TCRLA_Public/041102.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, November 2, 2004, Vol. 5, Issue 217

                            Headlines

A R G E N T I N A

AUTO RADIO: Enters Bankruptcy on Court Orders
EDUCANDO S.A.: Court Favors Creditor's Bankruptcy Petition
HAMAAFIA S.A.: Files Petition to Reorganize
LA GIOCONDA: Court Declares Company Bankrupt
MANRIQUE ZAGO: Liquidates Assets to Pay Debts

ROCHMAN MARIO: Court Grants Reorganization Plea
ROYAL SHELL: To Announce LatAm Sale This Week Says Source
S.M.T. S.R.L.: Court OKs Creditor's Bankruptcy Call
SORACE Y CIA: Claims Check Deadline Moved


B A R B A D O S

C&W BARBADOS: Ordered to Pay Rival an Undisclosed Amount


B E R M U D A

ANTENNA FINANCE: Member Decide to Wind-Up Operations
CAROLINA REINSURANCE: To Hold Creditor's Meeting
FUTURE INFORMATION: Appoints Nigel J.S. Chatterjee as Trustee
VICTOR FINANCE: Proceeds with Wind-Up under Robin Mayor
VORTEX FINANCE: Robin Mayor Moves in as Liquidator


B R A Z I L

CEMIG: Board OKs Signing of Instrument of Confession of Debt
GLOBOPAR: Gains Creditors' Support for Debt Plan
PARMALAT: Core Business EBITDA Increases to EUR192.9 Mln
TAM: Inks $17.5M Outsourcing Project With EDS
TCP: Reports BRL153-Million Net Loss In 3Q04


C O L O M B I A

VALORES BAVARIA: Reports Lower Net Loss In 1st 9 Mos of 2004


D O M I N I C A N   R E P U B L I C

* DOMINICAN REPUBLIC: IMF Identifies Policies to Sustain Economy
* DOMINICAN REPUBLIC: Fitch Comments on Credit Outlook


E L   S A L V A D O R

BANCO AGRICOLA: S&P Affirms Ratings
MILLICOM INTERNATIONAL: Mulls $5.7M Investment for Local Unit


M E X I C O

EMPRESAS ICA: Anticipates Bigger Profits
UNEFON: Returns to Black in the 3Q04


P A R A G U A Y

* PARAGUAY: IMF Says Inflation Significantly Reduced


P E R U

NUEVO CONTINENTE: Government Suspends Flights

     -  -  -  -  -  -  -  -

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


AUTO RADIO: Enters Bankruptcy on Court Orders
---------------------------------------------
Auto Radio Canning S.R.L. will enter bankruptcy protection after
Court no. 23 of Buenos Aires civil and commercial tribunal
ordered the Company's liquidation. The bankruptcy order
effectively transfers control of the Company's assets to the
Court-appointed trustee who will supervise the liquidation
proceedings.

Infobae reports that the Court selected Mr. Ricardo Adrogue as
trustee. He will be verifying creditors' proofs of claims until
the end of the verification phase on December 20.

Argentine bankruptcy law requires the trustee to provide the
Court with individual reports on the forwarded claims and a
general report containing an audit of the Company's accounting
and business records. The individual reports will be submitted
on March 3, 2005 followed by the general report that is due on
April 14, 2005.

CONTACT: Mr. Ricardo Adrogue, Trustee
         Bouchard 468
         Buenos Aires


EDUCANDO S.A.: Court Favors Creditor's Bankruptcy Petition
----------------------------------------------------------
Ms. Carmen Alicia Tejada successfully sought for the bankruptcy
of Educando S.A. after Judge Vasallo, serving for Court no. 5 of
Buenos Aires' civil and commercial tribunal, declared the
Company "Quiebra," says La Nacion.

As such, the private school will now start the bankruptcy
process with Mr. Roberto Jorge Massacane as trustee. Creditors
of the Company must submit their proofs of claim to the trustee
before December 17 for authentication. Failure to do so will
mean a disqualification from the payments that will be made
after the Company's assets are liquidated.

Dr. Djivaris, clerk no. 10, assists the Court on the case that
will culminate in the liquidation of all of its assets.

CONTACTS: Educando S.A.
          Cervino 3447
          Buenos Aires

          Mr. Roberto Jorge Massacane, Trustee
          Avenida Presidente Roque Saenz Pena 846
          Buenos Aires


HAMAAFIA S.A.: Files Petition to Reorganize
-------------------------------------------
Hamaafia S.A. filed a "Concurso Preventivo" motion, reports La
Nacion. The Company is seeking to reorganize its finances
following cessation of debt payments since October this year.

The food exporting Company's request is pending before Judge
Paez Castaneda of Buenos Aires' civil and commercial tribunal
Court no. 21. Dr. Barreiro, clerk no. 42, assists the Court on
this case.

CONTACT: Hamaafia S.A.
         Federico Lacroze 1786
         Buenos Aires


LA GIOCONDA: Court Declares Company Bankrupt
--------------------------------------------
Judge Santachitta, serving for Court no. 16 of Buenos Aires'
civil and commercial tribunal declared local Company La Gioconda
S.R.L. "Quiebra", relates La Nacion. The order comes in approval
of the bankruptcy petition filed by Mr. Luis Truchero.

The Company will undergo the bankruptcy process with Mr. Carlos
Quadraroli as trustee. Creditors are required to present their
proofs of claims to the trustee for verification before December
9. Creditors who fail to have their claims authenticated by the
said date will be disqualified from the payments that will be
made after the Company's assets are liquidated at the end of the
bankruptcy process.

Dr. Cufari, clerk no. 36 assists the Court on the case.

CONTACT: La Gioconda S.R.L.
         Wenceslao Willafane 446
         Buenos Aires

         Mr. Carlos Quadraroli, Trustee
         Florida 537
         Buenos Aires


MANRIQUE ZAGO: Liquidates Assets to Pay Debts
---------------------------------------------
Buenos Aires-based Manrique Zago Ediciones S.R.L. will begin
liquidating its assets following the bankruptcy pronouncement
issued by Court no. 22 of the city's civil and commercial
tribunal.

Infobae reports that the ruling places the Company under the
supervision of Court-appointed trustee Juan Enrique Reinhardt.
The trustee will verify creditors' proofs of claims until
November 25. The validated claims will be presented in Court as
individual reports on February 9, 2005.

The trustee will also submit a general report, containing a
summary of the Company's financial status as well as relevant
events pertaining to the bankruptcy, on March 23, 2005.

The bankruptcy process will end with the disposal Company assets
in favor of its creditors.

CONTACT: Mr. Juan Enrique Reinhardt, Trustee
         Viamonte 1348
         Buenos Aires


ROCHMAN MARIO: Court Grants Reorganization Plea
-----------------------------------------------
Rochman Mario y Rochman Raul Sebastian S.H., operating in Buenos
Aires, continues with its reorganization upon orders from Court
no. 19 of the city's civil and commercial tribunal.

During the reorganization, the Company will be able to negotiate
a settlement proposal for its creditors so as to avoid a
straight liquidation.

According to Argentine news source Infobae, the reorganization
will be conducted under the direction of Mr. Eduardo F.
Aguinaga, the Court-appointed trustee.

The verification of creditors' claims is expected to end today.
These claims will constitute the individual reports to be
submitted in Court on December 15. The Court also requires the
trustee to present an audit of the Company's accounting and
business records through a general report due on February 28,
2005.

Recognized creditors of the Company are scheduled to ratify the
settlement plan during the informative assembly on August 18,
2005.

CONTACT: Rochman Mario y Rochman Raul Sebastian S.H.
         Avda Pueyrredon 255
         Buenos Aires

         Mr. Eduardo F. Aguinaga, Trustee
         Maipu 374
         Buenos Aires


ROYAL SHELL: To Announce LatAm Sale This Week Says Source
---------------------------------------------------------
A source from Anglo-Dutch oil major Shell said that the Company
is likely to announce this week the sale of two Latin American
businesses to local buyers, says Reuters.

The two downstream units, both part of Shell Oil Products Latin
America, could be worth US$500 million - US$600 million, said a
banker familiar with the units.

Shell had announced in September that it planned to sell US$10
billion- US$12 billion of non-core assets by 2006. Analysts said
they expect Shell to sell Latin American assets, some of which
are seen to be under-performing.


S.M.T. S.R.L.: Court OKs Creditor's Bankruptcy Call
---------------------------------------------------
S.M.T. S.R.L. entered bankruptcy after Judge Santachitta of
Buenos Aires' civil and commercial Court no. 16 approved a
bankruptcy motion filed by Fernando Rodriguez, reports La
Nacion.

Working with Dr. Cufari, the city's Clerk no. 36, the Court
assigned Mr. Alfredo Rodriguez as trustee for the bankruptcy
process. The trustee's duties include the authentication of the
Company's debts and the preparation of the individual and
general reports. Creditors are required to present their proofs
of claims to the trustee before December 10.

The Company's assets will be liquidated at the end of the
bankruptcy process to repay creditors. Payments will be based on
the results of the verification process.

CONTACT: S.M.T. S.R.L.
         Avenida Santa Fe 3569
         Buenos Aires

         Mr. Alfredo Rodriguez, Trustee
         Marcelo Torcuarto de Alvear 1775
         Buenos Aires


SORACE Y CIA: Claims Check Deadline Moved
-----------------------------------------
Court no. 8 of Buenos Aires' civil and commercial tribunal moved
key events pertaining to the Sorace y Cia. S.R.L. bankruptcy
case to the following dates:

1. Creditors' Claims Verification Deadline - December 1, 2004
2. Submission of Individual Reports - February 14, 2005
3. Submission of the General Report - March 30, 2005.

The city's Clerk no. 15 assists the Court on this case that will
end with the sale of its assets to repay debts.


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

C&W BARBADOS: Ordered to Pay Rival an Undisclosed Amount
--------------------------------------------------------
The Fair Trading Commission (FTC) on Thursday ordered Cable &
Wireless (C&W) Barbados to pay an undisclosed amount of money to
rival Digicel for not passing on full discounts on international
calls to Digicel customers.

On March 29, 2004, C&W announced that they would offer a
promotional discount on international calls to their mobile
customers.

On September 17, 2004, C&W announced another promotional
discount on international calls for their fixed line customers.

As a result of these promotional discounts, C&W was charging
Digicel more for international services than they were charging
their own retail customers.

The FTC, having completed its inquiry into a complaint made by
Digicel on April 2, 2004, stated in their findings that "C&W has
abused its dominance in the wholesale international voice
telephony market, by engaging in the practice of price squeezing
to the harm of its downstream competitors."

The FTC then ruled that C&W must refund Digicel the difference
between what C&W charged Digicel and the retail rates charged to
C&W's customers during the promotional periods.

Disappointed with the FTC's findings, C&W lodged its own review
of the Commission's findings.

"When we have completed our review of the Commission's findings
and directions, we will decide how we intend to proceed," said
Donald Austin, president of Cable & Wireless Barbados.


=============
B E R M U D A
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ANTENNA FINANCE: Member Decide to Wind-Up Operations
----------------------------------------------------
        IN THE MATTER OF THE COMPANIES ACT 1981

                           and

          IN THE MATTER OF Antenna Finance Ltd.

The Sole Member of Antenna Finance Ltd., acting by written
consent without a meeting on October 25, 2004 passed the
following resolutions:

1) THAT the Company be wound up voluntarily, pursuant to the
provisions of the Companies Act 1981;

2) THAT Robin J Mayor be and is hereby appointed Liquidator for
the purposes of such winding-up, such appointment to be
effective forthwith.

Mr. Mayor informs that:

Creditors of Antenna Finance Ltd., which is being voluntarily
wound up, are required, on or before November 11, 2004 to send
their full Christian and Surnames, their addresses and
descriptions, full particulars of their debts or claims, and the
names and addresses of their lawyers (if any) to Robin J Mayor
at Messrs. Conyers Dill & Pearman, Clarendon House, Church
Street, Hamilton, HM DX, Bermuda, the Liquidator of the said
Company, and if so required by notice in writing from the said
Liquidator, and personally or by their lawyers, to come in and
prove their debts or claims at such time and place as shall be
specified in such notice, or in default thereof they will be
excluded from the benefit of any distribution made before such
debts are proved.

- A final general meeting of the Sole Member of Antenna Finance
Ltd. will be held at the offices of Messrs. Conyers Dill &
Pearman, Clarendon House, Church Street, Hamilton, Bermuda on
December 2, 2004 at 9:30 a.m. for the purposes of:

1) receiving an account laid before them showing the manner in
which the winding-up of the Company has been conducted and its
property disposed of and of hearing any explanation that may be
given by the Liquidator;

2) by resolution determining the manner in which the books,
accounts and documents of the Company and of the Liquidator
shall be disposed of; and

3) by resolution dissolving the Company.

CONTACT: Mr. Robin J. Mayor, Liquidator
         Clarendon House, Church Street
         Hamilton, Bermuda


CAROLINA REINSURANCE: To Hold Creditor's Meeting
------------------------------------------------
    IN THE MATTER OF Carolina Reinsurance Limited

                        and

IN THE MATTER OF SECTION 99 OF THE COMPANIES ACT 1981

      ADVERTISEMENT OF SCHEME CREDITORS' MEETINGS

Notice is hereby given that, by an Order dated October 19, 2004,
the Court has directed in accordance with Section 99 of the
Companies Act 1981 that creditors meetings (the "Scheme
Creditors' Meetings") of Carolina Reinsurance Limited (the
"Company") be held for the purpose of considering and, if
thought fit, approving (with or without modification) a Scheme
of Arrangement proposed to be made between the Company and the
Scheme Creditors. The Meeting of Non Pool Scheme Creditors ("the
Non Pool Scheme Creditors' Meeting") will be held at the offices
of Appleby Spurling Hunter, 22 Victoria Street, Hamilton, HM EX,
Bermuda, on December 1, 2004 at 2:00 p.m. The Meeting of Pool
Scheme Creditors ("the Pool Scheme Creditors' Meeting") will be
held at the offices of Appleby Spurling Hunter, 22 Victoria
Street, Hamilton, HM EX, Bermuda, on December 1, 2004 at 2:15
p.m.

Copies of the Scheme of Arrangement and copies of the
Explanatory Statement required to be furnished pursuant to
section 100 of the Companies Act 1981 of Bermuda are available
from the office of John C McKenna, Ernst & Young, Reid Hall,
Reid Street, Hamilton, HM 11, Bermuda, and from the office of
Gareth H. Hughes, Ernst & Young LLP, 1 More London Place,
London, SE1 2AF, United Kingdom, being joint liquidators of the
Company (the "Joint Liquidators").

These documents are available free of charge to any person
entitled to attend the Scheme Creditors' Meetings during usual
business hours on any day (other than a Saturday, Sunday or a
statutory holiday) prior to the day appointed for the Scheme
Creditors' Meetings.

Scheme Creditors may vote in person at the Scheme Creditors'
Meetings or they may appoint another person, whether a Scheme
Creditor or not, as their proxy to attend and vote in their
place. A form of proxy for use at the Scheme Creditors' Meetings
is available from the Liquidators at the above addresses. Forms
of Proxy should be lodged with the Company at its principal
place of business at Reid Hall, Reid Street, Hamilton, HM 11,
Bermuda not less than 3 business days prior to the time
appointed for the holding of the Scheme Creditors' Meeting.

Forms of Proxy may be sent by facsimile transmission to +441 294
5318 by the same time and date. If a proxy form is submitted by
fax, it is within the discretion of the Joint Liquidators to
request an original proxy form be submitted no later than two
business days prior to the Scheme Meeting.

At the direction of the Court, John C. McKenna, being one of the
Joint Liquidators, or, failing him, Gareth H. Hughes, shall be
chairman of the Scheme Meetings. The Scheme of Arrangement will
be subject to the subsequent approval of the Court.

CONTACT: Ms. Dana Lodge
         Ernst & Young
         Reid Hall, Reid Street
         Hamilton, HM 11, Bermuda
         Phone: 441 294 5364
         Fax: 441 294 5318


FUTURE INFORMATION: Appoints Nigel J.S. Chatterjee as Trustee
-------------------------------------------------------------
            IN THE MATTER OF THE COMPANIES ACT 1981

                              and

AND IN THE MATTER OF Future Information Research Management Ltd.

Members of Future Information Research Management Ltd. passed
the following resolutions on October 27, 2004:

1) That the Company be wound up voluntarily, pursuant to the
provisions of the Companies Act 1981; and

2) That Mr. Nigel J.S. Chatterjee and Mr. Peter C.B. Mitchell of
PricewaterhouseCoopers be appointed as Joint Liquidators for the
purposes of such winding-up, such appointment to be effective
forthwith.

The joint liquidators inform that:

- Creditors of Future Information Research Management Ltd.,
which is being voluntarily wound up, are required on or before
November 26, 2004 to send their full Christian and Surnames,
their addresses and descriptions, full particulars of their
debts or claims, and the names and addresses of their solicitors
(if any) to the liquidators, at PricewatehouseCoopers, P.O. Box
HM 1171, Hamilton, HM EX, Bermuda, and if so required by notice
in writing from the said Liquidators are personally, or by their
solicitors, to come in and prove their debts or claims at such
time and place as shall be specified in such notice, or in
default thereof they will be excluded from the benefit of any
distribution made before such debts are proved.

CONTACT: Mr. Nigel J.S. Chatterjee, Liquidator
         PricewaterhouseCoopers
         Dorchester House, 7 Church Street
         Hamilton, Bermuda


VICTOR FINANCE: Proceeds with Wind-Up under Robin Mayor
-------------------------------------------------------
         IN THE MATTER OF THE COMPANIES ACT 1981

                           and

            IN THE MATTER OF Victor Finance Ltd.


The Sole Member of Victor Finance Ltd., acting by written
consent without a meeting on October 25, 2004 passed the
following resolutions:

1) THAT the Company be wound up voluntarily, pursuant to the
provisions of the Companies Act 1981;

2) THAT Robin J. Mayor be and is hereby appointed Liquidator for
the purposes of such winding-up, such appointment to be
effective forthwith.

Mr. Mayor notifies that:

- Creditors of Victor Finance Ltd., which is being voluntarily
wound up, are required, on or before November 11, 2004 to send
their full Christian and Surnames, their addresses and
descriptions, full particulars of their debts or claims, and the
names and addresses of their lawyers (if any) to Robin J Mayor
at Messrs. Conyers Dill & Pearman, Clarendon House, Church
Street, Hamilton, HM DX, Bermuda, the Liquidator of the said
Company, and if so required by notice in writing from the said
Liquidator, and personally or by their lawyers, to come in and
prove their debts or claims at such time and place as shall be
specified in such notice, or in default thereof they will be
excluded from the benefit of any distribution made before such
debts are proved.

- A final general meeting of the Sole Member of Victor Finance
Ltd. will be held at the offices of Messrs. Conyers Dill &
Pearman, Clarendon House, Church Street, Hamilton, Bermuda on
December 2, 2004 at 9:30 a.m. or as soon as possible thereafter,
for the purposes of:

1) receiving an account laid before them showing the manner in
which the winding-up of the Company has been conducted and its
property disposed of and of hearing any explanation that may be
given by the Liquidator;

2) by resolution determining the manner in which the books,
accounts and documents of the Company and of the Liquidator
shall be disposed of; and

3) by resolution dissolving the Company.

CONTACT: Mr. Robin J. Mayor, Liquidator
         Clarendon House
         Church Street
         Hamilton, Bermuda


VORTEX FINANCE: Robin Mayor Moves in as Liquidator
--------------------------------------------------
          IN THE MATTER OF THE COMPANIES ACT 1981

                        and

             IN THE MATTER OF Vortex Finance Ltd.

The Sole Member of Vortex Finance Ltd., acting by written
consent without a meeting on 25th October 2004 passed the
following resolutions:

1) THAT the Company be wound up voluntarily, pursuant to the
provisions of the Companies Act 1981;

2) THAT Robin J Mayor be and is hereby appointed Liquidator for
the purposes of such winding-up, such appointment to be
effective forthwith.

The liquidator informs that:

- Creditors of Vortex Finance Ltd., which is being voluntarily
wound up, are required, on or before November 11, 2004 to send
their full Christian and Surnames, their addresses and
descriptions, full particulars of their debts or claims, and the
names and addresses of their lawyers (if any) to Robin J Mayor
at Messrs. Conyers Dill & Pearman, Clarendon House, Church
Street, Hamilton, HM DX, Bermuda, the Liquidator of the said
Company, and if so required by notice in writing from the said
Liquidator, and personally or by their lawyers, to come in and
prove their debts or claims at such time and place as shall be
specified in such notice, or in default thereof they will be
excluded from the benefit of any distribution made before such
debts are proved.

- A final general meeting of the Sole Member of Vortex Finance
Ltd. will be held at the offices of Messrs. Conyers Dill &
Pearman, Clarendon House, Church Street, Hamilton, Bermuda on
December 2, 2004 at 9:30 a.m., or as soon as possible
thereafter, for the purposes of:

1) receiving an account laid before them showing the manner in
which the winding-up of the Company has been conducted and its
property disposed of and of hearing any explanation that may be
given by the Liquidator;

2) by resolution determining the manner in which the books,
accounts and documents of the Company and of the Liquidator
shall be disposed of; and

3) by resolution dissolving the Company.

CONTACT: Mr. Robin J. Mayor, Liquidator
         Clarendon House
         Church Street
         Hamilton, Bermuda


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

CEMIG: Board OKs Signing of Instrument of Confession of Debt
------------------------------------------------------------
The directors meeting for Cemig held Thursday approved the
following resolutions:

1. Signing of an Instrument of Confession of Debt between Cemig
and Furnas, due to the delay in payment of invoices for Initial
Contracts, contracts for use of the transmission system,
contracts for use of the basic network, the RTE, the seasonal
differences, and application of the reduction factor by Aneel,
under the General Agreement for the Electricity Sector.

2. Association Agreement between Cemig, Gasmig, Petrobras and
Gaspetro: extension of the limit date for completion of the
transaction and creation of a Company to hold stockholding
interests in companies operating commercially in natural gas
distribution.

3. Contracting of accounting auditing services with Deloitte
Touche Tohmatsu, for analysis of the financial statements of the
Irape Consortium, its economic and financial equilibrium and
detailing of the sources and uses of funds of the consortium
members.


GLOBOPAR: Gains Creditors' Support for Debt Plan
------------------------------------------------
Globo Comunicacoes e Participacoes S.A. ("Globopar") announced
Friday that it has reached an agreement in principle with
members of the Bank and Bondholder Steering Committees regarding
the restructuring of its debt. The debt to be restructured
includes Globopar's debt guaranteed by TV Globo Ltda. ("TV
Globo"); other direct Globopar debt; and, its subsidiaries' debt
guaranteed by Globopar.

Certain creditor members of the Bank and Bondholder Steering
Committees and some other creditors have agreed to support and
vote in favor of the restructuring of the debt. These creditors
include Citibank, N.A., J.P.MorganChase Bank, Bank of America
N.A., Banco Bradesco S.A, Marathon Asset Management LLC, Banco
Finantia, S.A., Gavea Master Fund, Brasilian American Merchant
Bank, Banco Itau BBA S.A. and Unibanco - Uniao de Bancos
Brasileiros S.A.. The debt restructuring must be approved by
certain percentages of the creditors holding the debt to be
restructured.

Since the beginning of the restructuring process, Globopar has
focused in strengthening its media businesses and reducing
investments in its content distribution companies, decreasing
debt and increasing cash flow. Recently announced examples of
this strategy include the agreement with NewsCorp and DIRECTV
Group relating to SKY Brasil Servicos Ltda. and the sale of
interest in Net Servicos de Comunicacao S.A. to Telefonos de
Mexico S.A. As a result of these measures, the amount of debt
and obligations will be reduced by more than US$300 million.

After giving effect to the restructuring, the creditors will
receive cash and/or hold debt securities for which TV Globo and
Globopar will be jointly obligated.

Upon conclusion of the restructuring process and subject to the
approval of the appropriate Brazilian regulatory agencies, TV
Globo and Globopar will be a single entity that will be
responsible for the performance of the agreements signed. The
business units (TV Globo, Globosat, Globo.com, Som Livre,
Editora Globo and Globo Cochrane) will continue to maintain
their identities, strategies and relationships with their
specific constituents.

Statement by the president of the Globo Organizations, Roberto
Irineu Marinho: "During the last three years, we have
concentrated our efforts on strengthening our media businesses
and our leadership position in the evermore-efficient production
of quality Brazilian content, by reducing our interest in
distribution companies and recovering our cash generation
capacity. Furthermore, we have, together with the Creditors'
Committees, developed a solution that is appropriate to the
unique aspects of our businesses, yet favorable to all parties
concerned. In this way, we have maintained all of the conditions
necessary for the success of our companies and the fulfillment
of our commitments".

"We are pleased to support this landmark proposal for the
creditors of Globo, which we view to be the culmination of a
comprehensive series of operational and financial initiatives
designed to maintain Globo in its position as the pre-eminent
media and broadcasting force in the Portuguese-speaking world.

Furthermore, we believe the converted instruments will be well-
received and viewed as benchmarks among emerging market
corporate bonds," commented Richard K. Ronzetti, Senior Managing
Director at Marathon Asset Management LLC.

"Globo's performance and operational outlook have improved
significantly, and there is a sharp focus on its core business.
The proposed restructuring will allow the Company to continue
this progress and to rationalize and normalize its financial
situation," commented John Stevens, Managing Director at
J.P.MorganChase Bank.

Additional information on the implementation of the debt
restructuring process will be made available in the next few
weeks. Organizacoes Globo are a media, communication and
entertainment conglomerate, controlled by or with interest of
the Marinho family, including Globopar, a Brazilian holding
Company with interests in cable and satellite television, pay
television programming, magazine publishing and printing. The
operations of TV Globo, InfoGlobo, and Sistema Globo de Radio
are directly owned by the Marinho family and managed
independently from Globopar.

This notice is being published only for informational purposes
and does not constitute a public offer of securities. The
securities issued in connection with the restructuring concluded
by Globopar will not be registered with the Comissao de Valores
Mobiliarios (CVM, the Brazilian Securities and Exchange
Commission), nor offered to the public in Brazil.

CONTACT: Mr. Stefan Alexander / Ms. Marta Meirelles
         Globo Comunicacoes e Participacoes
         Phone: +55 21 2540 4444
         e-mail: IR@globopar.com.br
         Web Site: www.globopar.com.br

         Mr. Thomas Karsten
         S.A. Thomson Financial
         Phone: +55 11 3897 6409
         e-mail: thomas.karsten@thomsonir.com.br


PARMALAT: Core Business EBITDA Increases to EUR192.9 Mln
--------------------------------------------------------
Parmalat Finanziaria Spa in Extraordinary Administration
communicates the financial results of the Parmalat Group as of
September 30, 2004.

A number of the non-Italian operations of the Group identified
in previous months as subject to "Special Bankruptcy
Proceedings" (for example, USA Dairy, Brazil, Chile, EVH) and
certain financial companies (for example, Parmalat Capital
Finance) are currently subject to certain restrictions on their
management as a result of local bankruptcy proceedings, with the
result that these operations are effectively outside the control
of Parmalat Finanziaria Spa in Extraordinary Administration.

For this reason, the Group no longer consolidates these
companies on a line-by-line basis, choosing instead to value
them by the equity method. This approach will be followed while
the Group reviews and verifies any potential obligations that
Parmalat Finanziaria Spa in Extraordinary Administration may
have based on the laws of the countries where the companies in
question are located, and any guarantees provided to their
lenders.

More specifically: USA Dairy (Parmalat USA Corp., Farmland
Dairies, Milk Products of Alabama), which handles the Group's
milk and dairy products operations in the United States, has
filed for Chapter 11 bankruptcy protection; two Brazilian
companies (Parmalat Brasil and Parmalat Partecipacoes) have
successfully filed under a local proceeding called Concordata,
which applies to their subsidiaries as well; the Chilean
business has also filed for protection locally; EVH, a Company
incorporated in Canada, has been granted creditor protection
under the Companies' Creditors Arrangement Act; Parmalat Capital
Finance has been placed in liquidation by the local Court. This
group of companies also includes Eurofood IFSC, currently the
object of a dispute with Irish judicial authorities who allege
that Italian Extraordinary Administration proceedings cannot be
applied to this Company.

Core Businesses

The Group's Core Businesses had revenues of EUR2,722.2 million
in the first nine months of 2004, down slightly (-2.0%) from the
EUR2,776.4 million booked in the same period last year, but
EBITDA increased to EUR192.9 million, or 19.0% more than the
EUR162.1 million earned in the nine months ended September 30,
2003.

This improved operating performance is largely the result of
successful marketing initiatives and programs implemented to cut
operating costs and overheads, which offset the negative impact
of lower unit sales.

The operating data are before expenses related to the
extraordinary administration proceedings (which represents an
extraordinary event). The accrued portion attributable to the
first nine months of 2004 amounts to about EUR55.0 million.

Revenues for the third quarter of 2004 amounted to EUR901.8
million, down 5.7% from the same period a year ago (EUR956.1
million). During the same three months, EBITDA increased by
30.8%, rising from EUR46.7 million to EUR61.1 million.

Italy

In the first nine months of 2004, revenues decreased to
EUR1,029.1 million, or 8.7% less than the EUR1,126.6 million
reported as of September 30, 2003. As explained in last month's
press release, revenue shortfalls are being accompanied by
increases in EBITDA, which grew from EUR65.7 million in the
first nine months of 2003 to EUR66.6 million this year. The
ratio of EBITDA to net revenues also improved, rising from 5.8%
to 6.5%.

In the third quarter of 2004, net revenues and EBITDA totaled
EUR337.1 million and EUR17.1 million (5.1% of revenues),
respectively, compared with EUR383.9 million and EUR23.2 million
(6.0% of revenues), respectively.

The milk and fresh dairy products operations (yogurt especially)
posted the best cumulative results, confirming that the positive
trend of previous months is continuing. Compared with other
areas of business, these operations have experienced a smaller
decrease in unit sales and benefited from deep cuts in
promotional and advertising expenses, and overheads. On a less
positive note, the results reported by the fruit juice
operations for the third quarter of 2004 were lower than in the
same period last year, due to the negative impact of less
favorable weather conditions.

Other negative factors were the increase in raw materials costs,
attributable in part to higher oil prices, and the greater
relative weight of fixed manufacturing costs, which were
unchanged in absolute terms compared with a year ago. The Group
is implementing streamlining programs to address this issue.

During the latter part of the third quarter, the Group resumed
its advertising programs (Kyr and Zymil campaigns) and
promotional initiatives (Eurolat products), which are expected
to have a positive impact and provide fresh momentum to customer
demand in the fourth quarter of 2004.

Spain

Revenues for the first nine months of 2004 totaled EUR172.9
million, or 2.5% less than the EUR177.4 million reported a year
earlier. EBITDA were also down, decreasing from EUR17.7 million
to EUR12.3 million.

In the third quarter of 2004, revenues and EBITDA amounted to
EUR58.6 million (EUR61.9 million in 2003) and EUR4.4 million
(EUR6.4 million in 2003), respectively. A steady increase in the
cost of milk, which has been rising since the beginning of the
year and could not be passed on fully to customers, and higher
prices paid for plastics, especially in the third quarter, are
the main reasons for the decrease in EBITDA, compared with the
first nine months of 2003. A reduced contribution from sales of
seasonal products (Royne-branded ice-cream, milk shakes and
almond-flavored beverages), which were severely affected by
cooler summer weather (compared with 2003) and a sharp drop in
tourist flows, was also a contributing factor. Lastly, price
competition was especially strong, yogurt sales were affected by
aggressive promotions from competitors with a global reach, and
intense television advertising by competitors had an impact on
the flavored milk segment.

In the flavored milk business, the Spanish operations increased
production for private labels, a business that, while less
profitable, provides these operations with coverage for their
fixed costs and enables them to maintain high sales volumes.

South Africa

Revenues for the first nine months of 2004 grew to EUR178.3
million, up 29.8% compared with the EUR137.4 million reported in
the same period a year ago.

EBITDA followed a similar trend, rising from EUR11.9 million to
EUR14.2 million (+19.2%). The improvement in cumulative revenues
and EBITDA, compared with the first nine months of 2003, was
made possible by several factors: the acquisition of new brands
(Simonsberg), the growing strength of the Parmalat brand in the
yogurt and cheese segments, sharply higher unit sales of UHT
milk and the positive impact of the appreciation of the South
African rand versus the euro (+7.2%). In addition, less
profitable products such as bulk cheese helped boost unit sales.

In the third quarter of 2004, revenues increased to EUR65.2
million (EUR51.0 million in 2003), but EBITDA declined to EUR4.9
million (EUR5.2 million in 2003), due mainly to a less favorable
product mix (increased shipments of bulk cheese and pasteurized
milk) and higher prices paid for raw materials.

Venezuela

The devaluation of the bolivar versus the euro continued during
the month of September (-26.5% compared with September 2003),
despite the fact that the outcome of the August referendum
helped to reduce the political and social instability that has
characterized this country.

Cumulative revenues for the first nine months of 2004 declined
to EUR110.7 million, or 26.1% less than the EUR149.7 million
booked in the first three quarters of 2003. The same was true
for EBITDA, which were down both in absolute terms (from EUR18.3
million to EUR3.8 million) and as a percentage of revenues (from
12.2% to 3.4%).

The failure to renew credit lines for importation powdered milk,
the social policies pursued by the Venezuelan government
(establishment of a Ministry of Nutrition responsible for
importing and distributing essential staples, which include
"basic" powdered milk), increases in the prices paid
domestically for raw materials that could not be passed on to
consumers, and lower unit sales of fruit juices are the reasons
for the drastic decrease in revenues and EBITDA.

The Group responded to this development by implementing a
process designed to refocus the Venezuelan operations, beginning
with the restructuring of the local operating unit.

Revenues for the third quarter of 2004 totaled EUR35.9 million
(EUR53.2 million in 2003) and EBITDA fell to EUR1.7 million
(EUR4.8 million in 2003).

Canada

Cumulative revenues increased to EUR849.3 million, compared with
EUR841.7 million in the first nine months of 2003. The
improvement in net revenues produced impressive gains in EBITDA,
which rose 15.5% in absolute terms (EUR55.9 million, compared
with EUR48.4 million for the nine months ended September 30,
2003) and 0.8 point as a percentage of revenues (from 5.8% to
6.6%). A strong performance in basic ingredients and cheese, a
reduction in promotional and advertising expenses and overheads,
a reorganization of manufacturing processes, and a streamlining
of the product portfolio (about 300 items have thus far been
eliminated) account for this positive performance.

In the third quarter of 2004, the Canadian operations had
revenues of EUR291.7 million (EUR295.5 million in 2003),
generating EBITDA of EUR20.3 million (EUR12.7 million last
year).

Australia

Owing in part to the appreciation of the Australian dollar
versus the euro (+4.7% compared with the average rate as of
September 2003), revenues grew to EUR277.6 million, up from
EUR269.5 million in the first nine months of 2003. Over the same
period, EBITDA increased from EUR19.2 million to EUR22.6 million
(+17.7%).

Other factors that contributed to these improved results
include: higher unit sales of milk (especially pasteurized milk)
and yogurt, a reduction in overhead and promotional expenses, a
more effective raw materials procurement policy and the
implementation of streamlining programs.

In the third quarter of 2004, revenues totaled EUR95.0 million
(EUR94.2 million in 2003) and EBITDA increased to EUR8.8 million
(EUR6.5 million in 2003).

Noncore Businesses

The Group's Noncore Businesses reported revenues of EUR433.0
million, or 22.3% less than the EUR557.6 million booked in the
first nine months of 2003.

After the restatement of the result reported at June 30, 2004
stemming from a change in the treatment of certain items
attributed to Parma F.C. (which totaled EUR26.4 million), EBITDA
were positive by EUR12.8 million, compared with a loss of
EUR34.0 million in the first nine months of 2003. In the first
quarter of 2004, revenues totaled EUR124.7 million (EUR125.4
million in 2003) and EBITDA were negative by EUR1.1 million
(negative EBITDA of EUR6.4 million in 2003).

The main reasons for the year-over-year improvement in
cumulative EBITDA are the restatement referred to above and
programs implemented by certain Italian businesses and the U.S.
baked goods operations (USA Bakery).

Italy

The Divisions of Parmalat Spa that have been designated as
Noncore Businesses had lower revenues than in the first nine
months of 2003, but EBITDA improved (loss narrowed to EUR4.3
million as of September 30, 2004, compared with a loss of
EUR11.6 million a year earlier). The decision to discontinue the
water business and drastic cuts in advertising and promotion for
baked goods and fruit juices account for this improvement.

USA Bakery

The baked goods operations had revenues of EUR210.8 million, or
17.6% less than the EUR255.8 million reported for the nine
months ended September 30, 2003, owing in part to a sharp
decline in the value of the U.S. dollar, which fell by 10.3%
over the same period of time.

Overall, the negative impact of lower unit sales and higher raw
materials prices was offset by targeting promotional investments
more effectively, reorganizing the manufacturing operations (the
Bollingbrook facility was closed in July) and cutting overheads.

As a result, EBITDA, while still negative (-EUR7.0 million)
showed a dramatic improvement over the figure as of September
30, 2003 (-EUR13.7 million).

Net Financial Position

The Group's net financial position at September 30, 2004 shows
an increase in liquid assets held by Parmalat Spa and the
Canadian operations The combined indebtedness owed to lenders
outside the Group by companies valued by the equity method
totaled EUR2,442.3 million. Because some of these borrowings are
secured by guarantees provided Parmalat and Parmalat Finanziaria
in the amount of EUR1,701.7 million, a reserve for risks of
equal amount has been recognized in the consolidated financial
statements. The consolidated financial statements also show
indebtedness of EUR750.5 million owed by the Group to companies
in special proceedings who are not consolidated line by line.

As of today, no amount has been drawn from the EUR105.8-million
line of credit provided by a pool of banks on March 4, 2004.

Companies Under Extraordinary Administration

The net indebtedness incurred by companies under extraordinary
administration toward lenders outside the Group prior to their
becoming eligible for extraordinary administration is all short-
term, since all of these companies are in default of the
covenants of the respective loan agreements.

A noteworthy development is the increase in liquid assets held
by the companies included in the Proposal of Composition with
Creditors, which rose from EUR24.0 million at December 31, 2003
to EUR80.7 million at September 30, 2004.

Other Companies

At September 30, 2004, the remaining operating and financial
companies consolidated line by line that are not included in the
extraordinary administration proceedings had net indebtedness
toward lenders outside the Group of EUR1,351.2 million
(including EUR729.3 million in long-term debt), compared with
EUR1,329.3 million at December 31, 2003.

On September 30, 2004, the companies belonging to SBU Africa
completed the renegotiation of their indebtedness. Other
companies, including those in Portugal, are currently
renegotiating their indebtedness in order to restructure it.

Significant Events

Significant events that occurred in September and October,
through the date of this press release, are summarized below.
These events have been the subject of previous press releases,
the full text of which is available at the website
www.parmalat.net.

September 10
Publication of an invitation to submit bids to buy the real
estate complex owned by Eurolat Spa in Amministrazione
Straordinaria that is located in the municipalities of Lodi,
Montanaso Lombardo and Tavazzano con Villavesco.

September 18
Publication of the requirements for filing objections to the
list of creditors published by the Extraordinary Commissioner
and for filing responses to these objections.

September 21
Approval by the Board of Director of Parmalat Spa (Assumptor),
acting for the purpose of implementing the Restructuring Plan of
the Parmalat Group approved by the Ministry of Production
Activities acting in concert with the Ministry of Agricultural
and Forest Policies, of a resolution to prepare a draft
investment solicitation and prospectus for listing the Company's
shares and warrants on the online stock market operated by Borsa
Italiana.

September 30
Repayment of the indebtedness of Parmalat Africa Ltd and
Parmalat South Africa (Pty) Ltd toward Bank of America with
refinancing provided by a top international bank.

September 30
Sale of a 65.74% interest in Parmalat Dominicana SA by Curcastle
Corporation NV to PAR SA, a Dominican Company that is a minority
stockholder of Parmalat Dominicana SA, and to other parties
represented by PAR SA at a price of EUR6.6 million. The price
was collected on October 6, 2004. Pursuant to the sales
agreement, the buyers agreed to repay within two years the
indebtedness owed by Parmalat Dominicana SA to Parmalat Group
companies, which amounts to US$930,794.

In addition, Parmalat Spa in Amministrazione Straordinaria and
Parmalat Dominicana SA executed a trademark licensing agreement.
This transaction, which was authorized by the Italian Ministry
of Production Activities, acting with the input of the Oversight
Committee, provides a continuing revenue stream for Parmalat Spa
in Amministrazione Straordinaria.

October 7
Filing by the Extraordinary Commissioner of a complaint with the
United States District Court for the Western District of North
Carolina asking it to order Bank of America and certain of its
subsidiaries to pay damages under various titles. The
Commissioner believes that the defendant companies actively
engaged in actions that, over an extended period time, caused
damages to the Parmalat Group that are estimated at the present
time to be not less than US$10 billion.

October 14
Following approval by the Italian Ministry of Production
Activities, acting with the input of the Oversight Committee of
the Extraordinary Administration proceedings, acceptance of the
settlement proposal put forth on October 6, 2004 by Nextra
Investment Management - Societa di gestione del risparmio Spa
and collection of the settlement amount. This amount will be
allocated to the companies that are parties to the settlement in
accordance with the instructions of the Oversight Committee and
with the approval of the Italian Ministry of Production
Activities


TAM: Inks $17.5M Outsourcing Project With EDS
---------------------------------------------
TAM Linhas Aereas SA, Brazil's second-biggest airline, will
outsource part of its software maintenance and development
system to US IT Company Electronic Data Systems (NYSE: EDS) over
the next five years.

Business News Americas reports that the airline Company will
invest BRL50 million (US$17.5 million) in the project, under
which EDS will construct a new factory in Araraquara (Sao Paulo
state) starting February 2005.

The project involves updating TAM's technology along with
implementing a new Internet ticket distribution model to provide
special services to travel agents and passengers and integrate
the sales process.

CONTACT:  TAM - Linhas Aereas
          Av. Jurandir, 856
          Jd. Aeroporto - Sao Paulo - SP
          Zip code: 04072-000
          PABX: (011) 5582-8811
          Web site: http://www.tam.com.br


TCP: Reports BRL153-Million Net Loss In 3Q04
--------------------------------------------
HIGHLIGHTS:

BRL (million)   3 Q 04    2 Q 04   variation  3 Q 03   variation
                                     %                  %

Net operating
revenue      1,829.9   1,839.3    -0.5%    1,729.7     5.8%
   Net service
     revenues 1,552.1   1,544.2     0.5%    1,449.4     7.1%
   Net handset
     Revenues   277.8     295.1    -5.9%      280.3    -0.9%
Total operating
  costs      (1,197.1) (1,194.4)    0.2%   (1,020.7)   17.3%
EBITDA          632.8     644.9    -1.9%      709.0   -10.7%
EBITDA
  Margin (%)     34.6%     35.1%   -0.5 p.p.   41.0%   -6.4 p.p.
Depreciation
  and
  amortization (323.8)   (299.5)    8.1%     (342.9)   -5.6%
EBIT            309.0     345.4   -10.5%      366.1   -15.6%
Net profit     (152.9)    (67.3)  127.2%      (69.0)  121.6%

Total number
of customers
(thousand)   16,363    15,530       5.4%   11,674     40.2%

-- TCP's customer base has risen 40.2% and 5.4% over 3Q03 and
2Q04, respectively, to 16,363 million customers.

-- Net additions in 3Q04 totaled 833 thousand, up 5.7% in
relation to those recorded in the same period last year.

-- TCP reported again an increase in its contract customer base
in 3Q04, having grown 5.6% and 1.3% in relation to 3Q03 and
2Q04, respectively.

-- TCP maintained the market share leadership, in spite of the
competitive pressure.

-- Churn at 1.7% was stable in relation to 3Q03 and 2Q04 despite
the intensified competitive pressure.

-- In 3Q04, contract outgoing MOU increased by 15.9%, as
compared to the same period in 2003.

-- Net financial result improved with a reduction of 11.0% in
relation to 2Q04

-- TCP's accrued losses of BRL255.5 million decreased 44.8% in
relation to the same period of the year before.

-- Productivity (customer/employees) increased by 37.8% and 3.9%
over 3Q03 and 2Q04, respectively.

Telesp Celular Participacoes (controller of Tele Centro Oeste
Participacoes S.A.), along with Tele Leste Celular Participacoes
S.A., Tele Sudeste Celular Participacoes S.A. and Celular CRT
Participacoes S.A., make up the assets of the joint venture
undertaken by Telefonica Moviles and Portugal Telecom that
operates under the VIVO brand, Top of Mind on the Brazilian
market. On October 2004, VIVO Group reached 25 million
customers, thus consolidating its market leadership.

CONTACT: Telesp Celular Participacoes S.A.
         Charles E. Allen for VIVO
         +55-11-5105-1172
         E-mail: ir@vivo.com.br
         Web site: http//www.vivo.com.br/



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

VALORES BAVARIA: Reports Lower Net Loss In 1st 9 Mos of 2004
------------------------------------------------------------
Valores Bavaria, a Colombian holding Company that is controlled
by the powerful Santo Domingo family, showed an improvement in
its figures for the first nine months of the year, according to
Dow Jones Newswires.

In a filing with the security superintendency Friday, the
conglomerate revealed a net loss of COP33.61 billion in the
first nine months of the year, lower than the COP106.27-billion
net loss in the same period in the previous year.

Valores Bavaria attributed the net loss to the costly pension
liabilities of its airline unit Avianca S.A. (ANC.YY). Avianca,
which is currently under bankruptcy protection, must pay US$145
million that it owes retired pilots and renegotiate collective
agreements it has with five different unions.

Valores Bavaria's operating revenue was COP26.86 billion during
the first nine months of the year, down significantly from
COP126.34 billion in the same period last year.



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

* DOMINICAN REPUBLIC: IMF Identifies Policies to Sustain Economy
----------------------------------------------------------------
This statement was issued Friday in Santo Domingo by Jose
Fajgenbaum, Deputy Director of the International Monetary Fund's
(IMF) Western Hemisphere Department:

"During the last two weeks, an IMF mission and the authorities
of the Dominican Republic have engaged in comprehensive
discussions on an economic policy program that could be
supported by a Stand-By Arrangement. Significant progress has
been made in identifying policies that will consolidate
macroeconomic stability and establish the basis for sustained
economic growth.

"The authorities are appropriately considering: (i) an important
fiscal adjustment, which is needed to stabilize public finances
while protecting critical social expenditure; (ii) a strategy
for meeting the country's financing needs; and (iii) the
continuation of monetary policy designed to sustain the recent
sharp reduction in inflation. The authorities' program also
includes further strengthening in the banking sector, and they
are also identifying measures to ensure the viability of the
electricity sector. More broadly, the authorities have developed
a set of institutional reforms to improve governance and ensure
the implementation and effectiveness of their policies.

"The Dominican authorities are now specifying their plans in
greater detail in a number of areas, including the electricity
sector and the draft budget for 2005. The authorities expect to
complete this work in the coming days, after which program
discussions will continue, either in Santo Domingo or in
Washington," Mr. Fajgenbaum stated.

CONTACTS: International Monetary Fund
          External Relations Department
          700 19th Street, NW
          Washington, D.C. 20431 USA
          Public Affairs: 202-623-7300
          Fax: 202-623-6278
          Media Relations: 202-623-7100
          Fax: 202-623-6772


* DOMINICAN REPUBLIC: Fitch Comments on Credit Outlook
------------------------------------------------------
Fitch Ratings, the international rating agency, commented Friday
on the Dominican Republic's credit outlook in light of the
expected restructuring of external debt. The Dominican Republic
is expected to restructure its external private debt to comply
with the Paris Club's request of comparability of treatment as
early as mid-November. The renegotiation of the sovereign's debt
is likely to include US$1.1 billion in global bonds and US$500
million in brady bonds. The ratings on the Dominican Republic's
foreign and local currency obligations are 'CCC+'. The ratings
remain on Rating Watch Negative.

Fitch expects the government to seek a relatively 'market-
friendly' bond restructuring that would include a maturity
extension and NPV losses along the lines of the Uruguay debt
exchange that was executed in May 2003. As such, Fitch would
deem the restructuring to be a distressed debt exchange as a
result of an economic loss suffered by bondholders, and the
ratings on the Dominican Republic's long-term foreign currency
debt would be lowered to 'C' from 'CCC+' upon announcement of
the exchange. Upon completion of the exchange, Fitch would place
the eligible bonds, as well as the sovereign's foreign currency
issuer rating, in a default category.

The securities to emerge from the exchange will be formally
rated when they are issued and could potentially be in the 'B'
category based on Fitch's preliminary assessment of the
Dominican Republic's financial and economic condition. A final
determination of the appropriate ratings for the new bonds will
be based on an evaluation of the new debt service burden, the
government's fiscal program, availability of multilateral and/or
bilateral financing and the condition of the financial system.

The issuer rating and exchange-eligible bonds would remain in
default rating for at least 30 days, to the extent that they are
not fully extinguished. After 30 days, if the government is
committed to continuing to pay principal and interest on any
outstanding defaulted bonds according to their original terms,
the ratings on these securities would be raised out of the
default category, most likely to a level one or more notches
below the newly issued bonds.

Until the government announces the details of the upcoming
private debt restructuring, the ratings will remain on Rating
Watch Negative. A sovereign comment with further analysis
'Dominican Republic Credit Outlook' will be available on the
Fitch Ratings web site at 'www.fitchratings.com'.

CONTACTS: Theresa Paiz Fredel +1-212-908-0534, New York
          Morgan C. Harting +1-212-908-0820, New York

MEDIA RELATIONS: Kenneth Reed +1-212-908-0540, New York



=====================
E L   S A L V A D O R
=====================

BANCO AGRICOLA: S&P Affirms Ratings
-----------------------------------
Standard & Poor's Rating Services affirmed its 'BB/Stable/B'
counterparty credit and 'BB/B' CD ratings on Banco Agricola S.A.

The ratings are supported by Banco Agricola's leading market
position in El Salvador, its diversified loan portfolio, good
profitability, and a broad base of retail deposits. "These
positive factors are balanced by an important amount of
restructured loans and foreclosures, future development of the
coffee sector, and the relatively small size and limited
diversification of El Salvador's economy," said Standard &
Poor's credit analyst Leonardo Bravo.

Banco Agricola continues to be El Salvador's largest bank, with
$2.9 billion in assets and a market share of 30% in deposits as
of June 2004. The bank has always focused on the mass market.
Banco Agricola wants to consolidate local leadership by
emphasizing retail deposits, and cross-selling other products.
Current focus is to be leaders in costs and efficiency in El
Salvador, and re-engineering has taken place mainly in consumer
banking. It is probable that cost cutting actions taken in past
months will benefit Banco Agricola's future profitability.

The stable outlook reflects Standard & Poor's opinion that the
bank's strategies and adequate operations should maintain
profitability at good levels in a stable economic environment.
An economic downturn or the continuation of low growth prospects
of the Salvadorian economy could affect the bank's overall
performance, and thus pressure the rating. On the other hand,
the ratings could go up if there is a larger-than-expected
development in economic conditions, along with a sustainable
improvement in asset quality (including restructured loans and
repossessed assets), profitability, and if capital ratios remain
higher than those of its closest peers.

Complete ratings information is available to subscribers of
RatingsDirect, Standard & Poor's Web-based credit analysis
system, at www.ratingsdirect.com. All ratings affected by this
rating action can be found on Standard & Poor's public Web site
at www.standardandpoors.com; under Credit Ratings in the left
navigation bar, select Find a Rating, then Credit Ratings
Search.

PRIMARY CREDIT ANALYSTS: Ursula M Wilhelm, Mexico City (52) 55-
5081-4407; ursula_wilhelm@standardandpoors.com; Leonardo Bravo,
Mexico City; leonardo_bravo@standardandpoors.com


MILLICOM INTERNATIONAL: Mulls $5.7M Investment for Local Unit
-------------------------------------------------------------
European mobile holding Company Millicom International Cellular
(Nasdaq: MICC) plans to invest US$5.7 million to increase
network coverage of its El Salvadorian unit Telemovil, reveals
Business News Americas.

"Millicom sees El Salvador as an excellent investment
destination," said Millicom president Marc Beuls, who met with
El Salvador's president Elias Antonio Saca during a recent visit
to the country to discuss the Company's future plans in the
local market.

The investment will also cover improvements in value-added
services offered to consumers, such as Internet access, virtual
private networks and international direct connections.

Telemovil recently changed its brand name to Tigo along with
Millicom's other operators in Guatemala and Honduras.



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

EMPRESAS ICA: Anticipates Bigger Profits
----------------------------------------
Mexico's Empresas ICA expects profitability to continue growing,
the country's largest construction and engineering Company said
Friday after posting a third-quarter net profit of MXN38.3
million.

According to Dow Jones Newswires, the Company's bullish outlook
is supported by a healthy number of projects and improved access
to financing.

Chief Financial Officer Jose Luis Guerrero said that while the
El Cajon hydroelectric dam project for the state-owned Federal
Electricity Commission accounted for 22% of ICA's sales,
Guerrero said the new contracts the Company has been awarded
"demonstrate that our recovery is not just the result of one
project, but has been broad based."

Among the most important of these new projects is a US$134-
million contract with state oil monopoly Petroleos Mexicanos
(Pemex) for the construction of a cryogenic plant in Reynosa,
and three civil construction projects in Pachuca.

ICA recently signed a US$694 million contract with Pemex for
work on the revamp of the Lazaro Cardenas refinery in
Minatitlan, which will increase the Company's work backlog by
50%, Guerrero said.

In the fourth quarter, ICA plans to bid on a liquid nitrogen
gasification project, one or two pipelines, and one or two
hospitals.

Guerrero also attributed ICA's improved results to increased
access to credit, saying ICA arranged US$70 million in working
capital without putting up extraordinary guarantees.

"The recovery of normal access to the financial markets for this
kind of working capital financing is an important step forward
for us and makes us more competitive in bidding for other
projects," Guerrero said.

To view ICA's latest financial statements:
http://bankrupt.com/misc/ICA.pdf

CONTACTS: Ing. Alonso Quintana
          Phone: (5255) 5272-9991 x3468
          e-mail: alonso.quintana@ica.com.mx

          Lic. Paloma Grediaga
          Phone: (5255) 5272-9991 x3664
          e-mail: paloma.grediaga @ica.com.mx

          In the United States:
          Zemi Communications
          Mr. Daniel Wilson
          Phone: (212) 689-9560
          E-mail: d.b.m.wilson@zemi.com


UNEFON: Returns to Black in the 3Q04
------------------------------------
Mexican mobile operator Unefon reported a net profit of MXN151
million (US$13.1mn) in the 3Q04, reversing a net loss of MXN196
million in the same period a year ago, relates Business News
Americas.

Ebitda for the 3Q04 of the year was MXN314 million, down 7% from
the 3Q03, but was up 26% compared to the 2Q04, "so taking a run
rate based off the third quarter I believe the fourth quarter
will be even better," CEO Adrian Steckel said in an earnings
conference call.

Much of this was due to exchange rate gains as the peso
appreciated against the dollar.

At the end of the 3Q04, Unefon had 1.4 million subscribers,
representing an 18% increase from the 1.2 million it had at end-
September 2003. Unefon's net additions dropped 7% from 3Q03 to
finish at 25,000. In the second quarter of 2004, the Company's
net additions were 60,000.

"We believe we can get our net additions up, we now have some
new handsets in the stores which will have a much better
performance during the fourth quarter on a net and gross
subscriber basis," Steckel added.

In addition, Unefon's average revenue per user (ARPU) was
MXN238, a 9% decrease from 3Q03. Unefon includes interconnection
revenues from other carriers in its ARPU calculation.

"We're looking at a more competitive marketplace - the rates of
the competition have come down, what you are looking at is
effectively churn and competition," Steckel told Business News
Americas, adding that Unefon has the highest prepaid ARPU of any
local operator.



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

* PARAGUAY: IMF Says Inflation Significantly Reduced
----------------------------------------------------
An International Monetary Fund (IMF) mission was in Asuncion
during October 18-29, 2004 to conduct discussions for the third
review under the Stand-By Arrangement. The main findings of the
mission were:

- Macroeconomic indicators are better than anticipated under the
program. The economy appears to be growing at about 2 percent
despite a drought (without which growth would have reached 3-3
percent). Inflation has been reduced significantly and foreign
exchange reserves have risen to almost US$1.2 billion, well
above program projections.

- The macroeconomic program is on track. The fiscal accounts are
broadly in balance while tax collections have grown vigorously.
Most performance criteria under the IMF program have been
observed, some with large margins. The mission commended the
authorities for successfully implementing the program under
difficult conditions. It will be important to continue to
execute the program with strong determination so as to lay the
basis for sustainable growth.

- Structural reforms are also critical. The authorities have
taken important steps over the past year to implement a program
of structural reforms. Such reforms-including in the area of the
budget, the financial sector, public enterprises-are needed to
address long-standing weaknesses that have inhibited investment
and growth. Looking ahead, it will be important to build on this
year's successes to develop growth-oriented policies that will
raise living standards and reduce poverty.

The authorities expressed interest in extending the Stand-By
Arrangement for six months-through end-September 2005-to give
time to implement key structural reforms planned under the
program and provide an adequate framework to conduct
macroeconomic policies in 2005.

The mission made good progress in the discussions, reaching
agreement ad referendum on macroeconomic targets for the first
half of 2005 consistent with the 2005 budget submitted to
congress in August. Discussions on the structural reform agenda
are expected to continue in Washington in the near future, with
a view to reaching understandings in coming weeks.

CONTACTS: International Monetary Fund
          External Relations Department
          700 19th Street, NW
          Washington, D.C. 20431 USA
          Public Affairs: 202-623-7300
          Fax: 202-623-6278
          Media Relations: 202-623-7100
          Fax: 202-623-6772



=======
P E R U
=======

NUEVO CONTINENTE: Government Suspends Flights
---------------------------------------------
Ailing Nuevo Continente suffers another setback in its efforts
towards recovery after the Peruvian government grounded the
airline Friday because continued operations could compromise
flight safety.

Reuters reports that the civil aviation authority has
temporarily revoked Nuevo Continente's permit until it can
secure additional capital to fund its operations.

The airline's financial woes have steadily worsened since June
this year when the U.S. applied sanctions in connection with
drug-charges against its founder, Mr. Fernando Zavallos.

These sanctions have crippled the airline's ability to repair
its planes and forced the airline to slash flights. In October,
four of its planes were declared unfit to fly and Nuevo
Continente has since been servicing its routes with only one
plane.

The recent suspension has sparked accusations that the
government favors rival LanPeru, a unit of Chile's LAN Airlines.
Nuevo Continente spokesman German Arata said that the
government's pro-Chilean stance has hurt the airline.




                            ***********


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