TCRLA_Public/030722.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, July 22, 2003, Vol. 4, Issue 143

                          Headlines


A R G E N T I N A

AUTOPISTAS DEL SOL: BBVA Seeks Bankruptcy Declaration
AUTOPISTAS DEL SOL: To Analyze Capital Increase August 8
BANCO NACION: Takes Steps To Recoup $1.34B In Bad Debts
BERETTA HERMANOS: Seeks Court Permission To Reorganize
EPI: Court Declares Bankruptcy

FINDING: Bankruptcy Process Official
GRUTTI: Creditors Called To Verify Claims
INTERBAIRES: London Supply Acquires Majority Stake
LABORATORIO OMEGA: Bankruptcy Proceeds With Claims Verification
LAS CANITAS: Court Announces Bankruptcy

LOMA NEGRA: Initiates Debt Restructuring Offer
MUSIMUNDO: Pegasus Agrees To Take Control
SYBYSA: Court Orders Bankruptcy
VINCULOS: Court Approves Concurso Request


B E R M U D A

GLOBAL CROSSING: Committee Hires Greenberg as Special Counsel
LORAL SPACE: Gets Court Nod to Honor $15 Million Vendor Claims
TYCO INTERNATIONAL: Unit's Two Top Executives Quit Posts


B R A Z I L

EMBRATEL: Ceara Federal Court Authorizes Additional Rates Hike
LIGHT SERVICOS: 5 Firms Get Into Race For Restructuring Adviser


C H I L E

AES GENER: Fitch Affirms 'B+' Rating; Revises Outlook to Stable
BELLSOUTH CHILE: Provides SMS Service For Fixed-Line Phones
ENDESA CHILE: Fitch Issues Proposed Issuance Credit Analysis
ENDESA CHILE: Places Three Times US$200M Expected Bond Issue
TELEFONICA CTC: Dividend Payment OK for Cashflow, S&P Says


C O L O M B I A

BELLSOUTH COLOMBIA: Regulator Requests Comcel Interconnection
EMCALI: Standard & Poor's Withdraws Ratings


D O M I N I C A N   R E P U B L I C

* DR-IMF Pact Agreement Postponed


E C U A D O R

ECUADORIAN BANKS: AGD To Re-Set Debt Auction Dates
PACIFICTEL: President Gutierrez Seeks Board Resignation
PETROECUADOR: Lowers Yearly Production Target


M E X I C O

GRUPO IUSACELL: Announces Fintech Buyout Offer
ROHN INDUSTRIES: To Be Delisted From Nasdaq SmallCap Market


P A R A G U A Y

* Paraguayan Government Admits Debt Payments Will Be Missed


P A N A M A

CSS: Privatization Not An Option To Remedy Ailing Finances


T R I N I D A D   &   T O B A G O

CARONI: To Start Paying VSEP Settlement Next Month


U R U G U A Y

ANCAP: Opposition Leader Backs JV Law


V E N E Z U E L A

CITGO: Energy Minister Bullish on New Opportunities
PDVSA: Seeks To Increase Production Capacity to 6mb/day by 2010


     - - - - - - - - - -

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

AUTOPISTAS DEL SOL: BBVA Seeks Bankruptcy Declaration
-----------------------------------------------------
Spanish bank BBVA has filed a claim against toll concessionaire
Autopistas del Sol (Ausol), asking the court to declare the
Company officially bankrupt due to an unpaid US$5.2 million loan
granted back in 1996. Now Ausol has to work things out with
Spanish insurance firm Cesce, which it hired to cover political
and exchange risks.

The crisis that hit Argentina in 2001 led to the Company's
default status. BBVA sent a letter to Ausol in April 2003,
demanding payment of the last three semi-annual installments and
threatening to take legal action. Ausol answered the demand
claiming the settlement of these installments was Cesce's
responsibility.

Finally, BBVA filed the claim before commercial court 17,
secretariat 33, advised by law firm Gimenez Hutton. Ausol did not
include this debt in the text of its out-of-court agreement
(APE), a fact that upset BBVA and led to the "involuntary"
bankruptcy filing.

"We are dealing with Cesce and working towards a solution," said
Guillermo Diaz, from Ausol's financial department. According to
Mr. Diaz, the insurance firm has already paid BBVA part of the
debt.

Ausol is about to close the first stage of a program destined to
restructure its US$490 million debt. July 23 is the last day to
accept the terms of the APE offer. So far, creditors representing
US$ 334 million principal amount of debt (68% of the total) have
expressed their acceptance to the proposal.


AUTOPISTAS DEL SOL: To Analyze Capital Increase August 8
--------------------------------------------------------
Toll concessionaire Autopistas del Sol (Ausol), controlled by
Spanish holding Aurea, will evaluate a possible capital increase
during its upcoming shareholder's meeting that will take place on
August 8. The proposal will be analyzed taking into account the
current US$500 million formal restructuring proceeding being
carried out by the company.


BANCO NACION: Takes Steps To Recoup $1.34B In Bad Debts
-------------------------------------------------------
Banco de la Nacion, Argentina's largest bank both in terms of
assets and deposits, will initiate legal proceedings against a
total of 876 clients, whose debts exceed ARS400,000, reports
local online news agency Empresasnews.

The bank will deal with debtors on a case-by-case basis and will
only proceed with a debt-restructuring program in cases where the
debtor shows the will and financial capability to repay their
individual debts.

The move is part of Banco Nacion's campaign to recover ARS3.8
billion (US$1.34bn) in bad debts. The bank will use recovered
funds to help finance its new credit lines, totaling ARS500
million.

According to Rafael Ber, managing director of capital market firm
Argentine Research, the move to recover the debts is important
because the BRL3.8 billion in debts represent some 30% of the
bank's total loan portfolio.

CONTACT:  Banco de la Nacion Argentina
          Bartolome Mitre, 326
          1036 Buenos Aires, Argentina
          Phone: +54-11-4347-6000
          Fax: +54-11-4347-8078
          Home Page: http://www.bna.com.ar/
          Contacts:
          Enrique Olivera, President
          Adolfo Martin Prudencio Canitrot, Deputy VP


BERETTA HERMANOS: Seeks Court Permission To Reorganize
------------------------------------------------------
Argentine company Beretta Hermanos S.R.L. filed for "Concurso
Preventivo" at the Civil and Commercial Tribunal of San Luis. If
the motion is approved, the Company may then start its
reorganization process.

Infobae reports that the court assigned Ms. Maria del Rosario
Pavon as receiver for the process. Creditors have until August 22
to have their claims verified.

CONTACT:  Beretta Hermanos S.R.L.
          Mariscal Sucre 1031
          Buenos Aires

          Maria del Rosario Pavon
          Florida 441
          San Luis


EPI: Court Declares Bankruptcy
------------------------------
Court No. 4 of Buenos Aires rules that Establecimientos
Productores Integrados S.A. (E.P.I.) be put under bankruptcy
process, reports local news source Infobae. The report adds that
Secretary No. 8 aids the Court in the process.

Mr. Carlos Alberto Vicente is assigned receiver for the process.
Creditors are advised to have their claims verified by August 18
this year.

CONTACT:  Mr. Carlos Alberto Vicente
          Avenida Corrientes 2166
          Buenos Aires


FINDING: Bankruptcy Process Official
------------------------------------
A ruling from Court No. 10 of Buenos Aires puts local company
Finding S.R.L. under bankruptcy. A report from Infobae relates
that Secretary No. 19 assists the court on the matter.

The designated receiver for the case is Mr. Eduardo Vasini, said
the report. He will verify claims until October 6 this year,
giving him enough time to prepare the individual reports.

CONTACT:  Finding S.R.L.
          Avenida Cordoba 873
          Buenos Aires

          Eduardo Vasini
          Avenida Rivadavia 4783
          Buenos Aires


GRUTTI: Creditors Called To Verify Claims
-----------------------------------------
Creditors of Buenos Aires-based company Grutti S.A., which was
recently declared bankrupt, are hereby informed that the deadline
for verification of claims is August 28 this year. Credit claims
must be submitted to the receiver, Mr. Oscar Luis Serventich.

Court No. 3 of Buenos Aires, which handles the case, ordered that
the individual reports be submitted by October 9, followed by the
general report on November 20 this year.

CONTACT:  Oscar Luis Serventich
          Piedras 1319
          Buenos Aires


INTERBAIRES: London Supply Acquires Majority Stake
--------------------------------------------------
London Supply, a firm that administrates several airports in
Argentina and Uruguay, has acquired a majority stake in the firm
Interbaires - concessionaire of the main duty free shops in
Argentina- from Deutsche Bank.

Even though the amount and details of the operation remain
undisclosed, it is known that with the sale of Interbaires,
Deutsche Bank wanted to recover part of the US$40 million the
former owed it. As a result of this debt, the bank took control
of the company, previously owned by The Exxel Group.

London Supply has already been managing Interbaires, in which it
had a 12% stake. The Deutsche Bank had 68% of the shares and the
other 20% belongs to the Argentine State.


LABORATORIO OMEGA: Bankruptcy Proceeds With Claims Verification
---------------------------------------------------------------
The deadline for the verification of credit claims for creditors
of Buenos Aires-based Laboratorio Omega S.A. is September 15 this
year, reports local news source Infobae. The Company, which was
recently declared bankrupt by the city's Court No. 26, is now in
the hands of the receiver, Ms. Nelida Cunarro. The receiver will
file the individual reports on October 27, followed by the
general report on December 9.

CONTACT:  Laboratorio Omega S.A.
          Guemes 4227
          Buenos Aires

          Nelida Cu¤arro
          Paraguay 1269
          Buenos Aires


LAS CANITAS: Court Announces Bankruptcy
---------------------------------------
Court No. 10 of Buenos Aires announced the bankruptcy of Las
Canitas S.A., and assigned Mr. Jorge Jalfin as receiver for the
case. According to local news source Infobae, the deadline for
claims verification is September 10 this year. Secretary No. 19
assists the court on the matter.

CONTACT:  Las Canitas S.A.
          Baes 207
          Buenos Aires

          Jorge Jalfin
          Sarmiento 1452
          Buenos Aires


LOMA NEGRA: Initiates Debt Restructuring Offer
----------------------------------------------
Argentine cement company Loma Negra has officially launched a
proposal to restructure US$400 million in debts. Back in April,
the firm announced it had agreed on the basic aspects of the
proposal with a committee of creditors composed by Hypo-
Vereinsbank, JP Morgan, Citibank, BankBoston and Banco Rio, which
represent 65% of the debt. Creditors will have until August 1 to
accept the proposal, which involves an exchange of the current
notes for new ones with longer terms.


MUSIMUNDO: Pegasus Agrees To Take Control
-----------------------------------------
After five months of negotiations, investment holding Pegasus
Capital agreed on the acquisition of Argentine chain of record
stores Musimundo. Although Pegasus has refused to make any
comments, its main aim would be to balance Musimundo's accounts
and then initiate an expansion plan.

The firm is carrying out a formal restructuring proceeding. A few
months ago, it subscribed an accord with its creditors that
involved a 60% cut in its debt, which currently amounts to some
Ps. 100 million (US$ 35.71 million).

Musimundo has 57 outlets and holds a 60% stake in the sale of
records. It is currently managed by a pool of banks, led by
Citibank. Musimundo's former owner, The Exxel Group, had some
overdue debts with these banks, situation that led to the
transfer of the Company.

Pegasus was founded by a group of entrepreneurs headed by Mario
Quintana and Dirk Donath, former executives of the drugstore
chain Farmacity. At first, Pegasus planned to acquire Musimundo
partnered with the holding Ilhsa, owner of the book and CD
retailer Yenny-El Ateneo. However, Ilhsa decided to withdraw its
offer and Pegasus decided to continue on its own.


SYBYSA: Court Orders Bankruptcy
-------------------------------
Sybysa S.A. was put under bankruptcy by Court No. 25 of Buenos
Aires, according to a report by Infobae. The Court is assisted by
Secretary no. 49 on the matter, the report adds. The designated
receiver is Mr. Luis Maria Escobar, to whom creditors must submit
their claims for verification before September 4 this year. The
deadline for the individual reports is October 17. The general
report will be filed on November 28.

CONTACT:  Luis Maria Escobar
          Viamonte 1646
          Buenos Aires


VINCULOS: Court Approves Concurso Request
-----------------------------------------
Argentine company Vinculos Internacionales S.A.C.I.F. is now
under "Concurso Preventivo", as ruled by the Civil and Commercial
Tribunal of San Luis, according to Infobae.

Ms. Maria del Rosario Pavon is assigned as receiver, to whom
creditors must submit their claims for verification before August
22 this year. The case is handled by Court No. 3 of San Luis.

CONTACT:  Vinculos Internacionales S.A.C.I.F.
          San Martin 482
          San Luis

          Maria del Rosario Pavon
          Florida 441
          San Luis



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

GLOBAL CROSSING: Committee Hires Greenberg as Special Counsel
-------------------------------------------------------------
The Official Committee of Unsecured Creditors of the Global
Crossing Debtors seeks the Court's authority to retain Greenberg
Traurig, LLP as special conflicts counsel, nunc pro tunc to June
2, 2003. Greenberg will review and analyze alternative bids for
the GX Debtors' stock and assets made by XO Communications, Inc.
or its affiliates and present to the Court the Committee's view
regarding these bids.

Committee Chairman Joel L. Klein reminds the Court that on May
30, 2003, XO Communications, Inc. proposed a bid to purchase the
GX Debtors' assets.  By e-mail communication that day, the
counsel to the Committee, Brown Rudnick Berlack Israels LLP,
informed the Committee of the Firm's potential conflict of
interest with respect to the Proposed XO Bid, and called an
emergency conference call meeting of the Committee on June 2,
2003 to select a special conflicts counsel.

At the June 2 meeting, Mr. Klein reports that the Committee
selected Greenberg Traurig as special conflicts counsel to review
and analyze the Proposed XO Bid and other possible bids that
might be forthcoming from XO Communications, Inc. or its
affiliates to purchase the GX Debtors' stock and assets.  The
need to select special conflicts counsel on an expedited basis
arose from the impending hearing on the GX Debtors' request to
amend the Chapter 11 Plan of Reorganization to confirm Singapore
Technologies Telemedia Pte Ltd. as the sole Investor under the
Plan.  Accordingly, the Committee sought an expedited review of
the Proposed XO Bid to respond to the Plan Amendment Request.

The Committee and its professionals have continued to review the
Proposed XO Bid and might be required to review other bids which
might be forthcoming from XO before the ST Telemedia purchase
receives regulatory approval and closes.  Although the Committee
has not yet received it, XO is reported in the press to have made
a modified bid.  The Committee requires the continuing assistance
of a special conflicts counsel to review the XO Bids.

Mr. Klein believes that Greenberg Traurig is well qualified to
represent the Committee in these cases with respect to the XO
Bids in a cost-efficient and timely manner.  Greenberg Traurig
has been involved in these cases since March 2002, when it began
its representation of the Subcommittee, and has participated
extensively in the Committee's deliberations in these cases and
in the structuring of the Chapter 11 plan.  The Committee
selected Greenberg Traurig based on this past experience in these
cases, due to the need to conduct an immediate review of the
Proposed XO Bid and respond adequately to the pending Plan
Amendment Request.

Greenberg Traurig is expected to:

    A. assist the Committee with respect to the review,
       investigation and analysis of the XO Bids;

    B. provide the Committee with legal advice with respect to
       its rights, duties and powers in these cases with respect
       to the XO Bids;

    C. prepare reports, pleadings, motions, applications,
       objections and other papers as may be necessary in
       furtherance of the Committee's position with respect to
       the XO Bids;

    D. consult, discuss and negotiate with the Debtors, their
       counsel, the accountants and financial advisors for the
       Debtors, the Committee, its lead counsel, other
       professionals retained in these cases, the United States
       Trustee, and XO and their counsel, accountants and
       financial advisors, arising from or related to the XO
       Bids; and

    E. represent the Committee in hearings and other judicial
       proceedings as necessary in furtherance of the Committee's
       position with respect to the XO Bids.

Greenberg Traurig has previously conducted an extensive conflicts
check in connection with its retention as counsel to the
Subcommittee.  Greenberg Traurig will be compensated in
accordance with the same terms and conditions of its retention by
the Subcommittee, and in accordance with all orders of this Court
applicable to the compensation of Committee professionals.
(Global Crossing Bankruptcy News, Issue No. 43; Bankruptcy
Creditors' Service, Inc., 609/392-0900)


LORAL SPACE: Gets Court Nod to Honor $15 Million Vendor Claims
--------------------------------------------------------------
Loral Space & Communications Ltd., and its debtor-affiliates
sought and obtained approval from the U.S. Bankruptcy Court for
the Southern District of New York to pay the pre-petition claims
of certain critical vendors.

The Debtors report that in connection with the operation of their
fixed satellite services and satellite design and manufacturing
businesses, certain specialty and other vendors supply essential
services and equipment. The Debtors' ability to continue their
operations will largely depend upon the continued access to these
Critical Vendors. These critical services include maintenance,
construction and security services related to ensuring the
reliability of their crucial satellite communications equipment
and network software. The Debtors' fixed satellite services
business also rely on other Critical Vendors. The custom tailored
networks used to access satellite capacity require specialized
equipment that is available from only a handful of companies
worldwide.

"At this precarious stage in the Debtors' business operations, an
interruption in the provision of services, equipment and other
goods by the Critical Vendors will have a severely prejudicial
effect on the Debtors' efforts to rehabilitate and reorganize,"
Loral Space tells the Court. "The services and supplies provided
by the Critical Vendors must continue unabated for the duration
of these chapter 11 cases if substantial harm and loss of
enterprise value is to be avoided. "

Additionally, because many of the Critical Vendors are integrally
involved in the Debtors' billing and collection efforts, the
cessation of the services provided by such Critical Vendors would
have an immediate negative impact on the Debtors' ability to
generate revenue which would irreparably harm its operations and
severely impede its prospects for successful rehabilitation. In
the case of the Critical Vendors that provide specialized
satellite accessing equipment, an inability to obtain such
equipment would delay or perhaps even prevent the ability to
provide capacity to the various television networks and other
large services customers of the Debtors. Such an outcome would
endanger some of the Debtors' most valuable customer
relationships.

The Debtors estimate that the amount of outstanding obligations
to the Critical Vendors relating to the period prior to the
Commencement Date aggregates to a total of $15,000,000. The
Debtors submit that authority to pay the Critical Vendor Claims
will not create an imbalance of their cash flows because many of
these obligations have customary payment terms and will not be
payable immediately. Cash maintained by the Debtors, together
with the cash gene rated in the ordinary course of the Debtors'
businesses, will provide more than sufficient liquidity for
payment of the Critical Vendor Claims in the ordinary course of
business.

Loral Space & Communications Ltd., headquartered in New York, New
York, and together with its affiliates, is one of the world's
leading satellite communications companies with substantial
activities in satellite-based communications services and
satellite manufacturing. The Company filed for chapter 11
protection on July 15, 2003 (Bankr. S.D.N.Y. Case No. 03-41710).
Stephen Karotkin, Esq., and Lori R. Fife, Esq., at Weil, Gotshal
& Manges LLP represent the Debtors in their restructuring
efforts. When the Debtors filed for protection from its
creditors, it listed $2,654,000,000 in total assets and
$3,061,000,000 in total debts. (Troubled Company Reporter,
Monday, July 21, 2003, Vol. 7, Issue 142)


TYCO INTERNATIONAL: Unit's Two Top Executives Quit Posts
--------------------------------------------------------
The two presidents at Tyco International Ltd.'s Tyco Plastics &
Adhesives division left their posts amid a reshuffling at the
unit's senior management. According to Reuters, James
Prendergast, president of Tyco Plastics, and Mark Brandon, the
president of Tyco's adhesives unit, left the Company last week.

Tyco spokesman Gary Holmes revealed Mr. Brandon will be replaced
on July 28 by Tom Salmon, who recently worked at Honeywell
International Ltd., while Mr. Prendergast's replacement is
expected to be announced soon.

The leadership at Plastics & Adhesives includes a new finance
chief, general counsel, human resources chief, a vice president
of operations and an executive to oversee the Company's Six Sigma
program, which is an initiative to improve efficiency, Mr. Holmes
said.



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

EMBRATEL: Ceara Federal Court Authorizes Additional Rates Hike
--------------------------------------------------------------
Brazilian incumbent telco Embratel received authorization on
Friday to raise rates in line with the IGP-DI inflation index, a
full 10 percentage points higher than previously allowed by a
federal court in Ceara state.

The decision overrides July 11 Supreme Court ruling that allowed
operators to increase rates by 17.2 percent, a figure based on
the IPCA consumer inflation index, reports Business News
Americas.

The ruling renders ineffective a move by consumer rights group
that blocked operations from raising rates altogether. The
protest came after a June 26 announcement by the country's
regulator to allow fixed line operators to hike their rates near
the IGP-DI, at an average of 28.8% for all services combined.

The Ceara federal court decision overrides the Supreme Court
decision as the latter has delegated further decisions to the
former.


LIGHT SERVICOS: 5 Firms Get Into Race For Restructuring Adviser
---------------------------------------------------------------
Rio de Janeiro power distributor Light, which defaulted on a
BRL210-million (today US$73mn) payment due July 1, received
proposals from at least five Brazilian and foreign banks to
advise it on the process, Business News Americas reports without
revealing the names of the competing banks.

The winner will work alongside US investment bank Goldman Sachs,
which was hired on June 18 for the same purpose by light's
controller, French state-owned power company EDF, says the
report.

The BRL210-million debt payment, which Light defaulted on,
included BRL150 million of debentures owed to Brazil's Unibanco
and a US$25 million repayment on a US$200-million loan with a
syndicate of 15 banks led by Citibank.

According to a report by business newspaper Valor Economico, the
Company sought extension on the two debts until September 30, but
so far, just one of the 15 banks has agreed to the extension,

In a statement Thursday to the Sao Paulo stock exchange, Light
denied it has defaulted on repayments to Brazil's national
development bank BNDES, and said that it was maintaining payments
to other creditors as well.

Light "is facing a liquidity crisis which has affected its
capacity to meet with part of its financial obligations," Light
CFO Paulo Pinto said in the statement, reiterating the Company's
stock phrase.

CONTACT:  LIGHT SERVICOS DE ELETRICIDADE S.A.
          Avenida Marechal Floriano, 168
          20080-002 Rio de Janeiro, Brazil
          Phone: +55-21-2211-2794
          Fax:   +55-21-2211-2993
          Home Page: http://www.lightrio.com.br
          Contact:
          Bo Gosta Kallstrand, Chairman
          Michel Gaillard, President and CEO
          Joel Nicolas, Executive Director, Operation
          Paulo Roberto Ribeiro Pinto, Executive Director,
                                 Investor Relations and CFO



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

AES GENER: Fitch Affirms 'B+' Rating; Revises Outlook to Stable
---------------------------------------------------------------
Fitch Ratings has affirmed the senior unsecured local and foreign
currency ratings of AES Gener S.A. (Gener) at 'B+' and the
Chilean national scale rating at 'Chl BB+'. The Rating Outlook
has also been revised to Stable from Negative.

The ratings of Gener and Stable Outlook reflect the reduction of
near-term liquidity concerns supported by recent financial
performance, improving sector fundamentals and stabilizing
financial markets. The Stable Outlook also reflects Fitch's view
of the company's ability to address the refinancing of US$503
million of convertible bonds (CB) due in March 2005 and US$200
million of Yankee bonds due in January 2006. The ratings further
reflect the company's continued strong position in the Chilean
electricity market, its portfolio of thermal generating plants,
its strategy of focusing on core electricity generation in Chile,
a soundly administered regulatory system, an economically sound
and growing service area and experienced management.

Gener is currently pursuing refinancing alternatives for the CB
and Yankee bonds and to assist in this process, the company has
hired a financial advisor and a local electricity consultant to
determine a neutral fair valuation of the company. The company
has begun talking with the CB holders, primarily represented by
the local Chilean pension funds (AFP), and discussions have
centered around the potential recapitalization of Gener via the
voluntary conversion of the debt (CB and Yankee) to equity. The
AFPs generally participate in both debt and equity of Chilean
companies and in fact, were previously holders of Gener shares
prior to the acquisition by AES in 2000 and 2001.

While additional steps and further refinement of the
restructuring proposal are needed, the proactive refinancing
activities by management, positive sector fundamentals to support
financial performance and developing capitalization and/or
refinancing opportunities have stabilized Gener's credit profile.
In the event of a successful capital increase or debt reduction,
Fitch would expect a positive impact on Gener's credit ratings as
the company's credit protection measures should show immediate
improvement. Material delays into the first quarter of 2004 in
addressing the 2005 maturity could result in downward ratings
pressure.

In order to facilitate its restructuring plans, Gener has also
begun addressing the Intercompany loan with Inversiones Cachagua,
Gener's direct holding company. As a first step to approach this
matter, in April 2003, AES negotiated the distribution of 100% of
Gener's net income (approximately US$41 million) as a dividend to
immediately repay a portion of the intercompany loan. Cachagua
then, on May 15, 2003, pledged all of its shares of Gener in
favor of the company as collateral for the intercompany loan,
which matures in February 2004. Also, there was a shareholder's
meeting on July 9, 2003 to make some changes to Gener's by-laws
regarding the company's ringfencing structure; the changes do not
have an impact on its credit ratings. As a result of the active
steps taken by AES and Gener, the company has become more
palatable to both debt and local equity markets.

Operating performance has been solid with financial results that
are considered above-average for the assigned rating. Through
March 2003, Gener reported EBITDA-to-interest of 2.7 times (x)
with total consolidated leverage, as measured by debt-to-EBITDA,
of 5.77x. As of June, total consolidated debt is comprised of
US$759 million at Gener, US$147 million at its Chilean operating
subsidiaries, US$146 million of project finance debt at
TermoAndes and InterAndes, and US$307 million of non-recourse
debt at Chivor, its Colombian hydroelectric plant. Omitting the
effects of a potential equity conversion, leverage should decline
as the company aggressively amortizes bank debt through next
year.

The operating fundamentals of Gener continue to reflect the
company's sound position in the Chilean electricity market.
Electricity demand in Chile has recently been increasing, up to
almost 7% since March compared to 4% during 2002, and regulated
prices have continued their upward trend, increasing 3.5% in U.S.
dollar term in April 2003 tariff adjustment. Gener further
benefits from its project-like structural characteristics,
including long-dated power purchase agreements (PPAs) with
financially strong customers and fuel supply contracts that
reduce business risk. The result for Gener is an underlying,
relatively stable base of long-term cash flows that should
support a more appropriate capital structure, either with longer-
term debt without the equity conversion, or as a much stronger
credit with lower debt and increased equity.


BELLSOUTH CHILE: Provides SMS Service For Fixed-Line Phones
-----------------------------------------------------------
The Chilean unit of US-based Bellsouth Corporation now provides
short text messaging for fixed line telephones, reports local
paper El Diario Financiero recently.

The new service operates along the same line as mobile SMS. For
fixed line phones lacking data fields, the information can be
converted to voice, said Business News Americas.

Bellsouth Chile is SMS-interconnected with its competitors. The
report, however, did not indicate whether the new service is
included in this interconnection.

In related news, Bellsouth's Colombian unit received yet another
request from the country's telecoms regulator, requesting it
interconnect with main competitor, Comcel.


ENDESA CHILE: Fitch Issues Proposed Issuance Credit Analysis
------------------------------------------------------------
Fitch Ratings has released a Credit Analysis of Empresa Nacional
de Electricidad S.A. (Endesa). This report details the credit
fundamentals and rating outlook for Endesa's proposed $200
million senior unsecured notes offering rated 'BBB-'. The 10-year
notes will carry a fixed interest rate and semiannual payments.
The proceeds will be used to pay in portion of a US$381 million
of euro medium-term notes issued in 2000 by Endesa-Chile
International, which matures on July 24, 2003. The Rating Outlook
is Stable.

Endesa-Chile is primarily a hydroelectric-generation company
operating in competitive generation markets throughout Latin
America and maintains a very strong market position in the
region. The company is the largest generator in Chile and
represents a material proportion of generation capacity in
Colombia, Peru and Argentina. The company owns and operates 20
generation facilities in Chile, with a total installed capacity
of 3,935 MW which represents approximately 40% of Chile's total
generating capacity.

CONTACT:  Jason Todd
          Chicago
          Phone: +1-312-368-3217

          Carlos Diez
          Santiago
          Phone: +011 562 206 7171, ext. 25

          Media Relations:
          Matt Burkhard
          New York
          Phone: +1-212-908-0540


ENDESA CHILE: Places Three Times US$200M Expected Bond Issue
------------------------------------------------------------
- Strong demand in international markets, which exceeded US$
1,500 million, led the generator to increase the amount initially
announced. The transaction consisted of the issue of two series
of bonds: one for 10 years and the other for 12 years. The
proceeds will be used to repay a eurobond issue of 400 million
euros (US$ 381 million) which expires this month and further
strengthen the company's financial structure.

Endesa Chile, a subsidiary of Enersis, made a successful bond
issue for a total of US$ 600 million, against an initially
expected US$ 200 million. The demand for the bonds exceeded US$
1,500 million. The transaction therefore became the most
important to be made this year in emerging markets.

The transaction is structured in two tranches. The first was for
an amount of US$ 400 million of unsecured bonds that mature in
2013 (10-year term) at a rate of 8.35%. The second was for a
total of US$ 200 million of unsecured bonds maturing in 2015 (12-
year term) at 8.625%

A little over a half of the proceeds of the issue will be
employed in repaying a three-year eurobond issue of 400 million
euros which matures on July 24, 2003. These bonds were issued by
Endesa Chile Internacional, a wholly-owned subsidiary of the
Chilean generator.

The dollar value of these bonds is US$ 381 million as the company
swapped its euro obligation for US dollars three years ago.

Once this issue is repaid, the rest of the proceeds will be used
to prepay other financial obligations and thus further strengthen
the financial structure of Endesa Chile by improving its debt
maturity pattern and increasing the company's financial
flexibility.

This transaction complements the Financial Strengthening Plan
approved in October 2002 which foresaw a series of divestments
and debt restructuring and reduction in order to reinforce the
company's equity and financial position, and thus those of its
Chilean and foreign subsidiaries.


TELEFONICA CTC: Dividend Payment OK for Cashflow, S&P Says
----------------------------------------------------------
Yesterday, Chilean telecom provider Compania de
Telecomunicaciones de Chile S.A. (CTC; BBB/Positive/--) announced
an extraordinary dividend of Chilean peso 17.50 per share for a
total of US$24 million. The announcement does not affect the
rating or outlook given that liquidity remains adequate on
account of CTC's strong cash generation, and the fact that the
company has been repaying a significant amount of debt. Following
the trend started in 2002, during the second quarter of 2003, CTC
repaid US$165 million in debt covering all major maturities for
the year. Therefore, the expected reduction of cash reserves to
about US$25 million in July from over US$150 million in March
2003 is not a major concern, since, additionally, cash generation
is expected to allow CTC to maintain average cash reserves of
about US$50 million in the second half of the year.

Although Standard & Poor's Ratings Services expects CTC to
continue improving financial measures in the short-to-medium term
through further debt and cost reductions, the ratings are not
likely to be raised until the next regulatory setting process is
finalized in 2004, in a way that is favorable for the company's
performance and business position.

ANALYST:  Marta Castelli, Buenos Aires (54) 114-891-2128



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

BELLSOUTH COLOMBIA: Regulator Requests Comcel Interconnection
-------------------------------------------------------------
Bellsouth Colombia and Comcel received a request to interconnect
their systems for mobile short text messages from the country's
telecoms regulator CRT, reports local business daily Portafolio,
citing a letter from the CRT to the two companies. According to
Business News Americas, the request comes after Colombian
telecoms users association Asucom, filed a petition seeking the
regulator's guarantee of an interconnection and guard against SMS
spam.

However, this is not the first time CRT requested the two
operators to interconnect. Previous requests failed to prompt the
operators to strike an interconnection agreement.

BNAmericas added that other Bellsouth subsidiaries in Chile and
Venezuela are SMS-interconnected with its competitors.

BellSouth Colombia is a unit of US-based BellSouth (NYSE: BLS),
while Mexico's America Movil (NYSE: AMX) owns Comcel.

CONTACT:  BellSouth Corp
          1155 Peachtree Street NE
          Atlanta
          GEORGIA
          United States
          30309-3610
          Phone: +1 404 249-2000
          Fax: +1 404 249-5599
          Home Page: http://www.bellsouth.com


EMCALI: Standard & Poor's Withdraws Ratings
-------------------------------------------
Standard & Poor's Ratings Services withdrew its 'D' corporate
credit rating on Empresas Municipales de Cali (Emcali). After
Emcali's default on payment to TermoEmcali I SCA ESP on March 6,
2003, Standard & Poor's lowered its rating on Emcali to 'D' from
'CCC' on March 11, 2003. Emcali defaulted on payment of US$4.25
million due to TermoEmcali, following the issuance of Resolution
562 by the Colombian Public Services Agency--the Colombian
federal agent managing the administrative takeover of Emcali.

Emcali continues to breach the power purchase agreement it has
with TermoEmcali, failing to deliver complete and timely payment
to the power generator.

Emcali is a diversified, municipally owned utility providing
electricity, water, sewage, and local landline telephone services
to the city of Cali, Colombia and to neighboring municipalities.

Analyst:  Donaji Valencia
          Mexico City
          Phone: (52) 55-5279-2054



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

* DR-IMF Pact Agreement Postponed
---------------------------------
The government of the Dominican Republic and the International
Monetary Fund (IMF) postponed the signing of an agreement that
was supposed to facilitate the Caribbean country's access to
loans of US$1 billion.

According to Xinhua News Agency, differences between the
Dominican government and the IMF on some parts of the economic
program that the country is implementing delayed the signing.

The Dominican authorities requested assistance from the IMF
following an enormous US$2-billion fraud by Banco
Intercontinental. The fraud amounts to 12% of the gross domestic
product of the Latin American country.



=============
E C U A D O R
=============

ECUADORIAN BANKS: AGD To Re-Set Debt Auction Dates
--------------------------------------------------
Ecuador's deposit insurance agency AGD once again failed in its
attempt to auction reconstructed debts from intervened banks,
indicates Business News Americas, citing local daily La Hora.
Two weeks ago, the agency attempted to auction the restructured
debts at a base price of US$2.75 million, but the process failed
to attract takers.

On Thursday, the bank made another attempt to sell the debts at
US$2 million, which is 20% less than the original base price. But
that attempt also failed due to lack of interest parties. The AGD
reported that no potential buyer purchased the bidding rules. As
a result, the agency's auction committee will now convene to set
the date for a direct sale of the banks' bad debt portfolio.

The failure to auction the reconstructed debts comes as a blow to
the AGD given that funds emanating from the sale are targeted to
repay creditors of the closed banks, says La Hora.

In a previous report, the TCR-LA suggested that the sale of the
debts is part of Ecuador's move to expedite the fulfillment of
conditions for the second disbursement under its International
Monetary Fund (IMF) aid program. The Fund's board is poised to
meet in the days ahead to discuss the approval of the US$42
million disbursement.


PACIFICTEL: President Gutierrez Seeks Board Resignation
-------------------------------------------------------
Ecuadorian daily El Telegrafo reports that president Lucio
Gutierrez is seeking the resignation of all the board members of
state-owned fixed-line operator Pacifictel. Mr. Gutierrez issued
the request publicly during his visit to Guayaquil on Thursday.

According to the president, it is now time to appoint apolitical
and technical people to the telco's board. Earlier this year, the
president appointed mostly military to the boards of Andinatel
and Pacifictel, relates Business News Americas.

Recently, the country's regulator, Conatel decided against
intervening the troubled company. Instead, it allowed more time
for Pacifictel to reach certain quality and coverage goals.


PETROECUADOR: Lowers Yearly Production Target
---------------------------------------------
Ecuador's state oil company Petroecuador lowered its annual
production target to 74 million barrels from 76.8mb, Business
News Americas reports. A source from the Company attributed the
move to lower production during a workers strike in June,
drilling delays, and a leak in the Sote pipeline in May.

A Dow Jones report relates that energy minister Carlos Arboleda
said that reaching the 76.8mb/year target would mean increasing
production by 18,500 barrels a day (b/d) to 210,000b/d this year.
This calls for a US$30.8-million new investment, covering the
reconditioning of 47 wells at the Auca, Sacha, Shushufindi,
Libertador and Lago Agrio fields.

The government plans to award service contracts for the five
fields in August on condition that the winner of the bidding
process agrees to make necessary investments and maintain the
project for 20 years. Arboleda estimated that about US$455
million would need to be invested in the five fields.



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

GRUPO IUSACELL: Announces Fintech Buyout Offer
----------------------------------------------
Grupo Iusacell, S.A. de C.V. (BMV:CEL) (NYSE:CEL) ("Iusacell" or
the "Company") announced on Friday that, on July 17, 2003, its
Board of Directors and Audit Committee received a letter from
Fintech Advisory Inc., a Delaware corporation ("Fintech"),
indicating that it intends to file an application with the
Comision Nacional Bancaria y de Valores (the Mexican Securities
and Exchange Commission) to commence offers in Mexico and the
United States to acquire 100% of the outstanding shares of
capital stock of the Company for an aggregate cash purchase price
of U.S.$20.0 million and otherwise on the same terms as the offer
by Movil Access, S.A. de C.V., a wholly-owned subsidiary of
Biper, S.A. de C.V., for all of the outstanding shares of capital
stock of the Company, which was commenced on June 30, 2003 (the
"Movil Access Offer").

The Company subsequently announced that its principal
shareholders, Verizon Communications Inc. and Vodafone B.V.,
informed the Company that (i) on July 17, 2003, they received a
letter from Fintech in which Fintech invited them to evaluate
Fintech's offers and to withdraw their tendered securities from
the Movil Access Offer and that (ii) the principal shareholders
notified Fintech that they have determined not to engage in
discussions with Fintech regarding a possible transaction
involving the Company and do not intend to tender their shares of
the Company into any offer by Fintech.

The Company will make further public announcements in connection
with the tender offers at the appropriate time and as required by
Mexican and United States securities laws.

This press release is for informational purposes only. It does
not constitute a solicitation/recommendation statement under the
rules and regulations of the United States Securities and
Exchange Commission ("SEC"). The Company filed with the SEC a
solicitation/recommendation statement on Schedule 14D-9 on July
14, 2003 (the "Schedule 14D-9") and an Amendment No.1 to the
Schedule 14D-9 on July 16, 2003. The Company's shareholders
should read the Schedule 14D-9, the Amendment No. 1 and the
Amendment No. 2 to the Schedule 14D-9, which will be filed later
with the SEC, as they contain important information. The Schedule
14D-9, the Amendment No. 1, the Amendment No.2 and other public
filings made from time to time by the Company with the SEC are
available without charge from the SEC's web site at www.sec.gov.

About Iusacell

Grupo Iusacell, S.A. de C.V. (Iusacell) (NYSE:CEL) (BMV:CEL) is a
wireless cellular and PCS service provider in seven of Mexico's
nine regions, including Mexico City, Guadalajara, Monterrey,
Tijuana, Acapulco, Puebla, Leon and Merida. The Company's service
regions encompass a total of approximately 92 million POPs,
representing approximately 90% of the country's total population.

CONTACT:  Grupo Iusacell, S.A. de C.V.
          Mexico City

          Investors:
          Russell A. Olson
          Phone: 011-5255-5109-5751
          Email: russell.olson@iusacell.com.mx

          Carlos J. Moctezuma
          Phone: 011-5255-5109-5759
          Email: carlos.moctezuma@iusacell.com.mx


ROHN INDUSTRIES: To Be Delisted From Nasdaq SmallCap Market
-----------------------------------------------------------
ROHN Industries, Inc., (Nasdaq: ROHNE), (the "Company") a
provider of infrastructure equipment to the telecommunications
industry, announced Friday that the Nasdaq Listing Qualifications
Panel (the "Panel") has advised the Company that the securities
of the Company will be delisted from the Nasdaq Stock Market with
the opening of business on Monday, July 21, 2003 due to the fact
that the Company is unable to meet the minimum bid price
requirement as set forth in Marketplace Rule 4310c(4). Also as of
the opening of business on July 21, 2003, the Company's
securities are eligible for inclusion on the OTC Bulletin Board.
The OTC Bulletin Board symbol assigned to the Company will be
ROHN.

About the Company

The Company is a manufacturer and installer of telecommunications
infrastructure equipment for the wireless industry. Its products
are used in cellular, PCS, radio and television broadcast
markets. The Company's products include towers, poles, related
accessories and antennae mounts. The Company also provides design
and construction services. The Company has a manufacturing
location in Frankfort, IN along with offices in Peoria, IL and
Mexico City, Mexico.



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

* Paraguayan Government Admits Debt Payments Will Be Missed
-----------------------------------------------------------
Peter Hansen, representative of the World Bank in Paraguay, paid
a visit to Finance Minister Alcides Jimenez to request
disbursement of US$9 million of Paraguay's debt to the World
Bank. The debt, according to EFE, was due at the beginning of the
month and is now within the grace period.

Mr. Jimenez admitted Friday that his government is unable to meet
all its debts and would have to prioritize payments.

"It is a question of assigning priorities. We have many
commitments, not only to service the (foreign) debt, but to state
providers," he told reporters after meeting with Mr. Hansen.

Mr. Jimenez was complaining that the government had not been paid
by companies managing the Yacyreta and Itaipu dams, which
Paraguay shares with Argentina and Brazil, respectively.

Yacyreta owes Paraguay some US$20 million in profits, and Itaipu
owes some US$29.5 million because of changes in the value of the
local currency against the dollar.

EFE reports that an International Monetary Fund (IMF) mission
that visited Asuncion this month projected that if measures are
not taken, the Paraguayan treasury would be short US$158 million
at the end of the year and forecast a "very harsh" second half
for the country.



===========
P A N A M A
===========

CSS: Privatization Not An Option To Remedy Ailing Finances
----------------------------------------------------------
The Panamanian government will be presenting new proposals to
confront the financial problems at the state-run social security
agency CSS. However, before the review, the government must have
the results of a technical analysis first, newspaper El Panama
America reports, citing finance minister Norberto Delgado.

Mr. Delgado assured that the government's proposal to redress the
ailing finances of CSS will not include any form of privatization
or an increase in the retirement age for women. Privatization and
a hike in women's retirement age are two issues "that are not
under debate," said Mr. Delgado.

In a report released by newspaper El Critica last month, Teresita
Yaniz, a member of congress was quoted as calling for a
referendum to allow Panamanians to decide whether the agency
should be rescued from a threatening bankruptcy.



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

CARONI: To Start Paying VSEP Settlement Next Month
--------------------------------------------------
The government of Trinidad and Tobago has secured funds for the
$955-million VSEP settlement for the workers of Caroni (1975)
Ltd., the Trinidad Guardian reports, citing Agriculture Minister
John Rahael. As such, the Finance Ministry will soon begin
preparing VSEP cheques for the sugar company's workforce, which
comprises 8,116 daily paid workers and 1,094 monthly paid
workers.

Monthly paid workers are to be paid on or before August 2 and
daily paid workers by August 15. The distribution of money
follows an agreement between the All Trinidad Sugar and General
Workers Trade Union and Caroni.

Initially, the two were at loggerheads over the issue with the
union filing an injunction to stop the VSEP process. It took the
intervention of the Industrial Court to get the parties to reach
an amicable solution. The court consented to the agreement last
week. In an immediate reaction, president general of the union,
Rudy Indarsingh, told workers to accept the settlement or
otherwise face retrenchment, the Trinidad Guardian recalls.



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

ANCAP: Opposition Leader Backs JV Law
-------------------------------------
The Uruguayan government gained support from senator Danilo
Astori on a law that would allow state oil company Ancap to find
an international party, reports Business News Americas.

Mr. Astori is the head of Asamblea Uruguay, a political party,
which is part of the Frente Amplio (Broad Front), opposition
coalition. Other coalition members oppose the law.

The Frente has collected enough signatures to call for a
referendum on the law, which will probably be held sometime in
the next two or three months.

But Senator Astori, in reaffirming his support for the
government's position in the referendum, said, "I respect the
position adopted by most of the Frente, but I won't campaign in
favor of a public consultation."

Mr. Astori has said he would not resign from the party.



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

CITGO: Energy Minister Bullish on New Opportunities
---------------------------------------------------
Two new licensing opportunities will be offered next month
authorizing the exploration and production of gas in Blocks 3 and
5 of the Deltana Platform, while additional production and
exploration opportunities will open by the end of this year in
seven offshore blocks in the Gulf of Venezuela and the State of
Falcon.

The announcement was made in Washington DC during the Symposium
"Venezuela: A Reliable Partner. Securing U.S. Energy Needs and
Enhancing Business Opportunities." . Rafael Ramirez, the Minister
of Energy, Luis Vierma, the Vice-Minister of Hydrocarbons, Aires
Barreto, the Vice-President of PDVSA, Bernardo Alvarez, the
Venezuelan Ambassador for the United States and many
representatives of the Oil Chamber of Venezuela, the Venezuelan
Association of Hydrocarbons; the World Bank, U.S. Congress
members and energy firms such as ChevronTexaco, Shell,
Mitsubishi, Statoil, ConocoPhillips, Petrobras, Schlumberger y
ExxonMobil.

The invitations for the upcoming exploration and production
opportunities are part of the offshore strategy advanced by the
government of Venezuela through the Ministry of Energy and with
the technical support of the Venezuelan State Oil Company, PDVSA.
The aim of the strategy is to achieve sustainable development
through energetic diversification. "Eight companies have been
chosen to participate in the exploration and production process
for Blocks 3 and 5 of the Deltana Platform," informed Luis
Vierma, the Vice-Minister of Hydrocarbons, referring to the
blocks of approximately 3 thousand square kilometers expected to
contain large amounts of gas.

Regarding the licensing opportunities authorizing the exploration
and production in the seven offshore blocks in the Gulf of
Venezuela and the State of Falcon, Carlos Barbieri, the General
Manager of the Deltana Platform Project pointed out that they
expect to find important gas and oil reserves that will encourage
oil development and satisfy gas needs in the western part of
Venezuela.

"Previous experience in the exploitation of gas, financial
capacity, access to the international markets and sustainable
development issues are among the requisites that the Ministry of
Energy takes into consideration when it evaluates the
candidates", said Mr. Vierma.

The Vice-Minister of Hydrocarbons also highlighted that it is
estimated that the combined reserves of the Deltana Platform and
Mariscal Sucre projects are so significant that they will be
capable of supplying the demand of gas in the East Coast of the
United States and locally in Venezuelan during the next 35 years.

CITGO Will Be Strengthened

Minister Rafael Ramirez ratified that CITGO, an affiliate of
PDVSA, will be strengthened, and reinforce its presence in the
United States. "The internationalization is part of a series of
strategic policies that include the rise in the base of
resources, the aggregate value of exports, the development of
national capital, the strengthening of the industrialization of
hydrocarbons and the reinforcement of a long term commitment with
OPEC in order to achieve an equilibrium between the producing
country, consumers and investors", said Ramirez.

At the same time, the Head of the Office of Energy and Mines
praised the benefits of the new legal and fiscal framework that
will establish advantages for investors. Ramˇrez commented that
"Our reserves will convert Venezuela into an excellent energy
center in the Western Hemisphere. It is necessary for the
Hydrocarbon sector to contribute to sustainable development, and
in order to do this, we are counting on the support of our
international business partners, because private capital is a
friend of the government of Venezuela."

Regarding the nation's position with respect to the entrance of
new foreign investors, Bernardo Alvarez, Venezuelan Ambassador in
the United States, explained that "We are committed to welcoming
these types of investors because we know that we cannot prosper
as a nation without participating in international business. We
are diligently working to make known the advantages and benefits
that Venezuela has to offer." Additionally, Alvarez underlined
that "Venezuelan petroleum is a critical factor of national
security not just for the United States, but also for all nations
in the Western Hemisphere."

Business Plan 2004-2009

"In its Business Plan 2004-2009, PDVSA will focused on four main
activities: exploration for light and medium crude oils in
traditional areas, the heavy oil monetization, aggressive program
for gas development and enhancing refining and petrochemicals
business", explained Aires Barreto, Vice President of PDVSA.

As an other main activity, Mr. Barreto announced that PDVSA will
also keep their efforts in optimizing its ongoing business
portfolio. "We estimate reaching a production capacity of 5
million barrels per day  for the medium term", Mr. Barreto added.

At the same time, PDVSA will sustain and increase the economic
contribution for the shareholder based on the development of its
huge oil and gas resources. Additionally, PDVSA will be always
acting as a social responsible state-own company.


PDVSA: Seeks To Increase Production Capacity to 6mb/day by 2010
---------------------------------------------------------------
Aires Barreto, Vice President at Venezuela's state oil company
PDVSA, revealed that the Company plans to increase production
capacity to 5-6 million barrels a day (mb/d) by 2010, relates
Business News Americas.

Currently, the Company produces about 3.1mb/d, government
officials say, although private studies put the figure closer to
2.6mb/day.

Mr. Barreto, who spoke at a conference in Washington DC last
week, revealed that the Company will allot US$40bn-45bn for the
production expansion.

In its business plan through 2010, PDVSA will focus on four main
activities: monetizing heavy crude production, exploring for
medium and light crude, developing its gas business, and
downstream activities, PDVSA said in a statement.

The Company will invest about US$5bn a year in the next few
years, with emphasis on exploration and production, followed by
investment in strategic associations, which will mainly be in
integrated projects in the Orinoco belt, according to Mr.
Barreto.



               ***********


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 Oona G. Oyangoren, Editors.

Copyright 2003.  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.


* * * End of Transmission * * *