
premiums earned in the insurance segment as that segment retained
more business by reducing the amount of reinsurance purchased for
its programs.

Insurance revenues earned by the Company's U.S.-based insurance
carrier increased to $8.1 million in the second quarter of 2002
and $14.7 million in the first six months of 2002, from $6.8
million for the second quarter last year and $12.1 million in the
first six months of 2001. The increase in insurance segment
revenues reflects the increase in net premiums earned. Gross
written premiums decreased due to the decision to discontinue
certain loss-making programs in 2000. Despite the decrease in
gross premiums, net premiums earned increased as a result of
reduced reinsurance ceded.

The Company's program business revenues were $3.1 million in the
second quarter, compared to $3.2 million in the second quarter of
2001. Program business revenues were $6.0 million in the first
six months of 2002, compared to $6.3 million in the same period
of 2001. This decrease was due to a reduction in program business
volume due to management's decision to impose more selective
underwriting guidelines on continuing programs.

Brokerage revenues were $0.5 million in the second quarter,
compared to $1.7 million in the second quarter of 2001. The
segment has been adversely affected by the disruption caused by
widespread reinsurance market disputes and legal proceedings,
including those involving the Company. The decrease in brokerage
segment revenues was also the result of reduced business being
brokered due to significantly diminished reinsurance capacity for
workers' compensation business.


                               Segment Revenue
                            (Dollars in thousands)
                                 (unaudited)

    Revenues        For the Three Months       For the Six Months
                      Ended June 30,             Ended June 30,
                   2002          2001         2002          2001
    Continuing Operations:
    Insurance    $8,074        $6,787      $14,692       $12,064

    Program
      Business    3,112         3,218        6,024         6,318
    Brokerage       460         1,720        1,287         3,342
    Other           113           127          250         1,549
    Revenues from
      continuing
      operations $11,759       $11,852      $22,253       $23,273

    Discontinued Operations:
    Underwriting
      Management  $(283)         $158        $(252)         $330
    Reinsurance       8          (192)          --            20
    Revenues from
      discontinued
      operations  $(275)         $(34)       $(252)         $350

For the quarter ended June 30, 2002, total expenses from
continuing operations, including insurance costs, were $18.7
million, compared to $13.3 million in the same period of 2001.
For the six months ended June 30, 2002, total expenses from
continuing operations, including insurance costs, were $33.1
million, compared to $26.6 million in the same period of 2001.

Insurance costs increased to $7.8 million in the second quarter
of 2002, compared to $5.8 million in the second quarter of 2001.
Insurance costs increased to $13.8 million in the first six
months of 2002, compared to $10.1 million in the first six months
of 2001. The increase in insurance costs was primarily due to the
increase in net premiums earned in the Company's U.S.-based
insurance carrier.

For the quarter ended June 30, 2002, operating expenses increased
to $10.9 million from $7.5 million in 2001. For the six months
ended June 30, 2002, operating expenses increased to $19.3
million from $16.5 million in 2001. This increase in expenses
from continuing operations is primarily due a further charge of
$4.0 million for estimated costs that the Company projects it
will pay in connection with its indemnification of its major
issuing company for losses in excess of a specific loss ratio on
business produced by the program business segment during 2000.
This charge was partially mitigated by the effects of the
restructuring program begun in 1999, together with a general
reduction in administrative costs as a result of reduced business
volume. In addition, expenses from continuing operations
continued to be impacted by costs and provisions pertaining to
reinsurance-related disputes in which the Company is involved,
including certain litigation.

The income from discontinued operations for the quarter ended
June 30, 2002 and six months ended June 30, 2002 is primarily due
to the sale of its wholly owned reinsurance segment, which
resulted in the elimination of $4.8 million of accumulated
deficit in the second quarter.

Stirling Cooke Brown Holdings Limited is a Bermuda holding
company, which, through its subsidiaries, provides insurance
services and products. The Company provides its range of services
and products to unaffiliated insurance and reinsurance companies,
insurance agents and insureds. The Company is active primarily in
the workers' compensation, occupational accident and health and
casualty insurance markets through its subsidiaries located in
London, Bermuda and the United States.

Stirling Cooke Brown Holdings Limited Ordinary Shares are quoted
on the NASDAQ market under the symbol "SCBHF."

To see financial statements:
http://bankrupt.com/misc/Stirling_Cooke.htm

CONTACT:  STIRLING COOKE BROWN HOLDINGS LIMITED
          Stephen A. Crane, Chief Executive Officer
          Tel. +1-212-422-0770



===========
B R A Z I L
===========

CESP: Dumps Arthur Andersen, Retains Deloitte Touche Tohmatsu
-------------------------------------------------------------
The board of power utility Companhia Energetica de Sao Paulo SA
(E.EPL) fired Arthur Andersen LLP, following the auditor's
criminal-obstruction charge in the US, Dow Jones reports citing a
CESP spokeswoman.

The Brazilian power company hired independent auditing firm
Deloitte Touche Tohmatsu (X.DET), as an emergency measure to
comply with regulatory requirements for listed companies.

As a government-owned company, CESP will carry out a bidding
process to choose a new firm to audit its financial results in
place of Arthur Andersen who provided the services since 1994.

No date has yet been set for the bidding, according to the
company's spokeswoman.

CONTACT:  CESP-COMPANHIA ENERGETICA DE SAO PAULO
          Rua da Consolacao, 1.875
          CEP 01301 -100 Sao Paulo, Brazil
          Phone: +55-11-234-6322
          Fax: +55-11-287-0871
          Home Page: http://www.cesp.com.br/
          Contact:
          Mauro G. Jardim Arce, Chairman
          Ruy M. Altenfelder Silva, Vice Chairman
          Vicente Kazuhiro Okazaki, Finance Director


KLABIN: S&P Lowers Local Currency Rating Over Liquidity Crunch
--------------------------------------------------------------
Standard & Poor's Ratings Services said Wednesday it lowered its
local currency corporate credit rating on Brazilian paper
company, Klabin S.A. to double-'B'-minus from double-'B'. The
downgrade reflects the impact of the current volatile economic
environment and consequent liquidity crunch on Klabin's debt
structure and profile.

Concurrently, the single-'B'-plus foreign currency corporate
credit rating was affirmed. The outlook on both ratings is
negative.

"The local currency outlook indicates that a persisting low level
of liquidity in the bank and capital markets for Brazilian
credits in the next couple of months would impair Klabin's
capacity to refinance maturities at tenors and price compatible
with its current financial profile, and would lead to a
downgrade. The ratings would stabilize, and could eventually be
raised, if Klabin refinances its upcoming maturities with long-
term funding at interest rates compatible with its current cost
of funding, and if in the near future it starts to consistently
reduce total leverage," said Standard & Poor's credit analyst
Milena Zaniboni.

The outlook on the foreign currency rating reflects that of the
sovereign rating of Brazil.

Klabin needs to refinance part of the $372 million debt coming
due in the second semester. Additionally, trade finance lines
(Klabin's main source of funding is pre-export finance) are
likely to remain scarce. Standard & Poor's said that, although
Klabin has access to many credit facilities with banks operating
in Brazil, there is now significant uncertainty on the company's
ability to stretch out debt tenors and reduce overall leverage,
as originally expected.

Currently, the company is working on several transactions to
address refinancing of maturities within the next few months.
Nevertheless, adverse capital and banking markets conditions may
impair the company's ability to refinance, forcing it to seek
short-term, more expensive funding in local-currency loans, and
consequently causing the company's capital structure and credit
measures to deteriorate further.

Although favorable market conditions for Klabin's products are
holding and exports benefit from the weaker local currency,
Standard & Poor's does not expect the company's results to
rebound enough to completely offset the pressure on financial
flexibility, caused by the current liquidity crunch, therefore
pointing toward a more negative trend.

To see Klabin's latest financial statements:
http://bankrupt.com/misc/Klabin.pdf

CONTACT:  INDUSTRIAS KLABIN
          Ronald Seckelmann, Financial and IR Director
          Luiz Marciano Candalaft, IR Manager
          Tel: (55 11) 3225-4045
          Email: marciano@klabin.com.br


NII HOLDINGS: Reports Widening Net Loss In 2Q02
-----------------------------------------------
NII Holdings Inc., a unit of Nextel Communications Inc., filed
its Form 10-K with the Securities and Exchange Commission. In the
filing, the Company disclosed that its net loss in the second-
quarter this year ballooned to US$236 million, or 88 cents a
share, from US$213 million, or 79 cents a share, in the same
period in 2001.

Operating revenue for the quarter ended June 30 reached US$193
million, up from US$160 million during the same time in 2001, the
filing said.

The Company also said that it incurred net losses of US$381
million during the six months ended June 30, 2001, and US$391
million during the six months ended June 30, 2002.

In addition to its current liabilities as of June 30, NII
Holdings said it expects that its commitment to make payments to
third parties during 2002, which total about US$67 million,
including US$13 million in license purchases made by Nextel
Mexico in August 2002, will be focused on capital costs to
maintain networks in Latin America.

The Company also said that it anticipates that its cash balances,
the continued availability of financing for handset purchases and
other potential sources of cash would be enough to fund
operations through its reorganization, based on a revised
business plan.

NII Holdings, Inc., formerly known as Nextel International, has
been under Chapter 11 protection in the U.S. Bankruptcy Court in
Wilmington, Del., since May 24. Its petition listed assets of
US$1.24 billion and liabilities of US$3.26 billion as of Dec. 31,
2001.

NII has operations in Mexico, Brazil, Peru, Argentina, Chile and
the Philippines. It offers a fully integrated wireless
communications tool with digital cellular, text/numeric paging,
wireless Internet access and Nextel Direct Connectr, a digital
two-way radio feature.

To see financial statement:
http://bankrupt.com/misc/NIIHOLDINGS.htm

CONTACT:  NII Holdings Inc.
          Claudia Restrepo
          Phone: +1-305-779-3086
          E-mail: claudia.restrepo@nextel.com

          LEGAL REPRESENTATIVE:

LEGAL REPRESENTATIVE:

          RICHARDS, LAYTON & FINGER, P.A.
          One Rodney Square
          P. O. Box 551
          Wilmington, Delaware 19899
          Phone: (302) 651-7700
          Fax: (302) 651-7701
          Home Page: http://www.rlf.com/welcome2.htm
          Contact:
          Daniel J DeFranceschi
          Phone:  (302) 651-7816
          Fax:  (302) 784-7090
          E-mail:  defranceschi@rlf.com

          NEXTEL COMMUNICATIONS
          2001 Edmund Halley Dr.
          Reston, Virginia 20191
          Corporate Communications
          Phone: 703-433-4700
          Contact: William E. Conway, Jr., Chairman of the Board
          Timothy M. Donahue, President/Chief Executive Officer


PETROLIFERA MARLIM: Moody's Downgrades Medium-term Notes To `B2'
----------------------------------------------------------------
Companhia Petrolifera Marlim (Marlim), a Rio de Janeiro-based
limited liability company, had its medium-term notes downgraded
by Moody's Investors Service to B2 from B1 with a stable outlook.
Approximately US$500 million of foreign currency bonds were
affected.

The cut follows Moody's downgrade of Brazil's long-term foreign
currency ceiling, which constrains the foreign currency debt
ratings of Marlim.

Marlim was created under the laws of Brazil for the sole purpose
of forming a consortium with Petrobras and financing the
expansion of the Marlim Field in Brazil's Campos Basin.

The Company is effectively wholly owned by Marlim Holding, which
is owned in turn 40.4% by ABN Brazil, 30% by BNDESPar, 16.5% by
Pateo Participacoes e Consultoria de Comercio Exterior Ltda.
("PATEO"), and 13.1% by JPM Participacoes S/C Ltda. ("JPM").



===============
C O L O M B I A
===============

SEVEN SEAS: Reserve Revisions, Writedowns Thwart 2Q02 Results
-------------------------------------------------------------
Seven Seas Petroleum Inc. (Amex: SEV) announced Wednesday results
for the three-month and six-month periods ended June 30, 2002.
For the second quarter of 2002, the Company reported a net loss
of $108.6 million or $2.86 per share, as compared to a net loss
of $2.1 million or $0.06 per share for the same three-month
period in 2001. For the first six months of 2002, the Company
reported a net loss of $108.4 million, or $2.86 per common share,
as compared to a net loss of $2.1 million or $0.06 per share for
the same six-month period in 2001. Both the three-month and six-
month periods ending June 30, 2002, include a non-cash writedown
of oil and gas properties equal to $106.1 million.

The writedown is attributable to a material downward revision in
the Company's proved oil reserves. Based on Ryder Scott Company
Petroleum Consultants' recent report, the Company's proved
reserves as of June 30, 2002 are approximately 16.3 million
barrels of oil. This represents a 31.3 million barrel reduction
as compared to the previously reported 47.6 million barrels of
oil as of December 31, 2001. The present value, discounted
continually over the expected life of the production at 10% per
annum (the "SEC PV10"), is approximately $136.3 million or $136.0
million less than the December 31, 2001 SEC PV10 of $272.3
million. The SEC PV10 decrease was partially offset by higher oil
prices as of June 30, 2002.

The reserve reduction is attributable to lower oil production
rates, lower production pressures, and the recent occurrence of
rapid gas encroachment in structurally higher wells in the
Guaduas Oil Field. In the June 30, 2002 report, Ryder Scott
eliminated proved oil reserves located in the structurally higher
portion of the producing reservoir.

Guaduas Oil Field Production

Production from the Guaduas Oil Field averaged approximately
7,500 BOPD gross (3,400 net to Seven Seas) during the second
quarter of 2002. This is approximately 2,600 BOPD (1,200 net to
Seven Seas) less than the first quarter average daily production
of approximately 10,100 BOPD (4,700 net to Seven Seas). July 2002
production continued to decline and averaged approximately 6,700
BOPD gross (3,100 net to Seven Seas); however, production
declines have recently diminished.

The resulting reduction in cash flows from production declines
and an estimated $6 million in additional costs on the Escuela 2
over the budgeted dry hole costs through August 14, 2002 have
materially weakened the Company's cash and working capital
position. There is now a risk that the $6.9 million interest
payment on the $110 million Senior Notes, due November 15, 2002,
will not be made. The Company has begun discussions with our $45
million secured debt holders concerning the Company's current
financial position and various go-forward scenarios that could
include a sale of assets.

Operations Update

As previously reported, The Company has elected to suspend
development drilling operations pending a complete review of all
geological, geophysical, and reservoir engineering data.
Subsequent to this decision, our partner and 32.9 percent
interest owner in the Guaduas Oil Field, Sociedad International
Petrolera S.A. ("Sipetrol"), proposed an additional development
well, the El Segundo 2-S. Because a drilling rig was currently
on-location, the Company had limited time to evaluate the
proposal. Seven Seas ultimately declined to participate. The
Company's future participation in the revenues from El Segundo 2-
S will be subject to Sipetrol recovering 300% of our share of
drilling costs from future net operating revenues.

The Company is currently implementing a well workover program in
an effort to increase oil production from existing wells. Results
may not be known for several months.

Escuela 2 Update

The Escuela 2 is currently drilling at a total depth of 19,159
feet with cumulative costs of approximately $19.1 million. Seven
Seas believes it is likely that the Cambao fault has not been
encountered. The Company also believes that the well bore is
drilling potential reservoir rocks in the lower Cretaceous
(Utica-Caballeros) formations that contain gas shows (including
traces of heavier hydrocarbons C2-C5). This formation is known to
produce oil in other areas of Colombia. When the well reaches its
total depth, the Company plans to run electric logs for further
evaluation.

Aguachica Prospect

The decision whether to drill the Santa Fe #1 well, an
exploratory test of our Aguachica prospect, has been delayed due
to regional political uncertainty and security issues in the
surrounding area (the prospect is located in the northern part of
Colombia, approximately 220 miles northwest of Bogota). The
Company has requested a drilling extension from Ecopetrol beyond
our current August 31, 2002 deadline to drill and complete an
initial test well on this prospect.

"Although this has obviously been a difficult and disappointing
quarter, I remain optimistic that our oil production decline can
be reduced by workover operations, and that the Escuela 2 lower
Cretaceous reservoirs may produce hydrocarbons in commercial
quantities," stated Robert A. Hefner III, Chairman and Chief
Executive Officer of Seven Seas Petroleum Inc.

Seven Seas Petroleum Inc. is an independent oil and gas
exploration and production company operating in Colombia, South
America. The Company's primary emphasis is on the development and
production of the Guaduas Oil Field and exploration of the
Subthrust Dindal Prospect, both of which are located in
Colombia's prolific Magdalena Basin.

To see financial statements:
http://bankrupt.com/misc/Seven_Seas.htm

CONTACT:  SEVEN SEAS PETROLEUM INC.
          Daniel Drum, Investor Relations
          Tel.: +1-713-622-8218



===================================
D O M I N I C A N   R E P U B L I C
===================================

AES CORP: Dominican Operations Slated for February 2003
-------------------------------------------------------
AES Corp. project manager Steve Damn announced that the U.S.
power giant expects to begin commercial operations at its US$400-
million 300MW Andres Boca Chica power plant in the Dominican
Republic in February 2003, reports Business News Americas.

Work on the liquid natural gas-fired combined cycle power plant
on the Caucedo peninsula in the southern part of the country
began in September 2000.

The original plan for the start up involved two steps: a 170MW
single cycle operation followed by 130MW in combined cycle. The
single step operation was due to come on-line August to catch the
summer peak, Damn said. However, March saw a decision to abandon
the plan because the price of fuel oil at the time made the
operation economically unfavorable.

To see financial statements:
http://bankrupt.com/misc/AES_Corp.htm

CONTACT:  The AES Corporation, Arlington
          Investor Relations Contact Person:
          Kenneth R. Woodcock
          (703) 522 1315



===========
M E X I C O
===========

CFE: Issues More Debt To Subsidize Lack of Public Funds
-------------------------------------------------------
The Federal Electricity Commission (CFE) has seen a gradual
reduction in its physical budget investment since 1990, leaving a
gloomy outlook in its financial position, reports Mexico City
daily El Universal. In order to address the problem, the CFE
resorted to debt and financed investments.

CFE's liabilities, as shown in the figures from the Finance
department, reached MXN137.40 billion (US$13.8 billion) up to
Dec. 31, 2001. Some 86% of this total corresponds to the Deferred
Investment Projects in Spending Registers (Pidiregas).

CFE director Alfredo Elˇas Ayub said the problem is that this
method of funding is running out and creating enormous pressure
for the company. The majority of the CFE's income is being used
to pay debts and while long term contracts are transferring the
risk of technological obsolescence to the government, which
translates into higher operating costs.

Figures show that a megawatt hour costs the CFE US$56.13 to
produce, while private producers can generate the same amount of
electricity for just US$32.01.


CINTRA: May Delay Sale Once Again on US Airways' Bankruptcy
-----------------------------------------------------------
The recent bankruptcy announcement by US Airways may have
dampened Cintra's interest in pushing through with its planned
sale, reports Mexico City daily El Universal.

The report implies that Cintra is now on the verge of postponing
the sale of its airlines, Aeromexico and Mexicana once again,
following news that the seventh-largest U.S. airline is bankrupt,
dealing another psychological blow to the industry, analysts
said, noting that airlines are in survival mode.

"Cintra had made an important effort to diminish its financial
risk," said Roberto Galv…n, general director of Vanguardia
Investment. "It has performed better than other companies, since
Mexican and foreign investors exact more efficiency from the
company due to its plans to sell," Galvan added. The Company
reduced its net losses from more than MXN1 billion (US$100.2
million) in the first quarter to less than half that amount in
the second quarter.

Also fueling the report is the suggestion by Secretary of
Transport and Communications Pedro Cerisola in a meeting with
Senators that now is not the best time to make the sale.

So far, however, Cintra's board of directors have neither
cancelled nor postponed the sale process and the Bank Savings
Protection Institute, which holds a 50.5% stake in the Company,
says the process will move ahead as planned.

IPAB officials said that at the end of the month Merrill Lynch
will present a proposal for the sale. Merrill Lynch is the
investment bank hired to oversee the process.

To see financial statements: http://bankrupt.com/misc/Cintra.doc

CONTACT:  CINTRA
          Xola 535, Piso 16, Col. del Valle
          03100 M,xico, D.F., Mexico
          Phone: +52-5-448-8050
          Fax: +52-5-448-8055
          Contacts:
          Jaime Corredor Esnaola, Chairman
          Juan Dez-Canedo Ruiz, CEO
          Rodrigo Ocejo Rojo, CFO
                       OR
          C.P. Francisco Cuevas Feliu, Investor Relations
          Xola 535, Piso 16
          Col. del Valle
          03100 M,xico, D.F.
          Tel. (52) 5 448 80 50
          Fax (52) 5 448 80 55
          infocintra@cintra.com.mx

          MERRILL LYNCH & CO., INC.
          World Financial Center,
          North Tower, 250 Vesey St.
          New York, NY 10281
          Phone: 212-449-1000
          Toll Free: 800-637-7455
          Home Page: http://www.merrilllynch.com
          Contact:
          David H. Komansky, Chairman and CEO
          E. Stanley O'Neal, President, COO, and Director
          Thomas H. Patrick, EVP and CFO

          MERRILL LYNCH MEXICO
          Paseo de las Palmas No. 405
          Piso 8
          Col. Lomas de Chapultepec
          11000 Mexico City, Mexico
          Phone: 5255-5201-3200
          Fax: 5255-5201-3222

          TRANSPARENCIA MEXICANA
          Dulce Olivia 71
          Colonia Villa Coyoac n
          DF, 04000
          Contact:
          Federico Reyes Heroles, President
          Eduardo A. Boh>rquez, Executive Secretary

          National Chapter
          Phone/Fax: +52-5-5668 0955
          Email: tmexican@data.net.mx
          Home Page: www.transparenciamexicana.org.mx




=======
P E R U
=======

SIDERPERU: Continues To Restructure Liabilities
-----------------------------------------------
Peruvian steel maker Siderperu, currently restructuring
liabilities totaling US$103 million, got approval from its
bondholders to have their representative sign contracts related
to guarantees within the framework of the restructuring, reports
Business News Americas. In addition, the bondholders also agreed
to appoint Cavali ICLV, the Lima bourse's clearing house, as
disbursement agent for the bonds.

Siderperu, which went into a form of bankruptcy protection in
August to completely refinance itself, said in May it will invest
US$4 million this year, and US$6 million annually over the next
8-10 years, following its restructuring plans.

Siderperu predicted sales to the mining and trading sectors for
this year will amount to US$33 million, while production will
total 27,283 tons, 52-percent of which is attributable to the
construction sector.

The Company has a liquid steel capacity of 520,000tpy, and makes
long and flat products. Among its key clients is Moly-Cop in Peru
and Chile that manufacture steel grinding balls for mills. The
three companies are managed by GS Industries of South Carolina.

CONTACT:  SIDERPERU - EMPRESA SIDERURGICA DEL PERU
          Av. Los Rosales 245, Santa Anita
          Lima 43, Peru
          Phone: +51 1 362 0646
          Fax: [+51] 1 362 0636
               [+51] 1 362 0667
          E-mail: postmast@sider.com.pe
          Home Page: http://www.sider.com.pe/



=================================
T R I N I D A D   &   T O B A G O
=================================

BWIA: To Embark on Massive Restructuring This Week
--------------------------------------------------
Trinidad national airline BWIA, which has been struggling to
recoup huge amounts of losses for the past six months, will kick
off a massive restructuring plan this week, the Trinidad Guardian
reports.

The decision was made following a board meeting last Friday,
whereby the directors called on management to look at immediate
restructuring, including job cuts that will affect all levels of
the Company.

Clint Williams, director of corporate communications, related
that the board instructed management that they find ways "to
revise and restructure the airline to reflect its grim financial
position and the apparent changed industry since September 11".

Williams explained that the potentially lucrative summer season
had already been lost and it was based on this the restructuring
exercise was deemed necessary.

BWIA lost US$8.4 million in the first six months of this year
following a steep drop in travel as a result of the September 11
terrorist attacks in the United States. The airline's grim
situation was exacerbated by an on-going dispute between pilots
and management that has cost the airline TT$8 million in loss
revenue since July to first four days of this month.

CONTACTS:  BWIA West Indies Airways
           Phone: + 868 627 2942
           E-mail: mailto:mail@bwee.com
           Home Page: http://www.bwee.com/
           Contacts:
           Conrad Aleong, President and CEO (Trinidad)
           Beatrix Carrington, VP Marketing and Sales (Barbados)
           Paul Schutz, Chief Financial Officer (Trinidad)


BWIA: Further Layoffs May Lead To Another Conflict
--------------------------------------------------
BWIA, already at odds with its pilots, could get into another
conflict if it reduces the number of its workers any further,
warned the president of the Allied and Communication Workers
Union.

Union president Christopher Abrahams said that BWIA could run
into conflict with the US Federal Aviation Authority if it
proceeds with its plan to cut more staff.

"BWIA is an FAA approved maintenance station. They are supposed
to maintain certain manpower levels and they are operating at
minimum right now. If they go lower, they are planning to close
the airline," Abrahams revealed.

BWIA's move has the union questioning whether the airline has
bigger plans behind the planned retrenchment.

"The question is if this is a deliberate attempt by management to
close down the airline and reopen with contract labor?" Abrams
said.

Meanwhile, Abrahams said the union has known the planned job cuts
only through the media, not from BWIA itself. According to him,
the airline was bound by the Severance Act to inform the unions
about any such plans.



=============
U R U G U A Y
=============

BANCO DE MONTEVIDEO: Sale Draws Three Foreign Investors
-------------------------------------------------------
Banco de Montevideo, which is owned by the Uruguayan-Argentine
group Velox, attracted the interest of three foreign banks.
According to a report released by Xinhua, representatives from
two European institutions and one United States bank have
examined the possibility of purchasing the Uruguayan bank with
the authority of the central bank, said sources close to these
talks.

The three foreign financial institutions, whose names were not
disclosed, said if a purchase took place, the winner would
capitalize the bank.

Banco de Montevideo had its operations suspended by the central
bank on July 30 for lack of liquidity. Last week, the bank's
directors were arrested after being accused of using illegal
means to empty the institution and channel funds into the Cayman
Island Trade Commerce Bank.


URUGUAYAN BANKS: Central Bank Launches Deposit Return Plan
----------------------------------------------------------
The Central Bank of Uruguay (BCU) announced Tuesday that the
government would begin returning deposits on Wednesday, August
14, to clients of suspended banks Banco de Montevideo, Caja
Obrera, Comercial and de Credito. According to the BCU's deposit
return program, deposits held in foreign currency and local
currency-denominated checking accounts will be returned on
Wednesday, and deposits held in foreign currency and local
currency-denominated savings accounts will be returned on Friday.

All deposits held in local currency and foreign currency checking
accounts and local currency deposits held in savings accounts
will be returned, while in the case of foreign currency-
denominated savings accounts a maximum of US$50,000 will be
returned.

The central bank has not yet decided how and when foreign-
currency denominated savings accounts above US$50,000 will be
returned, but a final decision should be ready in one or two
weeks, a central bank spokesperson said.

The four banks' operations were suspended in the first week of
August after spreading problems from crisis-ridden Argentina and
local banking scandals sparked a run on deposits in Uruguay.
Subsequently, they have reopened.

Since the reopening of the banking system, confidence has
gradually returned to Uruguay. The state-run Republic Bank on
Monday managed to curb the flow of capital with a net gain of
US$1.5 million.

Meanwhile, Uruguay, which received an emergency loan of US$1.5
billion from the United States early in August while awaiting new
support from the International Monetary Fund and other
international lending institutions, completed a full repayment of
that amount plus US$271,351 interest on August 9.

Uruguay is struggling with its fourth year of recession, further
aggravated by the financial turmoil in neighboring Argentina,
where half the country now lives in poverty and nearly one-
quarter is unemployed.

CONTACT:  BANCO MONTEVIDEO
          Misiones
          1399 - Montevideo
          Fax: 9162880
          E-mail: info@bm.com.uy
          Home Page: http://www.bancomontevideo.com.uy
          Contact: Sr. Marcelo Pestarino, President

          BANCO COMERCIAL
          Cerrito 400 - Montevideo
          Phone: (598-2) 140*
          Fax: (598-2) 915.35.69
          Telex: "COMERAL UY" 26.911 - 26.668
          Home Page: http://www.bancocomercial.com.uy
          Contact: Sr. Nelson Franco Iglesias, Gerente General





               ***********


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

Troubled Company Reporter Latin American is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ,
and Beard Group, Inc., Washington, DC. John D. Resnick, Edem
Psamathe P. Alfeche and Ma. Cristina Canson, Editors.

Copyright 2002.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is $575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are $25 each.  For subscription information,
contact Christopher Beard at 240/629-3300.


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