TCRLA_Public/030729.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 29, 2003, Vol. 4, Issue 148

                          Headlines



A R G E N T I N A

ACINDAR: Local S&P Assigns Default Ratings To Bonds
ANCAR CONSTRUCCION: Court Moves Credit Verication Deadline
ARTE GRAFICO: $600M of Bonds Get 'raD' S&P Rating
AUTOPISTAS DEL SOL: S&P Issues Comments on Debt Restructuring
CODEPSRL: Court Approves Concurso Motion

COMCENTER: Motion For "Concurso Preventivo" Approved
COMPANIA DE INVERSIONES: S&P Assigns 'raD' to Bonds
CTI: Acquisition Won't Impact AMX's Ratings, Says S&P
DISEGA: Court Orders Bankruptcy
DROPHARMA: Court Assigns Receiver For Bankruptcy Process

EL CORRALON: Receives Permission To Start Reorganization
FARGO: Argentine Standard & Poor's Assigns Default Rating
FOODPRO: Under Bankruptcy Protection Following Court Order
HITO: Kicks off Reorganization Process
INFORMATION: Enters Bankruptcy Following Court Ruling

IRSA: Prepays $16M of Debt Due in 2009 at 32% Discount
MOVILAN: Court Orders Bankruptcy
NUTRICION: Informative Audience Date Moved
PETRO MOVIL: Court Assigns Receiver For Bankruptcy
SANATORIO INDEPENDENCIA: Court Declares Company Bankrupt

SIDERFER: Court Moves Deadline For General Report
SUSHI EXPRESS: Goes Bankrupt Following Court Order
SEYCO: Mendoza Court Announces Bankruptcy
TERBON: Receives Court Permission To Start Reorganization

*IMF Concludes 2002 Article IV Consultation with Argentina


B E R M U D A

LORAL SPACE: Wants to Hire Ordinary Course Professionals
MRM: Announces Completion of Scheme of Arrangement with Creditors


B R A Z I L

AHOLD: Wal-Mart Attempting Latin American Business Acquisitions
COSIPA: Signs CoJet System License Agreement with Praxair
CSN: S&P Assigns B+ Rating to Proposed $300M of Senior Notes
TCP: Reduces Net Loss In the Second Quarter 2003
TELEMAR: Commences BRL250 Mln Worth of Domestic Bonds

TELEMAR: Anatel Imposes Fine After Service Failure
TRICO MARINE: Moody's Cuts Senior Unsecured Notes To Caa1
VESPER: Sale To Go Through By Year-End, Says Qualcomm Brasil Exec


C H I L E

ENDESA CHILE: Executive Satisfied With Recent Bond Issue
TELEFONICA CTC: Mixed Expectations Expressed After New Rate Boost


E C U A D O R

*Source Confirms IMF Board To Review Ecuador's Program August 1


J A M A I C A

C&WJ: Dismissals Don't Surprise Unions


M E X I C O

BURLINGTON INDUSTRIES: Announces Agreement With WL Ross
GRUPO IMSA: Announces Second Quarter 2003 Results
GRUPO IUSACELL: Announces General Shareholders' Meeting Results
GRUPO IUSACELL: Issues Second Quarter 2003 Results


P A N A M A

BLADEX: Announces Strategic Alliance With Bank of America


P E R U

VOLCAN: In Strategic Partnership Talks With Glencore

     -  -  -  -  -  -  -  -

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

ACINDAR: Local S&P Assigns Default Ratings To Bonds
---------------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
assigned default ratings to some US$100 million worth of
corporate bonds issued by local company Acindar Industria
Argentina de Aceros. The Argentine National Securities Commission
relates that the rating, which was given last Thursday, was based
on the Company's finances as of the end of March 2003.

The rating applies to bonds, which the NSC described as
"Obligaciones Negociables Simples, no converyibled en aciones,
autorizadas por AGO y E de fecha 5.8.96". These were classified
under "Simple Issue", and would come due on February 16 next
year.

CONTACT:  Acindar Industria Argentina de Aceros SA
          2739 Estanislao Zeballos Beccar
          Buenos Aires
          Argentina
          B1643AGY
          Phone: +54 11 4719 8500
          Fax: +54 11 4719 8501
          Home Page: http://www.acindar.ar.com
          Contact:
          Arturo Tomas Acevedo, Chairman


ANCAR CONSTRUCCION: Court Moves Credit Verication Deadline
----------------------------------------------------------
Court No. 7 of Buenos Aires moved the deadline for credit claims
authentication for the bankruptcy process of local company Ancar
Construccion S.R.L., relates Infobae. Creditors now have until
October 17 to have their claims verified.

The receiver, Estudio Aguilar Pinedo will verify the claims
before the deadline. However, the report did not mention the cut
off dates for the individual and general reports.

COBTACT:  Estudio Aguilar Pinedo
          Montevideo 373
          Buenos Aires


ARTE GRAFICO: $600M of Bonds Get 'raD' S&P Ratings
--------------------------------------------------
The Argentine branch of Standard & Poor's International Ratings,
Ltd. assigned default ratings to US$600 million worth of
corporate bonds issued by Artes Grafico Editorial Argentino S.A.
on Thursday. The rating given was based on the Company's finances
as of March 31, 2003.

The rating applies to bonds, which the National Securities
Commission of Argentina described as "Programa de O.N. Simpls no
convertibles en acciones". The bonds, which mature on January 31
next year, were classified as "Program."


AUTOPISTAS DEL SOL: S&P Issues Comments on Debt Restructuring
-------------------------------------------------------------
Autopistas del Sol S.A. (Ausol: US$380 million notes rated 'D')
announced Thursday that it reached an agreement with most of its
creditors to restructure existing obligations--in the context of
the company's solicitation of an Out of Court Agreement, or
"Acuerdo Preventivo Extrajudicial" (APE). Although Standard &
Poor's Ratings Services considers this a significant step in the
company's debt restructuring, to become effective, the APE must
still be endorsed by a Commercial Court of the City of Buenos
Aires. Once the process is completed and considering that Ausol
still faces the uncertainties related to the unresolved issue of
the renegotiation of concession contracts in Argentina, including
new tariff-setting mechanisms, Standard & Poor's will evaluate
Ausol's resulting repayment capacity to determine the appropriate
rating.

The APE included Ausol's US$170 million 9.35% series A senior
notes due 2004, US$210 million 10.25% senior B notes due 2009,
and other unsecured financial indebtedness. Approximately US$451
million of principal (approximately 95% of total debt) was
tendered.  The company will also repurchase about US$8 million of
debt at 38% of par.

ANALYSTS:  Luciano Gremone, Buenos Aires (54) 11-4891-2143
           Marta Castelli, Buenos Aires (54) 114-891-2128


CODEPSRL: Court Approves Concurso Motion
----------------------------------------
The Civil and Commercial Tribunal of Neuquen approved a motion
for "Concurso Preventivo" filed by local company CO. DE. P.
S.R.L., relates local news source Infobae. Court No. 4 of
Neuquen, which handles the case, set the informative assembly for
August 6 this year. The report, however, did not indicate whether
the court has assigned a receiver or not.


COMCENTER: Motion For "Concurso Preventivo" Approved
----------------------------------------------------
Court No. 1 of Buenos Aires approved a motion for "Concurso
Preventivo" filed by local company Comcenter S.A., local news
source Infobae reports, adding that Secretary No. 1 aids the
court on the case. The deadline for credit claims verification is
August 15, while the informative assembly is set for February 9,
2004. The report, however, did not indicate whether a receiver
has been assigned to the case.


COMPANIA DE INVERSIONES: S&P Assigns 'raD' to Bonds
---------------------------------------------------
Corporate bonds issued by Compania de Inversiones de Energia S.A.
were rated 'raD' by the Argentine brach of Standard & Poor's
International Ratings, Ltd., the National Securities Commission
of Argentina reveals on its web site.

S&P issued the rating on Thursday, taking into consideration the
Company's financial situation as of March 31, 2003. The ratings
agency added that the 'raD' rating is issued to debts that are
currently in default or whose obligor has filed for bankruptcy.

The NSC described the affected bonds as "Obligaciones Negociables
autorizadas por AGE de Fecha 13.12.96", worth a total of US$220
million. These bonds, which matured on April 22 last year, were
classified as "Simple Issue".


CTI: Acquisition Won't Impact AMX's Ratings, Says S&P
-----------------------------------------------------
Standard & Poor's Ratings Services said Friday that America Movil
S.A. de C.V.'s (AMX, local currency: BBB+/Stable/--; foreign
currency: BBB-/Stable/--) announcement that it had acquired an
option from Coinmov to purchase a 60% voting and 49% economic
interest in Coinmov, and eventually, CTI Holdings S.A., will have
no impact on the ratings or outlook of AMX.

Coinmov has entered into an agreement with CTI shareholders to
acquire 100% ownership of CTI. This transaction comes at a time
when CTI is restructuring its debt, and that would result in a
write off of more than 75% of its indebtness, currently at US$1.1
billion. Upon completion of the restructuring, CTI's firm value
would amount to about US$200 million. In Standard & Poor's
opinion, this transaction will not have a significant effect on
AMX's financial profile, because it will not represent a
significant increase in the amount of net debt.

ANALYST: Patricia Calvo, Mexico City (52) 55-5279-2073


DISEGA: Court Orders Bankruptcy
-------------------------------
Disega S.R.L. entered bankruptcy protection following an order by
Court No. 19 of Buenos Aires, local news portal Infobae reports,
without revealing the reasons behind the ruling.

The report adds that the court assigned Mr. Jose Luis Cueli as
receiver for the bankruptcy process. Creditors are informed that
credit claims authentication will end on August 11. The receiver
will then prepare the necessary individual reports for submission
on September 22. The general report will be filed on November 3.

CONTACT:  Disega S.R.L.
          Scalabrini Ortiz 80
          Buenos Aires

          Jose Luis Cueli
          Junin 55
          Buenos Aires


DROPHARMA: Court Assigns Receiver For Bankruptcy Process
--------------------------------------------------------
Mr. Eduardo Simon Akoskin was assigned receiver for the
bankruptcy process of Buenos Aires-based Dropharma S.A., relates
Infobae. Creditors must have their claims verified by September
15 this year, as the receiver is expected to present to the court
the individual reports on October 28, 2003.

The Court also instructed the receiver to hand in the general
report on December 10 this year. The report, however, did not
indicate whether the court has set the date for an informative
assembly.

CONTACT:  Eduardo Simon Akoskin
          Viamonte 1453
          Buenos Aires


EL CORRALON: Receives Permission To Start Reorganization
--------------------------------------------------------
Argentine company El Corralon S.R.L. received permission from the
Civil and Commercial Tribunal of Cutral Co to start its
reorganization process, says Infobae. Court No. 9 of Cutral Co
handles the case.

In the meantime, the court set the informative assembly for
August 19 this year. The report did not mention whether the court
has assigned a receiver.


FARGO: Argentine Standard & Poor's Assigns Default Rating
---------------------------------------------------------
Corporate bonds issued by Compania de Alimentos Fargo S.A.
received default ratings from Standard & Poor's International
Ratings, Ltd. Sucursal Argentina. According to the country's
National Securities Commission, the bonds were called
"Obligaciones Negociables Simples."

The rating, which was issued on Thursday, was based on the
Company's financial situation as of the end of March this year.
The ratings agency said that the 'raD' rating is given to
obligations that are in financial default or whose obligor has
filed for bankruptcy protection.

The affected bonds, worth a total of US$120 million, would mature
on July 24, 2008. These were classified under "Simple Issue", but
its CUSIP was not indicated.


FOODPRO: Under Bankruptcy Protection Following Court Order
----------------------------------------------------------
Argentine company Foodpro S.A. is now under bankruptcy protection
following a ruling from Court No. 15 of Buenos Aires. Infobae
reports that Secretary No. 30 assists on the case.

The bankruptcy process continues with the designation of Mr.
Bernardino Alberto Margolis as receiver, with the Court's
instruction to authenticate creditors' claims until October 10
this year.

CONTACT:  Bernardino Alberto Margolis
          Parana 426
          Buenos Aires


HITO: Kicks off Reorganization Process
--------------------------------------
Hito S.A., which is based in Corrientes, Argentina, started its
reorganization process after the Civil and Commercial Tribual of
Corrientes approved its motion for "Concurso Preventivo," local
news portal Infobae relates.

The court designated Ma. Maria Marcela Lopz Horts as receiver for
the process. Creditors have until September 25 to have their
claims authenticated by the receiver.

The Court expects the individual reports to be filed on November
20 this year, followed by the general report on February 27,
2004. Creditors are expected to attend the informative audience
on October 15, 2004.

CONTACT:  Hito S.A.
          Tucuman 1391
          Corrientes

          Maria Marcela Lopez Horts
          9 de Julio 1331
          Corrientes


INFORMATION: Enters Bankruptcy Following Court Ruling
-----------------------------------------------------
Court No. 6 of Buenos Aires ruled that local company Information
S.A. begin bankruptcy proceedings, reports Infobae. There was no
explanation given for the ruling.

The Court assigned Mr. Jorge Vilarino as receiver and set the
deadline for the verification of credit claims authentication at
October 8, 2003.

The receiver will file the individual reports on November 19,
followed by the general report on February 4, 2004. The report
did not mention whether the date for an informative assembly has
been set.

CONTACT:  Jorge Vilarino
          Fonrouge 1346
          Buenos Aires


IRSA: Prepays $16M of Debt Due in 2009 at 32% Discount
------------------------------------------------------
IRSA Inversiones y Representaciones Sociedad Anonima (NYSE: IRS)
(Buenos Aires Exchange: IRSA) announces that the prepayment offer
made on June 20, 2003, to the seven banks holding its debt paper
has been accepted by HSBC Bank Argentina S.A. As a result, IRSA
paid HSBC US$ 10.9 million, which represents 68% of the face
value of the US$ 16 million Syndicated Loan (Loan Agreement US$
51,000,000) due November 2009. The early payment resulted in a
discount of US$ 5.1 million.

It should be noted that last year IRSA refinanced all of its
liabilities at very favorable rates and maturities. IRSA also
issued a new convertible bond in the amount of US$ 100 million,
allowing it to emerge from the crisis in a strong cash position.
Such sizeable liquidity is what makes it possible for IRSA to
offer creditors prepayments and further bolster its financial
position.

The debt repurchase was executed according to the procedures set
forth in the Syndicated Loan Agreement.


MOVILAN: Court Orders Bankruptcy
--------------------------------
Buenos Aires-based Movilan S.A. was declared bankrupt by city
Court No. 4, local news source Infobae reports. The court,
assisted by Secretary No. 7, desginated Mr. Gustavo Alejandro
Pagliere as receiver for the process. Creditors have until August
22 to have their claims authenticated.

CONTACT:  Gustavo Alejandro Pagliere
          Tucuman 1424
          Buenos Aires


NUTRICION: Informative Audience Date Moved
------------------------------------------
The date for the informative audience for the reorganization
process of local company Nutricion S.A. was moved to August 22,
according to Argentine news portal Infobae. The news source adds
that the Company's case is under Court No. 5 of Buenos Aires,
which is assisted by Secretary No. 10.


PETRO MOVIL: Court Assigns Receiver For Bankruptcy
--------------------------------------------------
Court no. 2 of Buenos Aires, which recently declared local
company Petro Movil S.R.L. bankrupt, designated Mr. Juan Ignacio
Estevez as receiver for the process. Argentine news portal
Infobae suggests that the receiver will authenticate credit
claims until September 1 this year.

The report adds that the individual reports will be filed on
October 16 followed by the general report on November 28.
However, it did not mention whether the court has chosen a date
for an informative assembly yet.

CONTACT:  Juan Ignacio Estevez
          Uruguay 750
          Buenos Aires


SANATORIO INDEPENDENCIA: Court Declares Company Bankrupt
--------------------------------------------------------
Sanatorio Independencia S.A. was declared bankrupt by Buenos
Aires Court No. 7. Local news portal Infobae relates Secretary
No. 13 assists the Court on the case.

The Company was entrusted to the receiver, Mr. Carlos Alberto
Llorca, who will verify claims until September 26, 2003. The
report did not indicate the deadlines for the individual and
general reports.

CONTACT:  Carlos Alberto Llorca
          Carlos Pellegrini 385
          Buenos Aires


SIDERFER: Court Moves Deadline For General Report
-------------------------------------------------
Court No. 1 of Buenos Aires decided to move the deadline for the
general report for the reorganization process of local company
Sidefer S.A. to December 19 this year. Local news source Infobae
relates that the informative assembly will be on June 21 next
year.


SUSHI EXPRESS: Goes Bankrupt Following Court Order
--------------------------------------------------
Buenos Aires-based Sushi Express S.R.L. was declared bankrupt by
the city's Court No. 23, relates local news source Infobae. The
report adds that the court has designated Ms. Gloria Leonoe Della
Sala as receiver for the process.

The deadline for the authentication of credit claims is August 25
this year. The individual reports are due for submission on
October 6, while the general report must be filed on November 17.
The report, however, did not mention whether the court has chosen
a date for an informative assembly.

CONTACT:  Sushi Express S.R.L.
          25 de Mayo 432
          Buenos Aires

          Gloria Leonor Della Sala
          Uruguay 662
          Buenos Aires


SEYCO: Mendoza Court Announces Bankruptcy
-----------------------------------------
The Civil and Commercial Court of Mendoza announced that Seyco
S.A. will enter bankruptcy proceedings. Infobae reports the Court
No. 2, which handles the Company's case, assigned Ms. Estela
Gargantini as receiver.

Creditors have until November 22 to have their claims verified by
the receiver. After that, the receiver will prepare the
individual reports, which are to be submitted to the court on
November 3. The deadline for the general report is December 16
this year.

CONTACT:  Seyco S.H.
          Vicente Vargas 44
          Lujan, Mendoza

          Estela Gargantini
          Mtre 660
          Mendoza


TERBON: Receives Court Permission To Start Reorganization
---------------------------------------------------------
The reorganization process of Argentine company Terbon S.A. is
proceeding after the authentication of credit claims, relates
local news source, Infobae. Creditors have until August 28 to
have their claims verified.

Court No. 1 of Buenos Aires instructed the receiver, Mr. Mario
Sogari to submit the individual reports on October 13, followed
by the general report on November 24. The informative assembly
will be on May 27 next year.

CONTACT:  Mario Sogari
          Montevideo 734
          Buenos Aires


*IMF Concludes 2002 Article IV Consultation with Argentina
----------------------------------------------------------
On January 8, 2003, the Executive Board of the International
Monetary Fund (IMF) concluded its Article IV consultation with
Argentina.

Background

Since the last Article IV consultation, which was concluded in
September 2000, far-reaching developments in Argentina have
transformed its economic situation and prospects. A complex set
of factors resulted in the massive loss of domestic and foreign
confidence that forced Argentina's sovereign default in late
2001, and the abandonment of its decade-long currency board
arrangement in early 2002.

At the macroeconomic level, the currency board arrangement was
not adequately supported by the rest of the policy framework.
Inflexibilities in many sectors of the economy could not
compensate for the real appreciation experienced during the 1990s
partly reflecting the strong U.S. dollar and the depreciation of
the Brazilian real after 1999. In particular, fiscal policy grew
progressively inconsistent with the demands of the currency board
regime and a sizable public debt was built up during the second
half of the 1990s. On the external front, reduced appetite of
foreign investors for emerging market debt caused a sharp
slowdown of capital inflows to Argentina, leading to a sudden and
significant increase in the marginal cost of borrowing that
weakened the prospects for economic growth and debt rollovers.

Origins of the Crisis

The role of fiscal policy was central to the crisis. Persistent
cash deficits and "off-budget" debt-creating expenditures added
to a mainly dollar-denominated public debt. Even in the years of
high growth following the reforms of the early 1990s, the fiscal
effort was insufficient to produce adequate primary surpluses.
These fiscal problems were the product of vested interests, and
resistance to fiscal reforms in the provinces. The sustainability
of the higher public debt ratio depended on maintaining healthy
growth, strengthening the fiscal primary balance, and ensuring
access to international capital. In the event, none of these
conditions came to apply.

The prolonged recession that preceded the crisis reflected both
falling confidence and a lack of flexibility in the economy that
was incompatible with the currency peg. The steady real
appreciation of the peso could not be accommodated in an orderly
fashion given structural rigidities in the labor market and
fiscal policy. Eventually, the brunt of the adjustment fell on
domestic prices and employment, placing the economy on a
deflationary path and making it difficult to get the political
support to re-orient economic policies.

High dollarization of the economy meant that any exit from the
convertibility plan was bound to be very costly and disruptive.
As a consequence, successive governments have shown a high degree
of reluctance to consider an orderly transition to another
exchange rate regime. Not only was fiscal solvency tied to the
currency peg, but also that of the financial system. Banks were
heavily exposed to losses from a government default and to credit
risk in the event of a devaluation, as a result of making U.S.
dollar-denominated loans to clients whose earnings were
denominated mainly in pesos. At a more general level, the
dominance of the nontradable sector and narrow export base were
fundamentally at odds with a liberalized capital account, and a
high reliance on dollar-denominated borrowing.

Developments in 2001-02

In 2001, the economy entered the third consecutive year of
negative growth. After a cumulative decline of 4 percent in
1999-2000, real GDP fell by 4 percent in 2001, and prices
continued to decline. In the first nine months of 2002 real GDP
is estimated to have fallen by 13 percent (reflecting large
declines in consumption and investment), although economic
activity appears to have stabilized since then. By October 2002,
the unemployment rate is estimated to have risen to about 23
percent and there was a large increase in the number of people
living in poverty. The price deflation of earlier years was
reversed in 2002 following the sharp depreciation of the peso.
Monthly inflation peaked in April at 10 percent, and slowed
sharply from mid-2002.

The public finances deteriorated sharply in 2001, at both the
federal and provincial level, with the overall cash deficit of
the consolidated public sector increasing by 2_ percent of GDP to
6 percent of GDP. The position improved in 2002, owing mainly to
the implementation of a revised revenue-sharing agreement with
the provinces and tight control over spending. The cash fiscal
position, however, conceals the extent of the underlying
deterioration in the public finances, as there were large debt-
creating expenditures, such as bond issuance in connection with
the banking crisis, and the capitalization of interest payments.
A comprehensive measure would bring the augmented primary and
overall deficits of the consolidated public sector in 2002 to 11
percent and 25 percent of GDP, respectively. The public debt-to-
GDP ratio is estimated to have risen to 119 percent by June 2002.

Financing difficulties and the collapse of economic activity
shifted the external current account from a deficit of about
US$4.5 billion in 2001 to a surplus of about US$9 billion in
2002. The adjustment was driven by a sharp contraction in
imports, while exports were flat. Private net capital outflows in
2001-02 are estimated at about US$38 billion, while gross
international reserves fell by US$20 billion to about US$10
billion. In 2002, external payments arrears reached about US$8.25
billion, including to multilateral and bilateral creditors.

Executive Board Assessment

Executive Directors regretted that, since the last Article IV
consultation in September 2000, Argentina has faced an acute
economic and social crisis. Argentina's situation has been
fundamentally transformed, with the economy contracting and the
poverty and unemployment situation deteriorating. A complex set
of economic, institutional, and political factors has led to a
massive loss of confidence, default on the foreign debt, and
abandonment of the decade-long currency board arrangement.
Against this background, Directors expressed their conviction
that Argentina will need to formulate and implement-with support
of the international community-a strongly-owned program of
stabilization and wide-ranging reforms to resolve deep-seated
institutional, macro-economic and financial problems, restore
confidence, and rebuild economic growth and financial
sustainability. They expressed the hope that a transitional
program, that could build a bridge to such a comprehensive
program, could be agreed at an early date. In particular,
Directors hoped that the transitional program will include
credible commitments in the area of fiscal and monetary policies,
actions to strengthen the banking system, and measures to
strengthen Argentina's cooperation with the international
community and dialogue with the private sector, in ways that will
facilitate a workable transition to a comprehensive program.

Directors had a wide-ranging discussion of the crisis that
engulfed Argentina at the end of 2001. They were of the view that
Argentina's currency board arrangement was ultimately undermined
by its lack of support from the domestic policy framework and by
unfavorable external circumstances. In particular, a
deteriorating fiscal performance (including off-budget
expenditures, persistent provincial deficits, and revenue
mismatch in the pension reform) resulted in rising public debt,
while structural rigidities, including in the labor market,
prevented adjustment to an appreciating real exchange rate.
Argentina's vulnerability to external shocks was further
compounded by the small size and relatively undiversified
structure of its export sector relative to the increasing
openness of its capital account and reliance on external
financing. Some Directors also drew the conclusion that, while
the currency board may initially have served Argentina well, it
had not been an adequate exchange rate regime choice given the
fiscal choices made in Argentina and unfavorable external
developments.

More broadly, Directors underscored the critical importance of
addressing vulnerabilities before they become severe, and the
important role that Fund surveillance and conditionality have to
play in focusing early and sufficiently on sustainability issues.
They considered that timely action to correct vulnerabilities,
which in the case of Argentina would likely have included an
orderly exit from the currency board arrangement, might very well
have prevented a crisis that-in the absence of strong domestic
ownership of policies crucial for sustainability-became
inevitable. Some Directors also noted that the Argentina crisis
highlights the importance of properly integrating external
factors, including regional dimensions, into Fund surveillance.
The Executive Board will have further opportunities to come back
to these issues in the broader context of the ongoing effort to
strengthen surveillance and focus conditionality.

Turning to the authorities' initial response to the crisis,
Directors regretted the time it had taken to develop a consistent
policy response that would have enabled Argentina to move toward
a Fund-supported program during 2002. Initial failure to build a
strong political consensus toward resolving the crisis in an
orderly and equitable way-admittedly a difficult task given the
severity of the situation-had contributed to policy reversals
that greatly added to the social cost of the crisis. In
particular, Directors noted that early government actions during
2002-such as the decisions to convert banks' foreign currency
denominated assets and liabilities into pesos at asymmetric
exchange rates, and amendments to the insolvency law that tilted
the balance sharply against creditors-had exacerbated the
economic situation and impeded recovery.

Directors were nevertheless encouraged by signs of a return to
economic stability in the second half of 2002. Following a sharp
decline in real GDP, economic activity has stabilized in recent
months; inflation has slowed sharply from its April peak; the
external position shows some signs of improvement; and the
banking system as well as market indicators have been relatively
stable. Directors welcomed the fiscal spending restraint that has
contributed to achieving this stability, but cautioned that it
also reflects controls on foreign exchange transactions and on
utility prices. They were concerned that, with fiscal and banking
solvency still to be assured, and indications of repressed
inflation, stability is still fragile, and needs to be put on a
firm footing.

Directors considered that, in building an enduring recovery,
reversing rapidly rising poverty trends, and achieving external
and fiscal sustainability, Argentina will need to address five
major challenges in the context of a sustained medium-term
restructuring effort. These are, first, giving reassurances about
legal certainty and the political consensus for reforms; second,
establishing a robust fiscal framework encompassing the
provinces; third, continued progress in resolving the monetary
overhang and restoring confidence in the banking system; fourth,
undertaking structural reforms to further liberalize the economy
and increase trade openness; and fifth, restructuring debt and
reestablishing orderly relations with creditors. While a credible
program of core measures, including strong fiscal and monetary
performance, can facilitate the transition period to a new
government, Directors stressed that only full implementation of a
comprehensive program, based on strong domestic ownership, can
achieve lasting results. In this context, some Directors called
for a broad-based public debate to forge the political, economic,
and social consensus that will be needed to support the required
reforms.

Directors underscored the urgency of restoring legal certainty in
Argentina-as a precondition to reviving new credit flows,
investment, and growth. They noted that, even after the reversal
of earlier measures, creditors continue to face uncertainties
about the enforcement of their contractual rights, and urged the
authorities to work expeditiously toward improving the investment
environment. Directors hoped that market concerns about the
continuity of economic policies following the political
transition could be quickly addressed, and looked forward to
continued actions in the institutional sphere to improve
governance and secure the respect for the rule of law.

Directors viewed the restoration of fiscal solvency as a sine qua
non of a sustainable economic program, and noted that this task
will require a fundamental break with the past involving several
dimensions affecting both the federal government and the
provinces. In the short run, both levels of government will
inevitably need to rely on tight control over primary spending,
and Directors saw expenditure restraint as key to achieving the
targeted consolidated primary surplus of 2.5 percent of GDP in
2003 and closing the financing gap without monetization. At the
same time, it will be important to ensure that social safety net
programs are adequately funded and become fully operational.

Going forward, Directors agreed that rebuilding tax
administration and a culture of compliance will be essential to
raising revenues and attaining the higher primary surpluses that
will help sustain the public finances in the medium term. In this
context, some Directors noted that Argentina's revenue effort is
below several other countries in the region. Directors urged the
authorities to plan the needed tax reforms without further delay
and build consensus for them, and welcomed recent legislation
eliminating the ability of the executive to grant tax amnesties
as a key step toward a comprehensive reform of the tax system.
They also called for continued efforts to eliminate remaining
Competitiveness Plans, and looked forward to the re-instatement
of the recently cut VAT rates to their previous levels at the end
of the 60-day reduction period.

Directors were strongly of the view that provincial governments
need to be firmly anchored in the adjustment effort in order to
achieve fiscal sustainability. Work should begin as soon as
possible toward a comprehensive reform of intergovernmental
relations that would draw upon the lessons from Argentina's poor
fiscal performance in the 1990s, and that would be supported by
an incentive structure that ensures fiscal discipline and
responsibility at all levels of government. In the short run,
Directors urged the authorities to seek early ratification by
provincial legislatures of the bilateral agreements that would
underpin the 2003 fiscal targets for the provinces, and to make
additional efforts to improve the transparency, quality, and
timeliness of the data reported on the provincial finances to
ensure effective monitoring. They also saw as essential for
monetary and fiscal discipline that provinces end the issuance of
all new quasi monies.

Turning to monetary control issues, Directors considered the
consolidation of a credible monetary anchor as crucial to
maintaining macroeconomic stability. They commended the central
bank's efforts in building its instruments of monetary control,
but a number of Directors cautioned about the risks associated
with potentially significant leakages related to the amparos and
the reprogrammed time deposits to be released in 2003. Some other
Directors, however, saw this risk as rather low, given the
experience thus far and the relatively robust demand for money.
Directors welcomed the recent stability and rise of bank deposits
and expressed the hope that a credible short-term economic
program would reinforce this stabilizing trend. They noted,
however, that the pending ruling by the Supreme Court on the
constitutionality of the pesoization of bank deposits is adding
to uncertainties, and underscored the importance of resolving
this issue in a manner that does not undermine establishing a
credible monetary anchor.

Directors discussed several other steps that would more fully
restore depositor confidence, limit the fiscal costs of the
crisis, and rebuild a sound banking system-all of which are
necessary to promote domestic saving, investment, and growth.
They urged the authorities to work in close cooperation with the
Fund staff on bank resolution issues and in implementing an
orderly strategy to identify and resolve weak banks according to
consistent principles. Directors looked forward to early strong
efforts to further strengthen confidence in the banking system,
which will be key to ensuring lasting economic stability. They
also encouraged the authorities to reaffirm their commitment to
safeguarding and strengthening central bank independence, and
looked forward to early approval of legislation that would
protect public officials carrying out their duties in the bank
resolution process. Directors welcomed the authorities' efforts
to strengthen the central bank's system of internal controls, and
encouraged them to stand ready to take further actions as needed
in line with the Fund's safeguards assessment.

On structural issues, Directors considered that the greater
stability in the economy provides the opportunity to liberalize
the exchange controls that had been imposed in 2002 at the height
of the crisis, and to initiate wide-ranging reforms necessary to
revive investment and growth. They welcomed, in this regard, the
steps recently taken, including those announced immediately prior
to the Board meeting, to remove most of the remaining Article
VIII exchange restrictions and ease export surrender
requirements. Directors looked forward to early further steps to
liberalize the restrictive compulsory export surrender
requirement which would help rebuild confidence.

Most Directors noted with concern that the situation regarding
utility pricing could be putting a large burden on price
adjustments in 2003, and regretted that the recently decreed
tariff increases for gas and electricity companies, as well as
the public hearings on tariff increases, have been halted by the
courts. Directors underscored the urgency of an early joint
IMF/World Bank diagnostic mission to assess the financial
situation of the utility companies and develop an appropriate
regulatory framework that will secure their financial and
operational viability, while ensuring that the social impact of
price adjustments is properly taken into account.

Among other structural reforms, Directors saw a need for a
renewed emphasis on trade liberalization and diversification,
given Argentina's relatively low level of trade integration. They
encouraged the authorities to further lower trade barriers, and
seek improved market access for Argentina's products in the
context of regional and multilateral trade negotiations. In the
short-term, efforts should focus on reducing administrative
obstacles to exports, and, over time, phasing out export taxes.

Directors underscored that, in order to strengthen Argentina's
medium-term outlook, the authorities face the key challenge of
restructuring Argentina's public debt in a manner that will help
normalize relations with private creditors and begin the process
of attracting capital flows back into the country. They welcomed
the authorities' recent steps to initiate contacts with private
creditors, and their intention to intensify this dialogue with
the assistance of external debt restructuring advisors. Directors
looked forward to continued progress, particularly with
institutional investors, in this area, and urged the authorities
to make all necessary efforts toward advancing a constructive
dialogue with private creditors on a debt restructuring,
consistent with the "good faith" criterion under the Fund's
policy for lending into arrears. While noting that significant
net payments had been made by Argentina to the international
financial institutions in 2002, Directors regretted Argentina's
decision to fall into arrears with the World Bank and urged the
authorities to eliminate them as soon as possible. This will
clear the way for implementation of the Bank's program of social
support under the Heads of Household program. Directors urged the
authorities to remain current on their obligations to the
international financial institutions.

Directors noted that, even with the maintenance of a substantial
fiscal adjustment effort, Argentina's medium-term debt outlook
appears very difficult. Debt ratios will remain very high and
financing needs very large, while prospects for regaining market
access will likely improve only gradually. They urged the
authorities to work closely with the international community and
to strengthen their efforts to reach a cooperative solution with
private creditors to secure financing and achieve fiscal and
external sustainability over the medium term.

CONTACT:  INTERNATIONAL MONETARY FUND
          700 19th Street, NW
          Washington, D.C. 20431 USA

          IMF EXTERNAL RELATIONS DEPARTMENT
          Public Affairs: 202-623-7300 - Fax: 202-623-6278
          Media Relations: 202-623-7100 - Fax: 202-623-6772



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

LORAL SPACE: Wants to Hire Ordinary Course Professionals
--------------------------------------------------------
Loral Space & Communications Ltd., and its debtor-affiliates ask
for approval from the U.S. Bankruptcy Court for the Southern
District of New York to continue employing professionals they
turn to in the ordinary course of their businesses.

The Debtors want to continue to employ the Ordinary Course
Professionals to render a wide variety of services to these
estates in the same manner and for the same purposes as the
Ordinary Course Professionals did prior to the Commencement Date.
In the past, these professionals have rendered a wide range of
services relating to such broad topics as:

- litigation,

- regulatory matters both foreign and domestic,

- contracts,

- real estate,

- financing transactions, and

- tax.

It is essential that the employment of these Ordinary Course
Professionals, many of whom are already familiar with the
Debtors' businesses and affairs, be continued to avoid disruption
of the Debtors' normal business operations. The Debtors submit
that the employment of the Ordinary Course Professionals and the
payment of monthly compensation are in the best interest of their
estates and of their creditors. The employment will save the
estates substantial expenses associated with applying separately
for the employment of each professional. Further, this will avoid
the incurrence of additional fees relating to the preparation and
prosecution of interim fee applications.

The Debtors propose that they be permitted to pay each Ordinary
Course Professional, without a prior application to the Court,
100% of the fees and disbursements incurred, upon the submission
of an appropriate invoice setting forth in reasonable detail the
nature of the services rendered and disbursements actually
incurred, up to the lesser of:

(a) $50,000 per month per Ordinary Course Professional or

(b) $500,000 per month, in the aggregate, for all Ordinary
Course Professionals.

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, July
28, 2003, Vol. 7, Issue 147)


MRM: Announces Completion of Scheme of Arrangement with Creditors
-----------------------------------------------------------------
Mutual Risk Management Ltd. ("MRM") announced Friday that the
Scheme of Arrangement with its creditors had been declared
effective.

As has been previously announced, the Scheme restructures MRM's
senior debt. The principal amount of the debt is $198 million,
comprised of approximately $110 million owing under the Company's
credit facility and $88 million owing to holders of the Company's
9 3/8% debentures. Under the Scheme, the senior debt holders have
exchanged their existing debt for preferred stock and warrants to
purchase 15% of the common stock of MRM on a fully diluted basis
as well as debt, preferred stock and 80% of the common stock of
the MRM's subsidiary, IAS Park Ltd. ("IAS Park"). IAS Park holds
MRM's captive management and insurance brokerage operations.

As a result of the restructuring, the MRM's remaining principal
assets are 20% of the common shares of IAS Park and all of the
common stock of its U.S. insurance companies. These common shares
in IAS Park are subordinate to the debt and preferred stock of
IAS Park and are unlikely to provide value to the common
shareholders of MRM. The likelihood of the realization of value
from MRM's investment in its US insurance companies is also very
remote, as such companies will almost certainly be liquidated in
the near future.

CONTACT:  Mutual Risk Management Ltd.
          Angus Ayliffe
          Phone: 441 295-5688



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

AHOLD: Wal-Mart Attempting Latin American Business Acquisitions
---------------------------------------------------------------
Wal-Mart Stores Inc., the world's biggest retailer, is reportedly
eyeing the Brazilian, Argentine, and Peruvian units of Dutch
retailer Ahold,

Wal-Mart representatives in Brazil, as well as a spokesman at its
headquarters in Bentonville, Arkansas, have refused to comment on
the report, but sources close to the process suggested that Wal-
Mart has not put forward an offer for the Brazilian unit, which
is on the block, because it is negotiating to make a single bid
for the Ahold businesses in all three countries.

Reuters recalls that Ahold is selling Bompreco Supermercados do
Nordeste and G. Barbosa Comercial in Brazil. Its Hipercard credit
card business is also up for sale.

ABN Amro, which is handling the sale, is due to allow prospective
bidders access to the Brazilian units' books, the so-called data
room, at a hotel in Recife in northeastern Brazil next week.

The Brazilian assets will be sold together, but ABN Amro allowed
companies that were interested in the credit card business access
to the books of Hipercard early so firms could join forces with a
prospective buyer of the retailers, says Reuters.

Each company will have one week to study the data, and final bids
for the Ahold assets are expected in September.

Ahold is also selling its Disco SA unit in Argentina and its two
Peruvian supermarket chains in the capital Lima.

Wal-Mart, which has only a small presence in South America, with
11 stores in Argentina and 23 in Brazil, is banking on
international expansion to drive sales and profit growth in the
next few years.


COSIPA: Signs CoJet System License Agreement with Praxair
---------------------------------------------------------
Praxair, Inc. (NYSE: PX) has signed a CoJet(R) gas injection
system license agreement with Cosipa (Companhia Siderurgica
Paulista), an integrated steel maker in Brazil. Cosipa, a
subsidiary of Sistema Usiminas, is the second steel mill to
license the patented CoJet technology for use in its basic oxygen
furnace (BOF). Sistema Usiminas was the first company to sign a
commercial CoJet technology agreement.

The CoJet system consists of a proprietary oxygen lance with a
patented tip, which delivers a laser-like supersonic jet of
oxygen into the steel bath resulting in better metallic yield
from the steel refining process. At Cosipa, the CoJet technology
will be used to reduce costs and increase productivity, with the
benefits being shared between Praxair and Cosipa.

Cosipa's superintendent, Jose Erasmo Andrade Pereira, estimates
that the CoJet technology will be installed by the end of 2003.
"My expectation is that we will see the benefits from Praxair's
CoJet system about four months after the installation of the
equipment."

"We are very excited about continuing the global
commercialization of Praxair's CoJet gas injection system,"
stated Charles J. Messina, vice president of Praxair Metals
Technologies. "The license agreement with Cosipa is an important
step in the growing use of CoJet technology in the integrated
steel-making market."

The integrated steel market produces more than 500 million tons
of steel through basic oxygen furnace shops annually. Praxair
estimates that an average-sized steel production unit is able to
get a 100% return on capital within one year of implementation.

Cosipa had a 2002 income of 3.4 billion Reais on sales of 3.5
million tons of steel products. The company manufactures flat
steel products such as slabs, heavy plates, hot-rolled and cold-
rolled steel. In 2002, Cosipa sold 2.1 million tons to domestic
market and exported 1.4 million tons. The company has invested
about US$1.1 billion in environmental, health and safety and
renovation programs throughout its industrial complex, one of the
most expensive programs of steel sector restructuring. Today
Cosipa is part of a select group of companies with certificates
in quality (ISO 9001 version 2000), environment (ISO 14001) and
safety and work health (OHSAS 18001).

Praxair Metals Technologies is the Praxair business unit
responsible for the development, marketing and licensing of
Praxair's technology for process control software and technical
services in energy conservation, product quality and productivity
in steel, aluminum and other metals customers around the world.
For more information, visit us on the Internet at
www.praxair.com/metals.

Praxair is the largest industrial gases company in North and
South America, and one of the largest worldwide, with 2002 sales
of $5.1 billion. The company produces, sells and distributes
atmospheric and process gases, and high-performance surface
coatings. Praxair products, services and technology bring
productivity and environmental benefits to a wide variety of
industries, including aerospace, food and beverage, healthcare,
semiconductor materials, steel, chemicals and refining, metal
fabrication, water treatment, glass and others. More information
on Praxair is available on the Internet at www.praxair.com.

CONTACT:     Praxair, Inc.
             Jonathan Lee, Media
             203-837-2039
             jon_Lee@praxair.com
             or
             Elizabeth Hirsch, Investors
             203-837-2354
             liz_hirsch@praxair.com


CSN: S&P Assigns B+ Rating to Proposed $300M of Senior Notes
------------------------------------------------------------
Rio de Janeiro-based CSN obtained a B+ foreign currency rating
from Standard & Poor's on the proposed US$300 million of senior
notes due 2008.

The notes are likely to be issued this week or so, Business News
Americas reports, adding that the rating reflects the foreign
currency rating on Brazil's sovereign debt.

As of March 2003, CSN reported total debt of approximately US$2
billion, which translates into an Ebitda to total gross debt
ratio of 2.5x in the 12 months ended March 31. According to S&P's
analysis, the debt level of CSN's controlling shareholder,
Vicunha Siderurgia, consisting of obligations amounting to US$672
million as of March 2003, is also included. With these
liabilities added to CSN's own debt, total gross debt to Ebitda
weakens to 3.3x, in the 12 months ended March 31.

CSN's liquidity is adequate for the rating category, S&P said.

Despite high short-term debts held by CSN and Vicunha, the
Company also holds strong cash reserves of US$622 million,
invested in liquid assets and marketable securities in Brazil,
the ratings agency said.

Hedging policies have also protected the Company's cash
generation and liquidity from currency depreciation, S&P said.


TCP: Reduces Net Loss In the Second Quarter 2003
------------------------------------------------
Telesp Celular Participacoes S.A. - TCP (NYSE: TCP; BOVESPA:
TSPP3 (Common), TSPP4 (Preferred)), announced Thursday its
consolidated results for the second quarter 2003 (2Q03). The
closing share prices as of July 24, 2003 were: TSPP3 R$ 4.13 /
1,000 shares; TSPP4 R$ 4.57 / 1,000 shares; and TCP US$ 3.98 /
ADR (1:2,500 preferred shares). TCP is a Brazilian holding
company that owns: (i) 100% of Telesp Celular S.A.; (ii) 100% of
Global Telecom S.A.; and (iii) 61.1% voting interest (20.4% of
total capital) of Tele Centro Oeste Celular Participacoes S.A.
("TCO"). TCP and its subsidiaries are part of the Joint Venture
controlled by Portugal Telecom and Telefonica Moviles in Brazil,
operating under the Vivo brand.

Operating cash flow presented a significant increase of 31.5% in
2Q03 reaching R$ 348.3 million (US$ 121.3 million), after capital
expenditures totaling R$ 96 million (US$ 33.4 million).
Considering the consolidation of TCO, operating cash flow grew
66% compared to 2Q02.

The Company showed a significant improvement in its net loss,
which was reduced by R$ 116.3 million (US$ 40.5 million) in 2Q03
compared to 2Q02. Net loss for the quarter was R$262.2 million
(US$ 91.3 million).

Total net revenues grew 21% YOY, faster than client base growth
of 17%. TCO contributed 22% of TCP's total net revenues of R$
1,512.0 million (US$ 526.5 million) in 2Q03.

TCP's postpaid client base continued to grow, confirming the
trend seen over the past few quarters, reaching 2.6 million.

Personnel, G&A and other expenses represented 9.8% of total net
revenues in 2Q03, a decrease of 2.5 p.p. compared to 12.3% in
2Q02, reflecting the Company's effort to adopt best practices and
achieve productivity gains.

After only two months into the launch of the new brand, Vivo
reached 25% of Top of Mind, three points ahead of the second
ranking consumer brand.

CONTACT:  Telesp Celular Participacoes S.A.
          IR Advisor: Edson Menini, (55 11) 3059 7975
          emenini@vivo.com.br


TELEMAR: Commences BRL250 Mln Worth of Domestic Bonds
-----------------------------------------------------
Telemar, Brazil's largest phone company, commenced BRL250 million
(US$86.4mn) worth of non-convertible domestic bonds Friday,
reports Agencia Estado, without indicating where the proceeds of
the offer will go. The offer consisted of two parts, with 15,000
debentures maturing June 1, 2005 and 10,000 papers maturing on
the same date in 2006.


TELEMAR: Anatel Imposes Fine After Service Failure
--------------------------------------------------
Telemar was slapped with a BRL1.06-million (US$370,000) fine by
the country's telecoms regulator Anatel for falling short of
quality requirements, Business News Americas reports. In a
statement, Anatel reveals that the breaches refer to a three-
month period in 2000, when Telemar failed to respond to line
repair solicitations within a certain period of time.


TRICO MARINE: Moody's Cuts Senior Unsecured Notes To Caa1
---------------------------------------------------------
Moody's Investors Service downgraded the senior unsecured ratings
of Trico Marine, ending review for downgrade. The actions
affected the following ratings:

- US$250 million of 8.875% senior unsecured notes, due 2012,
downgraded to Caa1 from B2

- Senior implied rating to B3 from B1.

- Senior unsecured issuer rating from B2 to Caa1.

The outlook remains negative.

The downgrades reflected:

1) Leverage.

2) Negative secular oil and gas producer capital spending trends
in two of TMAR's three core basins, the Gulf of Mexico (GOM) and
North Sea, and substantial excess sector vessel capacity in those
basins.

3) Continued lack of a visible adequate up-cycle catalyst
elsewhere to retain the prior ratings, as noted in the May 9,
2003 release.

4) Added uncertainty and risk from TMAR's largest competitor's
(Tidewater) potential game-changing shift in its GOM pricing
strategy.

Tidewater's GOM fleet utilization is a very low 24%. The GOM and
North Sea continue to fall secularly behind more prospective
regions of the world in the global competition for producer
capital reinvestment.

Also, Norwegian North Sea capital outlays by Norwegian producers
will be restrained for tax and political reasons into 2004.

Moody's further noted:

1) Tight bank covenants.

2) Ongoing out-migration of GOM drilling rigs to Mexican and West
African markets on reduced expectations for GOM drilling,
resulting in a reduced fleet of GOM rigs needing vessel support.

3) Reduced earning power due to TMAR's planned sale of one large
North Sea vessel and one Brazilian newbuild to reduce debt and
boost liquidity.

4) Competitive implications and capital needs of its above
average age fleet.

5) The continued influx of new vessels coming to market as
competitors' flee upgrades proceed.

6) TMAR's small participation in currently soft but secularly
stronger West African and deepwater GOM markets.

The ratings are supported by expected firmer second quarter 2003
and second half 2003 EBITDA, improving liquidity due to planned
asset sales; TMAR's foothold in the relatively active Brazilian
offshore sector (though it may sell a key asset under
construction), and management's intention to take further actions
needed to improve TMAR's position, including potentially
attempting to raise equity to improve its competitive position.

The negative outlook could move to stable if sector conditions
and TMAR's sequential cash flow begin to support debt reduction
to levels compatible with higher ratings. The outlook is unlikely
to move to positive without an up-cycle surge in cash flow
sufficient to substantially reduce debt or execution of a
turnaround equity strategy.

Headquartered in Houston, Texas, Trico Marine Services, Inc.
operates 86 offshore oilfield support vessels in the waters of
the Gulf of Mexico (53 vessels), North Sea (20), Latin America
(mostly Brazil; 10), and West Africa (3).


VESPER: Sale To Go Through By Year-End, Says Qualcomm Brasil Exec
----------------------------------------------------------------
US-based CDMA chipset developer Qualcomm expects the sale of its
86% stake in Brazilian fixed wireless operator Vesper to go
through by the end of the year, local financial paper Gazeta
Mercantil quotes Qualcomm Brasil CEO Marco Aurelio Rodrigues as
saying.

The parent already has a list of prospective buyers including
Brazilian competitive local exchange carrier GVT, incumbent long
distance operator Embratel, mobile group Vivo and fixed line
incumbent Brasil Telecom.

In its fiscal 3Q03 earnings report, Qualcomm said it could
provide US$40 million in financing to Vesper's buyer, to
facilitate the prepayment of Vesper's bank debt as well as
provide interim funding through the government approval process.
Qualcomm would recover the financing through loan or lease
payments from Vesper.

To help it with the sale, the parent contracted US-based
investment bank Morgan Stanley.

Vesper reported losses before taxes of US$20 million in the third
fiscal quarter compared to US$35 million in the year ago
quarter.



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

ENDESA CHILE: Executive Satisfied With Recent Bond Issue
--------------------------------------------------------
Mr. Hector Lopez, the managing director of Endesa Chile,
expressed satisfaction with the results of the latest bond issue.

Endesa Chile recently sold US$600 million in bonds, much higher
than what the Company had hoped to raise, which is US$200
million.

Mr. Lopez attributed positive results to the work of the
personnel of Endesa and Enersis and the fact that the Company has
succeeded in doing exactly what it said it would do, which
created confidence amongst investors.

Standard & Poor's noted that the recent transaction indicated
that Endesa's capacity to find financing is much higher than
expected.

Chilean generator Endesa had told the country's securities
regulator earlier that part of the proceeds of the bond sale
would be used to pay US$381 million eurobonds. Under the terms of
a US dollar/euro swap agreement, the net amount payable on the
Company's EUR400 million of European Floating Rate Notes (FRNs)
is US$381 million. The FRNs mature on July 24.

The remaining US$219 million of the bond proceeds will be used to
prepay bank debt.

At the end of the first quarter, Endesa's total debt to banks and
financial institutions was CLP716 billion (today US$1.02bn).


TELEFONICA CTC: Mixed Expectations Expressed After New Rate Boost
-----------------------------------------------------------------
Dominant Chilean telephone company Telefonica CTC Chile is hardly
likely to get a big government rate boost due to stiff opposition
from competitors and political pressure on behalf of consumers,
according to Telecommunications experts and analysts.

Reuters recalls that the Company, which is controlled by Spain's
Telefonica, saw its revenues fall in 1999 when the government cut
measured local service by 14% and interconnection rates paid by
other operators to use CTC's network by 60%. For this reason,
CTC, which gets 50% of its revenues from local calling fees and
has 80% of the local phone lines in Chile, was expected to get
relief with the next five-year rate regime, from 2004-2009.

However, competition and political pressure are likely to hamper
this, some analysts say.

"It is not that clear that they will raise CTC's rates. There may
be some room for higher prices for interconnection charges, but
in consumer prices it is not clear," said Barbara Angerstein, a
telecoms analyst with Santiago brokerage Celfin.

But according to telecommunications analyst Cristina Acle of
Larrain Vial brokerage, "Without a doubt, the process will be
favorable for CTC. The government recognized its error last time
around and has to make it up."

Some telecoms experts say the government will try to find a
middle ground, giving CTC some compensation, but not so much that
competitors will be able to claim damages.

CTC is subject to government price reviews every five years
because it is defined by the government as the dominant operator,
but its competitors set their own prices freely, says Reuters.

The Telecommunications Subsecretariat was due to release Sunday
the technical and economic studies that it will use as the basis
of its decision on the rates. Transport and Telecommunications
Minister Javier Etcheberry has avoided giving any indication how
the government will go other than promising "fair" rates, the
report suggests.



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

*Source Confirms IMF Board To Review Ecuador's Program August 1
---------------------------------------------------------------
The IMF's board of directors will review Ecuador's progress under
its loan program on August 1, an unnamed official close to the
government confirmed to Reuters.

Ecuador has been anxiously awaiting the meeting of the IMF's
decision-making board of directors. The review, which is key for
the country to secure US$42 million disbursement, the second
under its US$205 million loan program signed in March, was
originally scheduled for June. It was postponed after the
government decided to raise teachers' wages to end a strike,
which offset the budget by US$25 million, says Reuters.

The IMF deal is critical to open Ecuador's door to a series of
multilateral credits needed to pay off more than US$2 billion in
debt this year and get its budget on track.



=============
J A M A I C A
=============

C&WJ: Dismissals Don't Surprise Unions
---------------------------------------
The staff cuts at Cable & Wireless Jamaica (C&WJ), which was
implemented Friday, didn't come as a surprise to unions, the
Jamaica Observer reports, citing an executive of the University
and Allied Workers Union (UAWU).

According to UAWU, one of the unions representing workers at C&WJ
(CWJ), the Company has been in consultation with the unions about
the staff cuts, which affected 118 workers. In fact, the union
expects the telecoms firm to cut more staff.

"Once there is a competitive environment then there is going to
be greater alliance of technology which is going to lead to more
and more workers being made redundant," said Lambert Brown, a
vice-president of the UAWU.

On Friday, C&WJ announced that it was eliminating 118 positions
from several departments, including strategy and transformation,
finance, human resources, sales and services and network
services, as part of a restructuring program geared at dealing
with competition.

In a statement, the Company said that redundancies were an almost
"inescapable eventuality in any company which invests heavily in
new technologies, systems and processes to improve its
efficiency.

C&WJ is a unit of London-based C&W plc.

CONTACT:  Cable & Wireless PLC
          124 Theobalds Road
          London
          England
          WC1X 8RX
          Phone:  +44 (0)20 7315 4000
          Fax:  +44 (0)20 7315 5000
          Home Page:  http://www.cw.com



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

BURLINGTON INDUSTRIES: Announces Agreement With WL Ross
-------------------------------------------------------
Burlington Industries, Inc. (OTC Bulletin Board: BRLG) announced
Friday an agreement with WL Ross & Co. LLC by which Ross' $608
million acquisition proposal has been designated the highest and
best of several bids received in connection with the sale process
approved last May by the Court in its reorganization proceedings.
The agreement contemplates the sale of Burlington to WL Ross &
Co., with a concurrent sale of Burlington's Lees carpet business
to Mohawk Industries Inc. (NYSE: MHK)

The court-approved sale process contemplates that other qualified
bidders will have the opportunity to top the Ross proposal at an
auction expected to be held on July 28. The auction procedures
allow a breakup fee of 1% of the proposed purchase price and
bidding increments of $3 million. As a result, all competing bids
must exceed the Ross bid by these amounts.

George W. Henderson, III, Chairman and CEO, commented, "We are
pleased that the bidding process is coming to a conclusion and we
believe it will enable us to maximize the value of the company
and produce the best results for our customers, employees,
suppliers and creditors."

The results of the auction are expected to be submitted for
approval of the Bankruptcy Court at a hearing scheduled for July
31. If approved at this hearing, the sale transaction would be
incorporated into a plan of reorganization to be submitted for
approval to the creditor constituencies of the Company following
a hearing on a disclosure statement describing the sale and other
provisions of the emergence plan.

The purchase price under the Ross agreement is $608 million,
subject to various adjustments. Burlington estimates that
distributions to unsecured creditors will be approximately 40% of
allowed unsecured claims and that secured creditors will be
repaid in full. That estimate is based upon various assumptions,
however, and the actual recovery may be different.

If the Ross bid proceeds, the parties contemplate a closing in
October. The completion of the Ross transaction is subject to
various conditions in addition to completing the auction process.
Accordingly, there can be no assurance that it will occur.

Wilbur L. Ross, Chairman of WL Ross & Co. LLC, said, "Lees will
benefit from Mohawk's financial strength and business synergies.
Burlington's other operations also will be deleveraged and as
privately owned businesses will function even more efficiently
and responsively to meet the needs of their customers. Employees
will no longer have to worry about the financial viability of
their company."

Bob Lee, Managing Member of Sheffield Merchant Banking Group, the
financial advisor to the Official Committee of Unsecured
Creditors, commented, "The Burlington management team and its
advisors ran a very full and effective process. The Committee
supports the proposed transaction and is pleased that this
process indicates an improvement from prior offers."

With operations in the United States, Mexico and India and a
global manufacturing and product development network based in
Hong Kong, Burlington Industries is one of the world's most
diversified marketers and manufacturers of softgoods for apparel
and interior furnishings.


GRUPO IMSA: Announces Second Quarter 2003 Results
-------------------------------------------------
Grupo Imsa, S.A. de C.V. (NYSE:IMY) (BMV:IMSA) announced on
Friday results for the second quarter of 2003. Unless otherwise
stated, all figures are presented in millions of June 30, 2003
pesos (Ps), or in millions of nominal U.S. dollars.

    Second Quarter 2003 Highlights

--  Second quarter revenues in peso terms rose year-over-year by
    1.9% and quarter-over-quarter by 10.1% to Ps 7,354.
    Year-to-date revenues increased 8.5% compared to the previous
    year.

--  IMSA ACERO's second-quarter sales volume fell 5.7%
    year-over-year but grew 8.2% quarter-over-quarter.

--  In the second quarter ENERMEX's sales volume increased by
    1.9% over the second quarter of 2002 and by 15.6% vs. the
    first quarter of 2003.

--  Grupo Imsa's operating margin for the quarter was 8.5%,
    compared to 10.3% for the second quarter of 2002 and 7.2% for
    the first quarter of 2003.

--  Operating expenses as a percent of sales were 11.0% in the
    second quarter of 2003, compared to 11.6% the previous year
    and 12.3% the previous quarter.

--  Second quarter EBITDA in pesos totaled Ps 955, 8.5% below
    that of the same period of 2002 but 17.3% above the first
    quarter of 2003. Year-to-date EBITDA increased 1.7% compared
    to 2002.

--  EBITDA for IMSA ACERO, ENERMEX and IMSATEC grew compared to
    the first quarter of 2003.

--  Second quarter net income of $452 was significantly above
    that of the same period of 2002 and of the first quarter of
    2003. Year-to-date net income grew 10.8% compared to 2002.

--  Net interest coverage - defined as EBITDA divided by net
    interest expense - was 11.0 times for the twelve months ended
    June 2003.

--  During the quarter Grupo Imsa obtained financings for an
    amount equivalent to US$215 which was used to pay existing
    debt and thereby improve the life and average cost of Company
    debt.

--  IMSA ACERO inaugurated a new galvanized steel line in
    Guatemala, thereby consolidating its leadership position in
    Central America.

CONTACT: Grupo Imsa, Monterrey
          Marcelo Canales
          Phone: (52-81) 8153-8349

          Adrian Fernandez
          Phone: (52-81) 8153-8433


          Jose Luis Fornelli
          Phone: (52-81) 8153-8416
          Email: jfornell@grupoimsa.com


GRUPO IUSACELL: Announces General Shareholders' Meeting Results
---------------------------------------------------------------
Grupo Iusacell, S.A. de C.V. (Iusacell or the Company)
(BMV:CEL)(NYSE:CEL) announced the resolutions approved at its
General Ordinary Meeting of Shareholders, which was held Friday
at 12:00 hrs. CST at the Company's headquarters in Mexico City.
The Shareholders approved all of the Board of Directors'
proposals and recommended slate of Directors.

Among other resolutions, the Shareholders accepted the
resignation of all the members of the Board of Directors of
Iusacell. These resignations will become effective upon the
consummation of the public tender offer of Iusacell's shares by
Movil Access, S.A. de C.V. The accepted resignations included Mr.
Daniel C. Petri as Chairman, as well as the resignation of Mr.
Carlos Espinal G. as Series A Director and Chief Executive
Officer, Mr. Russell A. Olson as Series A Alternate Director and
Chief Financial Officer, Mr. Jose Luis Vergara as Series A
Director and Vice President of Customer Care, Mr. Juan Carlos
Merodio as Senior Vice President Legal and Regulatory, Mr.
Alejandro Garcia as Vice President of Marketing, Mr. Nestor
Bergero as Vice President of Technology, Mr. Anthony Llompart as
Vice President of Sales, Mr. Jose Bellido as Vice President of
Human Resources and Mr. Roberto Konigs as Vice President of
Corporate Sales. The Shareholders elected new members of the
Board of Directors, effective upon the consummation of the public
tender offer; therefore, the Board of Directors will be comprised
as follows:

                          Board of Directors
              Name                                  Position

Ricardo B. Salinas Pliego        Chairman of the Board and
                                  Series A Director
Pedro Padilla Longoria           Vice Chairman and Series A
Director
Gustavo Guzman Sepulveda         Series A Director
Jose Ignacio Morales Elcoro      Series A Director
Luis Jorge Echarte Fernandez     Series A Director
Federico Bellot Castro           Series A Director
Mariluz Calafell Salgado         Series A Director
Jorge Narvaez Massini            Series V Director
Eduardo Kuri Romo                Series V Director
Hector Rojas Villanueva          Series V Director
Marcelino Gomez Velasco          Series V Director
Gonzalo Brockman Garcia          Series V Director

In addition, the Shareholders named Mr. Hector Rojas Villanueva
as Secretary of the Board of Directors and Mr. Javier Soni Ocampo
and Mr. Juan Manuel Ferron as Statutory Auditor and Deputy
Statutory Auditor, respectively.

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
          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


GRUPO IUSACELL: Issues Second Quarter 2003 Results
--------------------------------------------------
Grupo Iusacell, S.A. de C.V. (Iusacell or the Company)
(BMV:CEL)(NYSE:CEL) announced Friday results for the second
quarter ended June 30, 2003(1).
Highlights

-- Adjusted EBITDA(2) improved to 29% in this quarter from 19% a
year ago

-- Postpaid churn decreased to 2.9% from 3.3% in the second
quarter of 2002

-- Gross additions in the postpaid segment increased sequentially

-- Postpaid MOUs and ARPUs grew 16% and 2%, respectively, on an
annual basis

-- Launch of new postpaid service plans continued in the quarter
- multiple options to meet the needs of high-value customers

-- Verizon Communications and Vodafone Americas BV agreed to
tender their 73.9% of outstanding shares to Movil Access, S.A. de
C.V., a Grupo Salinas company

"In the second quarter, customers responded very positively to
our newly launched postpaid service plans, demonstrating that our
commitment to the customer's experience is generating tangible
results. A decrease in postpaid churn, combined with an increase
in network traffic and average revenue per user, helped to
improve adjusted EBITDA to 29% in the period," said Carlos
Espinal G., Chief Executive Officer of Iusacell. (1)Unless
otherwise noted, all monetary figures are in Mexican pesos and
restated as of June 30, 2003 in accordance with Mexican GAAP,
except for ARPU (which is in nominal pesos). The symbols "$" and
"US$" refer to Mexican pesos and U.S. dollars, respectively.
(2)Adjusted EBITDA margin, which expenses rather than capitalizes
postpaid handset subsidies and excludes non-operational
transactions.

Operational Results

Subscribers as of June 30, 2003 totaled 1.95 million, an 11%
decline from the prior year figure. This was primarily driven by
a reduction in the prepaid base which declined from 1.8 million
in the second quarter of 2002 to 1.6 million in the current
quarter. Gross additions in the second quarter of 2003 totaled
148,000, compared to 390,000 in the prior year period, and
164,000 in the first quarter of 2003; the current gross adds
figure reflects the Company's continued focus on high-value
subscribers.

Sequentially, the Company's postpaid customer base decreased
nominally, ending at 341,000. Compared to the year ago period,
postpaid customers decreased 11%, primarily due to fewer gross
additions; however, the current postpaid mix is more heavily
weighted towards high-end subscribers. Prepaid customers
decreased 5% sequentially and 11% year over year, totaling 1.6
million as of June 30, 2003, reflecting the Company's prior
efforts to grow that segment in the first half of 2002. The
sequential decline in the prepaid subscriber base is the
anticipated result of the Company's efforts to replace low-usage
Incoming Calls Only customers and low revenue generating prepaid
customers with higher value subscribers.

Postpaid churn improved to 2.9% in the second quarter of 2003
from 3.2% in the second quarter of 2002 and first quarter of
2003, respectively. The improvement reflects the success of the
Company's new plan offerings and continued focus on customer
service initiatives for high-value postpaid subscribers. Blended
churn, however, was 3.8% compared to 3.0% in the year ago period
and 3.4% in the first quarter of 2003. This can be attributed to
continued turnover among low-usage prepaid customers acquired in
the previous strategic focus on low-end prepaid market effective
in the first half of 2002.

Minutes of use (MOU) among postpaid customers increased 16% on a
year over year basis, while prepaid MOUs remained unchanged. The
new postpaid service plans have a larger number of minutes
included in the packages, including some with free nights and
weekends, which helped drive a 5% blended MOU increase year over
year.

Average revenue per user (ARPU) in the postpaid segment of $687
increased 2% compared to the second quarter 2002, while prepaid
ARPUs of $76 increased 1%. Sequentially, postpaid ARPU increased
1% due to a postpaid subscriber mix more weighted towards higher
value service plans and higher MOUs. Blended ARPU, however,
declined from $186 in the second quarter of 2002 to $180 in the
second quarter of 2003.

Commercial Initiatives

New service plans: In the first half of 2003, Iusacell launched
new prepaid and postpaid value propositions aimed to position the
Company as the premier service provider in the targeted high-
value market segment. These plans were designed to fit the needs
of high-value consumer segments and are supported by advertising
and marketing campaigns that anchor the effort.

The postpaid value propositions are comprised of the following
plans: a NAFTA plan, in which local calls, as well as calls
within Mexico, the U.S. and Canada, are priced at the same per
minute rate; an unlimited nights and weekends plan designed to
increase mobile traffic and leverage non-peak network hours; a
basic plan with affordable rates designed to compete directly
with competitors' plans by incorporating higher baseline minutes;
and multi-line plans to fit the communication needs of small
groups of users such as families and small and medium sized
enterprises. In addition, the Company offers regional plans, such
as, in the northern regions, where subscribers can purchase a
special cross-border plan with lower priced calls across Mexico,
U.S. and Canada; and in Regions 1, 4 and 8, local plans are
available with competitive per minute pricing. All these plans
feature unlimited Iusacell-to-Iusacell calls to other subscribers
on the network for a fixed monthly fee.

Corporate customers can now contract a flexible combination of
the new service packages at a volume rate, or purchase a large
pool of minutes at a competitive per minute price that can be
shared among all users.

Financial Results

Revenue in the quarter decreased slightly from the previous
quarter to $1,140 million. However, revenues decreased 16% from
the year ago period as a result of the lower subscriber base and
lower ARPUs resulting from the change in the subscriber base mix.
The Company believes the newly launched set of service plans
including corporate proposals, as well as, high-value customer
retention programs, will drive high-value sales and revenues in
the third quarter 2003.

Cost of sales in the second quarter of 2003 decreased 30% from
the year ago period, from $481 million to $335 million. Ongoing
headcount initiatives and cost controls enabled the Company to
realize better cost savings despite higher lease costs associated
with the non-strategic towers sold to (and leased-back from) the
Mexican subsidiary of American Tower Corporation.

Operating expenses: sales and advertising expenses in the quarter
declined 22% year over year due primarily to fewer gross
subscriber additions and the net effect of the 2002 IEPS tax
provision cancellation (see Regulatory and Legal Affairs). As a
percentage of revenues, sales and advertising expenses decreased
from 25% to 23%. Lower headcount and expense containment helped
reduce general and administrative expenses to $115 million, an
11% decline from the previous year's quarter. As a percentage of
revenues, general and administrative expenses remained stable at
10% in the second quarter of 2002 and 2003.

EBITDA(3) margin in the second quarter of 2003 was 37%, higher
than the 34% recorded in the first quarter of this year and the
32% recorded in the second quarter of 2002, evidencing the early
results of the turn around efforts. On an absolute basis, second
quarter 2003 EBITDA of $425 million increased 6% sequentially,
but decreased only 3% from $437 million recorded in the second
quarter of 2002. 2002 EBITDA included a $35 million gain from
non-strategic tower sales; without this extraordinary item EBITDA
would have improved 6% on a year-over-year basis. Adjusted EBITDA
margin was 29% in the second quarter of 2003, substantially
higher than the 19% margin recorded in the second quarter of last
year.

Depreciation and amortization expenses of $615 million in the
second quarter of 2003 increased 5% from the second quarter of
2002, due to higher depreciation expense derived from the
capitalization of recently completed projects.

Postpaid subscriber acquisition costs in the quarter improved
from US$245 last year to US$186 in the most recent quarter, due
to restructured commission plans aimed to support the new value
proposition packages, more efficient handset purchases and
targeted subsidies.

Operating loss in the quarter increased from the $152 million
recorded last year to $191 million in the current quarter driven
by lower revenues and higher depreciation and amortization
expenses partially offset by continued cost controls and
headcount initiatives.

Other income of $46 million was recorded in the second quarter of
2003 as a result of the cancellation of certain tax provisions
derived from a tax provision analysis from prior years as part of
the continuous operations of the Company.

Integral financing result in the quarter ended with a gain of $19
million, compared to a cost of $538 million in the same quarter
of last year. The improvement was mainly driven by a $232 million
foreign exchange gain resulting from the 3% appreciation of the
peso against the U.S. dollar, compared to a 5% peso depreciation
last year. Interest expense increased $12 million in the second
quarter of 2003, compared to the same period of 2002 as a result
of the peso depreciation in the twelve-month period.

Net loss in the quarter of $124 million was the result of lower
integral financing costs. This compares to a net loss of $714
million in the year ago period.

Liquidity: During the second quarter of 2003, the Company funded
its operations, capital expenditures, handset purchases, and
principal and interest payments with internally generated cash
flow. As of June 30, 2003, the Company's operating cash balance
was US$12 million.


(3)This press release contains a reference to EBITDA and
provides the components of EBITDA on the face of the Consolidated
Income Statement. EBITDA is used by management for comparisons to
other companies within our industry as an alternative to GAAP
measures and is used by investors and analysts in evaluating
performance. EBITDA, which is earnings before interest, taxes,
depreciation and amortization, is computed by adding back net
interest expense, income and asset tax expense, depreciation
expense and amortization expense to net income (loss) before
minority interest and loss of subsidiaries as reported. EBITDA
should be considered in addition to, but not as a substitute for
other measures of financial performance reported in accordance
with accounting principles generally accepted in Mexico. EBITDA,
as defined above, may not be comparable to similarly titled
measures reported by other companies.

Capital expenditures: Iusacell invested approximately US$4
million in its regions during the second quarter of 2003 to
expand coverage. This capex reflects Iusacell's strategic focus
on maximizing existing capacity and prioritizing investments that
directly benefits the high-value customer base.

Debt: As of June 30, 2003, including trade notes payable and
notes payable to related parties, debt totaled US$811 million,
compared to US$841 million registered in the second quarter of
2002 and US$815 in the first quarter of 2003. All of the
Company's debt is U.S. dollar-denominated, with an average
maturity of 2.4 years. As of quarter-end, Iusacell's debt-to-
capitalization ratio was 64.8%, versus 56.7% on June 30, 2002.

As a consequence of the events of default (as defined under the
different indentures governing the debt) incurred in the quarter
(see Event of default on 14.25% bonds due 2006 and Technical
default on 10% bonds due 2004), Iusacell reclassified all the
Company's financial debt as current in the Balance Sheet
presented herein, in accordance with Mexican GAAP.

Recent Developments

ADS ratio change: As previously reported, the Company obtained
approval to implement a 1 for 10 ADS ratio change at the Ordinary
Shareholders Meeting held on April 21, 2003. The change became
effective on May 12. 2003. Each of Iusacell's American Depositary
Shares now represents one hundred of its ordinary shares, and the
new CUSIP number is 40050B 20 9. Before the ratio change, the
Company's ADS-to-ordinary shares ratio was one-to-ten, and the
CUSIP number was 40050B 10 0. This ratio change did not impacted
holders of the Company's ordinary shares and was effected without
charge to investors.

The main purpose of the ratio change was to comply with the NYSE
rules requiring a minimum 30-day average trading price of US$1.00
per ADS. With the ratio change, the Company has cured the
deficiency and on July 17, 2003, received written confirmation
from the NYSE that Iusacell is no longer considered below the
continued listing criterion.

Strategic shareholders tender shares: On June 13, 2003 the
Company's two largest shareholders, Verizon Communications and
Vodafone Americas BV, announced an agreement to tender all of
their shares, representing 73.9% of the Company's outstanding
shares, in a public tender offer commenced in Mexico and the
United States by Movil Access, S.A. de C.V., (Movil Access) a
Mexican telecommunications service provider, a subsidiary of
Biper, S.A. de C.V., which is part of Grupo Salinas.

After obtaining regulatory approvals, Movil Access launched the
tender offer on June 30, 2003, and withdrawal rights will expire
on July 29, 2003. In the Offering Memorandum, filed with the
Mexican Securities and Banking Commission and the U.S. Securities
and Exchange Commission (SEC), Movil Access is offering to
purchase all of the outstanding Series V and Series A shares,
including all of the ADSs representing Series V Shares of
Iusacell at a peso price of $0.057 per share (in the U.S. offer,
the equivalent of $5.71 pesos per ADS) in each case in cash, less
any withholding taxes. For more information, please refer to the
Offering Memorandum, filed by Movil Access, on the Mexican Stock
Exchange web site (http://www.bmv.com.mx)and the U.S. Offering
Memorandum, on the SEC web site (http://www.sec.gov).

Unanimous written consent of the Board of Directors of Iusacell:
In a filing with the Mexican Stock Exchange dated July 14, 2003,
the Board of Directors of Iusacell said there are too many
possible outcomes, both negative and positive for the stock, to
be able to recommend acceptance or rejection of the offer to buy
100% of the company's shares (see Strategic shareholders tender
shares).

The Board urged shareholders "to take their own decision based on
the information available," while noting that all shareholders
are offered equal treatment under the buyout bid launched June
30. The Board members said the offer is substantially below
market price prior to the execution of the tender.

The Board said it was not in a position to "reasonably and
responsibly assign a value" to the three options open to other
shareholders: accept the offer, reject the offer and sell the
shares in the market, or reject the offer and remain as a
shareholder. For additional information please consult the form
14D-9 filed by the Company with the SEC on http://www.sec.govand
the filing with the Mexican Stock Exchange on
http://www.bmv.com.mx.

Event of default on 14.25% bonds due 2006: Pending an agreement
with the Company's creditors on a restructuring plan, Iusacell
did not make the US$25 million coupon payment due on June 1, 2003
on its 14.25% bonds due 2006. The 30-day period within which to
make the coupon payment expired on June 30 without payment. As a
result, an event of default occurred under the Indenture
governing the bonds, and the bondholders have the right to
declare the principal of and the accrued interest under the bonds
due and payable or take other legal actions specified in the
Indenture, as they deem appropriate. To date, the bondholders
have not taken any action against the Company, nor have they
waived any right to do so.

Request for a waiver extension under the Credit Agreement: During
the first half of 2003, Grupo Iusacell Celular, S.A. de C.V.
("Iusacell Celular") exceeded the permitted leverage ratio of
2.50 times specified under the US$266 million Amended and
Restated Credit Agreement, dated as of March 29, 2001 (the
"Credit Agreement").

On April 28, 2003 Iusacell Celular and the lenders entered into a
temporary Amendment and Waiver ("the Amendment") to the Credit
Agreement to increase the permitted leverage ratio from 2.50 to
2.70 times.

On May 22, 2003, the Amendment was extended until June 13, 2003
and on June 12, 2003, the Amendment was further extended until
June 26, 2003. On June 27, 2003, Iusacell Celular formally
requested an additional extension of the Amendment. On July 10,
2003, the Amendment was extended until August 14, 2003. The
Amendment contains covenants which expire on August 14, 2003
which restrict Iusacell Celular from making any loans, advances,
dividends, or other payments to the Company and require a
proportionate prepayment of the loan under the Credit Agreement
if it makes any principal or interest payments on any of its
indebtedness for borrowed money, excluding capital and operating
leases. If the Amendment is not further extended, upon its
expiration, Iusacell Celular would be in default of a financial
ratio covenant under the Credit Agreement, which would constitute
an Event of Default (as defined in the Credit Agreement) as if
the Amendment had never become effective.

Technical default on 10.00% bonds due 2004: Pending an agreement
with the Company's creditors on a restructuring plan and as
restricted by the waiver extension under the Credit Agreement,
Iusacell Celular did not make the US$7.5 million coupon payment
due on July 15, 2003 on its 10.00% bonds due 2004. Iusacell
Celular has a 30-day period within which to make the coupon
payment. If Iusacell Celular does not make the payment within the
grace period, an event of default would occur under the Indenture
governing the bonds, and the bondholders would have the right to
declare the principal of and the accrued interest under the bonds
due and payable or take other legal actions specified in the
Indenture, as they deem appropriate.

Regulatory and Legal Affairs

Injunction against telecommunications tax upheld: In March 2002,
the Company filed an injunctive action ("amparo") to challenge
the Mexican government's implementation of a new excise tax on
certain wireless telecommunications services approved by the
Mexican Congress. On June 6, 2003, Iusacell was officially
notified that Mexico's Supreme Court affirmed the October 21,
2002 ruling by a federal district court of Mexico City in favor
of Iusacell's cellular service concessionaires in their amparo
filed against the special telecommunications tax enacted by the
Mexican Congress on January 1, 2002.

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

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

          Email: investor.relations@iusacell.com.mx



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

BLADEX: Announces Strategic Alliance With Bank of America
---------------------------------------------------------
Banco Latinoamericano de Exportaciones, S.A. (NYSE: BLX) (BLADEX)
and Bank of America Corporation (NYSE: BAC), announced Friday a
strategic alliance that will offer Bank of America's U.S. Dollar
clearing services to BLADEX clients in the Latin America and
Caribbean region.

"We are delighted to be working with Bank of America. Through
their extensive capabilities, BLADEX now will be able to offer
its clients an additional option regarding an important service
for their day-to-day operations," said Jaime Rivera, Chief
Operating Officer of BLADEX. "As one of the world's leading
financial institutions, they have the experience and financial
strength to complement BLADEX's offer of trade products that
promote the development of Latin America and the Caribbean. This
alliance will provide tangible business benefits for both BLADEX
and our clients throughout the region because it offers an
opportunity to combine BLADEX's reliable trade finance
capabilities with Bank of America's widely recognized product
excellence in clearing services. For BLADEX, this is an important
step in the execution of our strategy to enhance our product
offering while minimizing execution and development costs and
risks."

"Bank of America is extremely proud to have been selected to
provide U.S. Dollar clearing services to BLADEX's clients
throughout Latin America and the Caribbean. This agreement
reflects Bank of America's leadership as a quality provider of
global treasury products and services in the region," said Keith
Parker, Regional Executive for Bank of America's Global Treasury
Management group in Latin America.

About Banco Latinoamericano de Exportaciones, S.A. (BLADEX)

BLADEX is a multinational bank established by the Central Banks
of the Latin American and Caribbean countries. Based in Panama,
its shareholders include central and commercial banks in 23
countries in the Region, as well as international banks and
private investors. Total assets at March 31, 2003 were US$ 2.9
billion. In 24 years, BLADEX has disbursed accumulated credits
for over US$ 120 billion in the Region. BLADEX (NYSE: BLX) is
listed on the New York Stock Exchange. Additional information is
available on BLADEX's website at www.blx.com.

About Bank of America

Bank of America is one of the world's leading financial services
companies, with 4,400 domestic offices and 13,000 ATMs, as well
as round-the- clock online banking services. Bank of America
provides clients with corporate financial services in more than
150 countries. The Global Treasury Management (GTM) group of Bank
of America provides integrated working capital management and
treasury solutions to clients that include governments,
correspondent banks and multinational corporations.

Bank of America stock (NYSE: BAC) is listed on the New York,
Pacific and London stock exchanges. The company's Web site is
www.bankofamerica.com. News, speeches and other corporate
information may be found at www.bankofamerica.com/newsroom.

CONTACT:  Banco Latinoamericano de Exportaciones, S.A.
          Apdo. 6-1497, El Dorado, Panam
          Republica de Panama
          +(507) 210 8500 (voice)
          +(507) 269 6333 (fax)
          2240, 2356 (Tlx)



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P E R U
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VOLCAN: In Strategic Partnership Talks With Glencore
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Peruvian zinc miner Volcan Compania Minera is now in talks with
Switzerland-based Glencore International over a possible
strategic partnership, reports Reuters.

In a statement sent to the Lima Stock Exchange, Volcan said:
"(Volcan's) management has been authorized to begin formal talks
with bidder Glencore aimed at negotiating a global agreement with
that company."

Volcan is looking for a strategic partner in order to address its
financial woes, which stemmed from the purchase of the mining
unit Mahr Tunel at a privatization sale and later the Paragsha
mine, formerly Cerro de Pasco. These acquisitions from state-
owned Centromin helped Volcan rack up heavy debt.

Earlier, Brazil's Paribuna de Metais, part of Brazil's industrial
conglomerate Votorantim, U.S.-based BHL Resources and tin miner
Minsur have expressed interest in the cash-strapped zinc miner.

On Friday, the Company revealed a loss of PEN27.6 million in the
first half of the year compared with a loss of PEN16.5 million in
the same period of last year.



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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.

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