TCRLA_Public/020924.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

           Tuesday, September 24, 2002, Vol. 3, Issue 189

                           Headlines


A R G E N T I N A

BNL: Analysts Expect LatinAmerican Withdrawal Soon
FLEETBOSTON FINANCIAL: Class Action Indicts Argentine Outlook


B E R M U D A

FOSTER WHEELER: Moody's Takes Various Rating Actions
GLOBAL CROSSING: Faces Investigation on Transactions


B R A Z I L

CEMIG: Issues Dividend Details to Shareholders
CSN: Shares Continue Slide On Speculation About Corus Merger
EMBRATEL: Telemar Files Follow-On Lawsuit
NEXTEL BRAZIL: Police Chief Considers Legal Action
TELESP CELULAR: Objects to TIM Entrance in Market
VARIG: Wins BRL3 Billion in Case Against Government


C H I L E

EDELNOR: Seeks Extension to File Official Financial Schedules
EDELNOR: Fitch Downgrades Ratings to 'D' After Bankruptcy Filing
ENERSIS: Parent Denies Reports of Possible Dividend Cut
ENERSIS: Ends 1H02 With Lower Debt, Market Valuation "In Line"



M E X I C O

BITAL: Designates MXN500 MM To Agriculture Lending For 2002
CORPORACION DURANGO: Closing Georgia Plant After Explosion
MAXCOM TELECOMUNICACIONES: Acquires 2,000 Km Fiber Backbone


P E R U

NII HOLDINGS: To Spend $45M For Peruvian Subsidiary Expansion


V E N E Z U E L A

AMERIVEN: Losing $1M/Day Due To Strike
BANCO DEL CARIBE: Moody's Downgrades Ratings To Caa1
BANCO MERCANTIL: Moody's Cuts Deposit Ratings, BFSRs
BANCO PROVINCIAL: Foreign Currency Deposit Ratings Cut To Caa1
BANCO DE VENEZUELA: Moody's Downgrades BFSR to D- From D+

sFOGADE: Liquidates Seven More Institutions
FOGADE: Debt With CB Spurs Doubt On Ability to Meet Obligations


     - - - - - - - - - -

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

BNL: Analysts Expect LatinAmerican Withdrawal Soon
--------------------------------------------------
IntesaBci's recent announcement of making a "complete exit" from
Latin America could influence a decision by its fellow Italian
group Banca Nazionale de Lavoro (BNL) to do the same. According
to a Business News Americas report, banking analysts at
international credit rating agencies believe BNL will also leave
Latin American as part of an effort to improve its balance sheet.

Matthew Taylor, a London-based analyst for Fitch Ratings,
indicated that BNL has seen its 2001 and 2002 results deeply
affected by the ongoing crisis in Argentina. BNL has been
fingered as one of the foreign banks most vulnerable to the
Argentine financial crisis, since 10.9% of the group's worldwide
equity is in the country.

In addition, BNL's second largest Latin American subsidiary is in
Brazil, where uncertainty surrounding upcoming presidential
elections has deteriorated banks' operating environment.

BNL's woes in Argentina and Latin America in general have taken a
comparatively heavier toll on profits, asset-quality and risk
profile, according to Bernard De Delonjevialle, a Milan-based
analyst with Standard & Poor's (S&P).

BNL's subsidiaries in Latin America have brought in handsome
profits for the group in the past, but "there's been no good
news" in the last two years, he said, adding it is just a matter
of time before BNL joins IntesaBci in announcing a complete exit
from the region.

BNL's Latin American exposure was the sole reason why S&P changed
its long-term foreign currency outlook in February from stable to
negative.

In July, BNL said it would focus more on domestic operations in
the long-term, without issuing any decision on the fate of its
Latin America franchise.

CONTACT:  Banca Nazionale de Lavoro S.p.A. (BNL)
          Via Vittorio Veneto, 119
          Rome, Italy
          Phone: +39-06-47-02-1
          Fax: +39-06-47-02-7336
          Website: http://www.bnl.it
          Contacts:
          Luigi Abete, Chairman
          Davide Croff, Managing Director, CEO
          Riccardo Lupi, CFO


FLEETBOSTON FINANCIAL: Class Action Indicts Argentine Outlook
-------------------------------------------------------------
Notice is hereby given that a class action complaint entitled
Amsterdam v. FleetBoston Financial Corp. et al., (Docket Number
to be assigned) was filed on September 19, 2002 in the United
States District Court for the District of New Jersey, Martin
Luther King, Jr. Fed. Building, 50 Walnut Street, Newark, New
Jersey (the "Complaint") by plaintiffs on their own behalf and on
behalf of all persons who exchanged shares of Summit Bancorp
("Summit") for shares of the common stock of FleetBoston
Financial Corporation (NYSE: FBF) ("FleetBoston") in connection
with the merger between Summit and FleetBoston which was
completed on or about March 1, 2001 (the "Merger") seeking to
pursue remedies under the Securities Act of 1933 ( the "Class").

The Complaint alleges the Registration Statement filed by
FleetBoston with the Securities and Exchange Commission on
January 25, 2001 and the Joint Proxy Statement and Prospectus
included within the Registration Statement (collectively, the
"Merger Proxy/Prospectus"), incorporated by reference
FleetBoston's Form 10-K for its year ending December 31, 1999,
and its Form 10-Qs for the three months ending March 31, 2000,
June 30, 2000, and September 30, 2000 ("Incorporated Filings").
The Complaint alleges that the Incorporated Filings contained
falsely positive and misleading information about FleetBoston's
success in Latin American markets, in particular Argentina, and
that the Incorporated Filings contained false financial
information regarding FleetBoston's earnings stemming from its
Argentinian operations and its reserves for credit losses related
to loans in Argentina. This information was material to Summit
shareholders considering how to vote on the Merger, including
whether the Exchange Ratio accurately reflected the value of
FleetBoston common stock. Staring in January 2002 and continuing
into 2002, after the Merger was complete and Summit shareholders
had already tendered their shares, FleetBoston shocked its
investors by taking charges for credit losses on loans in
Argentina amounting to approximately $2.3 billion.

Defendants are the officers and/or directors of the FleetBoston
who signed the Registration Statement. As a result of defendants'
false statements, misrepresentations, and omissions, the price of
FleetBoston securities was artificially inflated at the time of
the Merger. FleetBoston shares reached a closing price of $41.00
per share on March 1, 2001, the closing date of the Merger.

Plaintiffs seek to recover damages on behalf of members of the
Class and are represented by the law firm of Stull, Stull & Brody
which has successfully litigated numerous class actions for
violations of securities laws in federal and state courts and has
obtained court approval of substantial settlements on numerous
occasions.

If you were a shareholder of Summit who exchanged shares for
shares of FleetBoston in the Merger, you may, not later than
November 19, 2002, move the Court to serve as lead plaintiff of
the class, if you so choose. In order to serve as lead plaintiff,
however, you must meet certain legal requirements.

If you wish to discuss this action or have any questions
concerning this notice or your rights or interests with respect
to these matters, please contact Howard Longman at Stull, Stull
and Brody by calling toll-free at 1-800-337-4983 or 1-800-660-
7843, or by e-mail at TSVI@aol.com, or by fax at 212/490-2022, or
by writing to Stull, Stull and Brody, 6 East 45th Street, New
York, NY 10017.

CONTACT:  STULL, STULL AND BRODY
          Howard T. Longman, 1-800-337-4983 or 1-800-660-7843



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

FOSTER WHEELER: Moody's Takes Various Rating Actions
----------------------------------------------------
Moody's Investors Service took actions on some of Foster
Wheeler's Ratings. The credit ratings agency confirmed the B3
senior, secured notes of Foster Wheeler LLC, as well as its (P)B3
for senior debt securities issued under 415 shelf registration.
Moody's assigned B3 to Foster Wheeler LLC's B3 senior implied
rating and Caa1 to senior, unsecured issuer rating.

The ratings agency lowered the following ratings of Foster
Wheeler Ltd.:

  -- Convertible subordinated bonds, guaranteed on a
     subordinated basis by Foster Wheeler LLC. to Caa3 from Caa2
     Foster Wheeler LLC.

  -- Senior, unsecured IRBs to Caa1 from B3; subordinated debt
     securities to (P)Caa3 from (P)Caa2, and preferred
     securities to (P)C from (P)Ca issued under 415 shelf
     registration. FW Preferred Capital Trust I

  -- Preferred trust securities, guaranteed on a subordinated
     basis by Foster Wheeler LLC. to Caa3 from Caa2 FW
     Preferred Capital Trust II

  -- Preferred trust securities issued under 415 shelf
     registration, guaranteed on a subordinated basis by Foster
     Wheeler LLC. to (P)Caa3 from (P)Caa2 Foster Wheeler's
     performance has been lackluster over the past two years,
     mainly due to the low levels of new project opportunities
     around the globe, as well as due to poor performance on
     existing projects and a lack of discipline in selection of
     new projects.

The rating outlook is negative.

The rating actions reflect the Company's improved near-term
liquidity position as a result of refinancing its bank
obligations into a US$290-million senior, secured bank revolver
and term loan maturing in 2005, as well as entering into a new
US$40-million asset securitization financing and refinancing a
leased facility.

The rating actions also recognize the benefit to senior
noteholders of sharing certain collateral and subsidiaries'
guarantees with bank creditors, as required by the indenture.
Moody's noted that the lower ratings for selected debt
obligations reflect the absence of collateral and operating
subsidiary guarantees for these securities.

In addition, the rating actions incorporate the company's
elevated debt level, and modest cash flow generation; as well as
a challenging business outlook reflected in lower levels of new
contract awards, and a declining backlog.

The negative outlook reflects Moody's ongoing concerns about
FWC's operating outlook and financial strength, in light of
weakness in its end markets, particularly in the Energy segment
that could result in continued moderation of revenues, earnings,
and cash flow generation well into 2003.

The rating agency commented that, aside from the weak business
environment, the drawn-out negotiations with FWC's creditors may
have hurt the Company's new award opportunities, and adversely
affected backlog development. The resolution of the new
facilities should ease these pressures and enhance the Company's
ability to compete in its markets.

Moody's also noted that the Company has an action plan to
monetize approximately US$190 million of assets over the next
year, which should facilitate further improvements in its capital
structure and financial flexibility. Nevertheless, the ratings
could be negatively impacted if execution of these sales is
prolonged or proceeds fall short of the company's goal of further
enhancing liquidity. As of June 28, 2002, about a third of FWC's
unrestricted cash balance of US$344 million was available
domestically.


GLOBAL CROSSING: Faces Investigation on Transactions
----------------------------------------------------
The U.S. House Commerce Committee will call at least a dozen
officials from Quest and Global Crossing Ltd., to testify at
hearings in the coming weeks said house speaker Ken Johnson,
quoted in Bloomberg News Friday. House Committee chairman Billy
Tauzin will subpoena those who refuse to offer testimony
voluntarily.

According to Johnson, the officials cooperating with the probe
include Qwest's former Chief Financial Officer Robin Szeliga and
former Global Crossing Vice President of Finance Roy Olofson.

The hearings will be conducted to step up the investigations that
Global Crossing, which filed for bankruptcy protection last
January, inflated revenues from transactions with Qwest and other
companies. Investors have been misled by the way the company
manipulated their books.

"These companies seem to have had cultures that demanded making
Wall Street numbers at all costs even if it meant entering into
sham transactions and secret deals." said Representative James
Greenwood, chairman of the committee's investigations
subcommittee.

The Knight Ridder Business News reported Friday that documents
released last Friday reveal Qwest and Global Crossing Ltd.
knowingly paid highly inflated amounts for assets they bought
from each other so that the struggling telecommunications
companies could meet revenue goals.

Correspondence thru emails between employees from both companies
appear to show that deals made between 2000 and 2001 were
advanced forward even though co-workers issue concerns that the
transactions raised accounting issues.

In some of the e-mail, Global Crossing employees express concern
that the transactions with Qwest are financially damaging.

"To some extent, we are our own worst enemy," Global Crossing
Executive Vice President Robin Wright wrote in an August 2000 e-
mail to her boss, president David Walsh. "When saddled with
unreasonable revenue expectations, we do crazy deals at the end
of the quarter. This in turn causes prices to drop which makes it
more likely that we'll need to do another deal at the end of the
next quarter."

These documents were discovered as the U. S. House Energy and
Commerce Committee intensified its investigation on Qwest and
Global Crossing.

The committee's investigators questioned Former Qwest chief
executive Joe Nacchio on Thursday, gathering information to be
used when he testifies under oath. Nacchio's legal counsel
reported that the interview was cordial.

Nacchio's name was not mentioned in the email the committee
released Thursday, but he was mentioned in other emails, Johnson
said.

The committee further said that the email confirmed suspicions
that the transactions were done simply to inflate revenues and
meet Wall Street expectations. The transactions are currently
under investigation by lawmakers, the U.S. Department of Justice
and the Securities and Exchange Commission.

Qwest spokesman Chris Hardman defended the deals.

"They were transactions that allowed us to build out the
company's high-speed, global broadband network," he said.

"What the committee is looking at are matters that occurred up to
several years ago," Hardman said. "As we've stated a number of
times, we don't expect to have any of these types of transactions
in 2002."

Qwest revealed plans to revise its financial books covering 1999
to 2001, removing most of the US$1.1 billion in revenues
associated with the fiber-optic capacity deals. The revenue will
instead be spread over 20 years.

Meanwhile, Qwest is trying to counteract allegations of being
uncooperative with investigators. The company said that it has
provided some 250,000 documents, and its executives have spent 80
hours answering questions from the committee staff.

"Without a subpoena, we've made the people familiar with the
transactions, from salespeople to our top senior officers
available," said Hardman.

The committee said Qwest refused to turn over documents,
particularly the results of its internal investigation on deals
made with British company FLAG Telecommunications in 2001. Qwest
turned over that documentation last Thursday.

A unanimous vote from the subcommittee focusing on investigations
gives the chairman the power to subpoena people and documents.
The subcommittee deemed this necessary to counteract stall
tactics from Denver-based Qwest and Bermuda-based Global
Crossing.

Chairman Tauzin said he plans to call at least a dozen officials
to the hearings, including Nacchio, as well as chief operating
officer Afshin Mohebbi; Robin Szeliga, a Qwest vice president who
was the company's chief financial officer from April 2001 through
July of this year; former chief of sales Gregory Casey; Chase,
part of Qwest's international wholesale sales staff; and Kim
Smiley, a former Qwest business development director.

Casey, Chase and Smiley are scheduled on Thursday's hearing.
Casey is expected to invoke the Fifth Amendment protection
against self-incrimination.

Nacchio and Mohebbi will appear at a hearing on the week of Sept.
30, along with former Global Crossing executives: chairman Gary
Winnick, executive vice president of finance Joseph Perrone, CEO
John Legere and former general counsel Jim Gorton.

CONTACT:  GLOBAL CROSSING
          Press:
          Becky Yeamans, +1-974-410-5857,
          Email: Rebecca.Yeamans@globalcrossing.com

          Tisha Kresler, +1-973-410-8666
          Email: Tisha.Kresler@globalcrossing.com

          Analysts/Investors:
          Ken Simril, +1-310-385-5200
          Email: investors@globalcrossing.com



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

CEMIG: Issues Dividend Details to Shareholders
----------------------------------------------
Companhia Energetica de Minas Gerais -- CEMIG -- (NYSE: CIG; BOV:
CMIG4), announced in an official news release that the interest
on capital approved on December 26, 2001 and the dividend
approved on April 30, 2002 will be paid on September 30, 2002.

- Interest on capital.  At CEMIG's Board of Directors meeting
held on December 26, 2001, the payment of interest on capital in
the aggregate amount of R$103,000,000.00 (one hundred and three
million reais), which corresponds to R$0.64807706980439 per lot
of one thousand shares, was approved.  Shareholders whose names
appear in CEMIG's Nominative Shares Registration Book as of
December 27, 2001 will be entitled to this payment.

- Dividend.  At the Annual General and Extraordinary
Shareholders' Meetings, held concurrently on April 30, 2002, the
payment of a dividend in the aggregate amount of R$
111,649,325.00 (one hundred and eleven million, six hundred and
forty nine thousand, three hundred and twenty-five reais), which
corresponds to R$0.70249871254 per lot of one thousand shares,
was approved. Shareholders whose names appear in CEMIG's
Nominative Shares Registration Book as of April 30, 2002 will be
entitled to payment of this dividend.

The payments referred to above shall be made automatically to all
shareholders for whom updated information is on file with Banco
Itau S.A., the registrar for CEMIG's common and preferred
shares.  All other shareholders should contact the shareholder
services department at one of the following Banco Itau S.A.
branches:

Belo Horizonte (MG) Av. Joao Pinheiro, 195 -  terreo

Sao Paulo (SP)      Rua  XV de Novembro, 318 - terreo

Rio de Janeiro (RJ) Rua Sete de Setembro, 99 - subsolo

Porto Alegre (RS)   Rua Sete de Setembro, 746 - sobre loja

    Curitiba (PR)       Rua Joao Negrao, 65

    Brasilia (DF)       SCS Quadra 3, Ed. Dona Angela - sobre
                           loja

    Salvador (BA)       Av. Estados Unidos, 50 - 2 andar Ed.
                           Sesquicentenario

The company advises that shareholders holding bearer shares
should present their share certificates for conversion into
nominative shares at any Banco Itau S.A. branches.

CONTACT:  CEMIG
          Luiz Fernando Rolla, Investor Relations - CEMIG
          Tel: +55-31-3299-3930
          Fax: +55-31-3299-3933
          lrolla@cemig.com.br

          Vicky Osorio, The Anne McBride Company
          Tel: +1-212-983-1702
          Fax: +1-212-983-1736
          vicky@annemcbride.com


CSN: Shares Continue Slide On Speculation About Corus Merger
------------------------------------------------------------
Shares of Cia. Siderurgica Nacional (CSN) tumbled BRL1.80, or
4.9%, to BRL35 Thursday, reports Bloomberg. Corus Group Plc,
Europe's second-largest steelmaker agreed in July to buy Brazil's
second-largest steel maker for US$4.2 billion in stock and
assumed debt. Since then, analysts and investors have speculated
that Corus may abandon the agreement because of a weakening
Brazilian economy and the prospects of a new government taking
power.

"We believe Corus management remains committed to the merger, but
the slow pace of the due diligence process is frustrating
investors," Jennifer M. Corrou, analyst with Salomon Smith
Barney, said in a report.

Just recently, Daniel C. Altman and Roberto Ellinghaus, analysts
with Bear, Stearns & Co. downgraded CSN to "peer perform" from
"outperform."

"The premise of our Aug. 8 upgrade of Cia. Siderurgica Nacional
was that Brazil risk would decline following the (International
Monetary Fund) package, which has not occurred," the analysts
said in a report. "While we see little downside, share
outperformance may be challenging while Brazilian fundamentals
remain weak."

To see financial statements: http://bankrupt.com/misc/CSN.pdf

CONTACT:  Jose Marcos Treiger
          CSN - Investor Relations General Manager
          Tel. +55 21 2586 1442
          Email: jmtreiger@csn.com.br
          URL: www.csn.com.br

          Isabel Viera
          Thomson Financial
          Tel. +1 (212) 701-1823
          Email: isabel.vieira@tfn.com
          URL: www.thomsonfinancial.com


EMBRATEL: Telemar Files Follow-On Lawsuit
-----------------------------------------
Tele Norte Leste Participacoes SA (TNE) its second lawsuit
earlier last week against Embratel Participacoes SA, a unit of
bankrupt WorldCom Inc., for allegedly failing to pay
interconnection fees fully, according to Dow Jones Newswires.

The latest lawsuit seeks to collect R$87.7 million in network
access fees for August, out of which long-distance carrier unit
Embratel has paid only R$76.6 million.

The first lawsuit Telemar filed was on September 16. That action
intended to collect R$219.4 million from Embratel for not paying
the full amount on the monthly "Detraf" statements since August
2001. Embratel had challenged the said lawsuit.

Used by all the telecommunications companies in Brazil, the
"Detraf" (Traffic Measurement Statement) determines the
appropriate remuneration for the reciprocal use of their network.
The "Detraf" statement generates the monthly receivables and
payables based on the reported traffic, thus guaranteeing the
integrated operation of all telecom companies in Brazil. The
company that renders this clearing service to Telemar and to
other telecom companies in Brazil is Cleartech, an independent
company run by the EDS Group and CPqD - FundaĜao Centro de
Pesquisa e Desenvolvimento das TelecomunicaĜoes, a research and
development center formerly operated by Telebras.

In July 12, 2002 Anatel had determined Embratel should pay in
full amount within 72 hours the past due amounts as stated in the
respective "Detraf" statements.

Embratel reveals that while it has challenged the first lawsuit,
it will appeal the new filing. An Embratel official disclosed
that there was a disagreement between Telemar and Embratel on how
to calculate the volume of phone traffic on each other's networks
and the rates for network access.

Embratel's profits have receding in the past quarters as local
networks are given permission to compete in the field. Officials
at Embratel often complain that Anatel's rules for the sector
provides advantages to the local service providers.

CONTACT:  EMBRATEL PARTICIPACOES S.A.
          Investor Relations
          Silvia Pereira
          Tel. (55 21) 2519-9662
          Fax: (55 21) 2519-6388
          Email: Silvia.Pereira@embratel.com.br
                 invest@embratel.com.br
                  or
          Press Relations:
          Helena Duncan/Mariana Palmeira
          Tel: (55 21) 2519-3653/3654
          Fax: (55 21) 2519-8010
          Email: hduncan@embratel.com.br
                 mpalm@embratel.com.br


NEXTEL BRAZIL: Police Chief Considers Legal Action
--------------------------------------------------
Brazilian Civil Police Chief Zaqueu Teixeira is planning to file
a legal complaint against wireless phone company Nextel
Communications Inc. with Brazilian telecommunications regulators
for causing delays in capturing the alleged killer of a
television journalist.

According to an O Globo report, the Brazilian police were
repeatedly thwarted in their efforts to capture Elias Pereira da
Silva, a Rio de Janeiro drug-trafficker accused of murdering
Globo Television investigative reporter Tim Lopes, partly because
he used a two-way radio to learn where police were when he needed
to move.

The police obtained permission from regulators to trace Da
Silva's communications, but Nextel didn't comply, Teixeira told
the newspaper.

Nextel, in a statement, responded saying it "always complies with
court" orders to tap phone lines, O Globe related.

Da Silva, 35, was captured without a fight Thursday in a Rio de
Janeiro slum after 250 police occupied the neighborhood, ending a
three-month manhunt.


TELESP CELULAR: Objects to TIM Entrance in Market
-------------------------------------------------
Brazil's largest mobile operator, Telesp Celular (NYSE: TCP)
filed a legal protest against Telecom Italia Mobile (TIM), local
news service Valor Online reports. The authorization to launch
operations with three PCS licenses was granted by local regulator
Anatel.

TIM, which controls Brazilian cellular operators Tele Celular Sul
(NYSE: TSU), Tele Nordeste Celular (NYSE: TND) and Maxitel, has
been unable to use the three licenses it bought in March 2001 due
to regulations requiring fixed line incumbents of shareholders
holding at least 20 percent stake in those companies to meet
government mandated build-out goals in order to expand services
before July 2003.

Telesp Celular did not reveal its basis for the protest, saying
it will divulge its reasons only after the court makes a decision
to hear the action.

Aside from Telesp Celular, other mobile operators such as BCP and
TCO requested to see the document TIM submitted to Anatel that
resulted in the go signal TIM obtained from Anatel. However, none
has yet announced any decision for filing complaints in court.

BCP confirmed it might sue to block TIM service launch. But the
decision depends on the findings of a legal analysis on the
papers TIM submitted to Anatel.

In a report dated August 9, 2002 of the Troubled Company Reporter
shows Telesp Celular suffered a BRL394 million (US$124 million)
for this year's second quarter, nearly three times the BRL133-
million loss in the same quarter last year. The said losses were
said to balloon due to the volatile real coupled with foreign
currency debt.

TIM's entrance to the local industry could possibly worsen the
losses Telesp Celular is having.

Telesp Celular indirectly holds 83% of the capital (49% of the
voting capital) of Global Telecom, the B-Band cellular operator
in the Santa Catarina and Parana states. The Company is
controlled by Portugal Telecom (NYSE: PT).

CONTACT:  Telesp Celular Participacoes S.A.
          Edson Alves Menini, (55 11) 3059-7531
          Email: emenini@telespcelular.com.br


VARIG: Wins BRL3 Billion in Case Against Government
---------------------------------------------------
Viacao Aerea Rio-Grandense SA, Brazil's biggest airline, won a
BRL3-billion (US$882 million) lawsuit versus the Brazilian
government, Folha de S.Paulo reports. The action was filed over
ticket price controls during the late 1980s.

The Brazilian Regional Federal Tribunal voted in favor of Varig,
saying the Company was indeed harmed unfairly when the government
froze ticket prices from 1986. The federal government's lawyers
said they plan to appeal the ruling, according to the report.

Varig's court victory may help the Company get much-needed cash
after it posted BRL1 billion in losses in the first half of the
year, according to Folha.

Earlier this week, Varig was reported to be the recipient of
funds in a BRL1 million rescue plan the government formulated for
the ailing airline industry, according to the Financial Times.

Under the plan, the country's airlines would be entitled to debt
pardons and tax breaks. Some import taxes will also be lifted and
the state will assume the additional cost of higher insurance
premiums imposed on airlines, after they suffered from the
depreciating real and the September 11 attacks in the US.

The government has also prepared further aid, from a capital
injection from the state-owned National development bank (BNDES),
to more efficient management.

CONTACT:  VARIG (Viacao Aerea Rio-Grandense, S.A.)
          Rua 18 de Novembro No. 800, Sao Joao
          90240-040 Porto Alegre,
          Rio Grande do Sul, Brazil
          Phone: (51) 358-7039/7040
                 (51) 358-7010/7042
          Fax: +55-51-358-7001
          Home Page: www.varig.com.br/english/
          Contacts:
          Dorival Ramos Schultz, EVP Finance and CFO
          E-mail: dorival.schultz@varig.com.br

          Investor Relations:
          Av. Almirante Silvio de Noronha,
          n  365-Bloco "B" - s/458 / Centro
          Rio de Janeiro, Brazil



=========
C H I L E
=========

EDELNOR: Seeks Extension to File Official Financial Schedules
-------------------------------------------------------------
Empresa Electrica del Norte Grande S.A. seeks extension of the
Bankruptcy Rule 1007 requirement to file its schedules and
statement to run through until December 16, 2002. The Debtor also
wants to waive permanently the requirement to file such Schedules
and Statements should the Debtor's Plan be confirmed within the
extended schedules filing period.

The Debtor reminds the U.S. Bankruptcy Court for the Soutehrn
District of New York, that, on the Petition Date, it filed a list
containing the name and address of each creditor, a list of those
creditors holding the 20 largest unsecured claims against its
estate, and a list of all holders of record of Ordinary Share
Interests. Accordingly, the Debtor has already satisfied part of
the requirements in Rule 1007.

The Debtor submits that the Motion should be granted because the
purpose of filing the Schedules and Statement largely has been
fulfilled in this prepackaged chapter 11 case. It would be
counterproductive and wasteful for the Debtor to expend resources
creating the Schedules and Statement where the large majority of
claims are unimpaired and the holders of impaired claims have
already voted to accept the Plan.

Empresa Electrica del Norte Grande SA is a partially integrated
electric utility engaged in the generation, transmission and sale
of electric power in northern Chile. The Company filed for
chapter 11 protection on September 17, 2002. Lindsee Paige
Granfield, Esq., Thomas J. Moloney, Esq., at Cleary, Gottlieb,
Steen & Hamilton represent the Debtor in its restructuring
efforts.  When the Debtor filed for protection from its
creditors, it listed $612,861,000 in total assets and
$385,483,000 in total debts.


EDELNOR: Fitch Downgrades Ratings to 'D' After Bankruptcy Filing
----------------------------------------------------------------
Empresa Electrica del Norte Grande S.A. (Edelnor) on September
17, 2002, filed a prepackaged plan of reorganization under
chapter 11 of the US Bankruptcy Code. As a result, Fitch Ratings
has downgraded the local and foreign currency ratings of to 'D'
from 'C'. Approximately US$340 million of debt is affected.

The existing rating reflects the Chapter 11 filing and resultant
renegotiation of terms of Edelnor's international debt with
bondholders. According to the company, as of September 16,
holders of 98.7% of the total outstanding principal amount of the
participation certificates voted to accept the reorganization
plan.

Since FS Inversiones acquired Mirant's 82% stake in Edelnor in
January 2002, the investment firm has been trying to restructure
the company's debt. Edelnor and its board of directors have
decided to file for reorganization after receiving the necessary
support from noteholders of the company's participation
certificates to improve the company's financial position.
Alternatives were limited since the company did not have
sufficient cash balances nor the means to generate enough cash
flow to continue meeting full debt service under its current debt
structure.

Under the proposed reorganization, debt holders elected to
receive new 15 year senior secured participation certificates in
principal amount equal to 92.14% of the principal amount of their
participation certificates, a discounted cash payment equal to
38% of the principal amount of their participation certificates,
or a combination of the two. Both options are slightly more
favorable than terms originally offered to bondholders last year
when both Tractebel and AES Gener had made competing offers to
purchase the bonds.

Edelnor is a Chilean electric generating and transmission company
that supplies electricity under long-term purchased power
agreements to distribution companies and large industrial
consumers in Chile's northern region. Inversiones Mejillones,
owned by Belgium's Tractebel and Codelco, is expected to buy FS
Inversiones' shares in Edelnor upon completion of the debt
restructuring.

CONTACT:  EMPRESA ELECTRICA DEL NORTE GRANDE S.A. (EDELNOR)
          Avenida Apoqindo 3721, Oficina 81
          Las Condes
          Santiago, Chile

DEBTOR'S COUNSEL: Lindsee Paige Granfield, Esq.
                  Thomas J. Moloney, Esq.
                  CLEARY, GOTTLIEB, STEEN & HAMILTON
                  One Liberty Plaza
                  New York, NY 10006
                  (212) 225-2000
                  Fax : (212) 225-3499


ENERSIS: Parent Denies Reports of Possible Dividend Cut
-------------------------------------------------------
Endesa SA, the Spanish parent of Chile-based Enersis, countered
reports it may reduce dividend payments this year for the first
time since 1998 because of slumping revenues. Bloomberg relates
that Spain's biggest power company issued a note announcing that
it will continue to pay out 49% of its profit as dividends.

"The Company doesn't foresee a reduction in the pay-out from
2001," the note said.

Still, analysts are skeptical, saying dividend payments may still
fall as earnings tumble.

Endesa has seen its shares slump 43% this year as currencies in
Brazil and Argentina plunge, cutting revenue and raising the cost
of financing its EUR23 billion (US$23 billion) in debt. The
utility has also suffered from five years of state-imposed power
tariff reductions in Spain. Second-quarter profit sank 81%.

Endesa doesn't plan to sell new shares, and reiterated that it
plans to shed assets in Spain and Latin America to cut its debt.


ENERSIS: Ends 1H02 With Lower Debt, Market Valuation "In Line"
--------------------------------------------------------------
Enersis, a Chilean power sector holding company, reduced its debt
by EUR1.14 billion (US$1.12 billion) in the first half of this
year, Business News Americas reports, citing a statement issued
by parent company Endesa Spain.

According to the parent, Enersis and its subsidiaries closed
August with a US$460-million cash flow. In the short term, the
companies could sell assets worth US$588 million, which would
result in US$981 million being taken off their total debt.

Responding to press reports on its financial situation, Endesa
Spain  said that it would have no problem in recalling a EUR1.44-
billion (US$1.41 billion) loan from Enersis.

The market value of Endesa Spain's LatAm assets "corresponds
reasonably" to the assets' book value, the statement said.

To see financial statements:
http://bankrupt.com/misc/Enersis.pdf

CONTACT:  ENERSIS
          Investor Relations:
          Ricardo Alvial
          Chief Investments & Risks Officer of Enersis
          Email: ram@e.enersis.cl
          Phone: (562) 353-4682

          Susana Rey, srm@e.enersis.cl
          Ximena Rivas, mxra@e.enersis.cl
          Pablo Lanyi-Grunfeldt, pll@e.enersis.cl



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

BITAL: Designates MXN500 MM To Agriculture Lending For 2002
-----------------------------------------------------------
Eduardo Berrondo, chief executive officer of Grupo Financiero
Bital, revealed that the Mexican financial group will allocate
MXN500 million (US$49.7 million) to agriculture lending this
year, relates Business News Americas. The new funds, according to
the executive, will come with terms up to five years and interest
rates between 10% and 15% -- depending on the farmer and the loan
amount.

Berrondo said that when other financial groups in Mexico enter
the agriculture segment, Bital could increase its lending volume
to the farmers, which next year could reach between MXN4 billion
and MXN5 billion.

Bital is Mexico's fifth largest financial group. In August, UK-
based HSBC made a bid for the group, which was accepted by the
Bital board. HSBC is expected to take control of Bital in the
second half of this year. HSBC would inject US$450 million into
Bital to help the local group with its ongoing capitalization
process.

CONTACT:  GRUPO FINANCIERO BITAL
          Paseo De La Reforma
          No. 243, Cuauhtemoc,
          06500, Mexico ,D.F.
          Phone: 57.21.52.86
          Fax:  57.21.57.83
          Home Page: www.bital.com.mx
          Contact:
          Investor Relations
          Act. Ricardo Garza Galindo Salazar
          Phone: 57.21.26.40
          Fax: 57.21.26.26
          E-mail: ricaggs@bital.com.mx

          HSBC HOLDING PLC
          10 Lower Thames St.
          London, EC3R 6Ae
          Phone: 44-20-7260-0500
          Home Page: http://www.hsbc.com
          Contact:
          Keith R.Whitson, CEO


CORPORACION DURANGO: Closing Georgia Plant After Explosion
----------------------------------------------------------
Corporacion Durango, Latin America's largest paper producer,
announced its plans to shut down the 61-year-old paper mill in
Saint Marys, Georgia on November 15. In a press release on
September 13, the Mexican company said it has notified employees
of the possible closure. About 903 people work in the plant,
which makes bleached paperboard, kraft paper, linerboard and
packaging.

The Company cited the explosion of a recovery boiler at the Saint
Marys plant last Aug 17, which reduced the facility's capacity by
about 40%, as one of the reasons. The Company explained that
salaries and overall cost structure at the plant are high, while
world economies are weak and the demand for its products is low.

Beyond the two-paragraph release, there is little more detail.
According to Knight Ridder Business News, Durango Vice President
James L. Johnson said he wasn't authorized to say anything more
beyond the statement. Ken Bertram, the plant's general manager,
did not respond to calls for comment, while Prudencio "Pule"
Calderon, Durango's president, was out of the country and could
not be reached.

Corporacion Durango purchased the mill from Gilman Paper Co. in
1999. During that time, St. Mary's and Camden County feared that
the Company bought the mill to move some operations to Mexico.

In order the stop the suspicions, Durango made promises of
commitment to Saint Mary's, and advertised its capital
investments and plant expansion plans to show the plant would
stay. Fears intensified after a round of lay-offs followed by a
hiring freeze.

The closure will result in Camden County's loss of US$600,000 in
taxes this year, and US$900,000 next, according to St. Mary's
mayor, Deborah Hase.

Durango pays the county and the city of Saint Mary's US$2.25
million in taxes per annum. Except for back taxes of US$641,000
to the county, it is up-to-date with taxes to Saint Mary's
excluding the disputed US$54,723.20 Saint Mary's claims the
Company owes.

Carla C. Carper, president and chief executive of the Camden-
Kings Bay Are Chamber of Commerce, says companies that depend on
Durango have started cutting down their operations.

This week, St. Marys Paperboard, which processed some Durango
products for retail customers, has three workers left, after
laying off most of its staff of 20.

Lang's Marina Seafood Restaurant, a local favorite that overlooks
the St. Mary's River, lost 75 percent of its lunchtime crowd
since the Durango announcement, said Melissa Wong, the eatery's
manager. Most of the lunchers were Durango employees, but many of
them are watching their wallets.

The loss of Durango, won't be the end of the road for Camden
County. According to Hase, the Naval Submarine Base in Kings Bay,
with a local payroll of US$356.3 million will soften the blow of
Durango's loss. The region also has other economic assets such as
construction and retail. The local hospital also has a collective
annual payroll of US$13 million.

There is talk of the employees banding together to buy the plant
and operate it themselves, but they made no confirmations if this
would materialize. If they would indeed buy the plant, which
still needs a lot of capital improvement, they would also get the
operation's debt woes and overseas competition.

The Navy also expresses concern in view of the fact that Durango
owns the St. Marys Railroad, which the base uses in transporting
materials to and from Kings Bay.

"We're still waiting for them to tell us what they're going to,"
said Edward Buczek, a base spokesman.

Even so, the Company had expressed their plans of considering
restructuring alternatives to lower production and employee
costs. If these efforts still fail, then the Company said it
would have to maximize the value of the plants assets.

CONTACTS:  CORPORACION DURANGO, S.A. DE C.V.
           Mayela R. Velasco
           +52 (1) 829 1008
           mrinconv@corpdgo.com.mx

           Arturo Diaz Medina
           +52 (1) 829 1015
           adiaz@corpdgo.com.mx


MAXCOM TELECOMUNICACIONES: Acquires 2,000 Km Fiber Backbone
-----------------------------------------------------------
Maxcom Telecomunicaciones, S.A. de C.V. announced Friday the
acquisition of two strands in a 2,011 km fiber optic backbone,
covering the main cities from Mexico City to Laredo, TX,
including a border crossing. This backbone was acquired from
Bestel, S.A. de C.V. for US$10.9 million.

Fulvio V. Del Valle, President and Chief Executive Officer of
Maxcom, mentioned: "We believe this backbone acquisition is a key
element for Maxcom's nationwide expansion and positions us as a
significant local telephony player on a national scale, with our
own independent network. We at Maxcom are committed to deploy
state-of-the-art infrastructure throughout the country and
contribute to increase teledensity wherever our services are
demanded."

"By achieving one of our main objectives for this year, we also
showed the business opportunities and synergies the telecom
industry has to offer in our country," said Rene Sagastuy, Chief
Operating Officer of Maxcom.

Maxcom Telecomunicaciones, S.A. de C.V, headquartered in Mexico
City, Mexico, is a facilities-based telecommunications provider
using a "smart- build" approach to deliver last-mile connectivity
to small and medium-sized businesses and residential customers in
the Mexican territory. Maxcom launched commercial operations in
May 1999 and is currently offering local, long distance and data
services in Mexico City and the City of Puebla.

CONTACT:  MAXCOM TELECOMUNICACIONES
          Jose-Antonio Solbes
          +011-5255-5147-1125
          investor.relations@maxcom.com

          Lucia Domville
          Citigate Dewe Rogerson
          212-419-4166
          lucia.domville@citigatedr-ny.com



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

NII HOLDINGS: To Spend $45M For Peruvian Subsidiary Expansion
-------------------------------------------------------------
In an effort to strengthen existing client relationships, US-
based multinational digital trunking operator NII Holdings will
invest US$45 million through 2003 for the expansion of the
network of its Peruvian subsidiary, Nextel Peru. The news was
revealed by NII Holdings marketing VP Mario Carotti in a Business
News Americas report.

The investment was first announced Thursday after NII executives
met with Peru's President Alejandro Toledo, and comes on top of
the US$300-million already invested in Peru.

NII Holdings, Inc., formerly known as Nextel International, is in
the middle of bankruptcy proceedings in the US but its regional
subsidiaries are not directly affected, according to the Company.
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



=================
V E N E Z U E L A
=================

AMERIVEN: Losing $1M/Day Due To Strike
--------------------------------------
The ongoing strike at Venezuela's Petrolera Ameriven is causing
the US$3.8-billion heavy oil project US$1 million a day, reports
Bloomberg. The strike, which began last Monday over safety
issues, has paralyzed construction of its refinery in the eastern
oil complex at Jose.

Ameriven union leaders revealed the strike began Monday over
safety. The Company, however, has denied the workplace is unsafe.
Oil workers have halted work in support of construction
employees.

A protracted work stoppage would increase costs and delay the
scheduled startup at the end of 2003. Workers struck earlier in
June.

Phillips Petroleum Co., owns 40% of Ameriven, while the state oil
company Petroleos de Venezuela SA and ChevronTexaco Corp. each
have 30%.


BANCO DEL CARIBE: Moody's Downgrades Ratings To Caa1
----------------------------------------------------
Moody's Investors Service downgraded the foreign currency deposit
ratings of Venezuelan bank Banco del Caribe S.A. to Caa1 from B3
as a direct result of the lowering of the country's ceiling for
foreign currency bank deposits to Caa1 from B3. Banco del
Caribe's rating for long-term bank deposits remains at the Caa1
Venezuelan country ceiling. Moody's downgrade of Venezuela's
country ceilings reflects an increase in political risk.

According to Moody's, the government's efforts to consolidate a
new institutional framework are increasingly being challenged by
a vocal portion of the Venezuelan population. The rating agency
believes that this has increased the risk that, at some point in
the future, the government might face domestic challenges that
may force it to reprioritize public-sector resource allocation in
a way detrimental to creditors.

Simultaneously, Moody's downgraded the bank financial strength
ratings (BFSRs) of Banco del Caribe to E+ from D.

On February 27, 2002, the ratings agency had put the Venezuelan
system's bfsrs on negative outlook, stating that "the Venezuelan
banking system should be viewed with a certain amount of caution
in light of the deteriorating political and economic environment
in which it operates."

The downgrade of Banco del Caribe's financial strength ratings
reflects both a continued erosion of the operating environment
and the heightened possibility of government intervention in the
banking system.


BANCO MERCANTIL: Moody's Cuts Deposit Ratings, BFSRs
----------------------------------------------------
Moody's Investors Service downgraded the foreign currency deposit
ratings of Venezuelan bank Banco Mercantil S.A. to Caa1 from B3
as a direct result of the lowering of the country's ceiling for
foreign currency bank deposits to Caa1 from B3. Banco Mercantil's
rating for long-term bank deposits remains at the Caa1 Venezuelan
country ceiling. Moody's downgrade of Venezuela's country
ceilings reflects an increase in political risk.

Moody's stated that the government's efforts to consolidate a new
institutional framework are increasingly being challenged by a
vocal portion of the Venezuelan population. The rating agency
believes that this has increased the risk that, at some point in
the future, the government might face domestic challenges that
may force it to reprioritize public-sector resource allocation in
a way detrimental to creditors.

At the same time, Moody's also downgraded the bank financial
strength ratings (BFSRs) of Banco Mercantil, one of the three
strongest banks in the Venezuelan system, to D- from D+.

On February 27, 2002, the ratings agency had put the system's
bfsrs on negative outlook, stating that "the Venezuelan banking
system should be viewed with a certain amount of caution in light
of the deteriorating political and economic environment in which
it operates."

The downgrade of Banco Mercantil's financial strength ratings
reflects both a continued erosion of the operating environment
and the heightened possibility of government intervention in the
banking system. Moody's noted that, while the formerly D+ bank is
very well run and profitable, it is becoming increasingly
vulnerable to political risk.


BANCO PROVINCIAL: Foreign Currency Deposit Ratings Cut To Caa1
--------------------------------------------------------------
Venezuelan bank Banco Provincial S.A. had its foreign currency
deposit ratings downgraded to Caa1 from B3 by Moody's Investors
Service.

The downgrade is a direct result of the lowering of Venezuela's
ceiling for foreign currency bank deposits to Caa1 from B3. Banco
Provincial's rating for long-term bank deposits remains at the
Caa1 Venezuelan country ceiling. Moody's downgrade of Venezuela's
country ceilings reflects an increase in political risk.

According to Moody's, the government's efforts to consolidate a
new institutional framework are increasingly being challenged by
a vocal portion of the Venezuelan population. The rating agency
believes that this has increased the risk that, at some point in
the future, the government might face domestic challenges that
may force it to reprioritize public-sector resource allocation in
a way detrimental to creditors.

Concurrently, Moody's also downgraded the bank financial strength
ratings (BFSRs) of BBVA Banco Provincial, one of the three
strongest banks in the Venezuelan system, to D- from D+.

On February 27, 2002, the ratings agency had put the system's
bfsrs on negative outlook, stating that "the Venezuelan banking
system should be viewed with a certain amount of caution in light
of the deteriorating political and economic environment in which
it operates."

The downgrade of Banco Provincial's financial strength ratings
reflects both a continued erosion of the operating environment
and the heightened possibility of government intervention in the
banking system. Moody's noted that, while the formerly D+ bank is
still very well run and profitable, it is becoming increasingly
vulnerable to political risk.


BANCO DE VENEZUELA: Moody's Downgrades BFSR to D- From D+
---------------------------------------------------------
Moody's Investors Service downgraded the foreign currency deposit
ratings of Banco de Venezuela S.A. to Caa1 from B3 as a direct
result of the lowering of Venezuela's ceiling for foreign
currency bank deposits to Caa1 from B3. Banco de Venezuela's
rating for long-term bank deposits remains at the Caa1 Venezuelan
country ceiling. Moody's downgrade of Venezuela's country
ceilings reflects an increase in political risk.

Moody's stated that the government's efforts to consolidate a new
institutional framework are increasingly being challenged by a
vocal portion of the Venezuelan population. The rating agency
believes that this has increased the risk that, at some point in
the future, the government might face domestic challenges that
may force it to reprioritize public-sector resource allocation in
a way detrimental to creditors.

Moody's also downgraded the bank financial strength ratings
(BFSRs) of Banco de Venezuela, one of the three strongest banks
in the Venezuelan system, to D- from D+.

On February 27, 2002, the ratings agency had put the system's
bfsrs on negative outlook, stating that "the Venezuelan banking
system should be viewed with a certain amount of caution in light
of the deteriorating political and economic environment in which
it operates."

The downgrade of Banco de Venezuela's financial strength ratings
reflects both a continued erosion of the operating environment
and the heightened possibility of government intervention in the
banking system. Moody's noted that, while the formerly D+ bank is
still very well run and profitable, it is becoming increasingly
vulnerable to political risk.


FOGADE: Liquidates Seven More Institutions
------------------------------------------
There are now a total of 90 Venezuelan entities in liquidation,
according to Business News Americas. The latest update comes
after Fogade (Fondo de Garantia de Depositos y Proteccion
Bancaria), the country's deposit insurance agency, decided to put
seven more financial institutions into the process. These
institutions are: Italo Venezolano, Latinoamericana Progreso,
Profesional, Principal, Empresarial, Hipotecario Centro
Occidental and Capital.

According to an unnamed Caracas-based analyst at an international
bank, the institutions are all closed and many have less than
attractive balance sheets. But banks could be interested in
specific assets, such as offices or part of a loan portfolio,
which could be bought cheaply, he said.

CONTACT:  FOGADE
          Esquina San Jacinto
          Edificio FOGADE
          Municipio Libertador, Caracas
          Venezeula
          Tel: (58212) 546.00.00/546.08.99/546.09.99


FOGADE: Debt With CB Spurs Doubt On Ability to Meet Obligations
---------------------------------------------------------------
The media is now questioning Fogade's ability to fulfill its
obligations with Venezuelan depositors in the case of a financial
collapse, relates Business News Americas.

Fogade has a VEB1.3-billion debt with the central bank because of
a loan it received from the monetary authority in 1995 to rescue
a number of banks during the country's financial crisis. Today
Fogade is directing 45% of its total revenues to service its
central bank debt.

The bolivar's depreciation against the US dollar this year has
also diluted Fogade's deposit coverage in dollar-terms.

But Fogade chairman Romulo Henriquez defended the agency saying
that the entity remains liquid despite its heavy debt-service to
the central bank and weakening of the local currency.

Henriquez said the deposit insurance covers 8.5% of total
deposits in Venezuela and that the agency's liquidity is on par
with developed countries such as the US.

"No deposit insurance can guarantee 100% of all deposits" he
said.

According to a Caracas-based analyst with an international bank,
Fogade ought to be a little bit more liquid but despite the
country's serious problems there is no urgency to raise its
liquidity reserves because there is currently no systemic risk.

Some small and weak banks could go under due to the deterioration
of the economy but those will be isolated events that Fogade can
handle with its current level of liquidity, the analyst said.




               ***********


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
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Information contained herein is obtained from sources believed to
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* * * End of Transmission * * *