TCRLA_Public/040817.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, August 17, 2004, Vol. 5, Issue 162

                            Headlines

A R G E N T I N A

ABACO S.R.L.: Entering Liquidation Phase
AEROLINEAS ARGENTINAS: Protesting Government's "Antagonism"
ALEGRE PAVIMENTOS: Court Grants Reorganization Plea
AMARA S.A.: Liquidating Assets to Pay Debts
AVENIDA TRIUNVIRATO: Readies for Reorganization

BANCO HIPOTECARIO: Records Ps.61M Net Income In 2Q04
BARDA NEGRA/CANTERAS ZAFIRO: Court Schedules Assembly
CORASA: Government Formalizes Ownership
GAIN TRUST: US$140M in Securities Still in Default
GALTRUST I: US$200M in Financial Trusts Remain at Junk Level

IGUAZU PARK: Creditor Secures Bankruptcy Approval
IMPSA: Fitch Argentina Upgrades Ratings on Corporate Bonds
IMPSAT: Posts US$11M EBITDA in 2Q04
MOLINOS RIO: Acquires Control of Lemon Juice Company
POLIGNANO: Proceeds to Liquidate Assets

T.V.C. PUNTANA: Court Orders Liquidation


B A R B A D O S

C&WJ: Appeals FTC Decision


B R A Z I L

AES CORP.: Amends $650M Credit Facility
AES SUL: Posts $87M Loss in 1H04 Due to Exchange Rate Variation
EMBRATEL: Carries Out Redundancy Plan, Stuns Union
PARMALAT BRAZIL: Court Accepts Insolvency Protection Plea
TRIKEM: Fitch Upgrades & Withdraws Corporate Rating


C O S T A   R I C A

ICE: Introduces New Phones


D O M I N I C A N   R E P U B L I C

TRICOM: Welcomes New CFO, Board Members


M E X I C O

CORPORACION DURANGO: Creditors OK $700M Debt Restructuring Plan
GRUPO SIMEC: Pays $150M for Sidenor


P U E R T O   R I C O

CENTENNIAL COMMUNICATIONS: Reiterates Fiscal 2004 Guidance


U R U G U A Y

* URUGUAY: IMF OKs Non-complying Purchase Waiver


V E N E Z U E L A

PDVSA: Government Receives $6.9M During 1H04

     -  -  -  -  -  -  -  -

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

ABACO S.R.L.: Entering Liquidation Phase
----------------------------------------
Abaco S.R.L. of Buenos Aires will begin liquidating its assets
following the bankruptcy pronouncement issued by Court No. 7 of
the city's Civil and Commercial Tribunal.

Infobae reports that the ruling places the company under the
supervision of court-appointed trustee, Mr. Augusto Francisco
Fernandez. The trustee will verify creditors' proofs of claims
until November 22, 2004.

Clerk No. 13 assists the court on this case, which will end with
the disposal of company assets in favor of its creditors.

CONTACT: Mr. Augusto Francisco Fernandez, Trustee
         La Rioja 1746
         Buenos Aires


AEROLINEAS ARGENTINAS: Protesting Government's "Antagonism"
----------------------------------------------------------
The Argentine government's move to ask the courts to reject the
2003 results presented by Aerolineas Argentinas has angered the
national flag carrier, EFE indicated in a report.

Aerolineas, which has been controlled by Spanish travel group
Grupo Marsans (GSMN.YY) since 2001, said the government's move
is "a belligerent action" and "one more example of the
government's antagonism" toward the carrier.

Aerolineas spokesman Julio Scaramella said the carrier will ask
the courts "to determine the reason for this constant
belligerent action by the government" against Aerolineas
Argentinas and its subsidiary Austral.

Meanwhile, Argentine air transportation official Ricardo
Cirielli said the challenge to the accounts was sparked by an
Economy Ministry decision.


ALEGRE PAVIMENTOS: Court Grants Reorganization Plea
---------------------------------------------------
Alegre Pavimentos S.A. successfully petitioned for
reorganization after Court No. 9 of Buenos Aires' Civil and
Commercial Tribunal issued a resolution opening the company's
insolvency proceedings.

During insolvency, the company will continue to manage its
assets subject to certain conditions imposed by Argentine law
and the oversight of a court-appointed trustee.

Infobae relates that Mr. Abraham Yalovetzky will serve as
trustee during the course of the reorganization. He will be
accepting creditors' proofs of claims for verification until
September 16, 2004.

Clerk No. 17 assists the court on this case.

CONTACT: Mr. Abraham Yalovetzky, Trustee
         Lavalle 1567
         Buenos Aires


AMARA S.A.: Liquidating Assets to Pay Debts
-------------------------------------------
Court No. 6 of Buenos Aires' Civil and Commercial Tribunal
opened the liquidation of Amara S.A. after the Company defaulted
on its debt obligations. A court-appointed trustee will
supervise the company's assets during the course of the
bankruptcy, says Clarin. Clerk No. 12 assists the court on this
case.

CONTACT: Amara S.A.
         Teniente General Peron 1243
         Buenos Aires


AVENIDA TRIUNVIRATO: Readies for Reorganization
-----------------------------------------------
Avenida Triunvirato 4437 S.R.L., a company operating in Buenos
Aires, will begin reorganization following the approval of its
petition by Court No. 22 of the city's Civil and Commercial
Tribunal, says Infobae.

Reorganization will allow the company to negotiate a settlement
with its creditors in order to avoid a straight liquidation.

Ms. Alejandra E. Giacomini will oversee the reorganization
proceedings as the court-appointed Trustee. She will verify
creditors' claims until September 21, 2004. Afterwards, the
validated claims will be presented in court as individual
reports on November 3, 204.

The trustee is also required by the court to submit a general
report essentially auditing the company's accounting and
business records as well as summarizing important events
pertaining to the reorganization. This report will be presented
in court on December 16, 2004.

The Informative Assembly, the final stage of a reorganization
where the settlement proposal is presented to the company's
creditors for approval, is scheduled on May 24 next year.

CONTACT: Ms. Alejandra E. Giacomini, Trustee
         Avda Carabobo 250
         Buenos Aires


BANCO HIPOTECARIO: Records Ps.61M Net Income In 2Q04
----------------------------------------------------
Banco Hipotecario issued this Executive Summary:

Banco Hipotecario recorded net income of Ps.61.0 million for the
second quarter of 2004 (Ps.0.41 per share), building on the
positive trend of the last three quarters. Results for the
quarter reflect a significant improvement compared to the
Ps.205.1 million loss recorded in the second quarter of 2003.

Second quarter results reflect the substantial improvement in
the Bank's financial position resulting from the achievements
made in terms of operating income, reduction in the Bank's
indebtedness and in the cost of such indebtedness sustained
improvement in operating efficiency, continued upgrading in the
quality of its loan assets and consolidation of its capital
base.

In line with its business diversification strategy the Bank has
extended its insurance business, increased its portfolio of
consumer and corporate loans, expanded its retail and wholesale
deposit base and the provision of financial products and
services.

Net income for the quarter ended June 30, 2004 mainly reflects:

i) higher net financial income;

ii) the positive impact of the cancellation of outstanding
financial indebtedness;

iii) higher financial income from the application of the CVS
index on mortgage loans and the positive effect of the exchange
rate between the Argentine peso and the U.S. dollar on the
Bank's net positive position in foreign currency; and

iv) a reduction in the loan delinquency rate.

Administrative expenses were Ps.22.7 million for the second
quarter of 2004, representing a 7.1% decrease compared to the
second quarter of 2003, and represented 1.08% of the Bank's
total assets as of June 30, 2004 compared to 1.32% of the Bank's
total assets as of June 30, 2003.
This decrease was attributable to the Bank's on-going cost
reduction efforts and sustained improvement in operating
efficiency.

At June 30, 2004, non-performing loans accounted for 12.90% of
the Bank's total loan portfolio, a significant improvement
compared to 15.39% in the second quarter of 2003. In addition,
total loan reserves increased to 90.65% from 88.68% recorded in
the previous quarter.

Banco Hipotecario continues to rank as the leading Argentine
private bank in terms of shareholders' equity. As of June 30,
2004, the Bank's equity was Ps.1,837.3 million and its
shareholders' equity/asset ratio was 21.87%.

II. Present Condition

Banco Hipotecario continue its positive performance, achieving
significant improvement in its financial condition and results
of operation focusing on reducing costs and preserving asset
quality, including the following:

- Capitalizing on the Bank's financial stability and improved
operating income.

- Continuing to improve the Bank's financial intermediation
margins.

- Maintaining high liquidity levels, cash flow generation that
is not impacted by changes in the level of deposits, reduced
commitment of funds for the medium term and high level of own
funds applied to financial assets.

- Capitalization levels in excess of the average recorded by the
system and the rest of the private banks.

- Continue to implement a conservative risk management policy
that enables the Bank to attain a credit risk exposure of only
2% as measured by net non-performing loans as a percentage of
shareholders' equity and a limited sovereign risk exposure
obtained by matching substantially all public sector assets with
Central Bank borrowings.

The stabilization of the Bank's operating income and
strengthening of its financial condition have been reflected in
the deposit ratings recently assigned by Standard & Poor's and
Moody's Investors Service.

The deposits held by Retirement and Pension Fund Managers in
Banco Hipotecario S.A. were rated "raA-3" by Standard & Poor's
International Ratings LLC (Argentine Branch) while the Bank's
capacity of repayment of local currency deposits was rated
"Aa1.ar" by Moody's.

This is the highest rating assigned by Moody's to an Argentine
private bank. Such ratings provide a strong base for the Bank's
strategy of developing a diversified retail banking business and
place the Bank in a strategic position for increasing its
deposit base and expanding business to new products. In
addition, on August 6, 2004, the Bank's Global Medium Term Note
Program was rated "BBB-(arg)" by Fitch Ratings.

Previously, Standard & Poor's had rated the Bank's debt
securities as "raBBB-" and its class D shares in category 2.

On June 25, 2004 Banco Hipotecario lead the sale of the first
series of C‚dulas Hipotecarias in the local capital market.

The aggregate amount of the offering was Ps.50 million,
consisting of Ps.40 million of Senior Bonds and Ps.10 million of
Subordinated and Certificates of Participation issued under the
AR$ 500 million Program.

The issue was largely oversubscribed and attracted interest from
a large number of retail and institutional investors. The
securities are collateralized by residential mortgage loans and
were rated "raAAA" by Standard & Poor's. This is the first
structured issue to obtain such rating since the Argentine
Sovereign default in 2001.

III. Relevant events during the first quarter and recent
developments

On April 19, 2004 Banco Hipotecario filed with the Central Bank
the information required under Communication "A" 4111 containing
the Bank's Business Plan and guidelines for the plan's control
and follow-up. In addition, on April 26, 2004, the Bank filed a
revised Regularization Plan with the Financial System
Restructuring Unit.

Moreover, the term for opting to join the Mortgage Refinancing
System set forth in Decree 352/04 was extended to June 2004, and
the Bank gave notice of its decision to adhere to this scheme.

On August 3, 2004 the Bank serviced the first principal payment
under its U.S. dollar and peso-denominated mediumterm guaranteed
notes due 2010 in an amount of US$21.0 million and Ps. 5.5
million, respectively.

In addition, on August 4, 2004 the Bank released excess
collateral in an aggregate amount of US$79.5 million of BODEN
due 2012 and US$32.4 million of guaranteed loans. The excess of
assets deposited in trusts as collateral for such debt results
from the repayment of principal, the buyback and subsequent
cancellation of a substantial portion of such debt and the
interest payments made by the Argentine government on the BODEN
due 2012 given as collateral for the medium-term notes.

IV. Presentation of Information

The Bank's assets include Argentine government bonds (the so-
called BODENs) issuable pursuant to Decree 905/ 02 as
compensation for the loss suffered by the Bank as a result of
the asymmetric "pesification" of assets and liabilities and the
devaluation of the peso that took place in 2002. The Bank's loss
suffered as a result of pesification amounted to US$1,193.7
million (equivalent to Ps.3,534.2 million, based on the exchange
rate at June 30, 2004 of Ps.2.9607 per dollar).

Compensation for this loss resulted in the Bank becoming
entitled to receive from the Argentine Government US$381.0
million in "compensatory" Boden and US$812.7 million in
additional Boden. As of June 30, 2004, the Bank had received
US$344.1 million in compensatory BODEN from the Central Bank but
had not received the additional Boden.

The Bank maintains the right to subscribe for an additional
US$812.7 million of additional BODENs, all of which are
reflected as assets of the Bank at June 30, 2004. The definitive
amount of such bonds the Bank ultimately receives is subject to
approval by the Argentine Ministry of Economy.

In accordance with Central Bank regulations, the Bank's right to
receive compensatory and additional Boden from the Argentine
government is recorded at book value, including the accrual of
interest on such bonds during the periods under review, which is
recorded as income on the Bank's income statement.

Assets and liabilities denominated in foreign currency as of
June 30, 2004 were converted into Pesos at the exchange rate of
Ps.2.9607/US$1.00 and Ps.3.5851/EUR1.00, which was the reference
exchange rate published by the Central Bank on such date.

Selected statistical information:

Buenos Aires, August 10, 2004 - Banco Hipotecario S.A. (Buenos
Aires Stock Exchange: BHIP) reports second quarter of 2004
results

As compared to the Ps. Ps.205.1 million loss as of June 30,
2003, the Bank's net income for the second quarter of 2004
increased to Ps.61.0 million. Results for the second quarter of
2004 were impacted primarily by:

i) the positive effects of lower interest rates on the Bank's
restructured financial indebtedness and reduced aggregate
indebtedness of the Bank;

ii) higher financial income from the Bank's own loan portfolio
and investments in financial trusts as a result of an increase
in the CVS index;

iii) the positive effect of the buyback of financial debt at
market prices;

iv) the positive impact of the exchange rate between the
Argentine peso and the U.S. dollar on the Bank's net position in
foreign currency; and

v) lower provisions for lawsuit contingencies.

The Bank's net income for the second quarter of 2004 was Ps.61.0
million, Ps.39.6 million lower than the Ps.100.6 million
recorded in the previous quarter. This variation reflects the
lower financial income resulting from:

i) lower CVS accrued on the Bank's pesified mortgage loan
portfolio;

ii) a decrease in the buyback of financial debt; and

iii) lower income from government securities and other
participations and higher financial expenditures related to:

   i) an increase in the CER index on Central Bank borrowings;
and
   ii) a higher tax liability resulting from increased turnover.

These effects were partially offset by higher miscellaneous
income, net resulting from the extraordinary charge made in the
first quarter due to the reversal of compensation rights
recorded in connection with Law 25,796.

                   Quarter Ended             Variation (%)
              06/30/04  03/31/04  06/30/03   Quart  Annual

Financial
Income         165,734   229,531    81,491  (27.8)% 103.4%
Financial
Expenditures   (90,399) (58,315)  (218,508)  55.0% (58.6)%
Net financial
Income          75,335   171,216 (137,017)  (56.0)% 155.0%
Provision for
loan losses     (5,851)   (4,752)  (8,613)   23.1%  (32.1)%
Net contribution
from insurance   8,616     8,685    9,218    (0.8)%  (6.5)%
Other income
from
services, net    1,151     1,762    2,176   (34.7)% (47.1)%
Administrative
Expenses       (22,726)  (22,669) (24,464)    0.3%   (7.1)%
Miscellaneous
income, net      4,498   (53,622) (46,412)  108.4%  109.7%
Net income
                61,023   100,620 (205,112)  (39.4)% 129.8%

Financial Income

Financial income for the second quarter of 2004 amounted to
Ps.165.7 million, an increase of Ps.84.2 million or 103.4% from
the Ps.81.5 million recorded in the second quarter of 2003. This
increase was mainly due to: i) the positive effect of the
buyback of financial debt at market values; ii) the positive
effect of the depreciation of the peso against the US dollar on
the Bank's net position in foreign currency; iii) higher income
from loans due to an increase in the CVS index; and iv) higher
income from guaranteed loans resulting from an increase in the
CER index.

As compared to the previous quarter, financial income for the
second quarter of 2004 decreased Ps.63.8 million from Ps.229.5
million in the first quarter of 2004, primarily due to: i) a
decrease in the buyback of corporate bonds and financial debt;
ii) lower income from loans resulting from a decrease in the CVS
index; and iii) lower financial income due to lower average loan
balances. These effects were partially offset by higher income
from guaranteed loans due to an increase in the CER index.

                        Quarter ended         Variation (%)
                06/30/04  03/31/04  06/30/03 Quart    Annual

Interest on
Pre-91 loans      21,770    22,808    25,074  (4.6)% (13.2)%
Interest on
Post-91 loans     48,455    65,655    23,245 (26.2)% 108.5%
Income from
Compensatory and
Hedge BODENs       7,298     8,178     8,176 (10.8)% (10.7)%
Income from Government
Securities and other
interest          14,101    44,275     1,105 (68.2)%   NA
Effects of changes
in exchange rates 16,103    14,528       -    10.8%    NA
Interests on
Guaranteed Loans  24,236    18,920    15,749  28.1%   53.9%
Other             (6,016)    8,047     8,142(174.8)%(173.9)%
Restructuring/
Repurchase of
financial loans    33,183   43,018       -    (22.9)%   NA
Restructuring/
Repurchase of
Corporate Bonds     6,604    4,102       -     61.0%    NA
Total Financial
Income            165,734  229,531    81,491  (27.8)% 103.4%

Financial Expenditures

Financial expenditures for the second quarter of 2004 reached
Ps.90.4 million, Ps.129.1 million lower than the Ps.218.5
million recorded in the second quarter of 2003. The main reasons
for this decrease were: i) the impact of a decrease in interest
rates accrued on bonds and interbank loans which were
restructured, from an average annual interest rate of 10% to
approximately 3% during the quarter, ii) lower negative effects
from investments in financial trusts, and iii) the positive
impact of changes in exchange rates in the second quarter of
2004. These effects were partially offset by an increase in the
CER index on Central Bank borrowings and higher taxes and
contributions on financial income.

As compared to the previous quarter, financial expenditures
increased Ps.32.1 million from Ps.58.3 million in the first
quarter of 2004, mainly due to: i) an increase in the CER index
on Central Bank borrowings; and ii) higher taxes and
contributions recorded during the second quarter of 2004.

                         Quarter ended         Variation (%)
                  06/30/04 03/31/04 06/30/03   Quart  Annual

Interest on
external financing 26,907    26,066   63,355     3.2% (57.5)%
Interest on
Central Bank
Advances           51,562     25,492  21,248   102.3%  142.7%
Interest on
inter-bank loans    5,202      5,744  19,325    (9.4)% (73.1)%
Other interest
liabilities           742        536   1,209     39.9% (38.5)%
Losses from securities
and other participations -        -   42,809       NA      NA
Effects of changes
in exchange rate        -         -   70,468       NA      NA
Contributions and
taxes on financial
income              5,986        477      94       NA      NA
Total Financial
Expenditures       90,399     58,315 218,508     55.0%  (58.6)%

Net Contribution from Insurance

As compared to the second quarter of 2003, net contribution from
insurance activities during the second quarter of 2004 decreased
6.5%, to Ps.8.6 million as of June 30, 2004 as compared to
Ps.9.2 million as of June 30, 2003. This reduction reflects the
lower premiums earned due to lower average loan balances.

As compared to the first quarter of 2004, net contribution from
insurance activities remained virtually unchanged, mainly due to
the effect of the increase in additional insurance products
offset by higher claims paid.

                        Quarter ended       Variation (%)
                06/30/04 03/31/04 06/30/03  Quart   Annual

Property damage
premium            2,994    3,066    3,532  (2.4)% (15.2)%
Life insurance
premium            6,605    6,612    6,986  (0.1)%  (5.5)%
Unemployment
insurance premium    399      405      453  (1.5)% (11.9)%
Additional
Insurance            542      433      420  25.2%   29.0%
Total Premiums    10,540   10,516   11,391   0.2%   (7.5)%
Property damage
insurance claims
paid                  17       73      151 (76.7)% (88.7)%
Life insurance
claims paid        1,754    1,642    1,890   6.8%   (7.2)%
Unemployment
insurance claims
paid                 103       44       83 134.1%   24.1%
Additional Claims     50       72       49 (30.6)%   2.0%
Total Claims       1,924    1,831    2,173   5.1%  (11.5)%
Net Contribution
from Insurance     8,616    8,685    9,218  (0.8)%  (6.5)%

Other Income from Services, Net

Other income from services, net amounted to Ps.1.2 million in
the second quarter of 2004, reflecting a decrease of Ps.1.0
million from Ps.2.2 million in the second quarter of 2003. The
main variations resulted from lower commissions on loans
resulting from lower average mortgage loan balances and higher
expenditures on loan related services.

As compared to the previous quarter, other income from services,
net decreased Ps.0.6 million during the second quarter of 2004.
This decrease was mainly due to lower FONAVI service commissions
and higher expenditures on fees related to the issue of
Argentine mortgage bonds.


                        Quarter ended       Variation (%)
                06/30/04 03/31/04 06/30/03  Quart   Annual

Other income from services
Commissions related to
origination and servicing
of own and thirdparty
loans              4,393    4,488    5,127  (2.1)% (14.3)%
FONAVI service
commissions          704      815      728 (13.6)%  (3.3)%
Other                776      725      546   7.0%   42.1%
Subtotal           5,873    6,028    6,401  (2.6)%  (8.2)%
Other expenditures
from services
Commissions paid in
connection with
loans              1,164    1,068      632    9.0%  84.2%
Collection services  536      538      542   (0.4)% (1.1)%
Structuring and
underwriting fees  1,791    1,389    2,286   28.9% (21.7)%
Commissions on
third-party
origination          179       88       96   103.4% 86.5%
Taxes                540       54        -      NA    NA
Other                512    1,129      669   (54.7)%(23.5)%
Subtotal           4,722    4,266    4,225    10.7%  11.8%
Other Income (Loss)
from Services, Net 1,151    1,762    2,176   (34.7)% (47.1)%

Administrative Expenses

Administrative expenses for the second quarter of 2004 amounted
to Ps. 22.7 million, remaining almost unchanged as compared to
the quarter ended March 31, 2004.

As compared to the second quarter of 2003, administrative
expenses decreased by Ps.1.7 million, or 7.1%, from Ps.24.5
million as of June 30, 2003, basically due to a decrease in
bonuses and severance payments and amortization during this
quarter.



                        Quarter ended       Variation (%)
                06/30/04 03/31/04 06/30/03  Quart   Annual

Salaries and social
Security
contributions     10,554   10,727  10,277    (1.6)%   2.7%
Bonuses and
severance payments    65      146   1,529   (55.5)% (95.8)%
Other fees         1,044      838   1,440    24.6%  (27.5)%
Advertising and
publicity          1,179      240     251       NA      NA
Non recoverable
VAT and other taxes1,938    2,689   1,759    (27.9)%  10.2%
Operating
expenditures       3,541    3,652   3,255     (3.0)%   8.8%
Amortizations      1,661    1,700   2,886     (2.3)% (42.5)%
Other              2,744    2,677   3,067      2.5%  (10.5)%
Total Admin
Expenses          22,726   22,669  24,464      0.3%   (7.1)%

Administrative
Expenses (annualized)
/Total Assets       1.08%   1.11%   1.32%

Miscellaneous Income (Loss), Net

In the second quarter of 2004, miscellaneous income (loss), net
increased to an income of Ps.4.5 million, Ps.50.9 million higher
than the Ps.46.4 million loss recorded in the second quarter of
2003. This decrease resulted primarily from: i) lower provisions
for other contingencies made, inter alia, in connection with
lawsuits filed against the Bank: ii) higher income from
investments in other companies; and iii) higher income from loan
recoveries.

Miscellaneous income, net increased by Ps.58.1 million in the
second quarter of 2004 as compared to the first quarter of 2004,
mainly as a result of: i) higher balances resulting from loan
recoveries; and ii) the reversal of compensation rights recorded
under Law 25,796 due to the uncertainties and ambiguity of the
regulations issued by the National Government in connection with
the compensation payable due to the mismatch between assets and
liabilities which were pesified and adjusted by CER and CVS,
made in the first quarter of 2004.


                        Quarter ended       Variation (%)
                06/30/04 03/31/04 06/30/03  Quart   Annual

Penalty interest   2,162    2,202    3,982  (1.8)%  (45.7)%
Reversal of provisions -        -      151     NA       NA
Loan loss
recoveries        16,331   10,299   13,844  58.6%    18.0%
Other              8,192    7,318    1,986  11.9%       NA
Subtotal
Miscellaneous
Income            26,685   19,819   19,963  34.6%    33.7%
Other provisions  10,198   11,655   56,039 (12.5)%  (81.8)%
Insurance reserve
provision            -         70       -     NA       NA
Taxes                193       21       -     NA       NA
Other Investments    -          -       65    NA       NA
Other             11,796   61,695   10,271 (80.9)%    14.9%
Subtotal
Miscellaneous
Expenses          22,187   73,441   66,375 (69.8)%   (66.6)%
Total
Miscellaneous
Income (Loss), Net 4,498 (53,622) (46,412)  108.4%   109.7%


Loans

The Bank's total loan portfolio at June 30, 2004 decreased by
Ps.87.6 million to Ps.3,142.8 million from Ps.3,230.4 million at
March 31, 2004. This decrease mainly resulted from: i) the
securitization of Ps.50.0 million in residential mortgage loans
in connection with the first series of "C‚dulas Hipotecarias"
issued under the Bank's Mortgage/Backed Securities Program; and
ii) the natural amortization of mortgage loans.

In addition, the Bank's total loan portfolio at June 30, 2004
decreased by Ps.621.9 million from Ps.3,140.6 million as of June
30, 2003. These resulted primarily from: i) lower average
balances in the Bank's portfolio of pre- and post-91 loans due
to prepayments, and the natural amortization of loans, partially
offset by the improvement in asset quality and the impact of the
CVS index on the pesified loans; ii) lower balances of loans to
the public sector as a result of the exchange of such loans for
Loans Guaranteed by the National Government; iii) a decrease in
the outstanding balances of guaranteed loans due to their
reclassification as other loans upon their having been pledged
as collateral for the issue of Guaranteed Notes and Guaranteed
Bank Facilities and the securitization of Ps.50.0 million of
mortgage loans in connection with the issuance of Argentine
Mortgage Bonds.


                        Quarter ended       Variation (%)
                06/30/04 03/31/04 06/30/03  Quart   Annual

Mortgage loans
-Pre-91 loans-
individual
mortgages     1,027,487 1,057,616 1,158,081 (2.9)% (11.3)%

- Pre-91 loans
- construction
projects          1,366    1,366      7,836    NA  (82.6)%

Total Pre-91
Loans         1,028,852 1,058,982  1,165,917 (2.8)%(11.8)%

- Post-91 loans
- individual
mortgages(1)  1,037,543 1,100,756  1,138,536 (5.7)% (8.9)%

- Post-91 loans
- construction
projects         10,844    13,238    173,985 (18.1)%(93.8)%

Total Post-91
Loans         1,048,387 1,113,994   1,312,521 (5.9)% (20.1)%

Other loans(2)1,065,590 1,057,423   1,286,324 0.8%  (17.2)%

Total Loan
Portfolio     3,142,829 3,230,399   3,764,762 (2.7)% (16.5)%

Loan Portfolio -By Economic Sector


                        Quarter ended       Variation (%)
                06/30/04 03/31/04 06/30/03  Quart   Annual

Non financial
government
sector           750,453 735,471  909,067     2.0% (17.5)%
Financial Sector 568 206 5,934         NA    (90.4)%

Non financial private sector

- Advances       112,387  115,000  119,112    (2.3)% (5.7)%
- With preferred
guarantees1   2,235,617 2,130,183 2,312,701   5.0% (3.3)%
- Personal loans   6,451     4,747        65   35.9%  NA
- Non-applied
collections      (11,319) (11,269) (15,076)    0.4% (24.9)%
- Other          58,559    65,999   338,080   (11.3)% (82.7)%
- Interest accrued on
uncollected loans due
to changes in
exchange rate     39,173  48,209     34,876    (18.7)% 12.3%
Reserves       (367,490) (385,473) (546,421)    (4.7)% (32.8)%
Total Loan
Portfolio     2,824,399 2,703,073 3,158,338      4.5%  (10.6)%

1. Includes Ps.348,900 thousand at June 30, 2004, Ps.340,296
thousand at March 31, 2004 and Ps.327,511 thousand at June 30,
2003 of individual post-91 mortgage loans conveyed in a trust in
anticipation of future securitizations.

2. Other loans includes Ps.139,671 thousand at June 30, 2004,
Ps.141,853 thousand at March 31, 2004 and Ps.60,001 thousand at
June 30, 2003 of "Other receivables included in the Statement of
Debtors' Status recorded in Other receivables from financial
operations.

Reserve for Loan Losses

Due to the stabilization in asset quality, the Bank did not
establish reserves for loan losses during the second quarter of
2004, reaching a ratio of reserves for loan losses over total
non-performing loans of 90.6% compared to 88.7% as of March 31,
2004, and 94.3% at June 30, 2003.

                                     Quarter ended
                           06/30/04   03/31/04    06/30/04
Reserve for Loan Losses
- at the beginning of the
quarter                     (385,473) (449,737) (576,067)
Increases                     (5,852)   (4,751)   (8,613)
Charge-offs                    23,835   69,015     38,259
Reserve for Loan Losses
- at the end of the
quarter                     (367,490) (385,473)  (546,421)
Reserves for loan losses
total non-performing loans       90.6%    88.7%     94.3%
Reserve for loan losses
/total loan portfolio            11.7%    11.9%     14.5%

Funding Sources

On-balance sheet funding at June 30, 2004 was Ps.6,318.7 million
compared to Ps.6,105.1 million as of March 31, 2003. The
increase in funding was primarily due to: i) higher deposits
resulting from increased acceptance of institutional time
deposits, ii) an increase in the CER index applicable on Central
Bank borrowings, and iii) other temporary liabilities resulting
from the buyback of financial indebtedness.

Funding at June 30, 2004 was 2.6% higher as compared to the
Ps.6,160.5 million for the corresponding period of 2003. This
increase was due to: i) a currency swap recorded during the
previous quarter to hedge the Bank's liability exposure in
Euros; ii) higher deposits resulting from the acceptance of
institutional time deposits; iii) an increase in the CER index
applicable on Central Bank borrowings, and iv) other temporary
liabilities resulting from the buyback of financial
indebtedness. Such effects were mainly offset by the reduction
of debtr esulting from the restructuring of financial
liabilities.

As of June 30, 2004, shareholders' equity amounted to 21.9% of
assets and the ratio of debt to shareholder's equity was 3.0x On
January 14, 2004 Banco Hipotecario restructured its financial
liabilities for a principal amount of approximately US$1,208.4
million, reducing its debt by US$361.0 million, extending
maturities to an average life of 6.5 years and achieving a
reduction in average interest rates to 5%, allowing it to align
principal and interest payments with its cash flow without
having to rely on changes in the stock or flow of deposits.

On August 3, 2004, the Bank serviced the first payment of
principal under its U.S. dollar and peso-denominated mediumterm
secured notes due 2010 in an amount of US$21.0 million and Ps.
5.5 million, respectively.

In addition, on August 4, 2004, the Bank released excess assets
deposited in trusts as collateral for such debt in an aggregate
amount of US$79.5 million of BODEN due 2012 and US$32.4 million
of guaranteed loans. Such excess results from: i) the repayment
of principal, ii) the buyback and subsequent cancellation of a
substantial portion of the referred debt (US$46.6 million and
Ps.175.7 million), and iii) the interest payments made by the
Argentine Government on the BODEN due 2012 given as collateral
for the medium-term notes.


                        Quarter ended       Variation (%)
                06/30/04 03/31/04 06/30/03  Quart   Annual

Deposits         186,078   127,926   107,906     45.5% 72.4%
Corporate bonds2,779,232 2,751,651 2,925,805      1.0% (5.0)%
Central Bank   2,179,917 2,141,871 2,056,840      1.8% 6.0%
Interbank loans
and international
agencies         333,893   479,920   735,918   (30.4)% (54.6)%
Other interest bearing
liabilities         -         -       229,474      NA     NA
Total Funding  5,479,120 5,501,368   6,055,943  (0.4)%   (9.5)%
Other non-interest
Bearing
liabilities      839,564   603,779      104,509  39.1%     NA
Total          6,318,684 6,105,147    6,160,452   3.5%     2.6%

To view financial statements, Please visit:
http://bankrupt.com/misc/Hipotecario_2Q04.pdf

CONTACTS: Mr. Marcelo Icikson
          Mr. Nicolas Vocos
          Capital Markets
          Tel. (54-11) 4347-5798
          Fax (54-11) 4347-5874
          Buenos Aires, Argentina
          micikson@hipotecario.com.ar
          nmvocos@hipotecario.com.ar

          Mr. Gabriel G. Saidon
          Chief Financial Officer
          Tel. (54-11) 4347-5759/5212
          Fax (54-11) 4347-5874/5113
          Buenos Aires, Argentina
          gsaidon@hipotecario.com.ar


BARDA NEGRA/CANTERAS ZAFIRO: Court Schedules Assembly
-----------------------------------------------------
Following the reorganization outline set for Ceramica Zanon
S.A.C.I.F., Court No. 18 of Buenos Aires' Civil and Commercial
Tribunal scheduled the proceedings for Barda Negra S.A. and
Canteras Zafiro's reorganization to the following dates:

1. General Report Presentation - August 19, 2004
2. Informative Assembly - February 18, 2004

Infobae relates that Clerk No. 35 assists the court on this case

CONTACT: Barda Negra S.A.
         Avenida del Maestro y Buenos Aires (Zapala)
         Phone: (02942)-422934

         Canteras Zafiro S.A.
         Hipolito Irigoyen  850, Piso 5
         Buenos Aires
         Phone: (011) -4343-7113/4342-5785 ¢ 5790
         Fax: (011)-4342-5435


CORASA: Government Formalizes Ownership
---------------------------------------
The Argentine Government, led by President Nestor Kirchner,
published Friday a resolution formalizing its control of postal
service Correo Oficial de la Republica Argentina SA (CORASA).

According to Dow Jones, the resolution, which was issued from
Planning Minister Julio De Vido's office, approves Correo
Oficial's constitution and statutes.

The government further said that the company's capital will be
increased once the state agency in charge has taken an inventory
of all assets and submitted a budget to the Planning Ministry.

The government rescinded the contract of Correo Argentino, as
the service was formerly known, in November and said it would be
reprivatized within six months.

However, the deadline passed without a new concession and the
government turned Correo Oficial into a corporation in June,
prompting Correo Argentino to take legal action against the
government. The postal service's former owner said the measure
was a violation of property rights.

The key issue was an ARS760-million claim for compensation for
improvements to the postal service's Monte Grande sorting
facility. It's not clear whether the government is including
Monte Grande in its calculation of Correo Oficial's assets,
since the private company says it invested above the annual
requirement in the facility and should be compensated for that
money.


GAIN TRUST: US$140M in Securities Still in Default
--------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A maintained the
`D(arg)' rating assigned to Some US$140 million of Gain Trust
Titulos de Deuda Vto. 2005 debt security. The CNV described the
affected securities as "fideicomiso financiero" but didn't
reveal when the issue will expire.

According to Fitch, financial obligations that bear the 'D(arg)'
rating are currently in default.


GALTRUST I: US$200M in Financial Trusts Remain at Junk Level
------------------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. maintained the
`C(arg)' rating given to a total of US$200 million worth of
financial trusts issued by Galtrust I.

On its Web site, Argentina's securities regulator, the Comision
Nacional de Valores (CNV), described the securities as
"Certificados de Participacion". The maturity date of the issue
was not disclosed.

A `C(arg)' rating indicates a highly uncertain capacity for
timely payment of financial commitments relative to other
issuers or issues in the same country. Capacity for meeting
financial commitments is solely reliant upon a sustained,
favorable business and economic environment, said Fitch.


IGUAZU PARK: Creditor Secures Bankruptcy Approval
-------------------------------------------------
Buenos Aires-based Company Iguazu Park S.A. proceeds to
liquidate its assets upon the orders of Court No. 16 of the
city's Civil and Commercial Tribunal.

Clarin reports that the Company's creditor, CTI Compania de
Telefonos del Interior S.A., filed the bankruptcy petition.
Clerk No. 32 assists the Court on this case.

CONTACT: Iguazu Park S.A.
         Rivadavia 717
         Buenos Aires


IMPSA: Fitch Argentina Upgrades Ratings on Corporate Bonds
----------------------------------------------------------
Fitch Argentina Calificadora de Riego S.A upgraded US$150M worth
of corporate bonds issued by Industrias Metalurgicas Pescarmona
S.A. (IMPSA) from `D(arg)' to `C(arg)', the CNV reports. The
ratings assigned were based on IMPSA's financial health as of
April 30, 2004.

The affected bonds, issued under "series and/or class," were
described as "2 Serie emitida por US$150 millones del Programa
Global de US$ 250 millones." The bonds expired on May 30, 2002.

A `C(arg)' rating indicates a highly uncertain capacity for
timely payment of financial commitments relative to other
issuers or issues in the same country. Capacity for meeting
financial commitments is solely reliant upon a sustained,
favorable business and economic environment, said Fitch.

CONTACT: Industrias Metalurgicas Pescarmona S.A.
         Latin America
         Mr. Hernan Guinazu
         Carril Rodriguez Pena 2451
        (M5503AHY) Godoy Cruz, Mendoza
         Argentina.
         Tel: (+54-261) 4131374
         Fax.(+54-261) 4131429 - 4131423
         guinazu@impsa.com.ar

         Web Site: www.impsa.com.ar



IMPSAT: Posts US$11M EBITDA in 2Q04
-----------------------------------
IMPSAT Fiber Networks, Inc. ("Impsat" or the "Company"), a
leading provider of integrated broadband data, Internet and
voice telecommunications services in Latin America, announced
its results for the second quarter of 2004. All figures are in
U.S. dollars.

(First quarter 2003 results discussed below are those of the
Company before "fresh start" reporting required after its
emergence from Chapter 11 at the end of the first quarter of
2003. As a consequence of "fresh start" reporting, the Company's
financial results after its Chapter 11 emergence are not
comparable to those of prior periods.)

SECOND QUARTER 2004 HIGHLIGHTS:

Total revenues for the second quarter of 2004 were $55.5
million, a decrease of $0.9 million (or 1.6%) from the second
quarter of 2003, but an increase of $0.5 million (or 0.9%) from
the first quarter of 2004.

Direct costs for the second quarter and first half of 2004
decreased compared to the same periods of 2003. Direct costs for
the second quarter of 2004 totaled $ 26.9 million and direct
costs for the first six months of 2004 totaled $50.8 million, a
decrease of $3.2 million (or 10.7%) and a decrease of $5.5
million (or 9.8%), respectively, from the same periods in 2003.

Impsat recorded positive EBITDA for the second quarter and first
half of 2004. Second quarter EBITDA totaled $11.0 million,
compared to $7.4 million in the second quarter of 2003,
representing a 49% increase year-over-year. EBITDA for the first
half of 2004 was $24.3 million compared to $20.9 million in the
first half of 2003, an increase of 16.6%.

Impsat Brazil posted positive EBITDA for its fourth consecutive
quarter. Impsat Brazil's EBITDA for the second quarter of 2004
totaled $1.0 million, compared to EBITDA of $0.7 million for the
previous quarter.

At June 30, 2004, Impsat's total indebtedness was $267.0
million, compared to $260.3 million at June 30, 2003. The
increase in indebtedness represents the accretion of a $13.3
million "payment in kind" interest accrual, offset by $6.6
million in principal amortizations.

SECOND QUARTER 2004 RESULTS

Overview

The Company's net revenues for the second quarter of 2004 total
$55.5 million, a decline of $0.9 million, or 1.6%, from the
second quarter of 2003, but an increase of $0.5 million, or
0.9%, compared to first quarter of 2004.

Operating expenses for the second quarter of 2004 totaled $55.1
million, an increase of $5.9 million (or 12.1%) from the same
period in 2003 and an increase of $3.3 million (or 6.4%
increase) compared to the first quarter of 2004.

Commenting on results, Impsat CEO Ricardo Verdaguer stated: "We
are very pleased with the operating performance of the Company
during the first half of 2004 and particularly with the second
quarter results. The economic recovery in the region has begun
to accelerate and we see an increased demand for
telecommunications services. We anticipate an increase in our
revenues and improvement of our operating performance during the
remainder of this year."

Revenues

Net revenues increased for the second quarter in a row. As
previously mentioned, total net revenues for the second quarter
of 2004 were $55.5 million, a 0.9% (or $0.5 million) increase as
compared to revenues for the three months ended March 30, 2004.

The increase in revenues compared to the first quarter of 2004
resulted from an increase in broadband and satellite and
Internet service lines, partially offset by decreases in
telephony and value-added services.

Compared to the three months ended June 30, 2003, our net
revenues decreased $0.8 million, or 1.5%. Our lower total net
revenues in the second quarter of 2004, as compared to the
corresponding period in 2003, were principally due to lower
revenues from broadband and satellite services which decreased
4.3%, which were only partially offset by increases in our
revenues from Internet and telephony services by 16.6% and 6.7%
respectively.

To view table:
http://bankrupt.com/misc/Impsat1.doc

Operating Expenses

Operating expenses for the three-month period ended June 30,
2004 totaled $55.1 million, a $5.9 million, or 12.1%, increase
compared to the same period in 2003. This increase is mainly due
to the realization during the second quarter of 2003 of $8.8
million in gains from the extinguishment of debt as a result of
the Company's restructuring of debts with certain creditors that
did not participate in the company's Chapter 11 proceeding that
closed at the end of the first quarter of 2003. All of the other
cost items reflects year to year reductions as described below.

Operating expenses for the second quarter of 2004 increased by
$3.3 million, or 6.4%, compared to the first quarter of 2004,
principally due to increases of $2.0 million in other direct
costs and $0.7 million in contracted services. The quarter-to-
quarter increase in other direct costs was principally due to a
net reversal of provisions for doubtful accounts of $1.9 million
in the first quarter of 2004 which was related to the settlement
of the Company's disputes with Global Crossing. Contracted
services increased by $0.7 million, or 17.1%, in the second
quarter of 2004 as compared to the first three months of 2004 as
a result of higher installation and maintenance costs related to
new contracts that are anticipated to generate additional
revenues during the remainder of 2004.

Our direct costs for the second quarter and first half of 2004
appreciably decreased compared to the same periods in 2003.
Direct costs for the second quarter of 2004 totaled $26.9
million, a decrease of $3.2 million (or 10.7%) from the second
quarter of 2003. Direct costs for the first half of 2004 totaled
$50.8 million, a decrease of $5.5 million, or 9.8%, compared to
the first half of 2003. The main reasons for this decrease are a
combination of lower leased capacity and other direct costs
partially offset by an increase in contracted services.

Our leased capacity costs for the three months ended June 30,
2004 totaled $15.9 million, a decrease of $1.6 million, or 9.2%,
from the corresponding period in 2003. Leased capacity costs in
the first half of 2004 amounted to $31.7 million, a decrease of
$3.2 million, or 9.2%, from the first half of 2003. This
decrease reflects an overall reduction in interconnection and
telephony termination costs and frequency rights. Leased
satellite capacity costs for the three months ended June 30,
2004 totaled $5.9 million, a decrease of $1.2 million (or 17.5%)
from the corresponding period in 2003. In the first half of
2004, leased capacity costs decreased by $2.5 million compared
to the first half of 2003 to $11.8 million, a 17.7% decrease.
The reduction in our leased satellite capacity costs was
principally due to our favorable renegotiation of certain
satellite capacity agreements and also to a more extensive use
of our own proprietary broadband network.

Other direct costs totaled $5.8 million during the second
quarter of 2004, a decrease of $2.1 million, or 26.8%, compared
to the same period in 2003. In the first half of 2004, direct
costs totaled $9.5 million, a decrease of $3.0 million, or
24.2%, compared to the first half of 2003. While sales
commissions paid to our salaried sales force and third-party
sales representatives for the three and six months ended June
30, 2004 increased by $0.4 million and $1.1 million compared to
the corresponding periods in 2003, provisions for doubtful
accounts decreased as a consequence of a net reversal of $0.2
million and $2.1 million for the three and six months ended June
30, 2004, compared to provisions for doubtful accounts of $2.1
million and $2.6 million for the same periods in 2003. The
reversal is due principally to the settlement of our disputes
with Global Crossing.

During the three months ended June 30, 2004, our contracted
services costs totaled $5.1 million, an increase of $0.6 million
(or 11.9%) and compared to the same period in 2003. During the
six months ended June 30, 2004 contracted services costs totaled
$9.4 million, an increase of $0.7 million, or 8.6%, compared to
the first half of 2003.

We anticipate that our contracted services costs will increase
slightly during the second half of 2004 due to scheduled
maintenance and an increase in new installations.

Salaries and wages for the three months ended June 30, 2004
totaled $11.8 million, a decrease of $0.01 million or 0.6% from
the same period in 2003. For the first six months of 2004,
salaries and wages totaled $24.0 million, an increase of $1.4
million or 6.3% compared to the first half of 2003. This
increase was due to the recognition at the end of the first
quarter of 2004 of $0.4 million in salaries and wages expenses
related to the vesting at the end of the first quarter of 2004
of certain shares of restricted common stock granted to senior
management in connection with the Company's Chapter 11
reorganization (which closed at the end of the first quarter of
2003). Excluding the recognition of these amounts, salaries and
wages expense for the second quarter of 2004 was essentially
unchanged from those incurred in the first quarter of 2004.

Selling, General and Administrative expenses totaled $6.0
million for the three months ended June 30, 2004, a decrease of
$1.2 million or 16.4% compared to the same period in 2003. SG&A
for the first six months of 2004 amounted to $11.5 million, a
decrease of $1.2 million, or 9.6%, compared to the same period
in 2003. This decrease was mainly due to lower legal and
professional fees that declined by $1.2 million for the second
quarter of 2004 as compared to the second quarter of 2003. Legal
and professional fees incurred during the second quarter of 2003
were related to the Company's Chapter 11 reorganization, which
was concluded on March 25, 2003.

Interest Expense and Indebtedness

Net interest expense for the three and six months ended June 30,
2004 totaled $5.0 million and $9.6 million. Net interest expense
for the second quarter and first half of 2003 totaled $5.3
million and $7.0 million, respectively. Our interest expense for
the first half of 2004 increased principally because of "payment
in kind" accretion on our Senior Notes and certain indebtedness
of our subsidiaries, which, of our total interest expense for
the three and six months ended June 30, 2004, represented $3.5
million and $6.8 million, respectively. Our total indebtedness
as of June 30, 2004 was $267.0 million, as compared to $260.3
million as of June 30, 2003. The increase in our total
indebtedness is comprised of the accretion of "payment in kind"
interest of $13.3 million, offset by amortization of $6.6
million. Such amortization is a combination of $5.0 million net
principal repayment, $2.5 million gain on early extinguishment
of debt realized during the third quarter of 2003, and $0.9
million increase on the U.S. dollar value of our debt in local
currency in Colombia due to the appreciation of the Colombian
peso.

Effect of Foreign Exchange Losses and Gains

The Company recorded a net loss on foreign exchange for the
three and six months ended June 30, 2004 of $5.5 million and
$9.9 million, compared to net gains of $21.4 million and $31.4
million for the same periods in 2003. This net loss on foreign
exchange reflects principally the effect of the devaluation
during the second quarter and first half of 2004 of the
Argentine peso and the Brazilian real on the book value of our
monetary assets and liabilities in Argentina and Brazil, as
compared to the effect of the appreciation of such currencies
against the U.S. dollar during the second quarter and first half
of 2003.

Net (Loss) Income

For the three months ended June 30, 2004, we recorded net losses
of $10.0 million compared to a net gain of $22.3 million for the
three months ended June 30, 2003. Our net income for the second
quarter of 2003 was due principally to a net gain of $21.5
million on foreign exchange and a gain on early extinguishment
of debt of $8.8 million.

EBITDA

Impsat recorded positive EBITDA of $11 million during the second
quarter of 2004.

As compared to the same period in 2003, EBITDA increased by $3.2
million or 49.2%. Despite lower revenues during the second
quarter of 2004 as compared with the corresponding period in
2003, EBITDA increased as a result of lower direct costs and
lower selling, general and administrative expenses. For the six
months ended June 30, 2004, EBITDA totaled $24.3 million, a $3.5
million (or 16.6%) increase over the corresponding period of the
previous year.

Impsat Brazil continued to record positive EBITDA for the fourth
consecutive quarter, with EBITDA totaling $1.0 million during
the second quarter of 2004. During the six-month period ending
June 30, 2004, EBITDA totaled $1.7 million, an increase of $1.3
million over the corresponding period of 2003.

EBITDA margin for the second quarter of 2004 reached 19.7%,
compared to 13% in the corresponding period of 2003.

Liquidity and Capital Resources

Cash and cash equivalents as of June 30, 2004, were $63.5
million. This compares to our cash, cash equivalents and trading
investments of $63.8 million at June 30, 2003 and $64.0 million
as of December 31, 2003.

Our total indebtedness as of June 30, 2004, was $267.0 million
(as compared to $260.3 million at June 30, 2003), of which $29.0
million represented current portion of long-term debt and $238.0
million represented long term debt.

We anticipate increasing our capital expenditures for network
and customer premises equipment for the remainder of the year.
We anticipate that the bulk of these increased capital
expenditures will be made by our subsidiaries in Brazil,
Colombia and Peru. Our revised capital expenditures budget for
2004 estimates approximately $37.0 million (including amounts
spent to date) for capital expenditures.

Non-GAAP Financial Measures

The Company presents EBITDA as a supplemental measure of
performance because it believes that EBITDA provides a more
complete understanding of our operating performance before the
impact of investing and financing transactions. EBITDA and
EBITDA margins are among the more significant factors in
management's evaluation of Company-wide performance. EBITDA can
be computed by adding depreciation and amortization to operating
income (loss), excluding gains on extinguishment of debt. The
reconciliation of EBITDA to Operating Income (Loss) is presented
in Appendix I Supplemental Financial Information in this Press
Release. EBITDA (earnings before interest, taxes, depreciation,
amortization, and non-recurring items) should not be considered
as an alternative to any measure of operating results as
promulgated under accounting principles generally accepted in
the United States such as operating income or net income, nor
should it be considered as an indicator of our overall financial
performance. EBITDA does not fully consider the impact of
investing or financing transactions as it specifically excludes
depreciation and interest charges, which should also be
considered in the overall evaluation of results. Moreover, our
method for calculating EBITDA may differ from the method
utilized by other companies and therefore comparability may be
limited.

IMPSAT Fiber Networks, Inc. is a leading provider of private
telecommunications network and Internet services in Latin
America. We offer integrated data, voice, data center and
Internet solutions, with an emphasis on broadband transmission,
including IP/ATM switching, DWDM, and non-zero dispersion fiber
optics. We provide telecommunications, data center and Internet
services through our networks, which consist of owned fiber
optic and wireless links, teleports, earth stations and leased
satellite links. We own and operate 15 metropolitan area
networks in some of the largest cities in Latin America,
including Buenos Aires, Bogota, Caracas, Quito, Guayaquil, Rio
de Janeiro and Sao Paulo. The Company has also deployed fourteen
facilities to provide hosting services. Impsat currently
provides services to nearly 3.000 national and multinational
companies, financial institutions, governmental agencies,
carriers, ISPs and other service providers throughout the
region. We have operations in Argentina, Colombia, Brazil,
Venezuela, Ecuador, Chile, Peru and the United States and also
provide our services in other countries in Latin America. Visit
us at www.impsat.com

To view financial statements:
http://bankrupt.com/misc/Impsat2.htm

CONTACT: Impsat Fiber Networks, Inc.
         Mr. Hector Alonso
         Chief Financial Officer
                 Or
         Mr. Santiago F. Rossi
         Investor Relations
         54.11.5170.3700
         www.impsat.com
                 Or
         Citigate Financial Intelligence
         Mr. John McInerney
         Mr. Robin Weinberg
         201.499.3567


MOLINOS RIO: Acquires Control of Lemon Juice Company
----------------------------------------------------
Molinos Rio de la Plata SA (MOLI.BA), a leading manufacturer of
branded food products in Argentina, is the new owner of Minerva
(Jugos Naturales Minerva).

El Cronista reports that Molionos bought control of Minerva, the
country's leading lemon juice company, from French beverage
group Pernod Ricard for US$2.1 million. Minerva has a plant in
Pilar and a share of more than 70% in the domestic lemon juice
market.

Molinos posted a net loss of ARS11.7 million in the first half
of the year reversing a net profit of ARS27.6 million in the
previous year. The Company blamed last semester's negative
performance on the weakness in its sunflower oil business.

The company said net assets as of the end of the second quarter
of 2004 totaled ARS877.5 million.

CONTACT INFO: Molinos Rio de la Plata S.A.
              Uruguay 4075 CP (B1644HKG)
              Victoria
              Pcia. de Buenos Aires
              Argentina
              Telephone: 54-11-4340-1100

              Contacts:
              Maria Soledad Kern
              Investors Service
              Tel: (0054)-(11)-4340-1592
              E-mail: maria.soledad.kern@molinos.com.ar


POLIGNANO: Proceeds to Liquidate Assets
---------------------------------------
Banco Rio de la Plata S.A. successfully sought for the
bankruptcy of Polignano A Mare S.R.L. after Court No. 8 of the
City's Commercial and Civil Tribunal opened the Company's
Bankruptcy proceedings.

Local resource Clarin reports that the creditor asked for the
Company's liquidation because of unpaid debts totaling
US$96,063.45. Clerk No. 15 assists the court on this case.

CONTACT: Polignano A Mare S.R.L.
         Sarmiento 1586
         Buenos Aires


T.V.C. PUNTANA: Court Orders Liquidation
----------------------------------------
Buenos Aires based radio manufacturer T.V.C. Puntana S.A. was
declared bankrupt after Court No. 12 of the city's civil and
commercial tribunal endorsed the liquidation petition filed by
Citibank N.A., reports Clarin.

Clerk No. 23 assists the court on this case, which will end with
the disposal of the Company's assets to repay its debts.

CONTACT: T.V.C. Puntana S.A.
         Avda. L.N. Alem 822
         Buenos Aires



===============
B A R B A D O S
===============

C&WJ: Appeals FTC Decision
--------------------------
Cable & Wireless Barbados formally filed an appeal against the
Fair Trading Commission (FTC) ruling rejecting the Company's
request for a hike in domestic telephone rates, the Barbados
Nation reports.

The Company requested for a review of the July 20 decision based
on the following arguments:

1. C&W says that evidence points to a US$29.6 million deficit in
the test year and that this deficit should be compensated by
subsidies from its international operations. C&W contends that
the cross-subsidy should be cancelled with the rate adjustment
it had requested. The FTC has denies the request for lack of
evidence.

2. C&W says that it had presented all applicable revenues from
the domestic market to justify the rate adjustment. Paragraph
124 of the FTC decision stated that the regulator has to
consider all relevant revenue sources before it can decide price
level changes. The decision was influenced by the fact that C&W
was allegedly unable to disclose all its domestic revenue
sources.

3. C&W refutes FTC's statement that: "the full cost of
maintenance an expansion of the domestic network have been
attributed to and included in the cost of providing the domestic
service."

The Company says that FTC itself stated Costs for the Domestic
Service totaling $177.586 million with Revenues amounting to
$127.6 million thereby ending with a deficit of $50 million in
the test year.

In addition, C&W says that domestic rate payers were not
required to pay the costs attributed to mobile, international
and Internet service. Therefore, income from these services is
not relevant in the determination of revenues.



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

AES CORP.: Amends $650M Credit Facility
---------------------------------------
The AES Corporation (NYSE:AES) announced Friday that it has
amended its US$650 million credit facilities to significantly
reduce borrowing costs.

The interest rate on the $450 revolving credit facility has been
reduced to the London Interbank Offered Rate (LIBOR) plus 250
basis points and the rate on the $200 million term loan is now
LIBOR plus 225 basis points. Previously both rates were LIBOR
plus 400 basis points.

In addition the term loan maturity date was extended from 2007
to 2011. The revolving credit facility maturity in 2007 remains
unchanged. At June 30, 2004, there were no borrowings under the
$450 million revolving credit facility, but approximately $119
million was utilized for letters of credit supporting general
business purposes, while the $200 million term loan was fully
drawn. AES retains the right to prepay without penalty under
these facilities at any time.

"The financial markets continue to recognize AES's improving
credit quality. These amendments reflect the benefits of our
deleveraging strategy and of improved financial performance,"
said Executive Vice President and Chief Financial Officer Barry
Sharp.

AES is a leading global power company, with 2003 sales of $8.4
billion. AES operates in 27 countries, generating 45,000
megawatts of electricity through 113 power facilities and
delivers electricity through 17 distribution companies. Our
30,000 people are committed to operational excellence and
meeting the world's growing power needs.

CONTACT: AES Corporation
         Mr. Scott Cunningham
         Phone: 703-558-4875
         invest@aes.com

         Web Site: www.aes.com


AES SUL: Posts $87M Loss in 1H04 Due to Exchange Rate Variation
---------------------------------------------------------------
AES Sul Distribuidora Gaucha de Energia S.A., a subsidiary of
U.S. energy group AES Corp. (NYSE:AES) in Brazil, posted red in
the first half of the year, reports Business News Americas.

In a statement to the Sao Paulo stock exchange, the company
revealed a 1H04 loss of BRL265 million (US$87 million),
reversing a net profit of BRL391 million in the 1H03.

The power distributor attributed the negative performance to the
increasing financial expenses, brought on by variations on the
foreign exchange affecting the company's dollar-linked debt.

Gross revenue from power sales rose 16% to BRL842 million,
following a 13% tariff hike in April, AES Sul said, adding that
power sales rose to 3,739GWh in 1H04 from 3,630GWh in 1H03.

AES Sul serves over 999,000 clients in the central area of Rio
Grande do Sul, the southernmost state in Brazil.


EMBRATEL: Carries Out Redundancy Plan, Stuns Union
--------------------------------------------------
Brazilian long-distance operator Embratel (Sao Paolo:EBTP4.SA,
NYSE:EMT) sent home some of its workers, Reuters reports, citing
Luis Antonio Silva, president of the Telecommunications Workers
Union, known as Sinttel.

The move, which affected the contracts of 1,000 third party
workers, 100 people from its call center and 60 people from
Embratel's international division, came as a shock for the
union.

"It's normal for a company to think about restructuring, but
usually you call the union to see who can be retired and offer
some kind of incentives," said Sinttel, adding that the Company
had not presented workers with a redundancy plan.

Telefonos de Mexico (Telmex) closed the US$400 million
acquisition of 52% voting stake in Embratel from U.S. company
MCI Inc. in late July.

CONTACT: Ms. Silvia M.R. Pereira, Investor Relations
         tel: (55 21) 2121-9662
         fax: (55 21) 2121-6388
         email: silvia.pereira@embratel.com.br
                invest@embratel.com.br


PARMALAT BRAZIL: Court Accepts Insolvency Protection Plea
---------------------------------------------------------
Parmalat S.p.A. in Extraordinary Administration communicates
that Parmalat Brasil and Parmalat Participacoes had their
requests for court protection, entered by Felsberg and
Associates, accepted Thursday, August 12, 2004, by the 29th
Court Judge, Nuncio Theofilo Neto.

This decision by the court represents an important milestone in
the recovery process of these businesses - the operating company
and the holding company.

Under court protection both Parmalat companies will have a 24
month period to settle their debts or reach agreement with their
creditors.

Integra Associados recently presented a restructuring plan to
creditor banks of both entities that foresees the conversion of
their debts into equity and securities which, if accepted by the
creditors and the court, would make Parmalat Brazil a Brazilian
corporation owned by its
creditors.

After restructuring, the main link between Parmalat S.p.A. and
the Brazil businesses will be a licensing agreement for the
Parmalat and Santal brands and the exchange of product and
process know how.

In addition to the granting of court protection, regaining
control of the Itaperuna plant earlier this week was another
important step in Parmalat Brasil's recovery process.

The plant had been under court intervention for the last five
months and was being managed by representatives of the State of
Rio de Janeiro, the local community and its regional suppliers.

By reassuming management control of the Itaperuna plant,
Parmalat is in a position to revitalize all of its business
units and regain the leadership position it previously occupied
in the Brazilian market.

CONTACT: PARMALAT PARTECIP. DO BRASIL LTDA
         Rua Gomes de Carvalho
         1629 - CEP 04547-005
         Sao Paulo, SP.

         Web site: www.parmalat.com.br


TRIKEM: Fitch Upgrades & Withdraws Corporate Rating
---------------------------------------------------
Fitch Ratings upgraded the local currency rating of Trikem S.A.
(Trikem) to 'BB' from 'B+' and subsequently removed it from
Rating Watch Negative. Additionally, Fitch has upgraded Trikem's
foreign currency rating to 'B+' from 'B' and revised the
Positive Rating Outlook. The Rating Outlook for both ratings is
Stable. Simultaneously, Fitch has withdrawn the ratings due to
the paydown of the 1997 series US$100 million international
export receivables certificates on June 1, 2004, which were
issued by Trikem Export Trust. Fitch will no longer provide
international analytical service or coverage to this issuer.

The upgrade of Trikem reflects the company's merger into Braskem
S.A. (Braskem), which occurred in the first quarter of 2004.
Fitch currently rates Braskem's senior unsecured debt on the
national scale 'A (bra)' and also maintains ratings on the
company's tenth and twelfth debenture issuances of 'A(bra)' and
eleventh debenture issuance of 'A+(bra)'. Fitch will continue to
provide analytical coverage and ratings to Braskem on the
national scale.

Braskem is the largest petrochemical company in Latin America,
with a production of 5 million tons of primary, secondary, and
intermediary petrochemical products. A vertically structured
company in the first and second generations of the petrochemical
chain, Braskem reported net revenue of BRL9.2billion in 2003 and
an EBITDA of BRL1.8 billion.

CONTACT: Daniel R. Kastholm, CFA, +1-312-368-2070, Chicago
         Ricardo Carvalho +55 21 4503-2627, Rio de Janeiro
         Jayme David Bartling +5511 4504-2602, Sao Paulo

MEDIA RELATIONS: Brian Bertsch +1-212-908-0549, New York



===================
C O S T A   R I C A
===================

ICE: Introduces New Phones
---------------------------
Costa Rica's electrical and telecoms monopoly ICE installed
optical readers in public phones, in a move to eliminate the
complicated process of making phone calls, reports Business News
Americas.

The new phones were launched after the company received several
complaints from customers. Prior to the launching of the phones,
users had to punch in a long series of numbers from their
prepaid phone cards, which resulted in many errors. Now, with
the new system, users only need to swipe their phone cards to
make a call.

Meanwhile, ICE is planning on purchasing 8,000 new phones to
replace the coin-operated ones. These new multimedia phones will
take coins, credit cards or prepaid cards. In addition, 2,000 of
those will have text messaging capability to send notes to
mobile phones and email accounts.



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

TRICOM: Welcomes New CFO, Board Members
---------------------------------------
Tricom, S.A. (OTC Bulletin Board: TRICE.OB) announced Friday
that Ramon Tarrago has resigned as Chief Financial Officer, to
pursue other professional interests as a consultant in matters
of finance and macroeconomic policy. Mr. Tarrago will be taking
a position as consultant to the finance ministry of the new
Dominican government, and expects to work on sovereign debt
issues. Mr. Tarrago will remain as a consultant to the Company.
Mr. Erwin Mendez, who has served as the Company's Controller
since November 2002, will assume responsibility for overseeing
the Company's financial operations effective immediately.

The Company also announced that its Board of Directors has
received the resignations of Edwin ("Jack") Corrie and Marino
Ginebra. Mr. Corrie and Mr. Ginebra, members of the Company's
Board of Directors since October 2001, cited personal and other
business commitments for their decision to resign from the
board. In addition, the Company has announced the appointments
of Thomas Canfield, Carlos Castillo and Rosangela Pellerano as
non-executive members of its Board of Directors.

"We have enjoyed working with Ramon and we thank him for his
significant and valuable contributions to the Company,
especially on the international business front, over these past
12 years. We wish him well in his future endeavors. Erwin has
demonstrated strong cost management and expense control skills
and has developed a solid understanding of our business in
performing his respective role in the Company's finance area. We
look forward to working with him as we continue to implement and
manage our current business strategies", said Carl Carlson,
Chief Executive Officer. "I also want to extend our appreciation
to Jack and Marino for their contributions and dedication in the
service of Tricom, and at the same time, I welcome Thomas,
Carlos and Rosangela to our Board of Directors", added Carlson.

Following these changes, the Company's Board of Directors
consists of the following eleven individuals: Ricardo Valdez
Albizu, Thomas Canfield, Carlos Castillo, Hector Castro Noboa,
Anibal de Castro, James Deane, Arturo Pellerano, Rosangela
Pellerano, Roberto Saladin, Adriano Tejada and Valeriano
Valerio. The Company's By-laws provide for 12 directors, two of
which are independent of the majority shareholders, GFN Corp.
and Motorola, Inc. A search is currently underway to fill a
vacant independent director position.

Erwin Mendez, 43, has served as the Company's Controller since
November 2002. Before joining Tricom, he was Vice President of
Finance for Centennial Dominicana, a subsidiary of Centennial
Communications Corp., for two years. Mr. Mendez is also a former
14-year Colgate-Palmolive Company executive where he served in
key financial positions, including his last assignment as
Finance Director for the Caribbean region. Mr. Mendez graduated
magna cum laude with a BA in accounting and finance from
Universidad APEC in Santo Domingo and holds an MBA from
Instituto Tecnologico de Santo Domingo, Dominican Republic.

Thomas Canfield, 48, has served as the court-appointed Chief
Executive Officer and Plan Administrator of AT&T Latin America
Corp., which is currently in Chapter 11 bankruptcy proceedings,
since February 2004. Mr. Canfield previously served as AT&T
Latin America's General Counsel and Secretary from 2000 to 2004.
Before joining AT&T Latin America, Mr. Canfield was counsel in
the corporate and international practice groups of the
international law firm Debevoise & Plimpton LLP. He is also a
former Bankers Trust Company executive and a private real estate
developer. Mr. Canfield holds a B.A. in History from Wesleyan
University and a J.D. from Fordham University School of Law, New
York.

Carlos Castillo, 49, is an independent financial advisory
consultant with over 20 years of operational and transactional
experience in corporate finance, debt restructuring, investment
and merchant banking services principally in Latin America. From
1987 to 1995, and again from 1999 to 2001, Mr. Castillo was
Senior Managing Director at Bear Stearns & Co., Inc. Latin
America Equity Capital Markets and Investment Banking. Mr.
Castillo previous experience also includes executive positions
at Bankers Trust Company and Continental Bank. Mr. Castillo
holds a B.S. in Economics from Universidad Nacional de Ingeneria
in Peru and an MBA from the Wharton School of Business,
University of Pennsylvania.

Rosangela Pellerano, 46, has over 16-years experience within the
Dominican commercial banking industry. Mrs. Pellerano is a
former Vice President of both the Consumer and Corporate Banking
Services and International Banking Services divisions of
Bancredito, S.A. Bancredito was formerly owned by GFN Corp., the
Company's principal shareholder. Mrs. Pellerano is a graduate of
Instituto Tecnologico de Santo Domingo where she majored in
business administration and holds an MBA from Universite du
Quebec in Montreal, Canada. Ms. Pellerano is sister to Arturo
Pellerano, President of GFN Corp. and member of the Company's
Board of Directors.

About TRICOM

Tricom, S.A. is a full service communications services provider
in the Dominican Republic. The Company offer local, long
distance, mobile, cable television and broadband data
transmission and Internet services. Through Tricom USA, the
Company is one of the few Latin American based long distance
carriers that is licensed by the U.S. Federal Communications
Commission to own and operate switching facilities in the United
States. Through its subsidiary, TCN Dominicana, S.A., the
Company is the largest cable television operator in the
Dominican Republic based on its number of subscribers and homes
passed.

CONTACT: Tricom, S.A.
         Miguel Guerrero, Investor Relations
         Tels: +1-809-476-4044, or +1-809-476-4012,
         E-mail: investor.relations@tricom.net
         Web site: http://www.tricom.net



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

CORPORACION DURANGO: Creditors OK $700M Debt Restructuring Plan
---------------------------------------------------------------
Corporacion Durango, a Mexican paper-goods maker, announced
Friday that its creditors have accepted the company's US$700-
million debt-restructuring proposal, says Dow Jones.

In a press release, the company said that creditors have agreed
to accept new obligations worth 85% of the debt's principal.

Under the proposal, the company will issue US$433.8 million in
new bonds, as well as stock to its creditors. In the meantime,
the company's bank creditors have agreed to restate US$116.1
million in debt.

Corporacion Durango said the restructuring is supported by
creditors holding approximately 68% of the company's unsecured
debt.

The company also said that it expects to get bankruptcy
protection at the holding company level in the coming weeks.

Corporacion Durango is the largest producer of containerboard in
Mexico through its division Grupo Industrial Durango, is the
largest Mexican national producer of newsprint through its
division Pipsamex, is the largest manufacturer of corrugated
containers in Mexico through its division Empresas Titan, is the
largest Mexican national company of wood products through its
division Ponderosa, is the Mexican paper company with the
largest industrial operations in the U.S. through its division
McKinley Paper and is also one of the largest manufacturers in
Mexico of uncoated free-sheet and multi-wall sacks.

CONTACT:  CORPORACION DURANGO S.A. DE CV
          Potasio 150, Ciudad Industrial
          Durango, MEXICO
          Phone: (212) 815-4372
          Fax: (212) 571-3050
          Web Site: http://www.corpdgo.com/


GRUPO SIMEC: Pays $150M for Sidenor
-----------------------------------
Grupo Simec, S.A. de C.V. (Amex: SIM - "Simec"), a subsidiary of
Industrias CH, S.A. de C.V. ("ICH"), announced Friday that on
August 9, 2004 it acquired the property, plant and equipment and
the inventories, and assumed liabilities associated with
seniority premiums of employees, of the Mexican steel-making
facilities of Industrias Ferricas del Norte, S.A. (Corporacion
Sidenor of Spain).

Simec estimates that its total investment in this transaction
will be approximately U.S. $150 million, consisting of the
purchase price and other payments to Sidenor of U.S. $134
million, and working capital investments of U.S. $16 million.
The investment was funded with internally generated resources of
Simec and borrowings from ICH of approximately U.S. $16 million
and, as a result, Simec will maintain its solid financial
structure, free of indebtedness other than intercompany
borrowings from ICH.

As of August 1, 2004, Simec assumed control of the operations of
the acquired facilities, and as a result, the financial
statements of Simec for the third quarter of 2004 will include
the results of operation of the facilities as of such date.

With this acquisition, Simec's installed capacity has increased
approximately 50%.

CONTACT: Grupo Simec SA de CV
         Calzada Lazaro Cardenas #601
         Guadalajara
         Jalisco, 44440,

         Web Site: www.simec.com.mx



=====================
P U E R T O   R I C O
=====================

CENTENNIAL COMMUNICATIONS: Reiterates Fiscal 2004 Guidance
----------------------------------------------------------
Centennial Communications Corp. (the "Company") (Nasdaq: CYCL)
reiterated Friday its previously issued guidance for the fiscal
year ended May 31, 2004 as follows. The Company expects adjusted
operating income to be a minimum of $325 million for fiscal
2004. The increase in adjusted operating income in fiscal 2004
as compared to fiscal 2003 is expected despite a projected
reduction of approximately $25 million in U.S. Wireless roaming
revenues in fiscal 2004 from the level experienced in fiscal
2003. The Company expects to report capital expenditures of
approximately $135 million for fiscal 2004. The Company has not
included a reconciliation of projected adjusted operating income
in this press release since projections for some components of
such reconciliation are not possible to project at this time.

Additionally, in preparation for complying with the provisions
of the Sarbanes-Oxley Act of 2002 relating to internal control
over financial reporting that will be effective for the Company
beginning May 31, 2005, and recent guidance surrounding such
legislation, the Company is considering restating its financial
statements for certain prior periods. Such restatement would
primarily relate to adjustments that were identified in the
course of prior audits of the Company's financial statements,
but not recorded at the time due to their immateriality. The
Company is still in the process of completing its analysis of
the effect of the potential adjustments but does not expect that
the aggregate effect will be material.

As a result of this effort, the Company's audit is not yet
complete. Accordingly, the Company will not be releasing
earnings on August 16, 2004 as previously planned. The Company
intends to file a Form 12b-25 with the SEC extending the period
of time to file its Form 10-K for the year ended May 31, 2004.
The Company anticipates releasing its earnings and filing its
Form 10-K on or before August 31, 2004. A specific date will be
announced as soon as the audit of the Company's financial
statements is complete.

Centennial is one of the largest independent wireless
telecommunications service providers in the United States and
the Caribbean with approximately 17.3 million Net Pops and
approximately 1,027,500 wireless subscribers. Centennial's U.S.
operations have approximately 6.1 million Net Pops in small
cities and rural areas.

Centennial's Caribbean integrated communications operation owns
and operates wireless licenses for approximately 11.2 million
Net Pops in Puerto Rico, the Dominican Republic and the U.S.
Virgin Islands, and provides voice, data, video and Internet
services on broadband networks in the region. Welsh, Carson
Anderson & Stowe and an affiliate of the Blackstone Group are
controlling shareholders of Centennial.

CONTACT: Centennial Communications Corp.
         Mr. Eric S. Weinstein
         732-556-2220

         Web Site: www.centennialwireless.com



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

* URUGUAY: IMF OKs Non-complying Purchase Waiver
------------------------------------------------
The Executive Board of the International Monetary Fund (IMF)(1)
has approved the granting of a waiver on a non-complying
disbursement to Uruguay of SDR93.2 million (about US$138
million), which had been made by the IMF following completion of
the fourth review under the Stand-By Arrangement, on February
20, 2004.

In May 2004, final fiscal data became available that showed that
the end-December public sector primary surplus was Ur$8.65
billion (2.7 percent of GDP) and thus was smaller than the
estimated figure, based on partial fiscal data, reported at the
time of the fourth review.

Under the IMF's Misreporting Guidelines (see Public Information
Notice No. 00/28), a waiver on a non-complying disbursement is
normally granted if the deviation from the relevant performance
criterion is minor or temporary, or subsequent to the purchase,
the member has adopted additional policy measures appropriate to
achieve the objectives supported by the relevant arrangement.

In this case, the difference between the estimated and final
data (0.1 percent of GDP) is minor and does not alter the
assessment of the fiscal situation under the program.
Accordingly, the Executive Board granted Uruguay's request for a
waiver on the non-complying purchase.

Note:

(1) The Executive Board decision is in the context of the
strengthened safeguards adopted in April 2000 on the use of IMF
financial resources.

CONTACT: IMF External Relations Department
         International Monetary Fund
         700 19th Street, NW
         Washington, D.C. 20431 USA

         Public Affairs
         Phone: 202-623-7300
         Fax: 202-623-6278

         Media Relations
         Phone: 202-623-7100
         Fax: 202-623-6772

         Web Site: www.imf.org



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

PDVSA: Government Receives $6.9M During 1H04
--------------------------------------------
Petroleos de Venezuela SA's first half 2004 earnings
presentation revealed that the state oil company paid a total of
US$6.9 billion in royalties, taxes and social contributions
during the period.

Business News Americas reports that PDVSA paid US$4.35 billion
in royalties and US$1.35 billion in taxes. It also contributed
US$1.2 billion into President Hugo Chavez's social and economic
development fund.

Payments to third parties amounted to US$4.03 billion.

On Friday, PDVSA President Ali Rodriguez said that the company
expects revenue from its domestic and international operations
to reach US$58 billion this year, up from an initial forecast of
US$41 billion.

According to the executive, the new estimate was made based on
an average price of US$31 a barrel for Venezuelan crude for the
year.

Company officials say global revenue reached US$46 billion in
2003.

Rodriguez said the company has spent US$6 billion of its US$15
billion budget for this year, and that budgeted spending will
accelerate during the rest of the year.



                            ***********


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 America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and
Lucilo Junior M. Pinili, Editors.

Copyright 2004.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
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Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

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delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are $25 each.  For subscription
information, contact Christopher Beard at 240/629-3300.


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