TCRLA_Public/040913.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

         Monday, September 13, 2004, Vol. 5, Issue 181

                            Headlines

A R G E N T I N A

CENTRAL COSTANERA: Finalizes Debt Deal With Creditor Banks
COPIAS DEL ALTO: Reorganization General Report Due Today
CORES Y COMPANA: Claims Validation Closes Tomorrow
GRAVIS S.A.: Bankruptcy Initiated by Court Order
MARCELO, JULIAN: Begins Liquidation Proceedings

MOLINOS RIO: Launches Joint Venture To Market Cooking Oil
QUIMICA ESTRELLA: Debt Offer Gets Unanimous Backing
RAF KAZ: Trustee Scheduled to Submit General Report
TELECOM ARGENTINA: Local Fitch Ups Rating on Shares to "3"
TELEFONICA DE ARGENTINA: To Use DSLAM IP Solution From Lucent

TRANSPORTES CAPA: Court Anticipates Individual Report Today
YACYRETA: Argentina, Paraguay Struggle to Secure IDB Payment


B R A Z I L

BOMBRIL: Court Ruling Puts Majority Stake on the Block
BRASKEM: Issues Market Notice for New Share Sale
CELG: 25.91% Tariff Hike Officially Authorized
COSIPA: Foreign Currency Rating Raised to `B1' From `B2'
CSN: Proposes Offering of Guaranteed Notes Due 2015

EMBRATEL: Moody's Ups FC Ratings Following Brazil Upgrade
GERDAU: Purchasing North Star Steel Assets
IPIRANGA: Moody's Raises FC Rating to B1 from B2
MARLIM: Moody's Improves FC Rating to B1 From B2
TELESP: Moody's Ups Foreign Currency Issuer Rating to B1

* BRAZIL: Fitch Assigns Global Bonds Much Anticipated 'B+'
* BRAZIL: Moody's Raises Ratings on Continued Export Expansion


C H I L E

ENAMI: New Bill Could Ease Financial Strain


C O L O M B I A

AVIANCA: Enters Code-Sharing Agreement With Spain's Iberia
CODAD: S&P Affirms Rating; Outlook Still Stable

D O M I N I C A N   R E P U B L I C

BANCO CENTRAL: Fails to Pay Interest, Notice Issued


M E X I C O

AEROMEXICO: Orders 10 More Planes From Boeing
LUZ Y FUERZA: Moves to Collect Payments From Various Firms
GRUPO MEXICO: BBVA Starts Coverage With "Outperform" Rating
MAXCOM TELECOMUNICACIONES: Selects Lucent to Expand Network


U R U G U A Y

UTE: Central Bank Refinances Debt


V E N E Z U E L A

PDVSA: Renews JBIC Financing Accord

    - - - - - - - - - - -

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

CENTRAL COSTANERA: Finalizes Debt Deal With Creditor Banks
----------------------------------------------------------
Central Costanera (CECO2.BA), Argentina's largest thermoelectric
generator, informed the local stock exchange Thursday that it
has locked a final agreement with a group of banks to
restructure a US$95-million syndicated loan, relates Dow Jones.

The creditor banks involved in the restructuring agreement are
Banco Bilbao Vizcaya Argentaria (BBV), BankBoston, Bank of
America (BAC), HSBC (HBC), Banco Latinoamericano de
Exportaciones, ABN AMRO Bank (ABN) and J.P. Morgan Chase (JPM).
The restructured amount will be US$47.7 million and maturities
will be extended, with the company paying out in quarterly
installments between September 2004 and June 2006.

The loan dates back to June 2000 and was originally denominated
in yen. In March 2003, two months before it was scheduled to
come due, Central Costanera converted the debt to U.S. dollars
and stretched the maturity to December 2004. The company also
had asked its creditors to accept a Siemens AG (SI) power plant
as a guarantee for the refinanced loan.

Central Costanera, which is 63% owned by Spanish utility Endesa,
reported 1H04 profits of ARS32.4 million, higher than the
ARS18.2 million profits in the same year-ago period, due to
increased energy consumption, fueled by Argentina's economic
recovery.


COPIAS DEL ALTO: Reorganization General Report Due Today
--------------------------------------------------------
Mr. Luis Ricardo Bonifatti, the trustee overseeing the Copias
del Alto bankruptcy proceedings, is scheduled to submit a
general report of the case today. The general report provides
the court with an audit of the Company's accounting and business
records. It also details relevant events during the liquidation
process.

Court No. 26 of Buenos Aires' civil and commercial tribunal
handles this case with the assistance of Clerk No. 52.

CONTACT: Copias del Alto S.R.L.
         Av Coronel Diaz 2092
         Buenos Aires

         Mr. Luis Ricardo Bonifatti, Trustee
         Av Corrientes 123
         Buenos Aires


CORES Y COMPANA: Claims Validation Closes Tomorrow
--------------------------------------------------
Mr. Pedro Bonis, serving as trustee for the Cores y Compana
liquidation, will close the verification of creditors' claims
tomorrow, September 14, 2004. The verified claims will be used
as basis for the individual reports to be presented for court
approval on October 27, 2004.

Court No. 11 of Lomas de Zamora's civil and commercial tribunal
handles this case.

CONTACT: Mr. Pedro Bonis, Trustee
         Del Valle Iberlucea 3027
         Lanus


GRAVIS S.A.: Bankruptcy Initiated by Court Order
------------------------------------------------
Court No. 22 of Buenos Aires' civil and commercial tribunal
declared local company Gravis S.A. bankrupt after the company
defaulted on its debt payments. The order effectively places the
company's affairs as well as its assets under the control of
court-appointed trustee, Mr. Julio Jorge Surenian.

As trustee, Mr. Surenian is tasked with verifying the
authenticity of claims presented by the company's creditors. The
verification phase is ongoing until October 19, 2004.

Following claims verification, the trustee will submit the
individual reports based on the forwarded claims for final
approval by the court on November 30, 2004. A general report
will also be submitted on February 14, 2005.

Infobae reports that Clerk No. 43 assists the court on this
case, which will end with the disposal of the company's assets
in favor of its creditors.

CONTACT: Mr. Julio Jorge Surenian, Trustee
         Tucuman 1657
         Buenos Aires


MARCELO, JULIAN: Begins Liquidation Proceedings
-----------------------------------------------
Marcelo, Julian y Martin Llinas S.H., a company operating in
Necochea, will begin liquidating its assets after Court No. 2 of
the city's civil and commercial tribunal declared the company
bankrupt. Infobae reveals that the bankruptcy process will
commence under the supervision of court-appointed trustee, Ms.
Maria del Carmen Casassus.

The trustee will review claims forwarded by the company's
creditors until October 11, 2004. After claims verification, the
trustee will submit individual reports for court approval on
November 29, 2004. The general report submission follows on
December 22, 2004.

CONTACT: Marcelo, Julian y Martin Llinas S.H.
         Calle 65 Nro. 2143
         Necochea

         Ms. Maria del Carmen Casassus, Trustee
         Calle 60 Nro. 2633
         Necochea


MOLINOS RIO: Launches Joint Venture To Market Cooking Oil
---------------------------------------------------------
Argentine branded food manufacturer Molinos Rio de la Plata
(MOLI.BA) and Chilean food company Corpora Tresmontes have
formed a joint venture called Novaceites SA, says Dow Jones
Newswires. The JV, in which each company will hold a 50% stake,
will market cooking oil in the Chilean market. Novaceites will
use Corpora Tresmontes' local sales and distribution network and
will also acquire the Miraflores vegetable oil brand from
Corpora Tresmontes.

Molinos said the new company has also been granted licenses to
market brands currently owned by the two partners. In the
meantime, Molinos is analyzing whether to buy local condiment
and vinegar maker Poo from investment fund Sabores Argentinos.

Molinos has been tagged as the main candidate to acquire the
investment fund's 66.7% stake in Poo for about US$2 million.
Molinos is particularly interested in Poo's Omega and Huser
vinegar brands, with which it would be able to strengthen its
position in the domestic vinegar segment.

Poo has about 38% of the vinegar market, whereas Molinos'
Cocinero brand has a 10% share.

Like Molinos, Poo has also suffered from financial difficulties.
But Poo has emerged from bankruptcy protection and managed to
obtain a 25% reduction in its debt of more than ARS11 million
after carrying out successful renegotiations with its main
creditors Banco Rio, Societe Generale, Banco Frances and Banco
Sudameris. The approved proposal involved a 2-year grace period
and the payment of 75% of the debt over the period of 10 years.

Poo has also undertaken a deep restructuring process aimed at
reducing fixed costs. It involved a number of measures,
including the reduction of its workforce, the closure of its
Caballito plant and the concentration of its spice and vinegar
divisions at the Mataderos plant.

Molinos posted losses of ARS11.7 million in the first half of
the year. It is seeking to return to black by the end of year.

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


QUIMICA ESTRELLA: Debt Offer Gets Unanimous Backing
---------------------------------------------------
Argentine food and chemical company Quimica Estrella announced
it has fulfilled all the previous conditions established in the
out-of-court settlement subscribed with its creditors and
reached agreement with 100% of them. In this context, their
private debt restructuring accord started to rule on August 30
without requiring court approval.


RAF KAZ: Trustee Scheduled to Submit General Report
---------------------------------------------------
Court No. 20 of Buenos Aires' civil and commercial tribunal
expects to receive a general report on the Raf Kaz S.R.L.
bankruptcy today. Court-appointed trustee, Mr. Oscar Chapiro
will prepare the report from the Company's accounting and
business records.

The Company's assets will be liquidated at the end of the
bankruptcy process to repay its creditors. Clerk No. 40 assists
the court on the case.

CONTACT: Mr. Oscar Chapiro, Trustee
         Avenida Raul Scalabrini Ortiz 151
         Buenos Aires


TELECOM ARGENTINA: Local Fitch Ups Rating on Shares to "3"
----------------------------------------------------------
Fitch Argentina on Wednesday increased its rating on the shares
of fixed-line carrier Telecom Argentina (TEO) from "3" to "2",
reports Dow Jones Newswires. The move, which could pave the way
for the country's pension funds to increase their holdings in
Telecom Argentina, came after the company secured a 94.4%
approval rate for its US$2.63 billion debt restructuring in late
August.

Under Argentine bankruptcy law, the company only needed two-
thirds agreement to move ahead with its out-of-court
restructuring deal, known in Spanish as an APE. Telecom
Argentina now needs final legal approval, which will make the
repayment terms binding on all creditors. Company officials have
said they plan to make the debt swap in the first quarter of
2005, thus completing the largest debt restructuring in the
Argentine corporate sector.

Argentine regulations limit pension funds, known in Spanish as
AFJPs, to holding shares of only companies that have a "1" or
"2" rating. As of the end of July, the last month for which data
is available from the pension fund regulator, AFJPs held about
ARS608 million ($1=ARS3.005) in Telecom Argentina shares out of
total equity holdings of ARS8.9 billion.

In a research note published Thursday, local consultancy
Argentine Research said it estimates AFJPs could buy about
US$210 million more of Telecom Argentina shares.

"We consider that the rating improvement recognizes and ratifies
the important changes solidified during the most recent quarters
in the fundamentals of the local telephone operator," said
analyst Rafael Ber, who kept his "buy" rating on the shares.

CONTACT:  TELECOM ARGENTINA S.A.
          Alicia Moreau de Justo 50, 10th Floor
          Capital Federal (1107) Republica Argentina
          Phone: +54 11 4968 4000
          Home Page: http://www.telecom.com.ar

          Contacts:
          Alberto J. Ricciardi, Chief Financial Officer
          Elvira Lazzati, Finance Director
          Pedro Insussarry, Investor Relations Manager
          Phone: (5411) 4968-3626/3627
          Fax: (5411) 4313-5842/3109
          E-mail: inversores@intersrv.telecom.com.ar


TELEFONICA DE ARGENTINA: To Use DSLAM IP Solution From Lucent
-------------------------------------------------------------
Lucent Technologies (NYSE: LU) announced Thursday that it has
completed the installation of 80,000 new ADSL (Asynchronous
Digital Subscriber Line) access ports in the Telefonica de
Argentina network as part of the agreement between the two
companies reached last March. More than 60,000 of the new access
ports deployed use DSLAM IP technology.

As the sole supplier to date of DSLAM IP technology for
Telefonica de Argentina, Lucent is supporting the operator in
its plans to expand coverage and speed up the introduction of
broadband services in the country.

The new ADSL Stinger(R) FS+ ports will allow Telefonica de
Argentina to meet the growing demand for broadband services from
business and residential customers, who will now have access to
high-speed Internet access, as well as new services over DSL in
the future. With the implementation of the new ports, Lucent has
now installed more than 100,000 ADSL ports in the Telefonica de
Argentina network.

"The use of Lucent's advanced solution for broadband access
represents substantial cost savings, both in equipment and in
the operation of the network, while we prepare to launch
innovative services for the future," said Rofoldo E. Holzer,
Network Director for Telefonica de Argentina.

As part of the agreement, Lucent also supplied Telefonica de
Argentina with its Stinger MRT (Micro Remote Terminal) access
concentrator. Lucent Worldwide Services provided engineering,
installation and technical support services for the rapid
execution of this project. Lucent also installed its Stinger(R)
FS+ Digital Subscriber Line Access Multiplexer (DSLAM) that
offers innovative functionalities such as Virtual LANs, Gigabit
Ethernet interface, IP Multicasting, and service aggregation.

"We are very excited to continue working with Telefonica in
their broadband network expansion and the deployment of advanced
services for their clients," said Javier Rodriguez Falcon, vice
president for the Southern Cone for Lucent Technologies. "This
project strengthens our commitment with Telefonica and
consolidates Lucent's leadership in the ADSL market in Latin
America."

Lucent Technologies de Argentina, a subsidiary of Lucent
Technologies, provided the products and services outlined in
this announcement. Lucent has already installed more than 28,000
Stinger(R) access concentrators (around 6 million ports) in more
than 25 countries.

About Stinger(R) DSL Access Concentrator

Stinger(R) DSL Access Concentrator is a DSLAM - Digital
Subscriber Line Access Multiplexer - featuring 14 slots with
ports that can serve up to 72 subscribers, providing a total of
up to 1008 ADSL access ports per piece of equipment installed in
the operator network.  This reduces costs and optimizes network
infrastructure implementation.

The Stinger(R) DSL Access Concentrator supports IP and ATM
technologies simultaneously, which means Telefonica will have
greater flexibility and security in designing its network to
supply new services over DSL.

About Lucent Technologies

Lucent Technologies designs and delivers the systems, services
and software that drive next-generation communications networks.
Backed by Bell Labs research and development, Lucent uses its
strengths in mobility, optical, software, data and voice
networking technologies, as well as services, to create new
revenue-generating opportunities for its customers, while
enabling them to quickly deploy and better manage their
networks.  Lucent's customer base includes communications
service providers, governments and enterprises worldwide.

Web site: http://www.lucent.com


TRANSPORTES CAPA: Court Anticipates Individual Report Today
-----------------------------------------------------------
Individual reports from the Transportes Capa S.R.L. bankruptcy
case are due for court submission today. Trustee Patricia Monica
Narduzzi based these reports from claims submitted by creditors
during the verification period. Court No. 21 of Buenos Aires'
civil and commercial tribunal will use the reports to finalize
the list of creditors eligible for post-liquidation payments.

CONTACT:  Ms. Patricia Monica Narduzzi, Trustee
          Lavalle 1675
          Buenos Aires


YACYRETA: Argentina, Paraguay Struggle to Secure IDB Payment
------------------------------------------------------------
Argentine Planning Minister Julio de Vido and his Paraguayan
counterpart, Jose Alderete, stepped up efforts to secure a US$90
million payment from the Inter-American Development Bank for the
troubled bi-national Yacyreta hydropower dam.

Citing Argentine business daily El Cronista, Dow Jones reports
that de Vido and Alderete traveled to Washington on Thursday to
persuade the IDB to release US$90 million of a US$130 million
credit. The money would be used to complete works needed to lift
water levels at the Yacyreta dam to 78 meters from the current
76 meters by the end of 2005, thereby increasing power output at
the dam.

In order to persuade the IDB to release the money, the
governments had promised to commit US$564 million to finish the
Yacyreta project by 2007 and said they will write this into the
2005 budget, due to be released by Sept. 15. The eventual goal
is to lift water levels to 83 meters. The governments also
prepared a detailed report laying out the steps it will take to
wrap up the project.

The Yacyreta expansion has been dogged with so many problems.
One is disagreement between the neighbors, with Paraguay
reportedly insisting on a slower pace of work to ensure that
those who live near the dam are not adversely affected by the
rising water levels. Higher water levels mean the flooding of
surrounding land and most of the affected property is
Paraguayan.

These disputes, which have included protests by nearby
residents, have already forced Argentina to give up its hope of
increasing water levels by one meter by the end of this month.

More significant: the Yacyreta project has become the target of
a U.S. Senate Foreign Relations Committee investigation - part
of a wider probe into World Bank and IDB projects. That may make
the IDB more reluctant to release the disbursement.



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

BOMBRIL: Court Ruling Puts Majority Stake on the Block
------------------------------------------------------
A Brazilian court has ordered the auction of a majority stake in
Bombril (BOBR4.SA), a detergents and household goods company
previously held by insolvent Italian food group Cirio, Reuters
reports, citing a legal source. The ruling, which will see the
sale of 100% of ordinary voting shares, or 38% of Bombril's
share capital, grants a petition filed by Bombril's former owner
Ronaldo Sampaio Ferreira. Banco Nacional de Desenvolvimento
Economico e Social (BNDES), a minority shareholder in Bombril,
has been asked to value the stake.

Bombril was placed under the control of a court-appointed
administrator in July 2003, while Sampaio Ferreira fought for
control of the firm with Cirio.

Cirio's government-appointed Italian administrators have
scheduled a trip to Brazil for mid-September to iron out
disagreements with Cirio minority shareholders and former
Bombril stakeholders.

Cirio defaulted on EUR1.1 billion (US$1.346 billion) bonds in
late 2002 and eventually collapsed at the hands of its majority
owner and chairman, Sergio Cragnotti. Its downfall was thought
to have been caused in part by the ambiguities surrounding
Bombril's financial operations.


BRASKEM: Issues Market Notice for New Share Sale
------------------------------------------------
Pursuant to Article 53 of Instruction No. 400, of December 29,
2003, of the Brazilian Securities Commission (the "CVM"),
Braskem S.A. ("Braskem"), hereby announces that on 4/8/2004, the
CVM required registration of the public offering for primary
distribution, on the unorganized over-the-counter market, of:

11,700,000,000 Class "A" Preferred Shares (the "Shares"), issued
by

Braskem S.A.
Rua Eteno, 1561
Polo Petroqu¡mico, 42810-000
Camacari, BA
CNPJ n§ 42.150.391/0001-70 - NIRE 29300006939
Companhia Aberta - CVM n§ 00482 0

to occur simultaneously in Brazil and abroad (the "Global
Offering").

The Global Offering will be made through a public offering for
the primary public distribution of Shares, as follows:

(i) approximately 1/3 of the Global Offering will be distributed
to institutional and retail investors in Brazil, in accordance
with the procedures established by CVM Instruction No. 400/03
(the "Brazilian Offering"); and

(ii) approximately 2/3 of the Global Offering will be
distributed abroad, to investors in the United States of America
and countries other than Brazil, in the form of American
Depositary Shares, or ADS's, each one of which represents one
thousand Shares, in accordance with the U.S. Securities Act of
1933 or the legislation in effect in the country of each
investor's domicile, pursuant to Regulation S of the U.S.
Securities Act (the "International Offering"). The Brazilian
Offering will be coordinated by the Investment Bank Credit
Suisse First Boston S.A. ("Banco CSFB"), and Unibanco - Uniao de
Bancos Brasileiros S.A. ("Unibanco"), which shall together be
designated as the "Brazilian Coordinators".

Unibanco will act as the leading coordinator (the "Leading
Coordinator") exclusively for purposes of registration with the
CVM, pursuant to CVM Instruction No. 400/03. The International
Offering will be coordinated by Credit Suisse First Boston LLC
and Unibanco Securities, Inc. Credit Suisse First Boston LLC
(the "Global Coordinator") will also act as global coordinator
for purposes of coordinating the Brazilian Offering and the
International Offering, and determining the final allocation
between both offerings.

The Global Offering is conditioned upon prior registration with
the CVM and the U.S. Securities and Exchange Commission (the
"SEC"). The Brazilian Offering is conditioned upon the existence
of market conditions suitable to carrying out the International
Offering and vice-versa, as well as the obtainment of the
respective distribution registrations, on the conditions set
forth herein.

The Issuer will grant an option to the Brazilian Coordinators
for the placement of additional shares in an amount up to 15% of
the total Brazilian Offering ("Additional Shares of the
Brazilian Offering"), for the exclusive purpose of meeting any
possible additional demand during the course of the
distribution, within thirty (30) days as of the date of the
publication of the Announcement on the Commencement of
Distribution.

Furthermore, Braskem will grant an option to the Global
Coordinator for additional shares ("Additional Shares of the
International Offering"), which will be used to meet any
additional demand noted during the course of the International
Offering.

Issue Price. The issue price for the Shares will be determined
after the bookbuilding procedure is carried out by the Global
Coordinator, together with the Brazilian Coordinators. This
procedure consists of the receipt of statements of investment
intentions regarding the purchase of Shares by Institutional
Investors and investors in the International Offering, and the
determination of the issue price per one thousand (1,000)
Shares, based on:

(i) the price of class "A" preferred shares issued by the
Company, traded on the Sao Paulo Stock Exchange and the LATIBEX
section of the Madrid Stock Exchange, and the ADS's traded on
the New York Stock Exchange; and

(ii) indications of interest, based on demand (in terms of
volume and price), collected from potential investors, according
to Article 170,  1, Item III of Law No. 6,404/76 and Article
23,  1, of CVM Instruction No. 400/03.

The issue price of each ADS will be fixed in U.S. dollars.
Considering that each ADS represents 1,000 Shares and that the
Shares are traded in lots of one thousand, the issue price per
one thousand Shares in the Brazilian Offering will correspond to
the issue price of each ADS. The conversion of the issue price
will be based on the selling rate for U.S. dollars on the
floating rate exchange market, as calculated and published by
the Brazilian Central Bank through SISBACEN, PTAX 800, option 5,
after the close of the banking day on the date of the signing of
the distribution contract for the Brazilian Offering.

Distribution Plan and Procedures. The Brazilian coordinators
have developed a Share distribution plan, which will take in
account their relations with customers and other considerations
of a commercial or strategic nature, of the Brazilian
Coordinators and the Issuer. The Brazilian Coordinators shall
guaranty the suitability of the investment to their customers'
risk profiles, as well as the fair, equal treatment of
investments.

After the CVM has granted the necessary registration, the
Brazilian Coordinators will make a public offering for the
primary distribution of Shares on the unorganized over-the-
counter market, in accordance with CVM Instruction No. 400/03,
as follows:

(i) a Retail Offering aimed at individual and company investors,
residing and domiciled in Brazil, and not deemed "Institutional
Investors" for purposes of the Brazilian Offering, and
investment clubs that opt to participate in the Retail Offering
("Retail Investors"), and

(ii) an Institutional Offering aimed at individual and company
investors whose amounts of investment exceed the maximum limit
established in the Retail Offering, investment funds and clubs,
pension funds, entities administering third-party resources
registered with the CVM, entities authorized by the Brazilian
Central Bank to operate, insurance entities, supplementary
retirement and capitalization entities, and investors located
abroad that invest in Brazil pursuant to the rules of Resolution
No. 2,689, of January 26, 2000, of the National Monetary Council
("Institutional Investors").

Retail Offering and Procedures for Reservation of Shares. Up to
ten percent (10%) of the Shares in the first offering, not
including the Additional Shares of the Brazilian Offering and
Additional Shares of the International Offering, will be
allocated first for distribution to Retail Investors, on the
following conditions:

(i) Retail Investors interested in the subscription of Shares
will have the opportunity to make reservation requests, from
9/8/2004 to 9/21/2004, with a single institution -- either (1)
Unibanco, through its subsidiary security brokers; (2) Banco
ABN-Amro Real S.A., directly or through its subsidiaries, Banco
Bradesco S.A., directly or through its subsidiaries, or Banco do
Brasil S.A., directly or through its subsidiaries ("the
Contracted Coordinators"); or (3) one of the securities brokers
registered with the Brazilian Liquidation and Custody Company
("the Special Participants"). For purposes of this notice, the
Contracted Coordinators and the Special Participants are jointly
designated as the "Sub-contracted Parties".
Reservation requests shall be made according to the following
rules:

(a) the minimum amount of investment per Retail Investor shall
be one thousand Reais (R$ 1,000.00) and the maximum amount shall
be three hundred thousand Reais (R$ 300,000.00), except for
investment clubs that opt for the Retail Offering; and

(b) the minimum amount of investment for investment clubs that
opt for the Retail Offering shall be one thousand Reais (R$
1,000.00) and the maximum amount shall be six hundred thousand
Reais (R$ 600,000.00);

(c) for purposes of calculating these limits, all of the
reservations made by each Retail Investor shall be considered;
(d) reservations must be made by filling out a specific form
made available by Unibanco, through its subsidiary security
brokers, or the Sub-contracted Parties,
as listed below;

(e) at Unibanco's discretion, through its subsidiary security
brokers, or the Subcontracted Parties, as the case may be,
Retail Investors may make their reservation requests with or
without prior deposit of the full amount of intended
investments. It is recommended that Investors verify the
requirements of the institution of their choice regarding prior
deposit of the full amount of intended investments, prior to
making reservations requests;

(f) in the event that Unibanco, through its subsidiary security
brokers, or any the Sub-contracted Parties, as the case may be,
demands prior deposit of the amount of intended investment at
the time the reservation request is made, the funds related to
such deposit shall be maintained in blocked, non-interestbearing
accounts specified by Unibanco until the date of payment; (g) in
the event that Unibanco, through its subsidiary security
brokers, or any of the Sub-contracted Parties, as the case may
be, receives reservation requests without the prior deposit of
the full amount of intended investments, Retail Investors shall
make payment to Unibanco, through the subsidiary security
brokers, or the Sub-contracted Parties, which made their
reservation requests, as the case may be, in an amount
corresponding to the Shares effectively distributed to them, in
immediately available funds by 10:30 a.m. on the date of
payment; and (h) exclusively with respect to reservation
requests made without prior, full deposit of intended
investments, Unibanco, through its subsidiary security brokers,
or the Sub-contracted Parties, shall notify Retail Investors of
the number of Shares effectively subscribed and the respective
amount of investment by 12:00 p.m. of the day following the
publication of the Announcement of the Commencement of
Distribution, by e-mail, or in its absence, by telephone or
mail.

(ii) The controllers or administrators of the Company, of the
Brazilian Coordinators, or of the Subcontracted parties, as well
as any other parties associated with the Brazilian Offering,
their spouses and companions, ancestors, descendants and
collateral relatives to the second degree of kinship may only
participate in the Retail Offering and must make reservation
requests between 9/8/2004 and 9/14/2004.

(iii) In their reservation requests, Retail Investors may
stipulate a maximum issue price per lot of one thousand (1,000)
Shares as a condition to the reservation, without the need for
subsequent confirmation. In the event that the issue price per
thousand Shares established in the Bookbuilding Procedure is
greater than the amount stipulated by the Retail Investor, the
respective Reservation Request will automatically be cancelled
and the total amount of any prior deposit made in connection
with the reservation will be returned, without interest or
monetary adjustment, without reimbursement and with deduction,
as the case may be, of any amounts related to the CPMF tax
(Prior Contribution for Transfer or Transmission of Securities,
Credits and Rights of a Financial Nature), within three (3)
working days after the date of payment.

(iv) In the event that the CVM should cancel or revoke the
Global Offering, pursuant to Articles 19 and 25 of CVM
Instruction 400/03, reservation requests will be automatically
cancelled and any prior deposits made will be returned to the
respective Retail Investors, without interest or monetary
adjustment, without reimbursement and with deduction, as the
case may be, of any amounts related to the CPMF tax, within
three (3) working days of the automatic cancellation of the
respective Reservation Request.

(v) Retail Investors may only cancel reservation requests in the
event of material discrepancies between the information
contained in the preliminary prospectus and the final prospectus
that substantially alters the risk assumed by the Retail
Investor or its investment decision. Retail Investors must make
cancellation requests within five (5) working days as of the
publication of the final prospectus. In such event, for those
Retail Investors that made prior deposits, Unibanco, through its
subsidiary security brokers, or the Sub-contracted Parties, will
return such amounts in full to the respective Retail Investors,
without interest or monetary adjustment, without reimbursement
and with deduction, as the case may be, of any amounts related
to the CPMF tax, within three (3) working days of the
reservation cancellation requests;

(vi) Each Retail Investor that has made a reservation request
and deposit of funds according to the requirements described in
this notice will receive the number of lots of one thousand
Shares calculated by dividing the amount deposited by the issue
price per one thousand Shares from the CBLC on the Global
Offering payment date. If this calculation results in a fraction
of a lot of one thousand Shares, Unibanco, through its
subsidiary security brokers, or the Sub- ontracted Parties, as
the case may be, will return the difference between the amount
deposited and the amount corresponding to the number of lots of
one thousand Shares delivered to the Retail Investor, without
interest or monetary adjustment, without reimbursement and with
deduction, as the case may be, of any amounts related to the
CPMF tax, within three (3) working days after the date of
payment;

(vii) In the event that the total number of reservation requests
is greater than ten percent (10%) of the total number of Shares
in the Global Offering, not including the Additional Shares of
the Brazilian Offering and Additional Shares of the
International Offering, such Shares will be proportionally
divided among all of the Retail Investors that made reservation
requests. The unused balance of deposits made in connection with
reservation requests will then be returned to the respective
Retail Investors, without interest or monetary adjustment,
without reimbursement and with deduction, as the case may be, of
any amounts related to the CPMF tax, within three (3) working
days after the date of payment. The Brazilian Coordinators may,
at their sole discretion, choose to fulfill the additional
demand related to the Retail Offer, or increase the number of
Shares to be proportionally divided among the Retail Investors.

(viii) In the event that the Global Offering is not concluded,
reservation requests will be cancelled and Unibanco, through its
subsidiary security brokers, or the Sub-contracted Parties, as
the case may be, will return all amounts deposited to the Retail
Investors, without interest or monetary adjustment, without
reimbursement and with deduction, as the case may be, of any
amounts related to the CPMF tax, within three (3) working days
of the cancellation of the reservation request.

The Shares not offered to Retail Investors will be used in the
Institutional Offering or the International Offering.

Institutional Offering. By 9/23/2004, the estimated date for the
determination of the issue price of the Shares, the Brazilian
Coordinators shall receive statements of investment intentions
and/or requests to subscribe Shares from the Institutional
Investors, which shall not be subject to reservation
requirements or minimum/maximum limits, and all such respective
allocations will be made according to the results of the
bookbuilding procedure. The Brazilian Coordinators will adopt
procedures to fulfill requests based on a qualitative analysis
of each Institutional Investor, giving priority to those
investors which, at the discretion of the Brazilian Coordinators
and the Company, best meet the goal of this Offering to create a
diversified base of shareholders made up of investors with
different evaluation criteria on the long-term outlook of the
Company, the sector and the Brazilian and international macro-
economic scenario.

It is recommended that investors, before making any investment
decision, fully and carefully read the preliminary prospectus
available as of today's date:

(a) at Braskem's headquarters, located at Av. das Na‡oes Unidas,
4,777, in the city of Sao Paulo, state of Sao Paulo, and on the
Company's investor relations website: www.braskem.com.br;

(b) at Banco CSFB headquarters, located at Av. Brigadeiro Faria
Lima,3,064, 13th floor, in the city of Sao Paulo, state of Sao
Paulo, and on the website: www.csfb.com.br/ofertas;

(c) at Unibanco headquarters, located at Av. Eus‚bio Matoso,
891, 18th floor, in the city of Sao Paulo, state of Sao Paulo,
and on the website (under the Capital Markets section):
www.unibanco.com/bancodeatacado;

(d) at the Brazilian Securities Commission (CVM), located at Rua
Sete de Setembro, 111, in the city of Rio de Janeiro, state of
Rio de Janeiro, and on its website: www.cvm.gov.br; and

(e) at the Sao Paulo Stock Exchange, located at Rua XV de
Novembro, 275, in the city of Sao Paulo, state of Sao Paulo, and
on its website: www.bovespa.com.br.

Below follows a list of those Unibanco subsidiaries and
Contracted Coordinators through which Retail Investors may make
reservation requests:

- Unibanco - exclusively through subsidiary security brokers,
including on the website: www.investshop.com.br;

- Banco ABN Amro Real S.A. - all agencies;

- Banco do Brasil S.A. - all agencies;

- Banco Bradesco S.A. - exclusively through subsidiary security
brokers, including on the website: www.shopinvest.com.br;

Retail Investors may also submit their reservation requests
through one of the Special Participants in the offering. A
complete list of these Special Participants may be found on the
CBLC website: www.cblc.com.br

CONTACT: Braskem
         Investor Relations Department
         Phone: (11) 3443-9531

         Unibanco
         Phone: (11) 3097-1396


CELG: 25.91% Tariff Hike Officially Authorized
----------------------------------------------
The 25.91% tariff hike granted to Brazil's Goias state power
distributor Celg would facilitate the payment of its BRL176
million debt to Cachoeira Dourada (CDSA) and end the dispute
between the two companies. Business News Americas reports that
the tariff hike, granted by electricity regulator Aneel,
includes an extra 4.77% intended to allow the Company to raise
BRL58.7 million (US$20.2mn) so it can pay back the first
installment of its CDSA debt. The remaining 21.14% basic rate
increase will account for inflation and non-manageable costs.

Celg's decision to break away from a power purchase contract
with CDSA landed the two companies in a legal dispute in 2003.
Celg had claimed that the contract prices were too high.

However, the court has since ordered Celg to pay 50% of the
total contract price. The rest of the debt will be paid back in
2004, 2005 and 2006. The new rates took effect Saturday,
September 11.


COSIPA: Foreign Currency Rating Raised to `B1' From `B2'
--------------------------------------------------------
Moody's Investors Service upgraded the foreign currency rating
for Companhia Siderurgica Paulista (COSIPA) to B1 from B2. The
upgrade affected Cosipa's US$500 million guaranteed medium-term
note program and US$175 million guaranteed medium-term notes.

The outlook for the rating is stable.

The upgrade on Cosipa's rating follows an upgrade of Brazil's
ceiling for foreign currency bonds and notes to B1 from B2.

CONTACT: Mr. Gilson Rodrigues Bentes
         CFO's Assistant
         Tel: (11) 5070-8980

         Mr. Leandro Jose Cappa de Oliveira
         Financial Economic Analyst
         Tel.: (11) 5070-8887

         E-mail: investidores@cosipa.com.br
         Web Site: http://cosipa.infoinvest.com.br


CSN: Proposes Offering of Guaranteed Notes Due 2015
---------------------------------------------------
Companhia Siderurgica Nacional S.A. ("CSN") (NYSE:SID)
(BOVESPA:CSNA3) announced Thursday that its wholly-owned
subsidiary CSN Islands IX Corp., (the "Issuer") intends to offer
guaranteed notes due 2015 by means of a private placement to
qualified institutional buyers under Rule 144A, and in offshore
transactions pursuant to Regulation S, under the Securities Act
of 1933, as amended (the "Securities Act"). The aggregate
principal amount of such notes is anticipated to be
US$200,000,000. CSN will use the net proceeds from the offering
for general corporate purposes, including the repayment of
short-term indebtedness as it comes due.

CSN and the Issuer expect to file a registration statement with
the United States Securities and Exchange Commission ("SEC") and
to use their reasonable best efforts to exchange the notes for
others registered with the SEC on or before October 31, 2005.

The notes have not been and, at the time of the offering, will
not be, registered under the Securities Act, or any state
securities laws, and may not be offered or sold in the United
States absent registration under, or an applicable exemption
from, the registration requirements of the Securities Act and
applicable state securities laws. This press release shall not
constitute an offer to sell the notes in the United States.

This communication is only being distributed to and is only
directed at (i) persons who are outside the United Kingdom or
(ii) to investment professionals falling within Article 19(5) of
the Financial Services and Markets Act 2000 (Financial
Promotion) Order 2001 (the "Order") or (iii) high net worth
entities, and other persons to whom it may lawfully be
communicated, falling within Article 49(2) of the Order (all
such persons identified in (i), (ii) and (iii) together being
referred to as "relevant persons"). The notes are only available
to, and any invitation, offer or agreement to subscribe,
purchase or otherwise acquire such notes will be engaged in only
with, relevant persons. Any person who is not a relevant person
should not act or rely on this communication or any of its
contents.


EMBRATEL: Moody's Ups FC Ratings Following Brazil Upgrade
---------------------------------------------------------
The foreign currency rating for the US$200 million senior
unsecured notes issued by Empresa Brasileira de Telecomunicacoes
S.A. (Embratel) has been upgraded to B1 from B2 by Moody's
Investors Service. The outlook for the rating is stable.

The upgrade on Embratel's rating follows an upgrade of Brazil's
ceiling for foreign currency bonds and notes to B1 from B2.

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


GERDAU: Purchasing North Star Steel Assets
------------------------------------------
Gerdau Ameristeel Corporation (TSX: GNA.TO) announced Thursday
that its U.S. operating subsidiary, Gerdau Ameristeel US Inc.,
has entered into definitive agreements with Cargill,
Incorporated and certain of its subsidiaries to purchase the
fixed assets and working capital of four long steel product
minimills in St. Paul, Minnesota; Wilton, Iowa; Calvert City,
Kentucky; and Beaumont, Texas; three wire rod processing
facilities in Beaumont, Texas; Carrollton, Texas; and Memphis,
Tennessee; and a grinding ball facility in Duluth, Minnesota.
The integration of these operations will provide Gerdau
Ameristeel's customers with expanded geographical coverage and a
broader range of products.

The purchase price for the acquired assets is $266 million in
cash subject to adjustment for working capital fluctuations
prior to the closing date. The agreement includes the assumption
by Gerdau Ameristeel at the closing of substantially all of the
liabilities of the businesses being acquired, including specific
contractual obligations and selected employee liabilities.
Gerdau Ameristeel has available cash and existing credit
facilities that are sufficient to finance the transaction.
Subject to satisfactory completion of anti-trust and other
regulatory reviews, the transaction is expected to close before
the end of 2004.

The four North Star Steel minimills have an annual production
capacity of approximately two million tons of long steel
products, principally merchant bars, special bar quality steel,
light structural shapes, reinforcing bar and wire rod. Customers
include steel service centers, original equipment manufacturers
and steel fabricators. The four downstream product manufacturing
facilities have an annual production capacity of approximately
300,000 tons. The wire rod processing facilities produce
reinforcing wire mesh, chain link fencing and industrial wire.
The grinding ball facility produces grinding balls for crushing
and processing of minerals in various mining industries.

Phillip Casey, president and CEO of Gerdau Ameristeel commented:
"This transaction combines the professional talents and solid
reputations of two exceptional organizations. The consolidation
of the North Star team with Gerdau Ameristeel is a dynamic step
in the continuing revitalization of the North American steel
industry. This combination will provide new opportunities for
the employees, customers and associated stakeholders of both
companies."

Gerdau Ameristeel is the second largest minimill steel producer
in North America with annual manufacturing capacity of over 6.4
million tons of mill finished steel product. Through its
vertically integrated network of 11 minimills (including one 50%
owned minimill), 13 scrap recycling facilities and 32 downstream
operations, Gerdau Ameristeel primarily serves customers in the
eastern half of North America. The company's products are
generally sold to steel service centers, steel fabricators, or
directly to original equipment manufacturers for use in a
variety of industries, including construction, automotive,
mining and equipment manufacturing.

CONTACT: Gerdau S.A.
         Avenida Farrapos 1811
         Porto Alerge
         RS 90220-005
         Brazil
         Phone: +55 3323 2000
         Web Site: http://www.gerdau.com.br/


IPIRANGA: Moody's Raises FC Rating to B1 from B2
------------------------------------------------
Moody's Investors Service upgraded the foreign currency rating
for the US$100 million senior unsecured step-up notes issued by
Companhia Brasileira de Petroleo Ipiranga to B1 from B2.

The outlook for the rating is stable.

The upgrade on Ipiranga rating follows an upgrade of Brazil's
ceiling for foreign currency bonds and notes to B1 from B2.


MARLIM: Moody's Improves FC Rating to B1 From B2
------------------------------------------------
Moody's Investors Service upgraded the foreign currency rating
for the US$500 million medium-term notes issued by Companhia
Petrolifera Marlim. The rating action follows an upgrade of
Brazil's ceiling for foreign currency bonds and notes to B1 from
B2.

The outlook for the rating is stable.

The rating on Marlim is linked to any future improvements in
Brazil's B1 ceiling for foreign currency bonds and notes.


TELESP: Moody's Ups Foreign Currency Issuer Rating to B1
--------------------------------------------------------
Moody's Investors Service upgraded the foreign currency issuer
rating of Telecomunicacoes de Sao Paulo S.A. (Telesp) to B1 from
B2 following an upgrade of Brazil's ceiling for foreign currency
bonds and notes to B1 from B2.

The outlook for the rating is stable.

The rating on Telesp is linked to any future improvements in
Brazil's B1 ceiling for foreign currency bonds and notes.


* BRAZIL: Fitch Assigns Global Bonds Much Anticipated 'B+'
----------------------------------------------------------
Fitch Ratings, the international rating agency, has assigned the
euro-denominated eight-year bond issue (EUR750 million) of the
Republic of Brazil, expiring in September 2012, an expected
long-term foreign currency rating of 'B+'. The Rating Outlook is
Stable.

Brazil's credit fundamentals have improved in the past year but
still remain vulnerable to market sentiment, given the
sovereign's heavy debt rollover needs, as well as the external
financing needs of the country as a whole. Credit improvements
have included a marked turnaround in international trade
performance, with the trade surplus rising nearly 50% to US$18.5
billion in the year to July 2004, and the current account likely
to post its second straight annual surplus this year, perhaps
above 1% of GDP. As a result, international reserves net of IMF
borrowings and other items, should rise modestly this year to
close to US$24 billion. Exchange rate competitiveness, favorable
commodity prices and diversified exports have enabled Brazilian
exporters to gain ground. Brazilian GDP will be growing at a
pace close to 4% this year with a current account surplus, which
is no mean achievement.

In addition, the public sector continues to run sizable primary
budget surpluses (excluding interest payments), driven by
buoyant tax performance. The primary surplus in the twelve
months to June totaled 4.5% of GDP, yielding a budget deficit of
3.8%, down from 5.2% in calendar year 2003, as moderating
inflationary pressures have allowed interest rates to decline.
The sovereign's debt profile has improved markedly, with dollar-
indexed liabilities representing only 15.8% of government debt
in June 2004, down from 30.7% a year earlier.

Some momentum on the reform front continues, evidenced by the
government holding the line on minimum wage growth and moving
ahead in the legislative process to pass bankruptcy reform. This
follows on the modest successes last year in the areas of social
security and tax reform.

Nevertheless, Brazil's sovereign ratings remain constrained by
medium-term debt sustainability concerns as well as nearer term
heavy financing needs. Gross general government debt to GDP of
above 75% compares unfavorably with the median of Fitch-rated
'B' sovereigns. Likewise, net external debt of nearly 150% of
current external receipts exceeds the 'B' median.

Yet Brazil remains highly leveraged to market sentiment, given
US$17 billion in medium and long-term external debt
amortizations due during the rest of this year and US$24 billion
next year. In addition, Brazil's current financing program with
the IMF expires at the end of this year, and the authorities
appear poised not to renew the program for financing purposes.
Brazil will have to pay the IMF US$6.8 billion in principal next
year and US$8.4 billion in 2006. So, the legacy of borrowing in
the past and the need to refinance leave Brazil vulnerable to
market confidence, even though trade performance has improved
dramatically. Furthermore, the treasury's domestic debt rollover
requirements for the rest of the year are not light,
representing nearly 5% of 2004 GDP and about 18% of GDP in the
next twelve months.

Finally, municipal elections are scheduled for October, and the
outcome will affect perceptions about the strength of President
Lula and his PT party, and their ability to continue down the
path for such needed reforms as central bank autonomy
legislation, further social security reform, further tax reform,
and regulatory reform.


* BRAZIL: Moody's Raises Ratings on Continued Export Expansion
------------------------------------------------------------
Moody's Investors Service upgraded Thursday Brazil's credit
rating one notch to B1 - four notches below investment grade -
bringing the rating flush with S&P and Fitch. The agency said "a
continued export expansion combined with less reliance on
foreign-currency borrowing that has sharply reduced the ratio of
external debt-to-exports is sustainable."

The outlook for all ratings remains stable.

Local currency-denominated bonds of Brazil and of its central
bank have been upgraded to Ba3 from B2, Moody's said in a
statement.


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

ENAMI: New Bill Could Ease Financial Strain
-------------------------------------------
Enami is expected to regain financial health with the Chilean
government's proposal to refrain from drawing on the Company's
anticipated profits until 2026 and defer charging taxes until
2021. Besides securing Enami's financial solidity, the proposal
also gives the senate a new opportunity to discuss the bill,
which would pave the way for the transfer of Enami's Ventanas
Smelter to state company Codelco. The senate's mining committee
will vote on the bill for a second time on September 15.

A Ventanas transfer would shave as much as US$30 million off
Enami's US$160 million debt from unpaid taxes.


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

AVIANCA: Enters Code-Sharing Agreement With Spain's Iberia
----------------------------------------------------------
Colombian flagship airline Avianca has entered a code-sharing
agreement with Spain's largest airline, Iberia SA (IBLA.MC),
reports Dow Jones Newswires. Under the agreement, the airlines
can sell seats on each other's flights as if they were its own.
The airlines will also be able to expand their offerings without
having to add flights.

Starting Sept. 20, Avianca's passengers will be able to fly from
Madrid to the Spanish cities of Valencia, Barcelona, Alicante as
well as Paris. In return, Iberia's customers flying from Madrid
to Bogota will have access to continuing service to the
Colombian cities of Cali, Medellin, Cartagena and Pereira.

Avianca filed for Chapter 11 bankruptcy protection in March of
2003 and delivered its reorganization plan to a U.S. court in
July of this year. Just recently, a U.S. bankruptcy judge
approved a restructuring plan that would transfer control to
Brazil's Grupo Sinergy if creditors support the proposal.

Sinergy offered in March to inject US$64 million of capital into
Avianca and assume nearly US$300 million in debt in return for a
75% stake in the world's second-oldest airline.


CODAD: S&P Affirms Rating; Outlook Still Stable
-----------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' rating on
Compania de Desarrollo Aeropuerto Eldorado S.A.'s (CODAD) US$116
million 10.19% notes due 2011. The outlook is stable. CODAD is a
special-purpose corporation, which was awarded a concession
contract by the Republic of Colombia's governmental unit, Unidad
Administrativa Especial de la Aeronautica Civil (AEROCIVIL), the
operator of Colombian airports and the nation's equivalent to
the U.S. Federal Aviatio Administration.

CODAD collects all landing fees at the El Dorado international
airport in Bogota, Colombia through 2015. These fees, as well as
minimum revenue guarantee payments from AEROCIVIL, secure the
bonds.

CODAD's aircraft landings have decreased almost 5.0% during the
first six months of 2004 compared with the same period last
year. However, international landings have increase 4.5% during
the same period, which have driven revenues up 17% compared with
the last year (in pesos).

International landing fees are almost 6.0x higher than domestic
landings fees. On the other side, domestic aircraft landings
continued its declining trend, decreasing by 8.0%.

The stable outlook reflects the outlook assigned to the Republic
of Colombia. The outlook also reflects the fact that CODAD
currently is dependent on the minimum revenue guarantee from
AEROCIVIL to service its debt.

"Further declines in landings or evidence that AEROCIVIL may be
distancing itself from its guarantee--an action which, to date,
has not arisen--could result in a downgrade," said Standard &
Poor's credit analyst Juan Becerra.

In addition, any rating action on the Republic of Colombia could
lead into the same rating action on CODAD.

ANALYSTS:  Juan P Becerra, Mexico City (52) 55-5081-4416
           Santiago Carniado, Mexico City (52) 55-5081-4413



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

BANCO CENTRAL: Fails to Pay Interest, Notice Issued
---------------------------------------------------

  NOTICE TO HOLDERS OF BANCO CENTRAL DE LA REPUBLICA DOMINICANA
                    (THE "CENTRAL BANK")

Uncollateralized Past Due Interest Bonds, Due 2009 (the "PDI
Bonds")

THIS NOTICE IS GIVEN pursuant to Section 6(e)(2) and Section
6(e)(3) of the PDI Bond Fiscal Agency Agreement, dated as of
August 30, 2004, among Banco Central de la Republica Dominicana,
Citibank, N.A. and Citibank (Luxembourg) S.A.

Citibank, N.A., as Fiscal Agent, hereby notifies the holders of
the Bonds that the Central Bank has failed to deposit sufficient
funds to pay the interest and principal due on August 30, 2004
on the Bonds. Inquiries from holders may be sent via facsimile
to the Fiscal Agent at (212) 657-4009. All inquiries must be
accompanied by proof of status as holder.

CITIBANK, N.A.
As Fiscal Agent

Dated: September 1, 2004



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

AEROMEXICO: Orders 10 More Planes From Boeing
---------------------------------------------
Boeing (NYSE: BA) and Aeromexico said Thursday the airline is
acquiring 10 additional Next-Generation 737-700 airplanes for
its fleet-modernization program. Aeromexico ordered eight of the
airplanes from Boeing and is leasing the remainder. As the
transaction was completed earlier, Boeing has reflected it on
its orders website in the "unidentified" category.

"The 737-700 remains a key solution for our airline," said
Aeromexico Chief Executive Officer Fernando Flores. "The
superior operating economics of the Next-Generation 737s are
especially important in light of continued rising fuel costs."

The airplanes will be delivered between July and December, 2005.
This order complements Aeromexico's 2003 order for 15 airplanes,
10 of which have been delivered. The remainder will be delivered
by the end of November.

The 737-700's short- and long-range flight flexibility provides
access to 90 percent of Aeromexico's destinations. The airplane
also replaces less efficient older aircraft and will allow
Aeromexico to comply with noise reduction laws as required.

Aeromexico's 737-700s have 112 economy-class seats and 12 Clase
Premier seats, and the largest available overhead storage bins.
As with Aeromexico's other 737s, the new ones will have Blended
Winglets -- 8-foot-long wingtip extensions that reduce fuel
consumption by approximately 3.5 percent and increase the
aircraft's range up to 450 nautical miles. The winglets improve
performance at hot, high-altitude airports like Mexico City,
reduce airplane noise by lowering the engine thrust required at
takeoff, and help reduce engine maintenance costs by reducing
wear.

The Boeing Next-Generation 737s fly higher, faster, farther, and
more quietly than comparable airplanes, while offering greater
fuel efficiency. It is the world's best-selling commercial
airplane family, with more than 5,400 ordered by 220 customers.

Aeromexico is Mexico's largest airline and a leader in on-time
performance and baggage handling. It operates Boeing 767, 757,
737, and MD-80 jetliners. From its Mexico City hub it operates
more than 300 daily flights to 30 cities within Mexico, 15 in
the United States, two in Europe and three in South America.
It's a founding member of SkyTeam, the global airline alliance
that also includes Air France, Alitalia, Continental, CSA Czech
Airlines, Delta Air Lines, Korean Air and Northwest.


LUZ Y FUERZA: Moves to Collect Payments From Various Firms
----------------------------------------------------------
Mexico's state-owned electricity company Luz y Fuerza del Centro
(LyFC) is seeking payment of approximately MXN3.5 billion from
firms operating in the sewerage and potable water sector,
reports Notimex. The agency's general director Luis de Pablo
Serna said that his administration is willing to engage in talks
with these debtor entities to resolve the matter.

The official noted that the agency has had some difficulties in
convincing some municipal authorities to recognize their debt.
He explained that many have new political parties in office and
that these authorities refuse to acknowledge the debt of their
predecessors.

The official insisted that services should be paid for, since
LyFC's administration is unable to write them off because
financial authorities (and not LyFC) establish the cost of
services.


GRUPO MEXICO: BBVA Starts Coverage With "Outperform" Rating
-----------------------------------------------------------
Analysts with financial giant BBVA Securities started coverage
Thursday of Mexican metals, mining and transport company Grupo
Mexico SA (GMEXICO.MX) with an "outperform" rating. BBVA set a
MXN47.19 (US$4.08) price target for the company's shares on
Mexico City's bourse, 16% higher than the company's August 31
share price of MXN40.63.

"We do not believe that 16% upside potential offers enough of a
comfort margin to justify the accompanying environmental and
commodity risks," BBVA said in a research report.

The "environmental" risks refer to the liabilities at U.S. unit
Asarco, while BBVA's warning on commodities stems from the
possibility that copper prices may not sustain their current
highs.

Still, the investment bank sees the "strong copper price cycle"
as an upside to the company, along with plans to unify
operations between Mexican mining unit Minera Mexico and
Southern Peru Copper (SPCC, NYSE: PCU).

Grupo Mexico, with mining operations in Mexico, Peru and the
U.S., is the world's third largest copper producer after Chile's
Codelco and Phelps Dodge of the U.S. It's also the company with
the world's second-largest copper reserves.

Grupo Mexico shares have risen this year as the company takes
advantage of high metals prices to increase earnings and pay
down debt.


MAXCOM TELECOMUNICACIONES: Selects Lucent to Expand Network
-----------------------------------------------------------
Lucent Technologies (NYSE: LU) announced Thursday that it has
been selected by Maxcom Telecomunicaciones to expand its network
and incorporate access and other platforms for IP services and
applications. Under the terms of the agreement, Lucent will
supply Maxcom with next- generation 5E-XC(TM) switch software,
from Lucent's Accelerate(TM) portfolio, to upgrade Lucent
5ESS(R) switches to increase capacity and expand coverage, and
also the infrastructure to grow its access and IP services
system. With these network upgrades, the operator will expand
its services portfolio, increase its customers base with a
proven technology and offer new IP services such as Voice over
IP (VoIP) and virtual private networks (VPNs) for its corporate
and residential customers.

Maxcom selected Lucent's equipment, software and services as
part of its network expansion and upgrade program to respond to
current and future demand for voice and data services. With the
advanced Lucent platforms, Maxcom will cost-effectively deploy
new value added services, as well as traditional telephony
services in new regions.

"This expansion improves our network, increases its coverage and
capacity, and expands the availability of our services across
the country," said Ricardo Arevalo Ruiz, Maxcom Operations and
Information Technologies vice president. "Through this project
we will continue to improve and expand our network to move voice
and data traffic between cities, from a geographic area to
another, and from Mexico to the world."

"We are very excited to be working with Maxcom in the quick
deployment of this expansion to help them respond to the growing
demand for voice and data services in Mexico," said Osvaldo di
Campli, Lucent Technologies sales vice president for Mexico,
Central America and the Caribbean. "Through this project Maxcom
continues to be at the forefront of communications services in
Mexico."

Lucent Technologies de Mexico, a subsidiary of Lucent
Technologies, will provide the products and services outlined in
this agreement.

About Lucent Technologies

Lucent Technologies designs and delivers the systems, services
and software that drive next-generation communications networks.
Backed by Bell Labs research and development, Lucent uses its
strengths in mobility, optical, software, data and voice
networking technologies, as well as services, to create new
revenue-generating opportunities for its customers, while
enabling them to quickly deploy and better manage their
networks. Lucent's customer base includes communications service
providers, governments and enterprises worldwide. Lucent
Technologies has headquarters in Murray Hill, N.J., USA.

Web site: http://www.lucent.com

About Maxcom

Maxcom Telecomunicaciones, S.A. de C.V, with headquarters in
Mexico City, is a supplier of telecommunications services for
small and medium size companies and to residential customers in
Mexico city, Puebla and Queretaro. Maxcom started commercial
operations in May 1999 and offers now local, long distance and
data services.

Web site: http://www.maxcom.com.mx



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

UTE: Central Bank Refinances Debt
---------------------------------
Uruguay's central bank has agreed to refinance state-power
company UTE's debt, reports Business News Americas. The Company,
which was scheduled to pay-off a US$1 - US$1.4 million debt this
year, will instead resume payment in 2005. The refinancing
agreement gives the Company ten years to repay its remaining
debt with the bank.

Also, the breathing space could minimize the planned tariff
hike. UTE chairman Ricardo Scaglia says that because of the
refinancing agreement, any increase would only be minimal. Rates
could be adjusted 3-4 percent and not the 10 percent previously
discussed.


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

PDVSA: Renews JBIC Financing Accord
-----------------------------------
The renewal of the financial cooperation agreement between Japan
Bank for International Cooperation (JBIC) and state-run oil
company PDVSA is an important move towards improving Venezuelas'
oil and gas industry. In a Business News Americas report, vice
president Jose Rojas said that PDVSA hopes to fund US$3 billion
worth of investments plan with the help of JBIC. Mr. Rojas
mentioned the east-west gas interconnection project among the
projects for development.


                            ***********


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
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