/raid1/www/Hosts/bankrupt/TCRLA_Public/030102.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
Thursday, January 2, 2003, Vol. 4, Issue 1
Headlines
A R G E N T I N A
PEREZ COMPANC: Sells Forestry Business Operations at a Loss
TCP: Signs Debt-Refinancing Agreement With Ericsson
B E R M U D A
ANNUITY AND LIFE: Weiss & Yourman Announces Class Action Lawsuit
B R A Z I L
BEP: Injunctions Hamper Privatization
ELETROPAULO METROPOLITANA: Pays Debt With Unfinished Building
TELEMAR: Shareholders Approve Preferred Dividend Rights Changes
TELESP CELULAR: Announces Acquisition of Global Telecom
C H I L E
ENAMI: State Agrees to Back $220M Loan
ENAMI: New Protocol Expected to Advance Ventanas Transfer
TELEFONICA CTC: To Seek Rate-Setting Freedom Once Again
C O L O M B I A
MILLICOM INT'L: Finds Buyer for Columbian Operations
SEVEN SEAS PETROLEUM: Shares to Be Quoted in Pink Sheets
M E X I C O
CNI: Claims Azteca Forcibly Took Control of Broadcast Facility
T R I N I D A D & T O B A G O
BWIA: Reports More Passengers But Less Profit
U R U G U A Y
GALICIA URUGUAY: Current Status Extended to February 28
URUGUAYAN BANKS: Congress Approves Merger of Troubled Banks
* Uruguay Narrows Deficit To Satisfy IMF Demands
- - - - - - - - - -
=================
A R G E N T I N A
=================
PEREZ COMPANC: Sells Forestry Business Operations at a Loss
-----------------------------------------------------------
Perez Companc S.A. (Buenos Aires: PC NYSE: PC), controlling
company with a 98.21% stake in Pecom Energa S.A. (Buenos Aires:
Peco), announces that it has concluded the divestment process of
the Forestry Business operations.
Pecom Energa S.A., by means of successive transactions, sold the
following:
- Interest in, accounting for 100% of the capital stock of, Pecom
Forestal S.A., a company owner of 105,000 hectares in the
Province of Corrientes, to DRT Investments LLC.
- The goodwill corresponding to the forestry-industrial
activities developed in Misiones, to Alto Paran S.A., comprising
60,000 hectares and a 94.000 m3/year capacity sawmill. Execution
of this operation is subject to compliance with certain
conditions and administrative formalities.
- Pecom Energa S.A.'s assets in the "Delta del Paran " region,
comprising 4,000 hectares, to DRT Investments LLC.
In compliance with the requirements of the Transparency in Public
Offerings regime, DRT Investments LLC and Alto Paran act on an
arm's length basis.
The total price of the beforementioned transactions as a whole
amounted to US$ 53.16 million, accounting for a loss of
approximately Ps.30 million for Pecom Energa S.A.. This loss is
in addition to the Ps. 118 million impairment loss recorded by
the Company as of September 30, 2002 that was determined on the
basis of the estimated realizable value of the beforementioned
investments as of such date.
This transaction enables Pecom Energa to move forward with the
strengthening of its positioning as an integrated energy company,
aligning the asset portfolio structure with the axes of the
Company's core business.
Pecom Energa S.A., controlled by Perez Companc S.A., is a
significant presence in an important Argentine and Latin American
industry sector, including oil and gas production and
transportation, refining and petrochemicals and power generation,
transmission and distribution.
CONTACT: PECOM ENERGIA S.A. DE PEREZ COMPANC S.A.
Maipo 1 - Piso 22 - C1084ABA
Buenos Aires, Argentina
Phone: (54-11) 4344-6000
Fax: (54-11) 4344-6315
URL: http://www.pecom.com.ar/
TCP: Signs Debt-Refinancing Agreement With Ericsson
---------------------------------------------------
Telefonica Comunicaciones Personales (TCP), Argentina's second-
largest mobile operator, informed the Buenos Aires exchange that
it has signed a letter of understanding with Sweden-based
multinational network equipment vendor Ericsson to restructure
US$130 million in debt, reports Business News Americas.
In a letter sent to the bourse, TCP didn't say anything except
that the agreement involves debt refinancing and maturity
extension. According to the letter, the two sides expect to sign
a definitive agreement January 17.
TCP, which operates in Argentina under the Unifon brand, has
struggled to fight off the effects of the crisis plaguing the
country. The company has relied on a mix of value-added
applications to promote customer loyalty, with cutbacks in
advertising and personnel expenses to reduce costs.
At the end of September, the Company registered 1.64 million
subscribers, down 8.4% from the 1.87 million customers registered
for the same date last year.
Spain's Telefonica Moviles owns 97.93% of TCP.
=============
B E R M U D A
=============
ANNUITY AND LIFE: Weiss & Yourman Announces Class Action Lawsuit
---------------------------------------------------------------
A class action lawsuit against Annuity and Life Re (Holdings),
Ltd. ("Annuity and Life" or the "Company") (NYSE:ANR), and
certain of its officers was commenced in the United States
District Court for the District of Connecticut, on behalf of
purchasers of Annuity and Life securities. Those who purchased
Annuity and Life securities between February 12, 2001 and
November 19, 2002, are encouraged to read this notice.
The complaint charges the defendants with violations of the
Securities Exchange Act of 1934. The complaint alleges that
defendants issued false and misleading statements which
artificially inflated the stock.
This action seeks to recover damages on behalf of defrauded
investors who purchased Annuity and Life securities. Plaintiff is
represented by Weiss & Yourman, a law firm possessing significant
experience and expertise in prosecuting class actions on behalf
of defrauded shareholders in federal and state courts throughout
the United States. Weiss & Yourman has been appointed by numerous
courts to serve as lead counsel in class action lawsuits and in
that capacity has recovered hundreds of millions of dollars on
behalf of investors.
Purchasers of Annuity and Life securities between February 12,
2001 and November 19, 2002, may move the Court no later than
February 3, 2003, to serve as a lead plaintiff of the class.
Certain legal requirements must be met in order to serve as a
lead plaintiff. A lead plaintiff is a representative party that
acts on behalf of other class members in directing the
litigation. In order to be appointed lead plaintiff, the Court
must determine that the class member's claim is typical of the
claims of other class members, and that the class member will
adequately represent the class. Under certain circumstances, one
or more class members may together serve as "lead plaintiff."
Your ability to share in any recovery is not, however, affected
by the decision whether or not to serve as a lead plaintiff. You
may retain Weiss & Yourman or other counsel of your choice to
serve as your counsel in this action.
To receive an investor package or to discuss this action or to
have any questions concerning this notice or your rights or
interests with respect to this matter, or if you have any
information you wish to provide to us, please contact:
Mark D. Smilow, James E. Tullman and David C. Katz
WEISS & YOURMAN
The French Building
551 Fifth Avenue
Suite 1600
New York, New York 10176
Tel.: (888) 593-4771 or (212) 682-3025
Email: info@wynyc.com
===========
B R A Z I L
===========
BEP: Injunctions Hamper Privatization
-------------------------------------
The privatization of Banco do Estado do Piaui SA (BEP) didn't go
off Monday as scheduled because of two injunctions filed last
week by the Piaui state government and the state's bank workers'
union, Business News Americas reports, citing central bank
officials. According to a source close to the negotiations, the
injunctions were filed in the hopes of getting a better price
during the administration of left-leaning president-elect Luis
Inacio Lula da Silva, who takes office on January 1.
However, the source indicated that delaying the auction until the
next administration comes into office is not likely to yield any
better results and may even reduce bids.
BEP was valued by an independent consultancy and the bank already
has a contract with the state government giving it exclusive
rights to handle public accounts until December 2010. The bank
would be worth much less without that contract, the source added.
The central bank has set a minimum bid price of BRL38.3 million
(US$10.91mn) for a 74% stake in BEP. Brazil's largest private
banks Bradesco and Itau have been pre-qualified to bid for BEP.
ELETROPAULO METROPOLITANA: Pays Debt With Unfinished Building
-------------------------------------------------------------
Sao Paulo state power company Eletropaulo Metropolitana paid part
of its debts with Portugal's Banco Espirito Santo (BES) with an
unfinished building, reports Valor Economico. Accordingly, the
price of the building was set at BRL142 million, which covers
most, but not all, of Eletropaulo's obligation to BES.
BES was part of a syndicate of banks that lent US$225 million to
Eletropaulo. BES did not accept the terms of the restructured
agreement signed earlier this month, preferring to take control
of the building instead.
Most of the syndicate, led by US bank J.P. Morgan, agreed to
delay payment of principal for 12 months, convert most of the
debt into reais, and receive the balance of the repayment over 24
monthly installments starting in December 2003.
At the end of 3Q02, Eletropaulo had total debts of BRL6.2
billion, of which 52% was in US dollars and not hedged against
exchange rate variations. Of the total debts, 69% was due within
one year, while the remaining 31% was due in the long term.
US-based AES owns 74% of Eletropaulo's total shares through three
holding companies: AES Elpa (31%), Trangas (39%) and AES Cemig
(4%). AES has already said it does not expect to receive
dividends from Eletropaulo in 2003.
CONTACT: ELETROPAULO METROPOLITANA
Avenida Alfredo Egidio de Souza Aranha 100-B,
13 andar 04726-270 San Paulo
Brazil
Phone: +55-11-548-9461, +55 11 5696 3595
Fax: +55-11-546-1933
URL: http://www.eletropaulo.com.br
Contacts:
Luiz D. Travesso, Chairman and President
Orestes Gonzalves Jr., VP Finance/Investor Relations
TELEMAR: Shareholders Approve Preferred Dividend Rights Changes
---------------------------------------------------------------
TELE NORTE LESTE PARTICIPACOES S.A. (NYSE: TNE), the holding
company of providers of telecommunications services in the north,
northeastern and eastern regions of Brazil, announces that at the
Extraordinary Shareholders' Meeting held this morning, a change
in article nine of the Company's Bylaws with respect to the
rights of preferred shares was approved. The change was made in
order to extend to these shares, in addition to the existing
rights, the priority in receiving dividends corresponding to
three percent of the equity value of the share. With this change,
the holders of the Company's preferred shares become entitled to:
priority for capital reimbursement (without premium); priority
for the payment of minimum, non-cumulative dividends of:
(a) six percent per year on the amount resulting from the
division of the subscribed capital by the total amount of the
Company's shares, or
(b) three percent of the equity value of the share, whichever is
greater; and the right to participate in the distribution of the
remaining income, in equal conditions with common shares, after
such shares have received the same dividend attributed to the
preferred shares.
CONTACT: TNE - INVESTOR RELATIONS
Roberto Terziani
Email: terziani@telemar.com.br
Tel: 55 21 3131 1208
Carlos Lacerda
Email: carlosl@telemar.com.br
Tel: 55 21 3131 1314
Fax: 55 21 3131 1155
THOMSON FINANCIAL CORPORATE GROUP
Rick Huber
Email: richard.huber@tfn.com
Mariana Crespo
Email: mariana.crespo@tfn.com
Tel: 1 212 807 5026
Fax: 1 212 807 5025
TELESP CELULAR: Announces Acquisition of Global Telecom
-------------------------------------------------------
Telesp Celular Participacoes S.A. ("TCP") announced Friday [Dec.
27] that it now owns indirectly the totality of Global Telecom
S.A. ("GT") capital stock, the B-band mobile operator in the
Brazilian states of Parana and Santa Catarina. TCP indirectly
owned 83% of GT's total capital stock since February 6, 2001,
represented by 49% of the common shares and 100% of the preferred
shares of the following Group holdings: KDDI Corporation
("KDDI"), ITX Corporation ("ITX") and Inepar S.A. Industria e
Construcoes ("Inepar").
The acquisition of the remaining 17% of GT's capital stock was
done with due regard to the provisions in the Purchase and Sale
Agreement entered on January 13, 2001, by the purchase of the
remaining 51% of the common shares of KDDI, ITX and Inepar Group
holdings for the amount of R$ 290,282,292.19, after receiving
previous authorization from the Brazilian National
Telecommunications Agency (Agencia Nacional de Telecomunicacoes -
ANATEL), as per the Act no 32.135, of December 11, 2002,
published in the "Di rio Oficial da Uniao" newspaper on December
12, 2002.
Therefore, as of December 27, 2002, TCP indirectly owns 100% of
GT's capital stock, by means of participation in 100% of the
capital stock of the afore mentioned GT holdings.
To see latest financial statements:
http://bankrupt.com/misc/Telesp_Celular.pdf
CONTACT: TELESP CELULAR PARTICIPACOES S.A.
Investor Relations Officer
Maria Paula de Almeida Martins Canais
Investor Relations:
Edson Alves Menini, (55 11) 3059-7531
Email: emenini@telespcelular.com.br
=========
C H I L E
=========
ENAMI: State Agrees to Back $220M Loan
-----------------------------------------------------
Chilean state minerals company Enami will have the state as the
formal guarantor of a loan of up to US$220 million, reports
Business News Americas, citing an announcement in the country's
Diario Oficial or official gazette.
Enami is negotiating the loan with a group of banks led by
Dresdner Kleinwort Wasserstein. According to the announcement,
which was signed by President Ricardo Lagos, the three-year
bullet loan will be subject to annual interest rates of Libor
plus 0.70% for one year, Libor plus 0.725% for two years and
Libor plus 0.75% for three years.
Struggling with debts of around US$480 million, Enami will use
the loan to restructure the portion of the debt that matures at
the end of the year. The Company is considering a bond issue to
restructure the long-term portion of the total.
CONTACT: ENAMI (Empresa Nacional de Mineria)
MacIver 459,
Santiago, Chile
Phone: 637 52 78
637 50 00
Fax: 637 54 52
Email: webmaster@enami.cl
Home Page: www.enami.cl/
Contact:
Jorge Rodriguez Grossi, President
ENAMI: New Protocol Expected to Advance Ventanas Transfer
---------------------------------------------------------
Last week's meeting at Chile's finance ministry resulted in a
decision to sign a protocol on Janurary 6 to transfer Ventanas
copper smelter-refinery operated by state minerals company Enami
(Empresa Nacional de Mineria) to state copper corporation Codelco
(Corporacion Nacional del Cobre de Chile). The meeting, according
to an Estrategia report, was attended by the mining minister
Alfonso Dulanto, Codelco CEO Juan Villarzu, his Enami counterpart
Jaime Perez de Arce and finance ministry coordinator Heinz
Rudolph, along with a group of parliamentarians.
The protocol, which is aimed at insuring the passing of new
legislation that would be required to effect the transfer, will
be signed by government officials, company representatives and
lawmakers.
The goal is to have Ventanas in Codelco's hands by the end of the
third quarter. Government officials have been discussing the
proposal, aimed at resolving Enami's US$480 million debt crisis,
for some two years.
At the same time, the government has pledged to draw up a new
policy for Enami in its role as a promoter of the small and
medium scale mining sectors. Ventanas, in central Chile's Region
V, is the Company's largest asset and last year produced 323,000t
of electrolytic copper.
TELEFONICA CTC: To Seek Rate-Setting Freedom Once Again
-------------------------------------------------------
Telefonica CTC Chile is planning to request a reevaluation of the
need for regulation of its rates from the country's antitrust
commission CRA, reports local paper La Tercera. Chile's largest
telco aims to receive a ruling by May of 2003, when the ministry
of public works and telecommunications starts working on a tariff
decree to establish rate ceilings for 2004-2008.
Business News Americas says that this petition could lead to the
Company's freedom in zones where CTC had lost its dominant
status, if not nationally.
This is not the first time CTC requested for rate-setting
freedom. In January last year, CTC had asked for autonomy to set
its own rates, after the 1999 tariff decree had caused losses of
over US$300 million over the period of 1999-2000, according to
the Company.
The Company had filed a US$274 million lawsuit against the 1999
decree. Key witnesses have been heard and hearings were scheduled
to end last Friday. The Company said that the hearing had
confirmed errors in the decree.
The Company, which serves almost 80 percent of basic telephony
subscribers in the country, has some high-powered backers. Among
these backers is former telecoms minister Carlos Cruz, says
Business News Americas.
CONTACT: TELEFONICA CTC CHILE
Avenida Providencia 111, Piso 2
Santiago, Chile
Phone: +56-2-691-2020
Fax: +56-2-691-2392
Homepage: http://www.ctc.cl
Contacts:
Mr. Bruno Philippi, President
Mr. Jacinto Daz, Vice President
Gisela Escobar, Head of Investor Relations
===============
C O L O M B I A
===============
MILLICOM INT'L: Finds Buyer for Columbian Operations
-------------------------------------------------------------
Global telecommunications investor Millicom International
Cellular S.A. entered into a share purchase agreement with Comcel
SA of Columbia and its parent company American Movil on December
24 to sell Millicom's shares in its Columbian operations,
Celcaribe SA, to Comcel SA.
Luxembourg-based Millicom, whose credit rating was recently cut
by Moody's Investors Service two levels to Caa2 from B3, has been
selling assets to pay debts. The company admitted officially that
the strategy was "unsustainable in the long term."
Millicom is a global telecommunications investor with cellular
operations in Asia, Latin America and Africa. It currently has a
total of 18 cellular operations and licenses in 17 countries. The
Group's cellular operations have a combined population under
license (excluding Tele2) of approximately 444 million people.
Millicom's shares are traded on the Nasdaq Stock Market under the
symbol MICC.
CONTACTS: MILLICOM INTERNATIONAL CELLULAR S.A., Luxembourg
Marc Beuls
Telephone: +352 27 759 101
President and Chief Executive Officer
Jim Millstein
Telephone: +1 212 632 6000
Peter Warner
Telephone: +44 20 7588 2721
LAZARD
Andrew Best
Telephone: +44 20 7321 5022
Investor Relations
Shared Value Ltd., London
SEVEN SEAS PETROLEUM: Shares to Be Quoted in Pink Sheets
--------------------------------------------------------
Seven Seas Petroleum Inc. (OTC Pink Sheets: SVSSF) announced
Friday that the Company received notice from the American Stock
Exchange that the Company's shares have been delisted. The
Company's shares will be quoted on the Pink Sheets Electronic
Quotation Service. The Company's new symbol is "SVSSF".
Information regarding the quotation service is available at
www.pinksheets.com .
Seven Seas Petroleum Inc. is an independent oil and gas
exploration and production company operating in Colombia, South
America.
Statements regarding anticipated oil and gas production and other
oil and gas operating activities, including the costs and timing
of those activities, are "forward looking statements" within the
meaning of the Securities Litigation Reform Act. The statements
involve risks that could significantly impact Seven Seas
Petroleum Inc. These risks include, but are not limited to,
adverse general economic conditions, operating hazards, drilling
risks, inherent uncertainties in interpreting engineering and
geologic data, competition, reduced availability of drilling and
other well services, fluctuations in oil and gas prices and
prices for drilling and other well services and government
regulation and foreign political risks, as well as other risks
discussed in detail in the Seven Seas Petroleum Inc.'s filings
with the U.S. Securities and Exchange Commission.
===========
M E X I C O
===========
CNI: Claims Azteca Forcibly Took Control of Broadcast Facility
--------------------------------------------------------------
CNI CANAL 40, a small, financially struggling cable-television
company, claimed that control of its transmission tower was
physically taken over by TV Azteca SA, Mexico's second-largest
broadcaster. CNI spokesman Ciro Gomez Leyva suggested that Azteca
used armed guards to storm the station and interrupted its
broadcasting during the takeover.
Azteca denied using any force and said it will sue Gomez Leyva,
who also is CNI's editorial vice president and a respected
Mexican journalist, for defamation.
"They don't comply with their contracts and end agreements when
they want," said Francisco Borrego, TV Azteca's legal director.
"All we did is go there to get them to comply with the contract.
We did it peacefully and their own personnel gave us access to
the installations."
The office of Mexico's attorney general said it is investigating
charges made by CNI that Azteca used its security force in a
violent and illegal takeover of CNI's transmission facility.
The dispute stems from a 1998 agreement signed by the two
broadcasting companies that gave Azteca the right to transmit its
programming over CNI, and sell advertising for the cable station,
splitting the revenue with CNI. In return, Azteca loaned the
financially ailing CNI US$10 million and advanced an additional
US$15 million against future earnings, according to an Azteca
spokesman.
Another agreement also gave Azteca first option to buy 51% of
CNI. But the two companies have been at odds and in court since
2000, when CNI President Javier Moreno Valle unilaterally pulled
out of the agreement.
Azteca said last week that the International Court of Arbitration
gave it authority to acquire 51% of CNI Canal 40, deducting from
the purchase price some US$23 million owed to Azteca by CNI from
the beginning of their venture. Azteca said the court's decision
was "unappealable," but that for it to be executed, the
"execution procedure" must go through Mexican courts. Tristan
Canales, spokesman for Azteca, said the company hadn't decided
whether to act on its option.
=================================
T R I N I D A D & T O B A G O
=================================
BWIA: Reports More Passengers But Less Profit
---------------------------------------------
Trinidad and Tobago's cash-strapped flag carrier said the
Christmas season had increased passenger volume, but is showing
little profit due to the low fares according to local daily the
Trinidad Guardian.
"Some of the passenger volumes are coming back. The real change
isn't the volumes of traffic, it is the fact that some of the
fares are still a bit depressed," said BWIA corporate
communications director Clint Williams on Tuesday. "I would be
hesitant to jump and say our problem has been solved."
Williams added that this though this year's Christmas was a
definite improvement from last year's, it is still "not as
lucrative as it was in the past because of the lower fares."
The global airline industry had suffered a terrible Christmas as
the September 11 bombings had reduced passenger traffic
significantly. Worldwide, airlines have lowered their fares.
The International Civil Aviation Organization has said it does
not expect a significant recovery for the global airline industry
until 2004.
The report said that passengers are slowly regaining their
confidence in the security of many airlines and airports,
especially in the Caribbean. The lower fares may encourage more
travels, but the question of profitability still remains.
Despite the lesser profits, the increase in passenger volume is
still good news for BWIA, which have just signed the Memorandum
of Understanding which allows the airline to receive a US$13
million government loan.
Williams, seeing the brighter side of things said, "The return of
(passenger) volumes at least allows us to manage our costs
effectively."
CONTACT: BRITISH 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, CFO (Trinidad)
=============
U R U G U A Y
=============
GALICIA URUGUAY: Current Status Extended to February 28
-------------------------------------------------------
The intervention and suspension of Banco Galicia Uruguay by the
central bank will be extended to February 28, reports Business
News Americas. Galicia is expected to start returning in early
January frozen dollar-denominated deposits to its customers after
courts approved a reimbursement plan last week, which had been
accepted by more than 80% of its clients. It will make an initial
cash-payment of 3% of the total amount owed to each client and
then return the remainder in annual installments over nine years.
Business News Americas recalls that a spokesperson from Galicia
Uruguay's Argentine parent, Grupo Financiero Galicia, recently
revealed the group plans to reopen its Uruguayan banking unit and
is currently evaluating the possibility of inviting an
international partner to run Galicia Uruguay, to raise capital
and seek to improve the bank's battered reputation.
Banco Galicia Uruguay was the country's second-largest private
financial institution in terms of deposits before it was
intervened and suspended by the central bank in mid-February
after losing US$500 million in deposits between December last
year and January 2002. Today, it has some 13,000 clients, 99% of
which are Argentines.
CONTACT: GRUPO FINANCIERO GALICIA S.A.
Teniente General Juan D. Peron 456, Piso 3
1038 Buenos Aires, Argentina
Phone: (54 11) 4343 7528 / 9475
Home Page: http://www.gfgsa.com
Contacts:
Eduardo J. Escasany, Chairman and CEO
Sergio Grinenco, CFO, Banco de Galicia y Buenos Aires
BANCO GALICIA URUGUAY S.A.
World Trade Center
Luis A. Herrera 1248 Piso 22 Montevideo
Uruguay
Tel.:(+598-2) 628-1230
www.bancogalicia.com.uy
URUGUAYAN BANKS: Congress Approves Merger of Troubled Banks
------------------------------------------------------------
The planned merger of three troubled Uruguayan banks into a new
financial institution had been approved by the country's
congress, reports the Associated Press on Friday, adding that the
new institution has not been named yet.
The report said that the move is partly aimed at regaining the
trust of the International Monetary Fund after the lender had
delayed two disbursements on an emergency loan Uruguay. According
to the IMF, the country had not satisfied its requirements for
dealing with fallen banks.
The three banks, Banco Comercial, Banco de Montevideo and Banco
la Caja Obrera are virtually insolvent after being forced to
suspend operations in August. The government suspended operations
in state and private banks for more than a week after worried
depositors drained millions of dollars from the banking system
daily.
Uruguay received an emergency loan from the IMF to stabilize its
economy. The massive withdrawals in June had left the country
with less than US$700 million in reserves. The financial woes of
neighboring Argentina have taken a significant toll on Uruguay's
economy.
CONTACT: BANCO COMERCIAL
Cerrito No. 400,
11100 Montevideo
Phone: 960-394/97
Fax: 963-569
Home Page: www.bancocomercial.com.uy/
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
* Uruguay Narrows Deficit To Satisfy IMF Demands
------------------------------------------------
The Central Bank of Uruguay said that the country had lowered its
public deficit for the past 12 months ending in September this
year to US$656 million, or 3.9 percent of the country's gross
domestic product, according to a Reuters report on Friday. This
year's deficit is US$124 million less than that of the same
period last year at US$780 million, and is a significant
improvement from the deficit of US$763 million for the 12 months
ending in August.
The country is inching closer to its goal of reducing the deficit
to 3.5 percent of the GDP to qualify for a new aid package from
the International Monetary Fund.
Uruguay, which is dubbed as the "Switzerland of banking" in Latin
America, lost its coveted investment grade rating earlier in
2002. The financial troubles of neighboring Argentina and the
market unrest in Brazil were the primary factors contributing to
Uruguay's troubles.
***********
S U B S C R I P T I O N I N F O R M A T I O N
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and Beard Group, Inc., Washington, DC. John D. Resnick, Edem
Psamathe P. Alfeche and Oona G. Oyangoren, Editors.
Copyright 2003. All rights reserved. ISSN 1529-2746.
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