TCRLA_Public/050310.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

           Thursday, March 10, 2005, Vol. 6, Issue 49

                            Headlines


A R G E N T I N A

AERO VIP S.A.: Seeks Court Approval to Reorganize
BANCO BANEX/BANCO SOCIETE: Moody's Ratings Updated on Merger
CASA PUPE S.A.: Court Orders Liquidation
CASTELLANO ALCIDES: Required Reports Deadlines Set
COLORIN INDUSTRIA: $47M Worth of Bonds Remain in Default

COPITOUR S.R.L.: Court Approves Creditor's Bankruptcy Plea
EMPRESA DE TRANSPORTES: Debt Payments Halted, Set To Reorganize
EUROMAYOR: Fitch Notes Weakness, Downgrades Bonds to 'C(arg)'
HIDROELECTRICA EL CHOCON: $140M of Bonds Get 'BB-' Rating
IMPRESIONES ARCO: Seeks Reorganization Protection from Court

INSTITUTO COGHLAN: Opts to Restructure Debt
IRSA: Noteholder Exercises Conversion Option
LUICAR S.R.L.: Court Approves Concurso Motion
MOLINOS RIO: Boosts Net Profit in 2004
NAVILLUS S.A.: Court Adjusts Liquidation Schedule

REPSOL YPF: To Sell 50% Petroken Stake to Basell for $58M
R.S.M. ARGENTINA: Court Names Trustee for Bankruptcy
SANCOR COOP: $300M in Bonds Remain in Default
TELECOM ARGENTINA: Debts, Net Loss Surge in FY04
TGS: Techint Nets Pipeline Expansion Contract

VINTAGE PETROLEUM: Board Approves 2004 Performance Bonus
* UTILITY COMPANIES: Govt. Schedules Public Hearings


B R A Z I L

BANCO INDUSVAL: Moody's Withdraws Ratings
COPEL: Ratifies $43M Investment Program for Curitiba Region
LOCALIZA: S&P Affirms 'BB-' LC, FC Rating; Ups Outlook


C H I L E

INVERLINK: Only $20M in Stolen Funds Recovered


C O L O M B I A

BANCAFE: Government Creates Two New Banks


D O M I N I C A

* DOMINICA: IMF Board Completes Review of PRGF Arrangement


E C U A D O R

EMELEC: Regulator Seeks to Recover $711M Debt


H A I T I

* HAITI: Gets $75M World Bank Financing


M E X I C O

AOL LATIN AMERICA: Announces Executive Bonus Details
CINTRA: To Sell Mexicana With Repackaged Aerocaribe
DIRECTV: Underwriters to Purchase Additional Company Shares
VITRO: S&P Cuts Ratings; Outlook Improves to Stable


V E N E Z U E L A

PDVSA: Minister Clarifies Citgo As Partial Sale
PDVSA: Clarifies Report on Small Oil Spill at El Palito


     - - - - - - - - - -

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

AERO VIP S.A.: Seeks Court Approval to Reorganize
-------------------------------------------------
Court No. 16 of Buenos Aires' civil and commercial tribunal is
currently reviewing the merits of a reorganization petition
filed by Aero Vip S.A. Argentine daily La Nacion reports that
the company filed the request after defaulting on its debt
payments since October 28 last year.

The petition, if granted by the court, will allow the plane
charter company to negotiate a settlement with its creditors in
order to avoid a straight liquidation.

The city's Clerk No. 31 assists the court on this case.

CONTACT: Aero Vip S.A.
         Ricardo Rojas 401
         Buenos Aires


BANCO BANEX/BANCO SOCIETE: Moody's Ratings Updated on Merger
------------------------------------------------------------
Moody's Investors Service affirmed Banco Banex S.A.'s Argentine
National Scale Rating for local currency deposits of Aa3.ar. The
rating action follows the announcement of the acquisition by
Banco Banex S.A. of Banco Societe Generale Argentina S.A.

Moody's also assigned to Banco Banex S.A. and to Banco Societe
Generale Argentina S.A. new long and short term global local
currency deposit ratings of B1 and Not Prime, long and short
term global foreign currency deposit ratings of Caa2 and Not
Prime, and bank financial strength ratings of E. In addition,
Moody's assigned an Argentine National Scale Rating for local
currency deposits of Aa3.ar to Banco Societe Generale Argentina
S.A. and National Scale Ratings for foreign currency deposits of
B1.ar to each bank. The outlook on the ratings is stable.

Upon completion of the merger, the combined entity will be
renamed Banco Supervielle S.A., which should have a broader
deposit franchise and client base.

Moody's noted that the global local currency deposit ratings
reflect the bank's financial strength and its ownership
characteristics as well as the relative importance of its
deposit franchise within the Argentine financial system. The
rating agency also explained that the global and National Scale
foreign currency deposit ratings of the banks reflect foreign
currency transferability and convertibility risks.

National Scale Ratings (NSRs) for Argentine banks, which carry
the identifier of ".ar", rank the likelihood of credit loss on
local and foreign currency obligations of issuers in a
particular country relative to other domestic issuers. The NSRs
are intended for domestic use only and are not globally
comparable. Moody's NSRs are not opinions on absolute default
risks; therefore, in countries with overall low credit quality,
even highly rated credits on the National Scale may be
susceptible to default.

Banco Banex S.A. is a specialized retail bank with $ 202 million
in deposits and $ 310 million in assets as of December 31, 2004.
Banco Societe Generale Argentina S.A. is a universal bank with $
383 million in deposits and $ 504 million in assets. Both banks
are headquartered in Buenos Aires, Argentina.

The following rating was affirmed:

Banco Banex S.A. -- National Scale Rating for Local Currency
Deposits: Aa3.ar

The following new ratings were assigned:

Banco Banex S.A.:

- Long -Term Global Local Currency Deposits: B1
- Short -Term Global Local Currency Deposits: Not Prime
- Bank Financial Strength Rating: E
- Long -Term Foreign Currency Deposits: Caa2
- Short- Term Foreign Currency Deposits: Not Prime
- National Scale Rating for Foreign Currency Deposits: B1.ar

Banco Societe Generale Argentina S.A.:

- Long- Term Global Local Currency Deposits: B1
- Short -Term Global Local Currency Deposits: Not Prime
- Bank Financial Strength Rating: E
- Long -Term Foreign Currency Deposits: Caa2
- Short -Term Foreign Currency Deposits: Not Prime
- National Scale Rating for Foreign Currency Deposits: B1.ar
- National Scale Rating for Local Currency Deposits: Aa3.ar


CASA PUPE S.A.: Court Orders Liquidation
----------------------------------------
Casa Pupe S.A. prepares to wind-up its operations following the
bankruptcy pronouncement issued by Court No. 2 of Buenos Aires
civil and commercial tribunal. The declaration effectively
prohibits the company from administering its assets, control of
which will be transferred to a court-appointed trustee.

Infobae reports that the court appointed Ms. Ana Maria Blugerman
as trustee. She will be reviewing creditors' proofs of claims
until April 15. The verified claims will be the basis for the
individual reports to be presented for court approval on May 30.
Afterwards, the trustee will also submit a general report on
June 28.

Clerk No. 3 assists the court on this case that will end with
the disposal of the company's assets to repay its liabilities.

CONTACT: Ms. Ana Maria Blugerman, Trustee
         Parana 774
         Buenos Aires


CASTELLANO ALCIDES: Required Reports Deadlines Set
--------------------------------------------------
Mr. Guillermo Felix Spiller, the trustee assigned to supervise
the liquidation of Castellano Alcides E., Abel Enrique y Omar A
S.H., will submit the validated individual claims for court
approval on March 18. These reports explain the basis for the
accepted and rejected claims. The trustee will also submit a
general report on April 29.

Infobae reveals that Court No. 6 of Canada de Gomez's civil and
commercial tribunal has jurisdiction over this bankruptcy case.

CONTACT: Mr. Guillermo Felix Spiller, Trustee
         Espana 78
         Canada de Gomez (Santa Fe)


COLORIN INDUSTRIA: $47M Worth of Bonds Remain in Default
--------------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. maintained its
'D' rating on the US$47 million bond issued by Colorin Industria
de Materiales Sintet.

Comision Nacional de Valores (CNV), Argentina's securities
regulator, reports that the action was based on the Company's
financial status as of December 31, 2004.

Moody's assigns `D' ratings to bonds that are in payment default
and have a poor prospect of repaying all obligations. The bond
issue, described as `Obligaciones Negociables', will mature on
March 31, 2006.

CONTACT: Colorin Industria de Materiales Sinteticos S.A.
         Av del Libertador 7400
         Buenos Aires


COPITOUR S.R.L.: Court Approves Creditor's Bankruptcy Plea
----------------------------------------------------------
Court No. 24 of Buenos Aires' civil and commercial tribunal
declared Copitour S.R.L. bankrupt, says La Nacion. The ruling
comes in approval of the bankruptcy petition filed by the
Company's creditor, Mr. Jose Saiegh, for nonpayment of US$5,233
in debt.

The court-appointed trustee, Mr. Salomon Wilhelm, will examine
and authenticate creditors' claims until May 12. This is done to
determine the nature and amount of the Company's debts.
Creditors must have their claims authenticated by the said date
in order to qualify for the payments that will be made after the
Company's assets are liquidated.

The city's Clerk No. 48 assists the court on the case that will
conclude with the liquidation of the Company's assets.

CONTACT: Copitour S.R.L.
         Suipacha 967
         Buenos Aires

         Mr. Salomon Wilhelm, Trustee
         Lavalle 1290
         Buenos Aires


EMPRESA DE TRANSPORTES: Debt Payments Halted, Set To Reorganize
---------------------------------------------------------------
The civil and commercial Court No. 1 of Buenos Aires is
reviewing the merits of a reorganization petition filed by
Empresa de Transportes Los Andes SAC.

La Nacion recalls that the company filed the petition following
cessation of debt payments since February 22 this year.

The city's Clerk No. 1 assists the court in resolving this case.

CONTACT: Empresa de Transportes Los Andes SAC
         Loyola 1628
         Buenos Aires


EUROMAYOR: Fitch Notes Weakness, Downgrades Bonds to 'C(arg)'
-------------------------------------------------------------
Fitch Argentina Calificadora de Riesgo S.A. downgraded bonds
issued by Euromayor S.A. de Inversiones from 'CCC(arg)' to
'C(arg)', says local securities regulator, the CNV.

The rating, based on the Company's finances as of October 31,
2004, was assigned to the following issues:

- US$3.07 million of "Serie I Clase dolares," whose maturity
was not disclosed;

- US$3.07 million of "Serie II Clase dolares", which matured in
June 10, 2003;

- US$6.80 million of "Serie I Clase pesos," whose maturity was
not disclosed; and

- US$4.42 million of "Serie II Clase pesos", which matured in
June 10, 2003.

A 'C(arg)' rating from Fitch signals imminent default.


HIDROELECTRICA EL CHOCON: $140M of Bonds Get 'BB-' Rating
---------------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. upgraded the
'C' rating previously given to bonds issued by Hidroelectrica El
Chocon S.A. to 'BB-', according to data revealed by the Comision
Nacional de Valores (CNV), Argentina's securities regulator.

The bonds, worth US$140 million, were issued under "Simple
Issue" and described as "Obligaciones Negociables." These bonds
matured on Feb. 19, 2004. The rating action was taken based on
the Company's financial health as of December 31, 2004.

Bonds with a 'BB-' rating lack outstanding investment
characteristics and have speculative characteristics as well,
according to Moody's.


IMPRESIONES ARCO: Seeks Reorganization Protection from Court
------------------------------------------------------------
Impresiones Arco Iris Cordoba S.A., a graphics company operating
in Buenos Aires, has requested for reorganization after failing
to pay its liabilities since February last year.

The petition, once approved by the court, will allow the company
to negotiate a settlement with its creditors in order to avoid a
straight liquidation.

The case is pending before Court No. 22 of the city's civil and
commercial tribunal. Clerk No. 44 assists the court on this
case.

CONTACT: Impresiones Arco Iris Cordoba S.A.
         Condor 1755
         Buenos Aires


INSTITUTO COGHLAN: Opts to Restructure Debt
-------------------------------------------
Court No. 4 of Buenos Aires' civil and commercial tribunal is
now analyzing whether to grant Instituto Coghlan S.R.L. approval
for its petition to reorganize. The city's Clerk No. 8 assists
the court on the Company's case.

La Nacion recalls that the company filed a "Concurso Preventivo"
petition following cessation of debt payments since February 2
this year.

CONTACT: Instituto Coghlan S.R.L.
         Pedro Ignacio Rivera 3975
         Buenos Aires


IRSA: Noteholder Exercises Conversion Option
--------------------------------------------
Inversiones y Representaciones Sociedad Anonima (IRSA) informed
the Bolsa de Comercio de Buenos Aires and the Comision Nacional
de Valores that a holder of Company's Convertible Notes
exercised its conversion right. Hence, the financial
indebtedness of the Company shall be reduced in US$ 500,000 and
an increase of 917,431 ordinary shares face value pesos 1 (V$N
1) each was made.

The conversion was performed according to terms and conditions
established in the prospectus of issuance at the conversion rate
of 1.83486 shares, face value pesos 1 per Convertible Note of
face value US$ 1. As a result of that conversion the amount of
shares of the Company goes from 273,496,584 to 274,414,015. On
the other hand, the amount of registered Convertible Notes is
US$ 79,145,275.

CONTACT: IRSA Inversiones y Representaciones S.A.
         Bolivar 108
         Buenos Aires, Argentina
         Phone: 541-342-7555


LUICAR S.R.L.: Court Approves Concurso Motion
---------------------------------------------
Court No. 9 of Buenos Aires' civil and commercial tribunal has
approved a petition for reorganization filed by Luicar S.R.L.,
according to a report from Argentine daily La Nacion.

The tour company will be under the supervision of trustee Ruben
Kwasnyewsky who will verify claims until April 28. The
informative assembly will be held on November 7. This is one of
the last parts of the reorganization process.

Clerk No. 17 assists the court on this case.

CONTACT: Luicar S.R.L.
         Suipacha 871
         Buenos Aires


MOLINOS RIO: Boosts Net Profit in 2004
--------------------------------------
Molinos Rio de la Plata SA, Argentina's largest manufacturer of
packaged food, announced net profits rose to ARS21.19 million
last year compared to a profit of ARS1 million in 2003.

Citing a statement from the company, Dow Jones Newswires reports
that the results included a ARS34.9 million gain from the sale
of its oil business in Russia, and a loss of ARS7.9 million the
company booked from a fire in its plant in the Argentine city of
Rosario.

Sales revenue in 2004 rose 20% to ARS2.949 billion, Molinos
said, adding operating profit for the year was ARS61 million,
down from ARS116.5 million a year earlier.

Meanwhile, Molinos told the local stock exchange that it isn't
planning on a dividend payment for now because "it will continue
with its conservative and prudent policy regarding debt levels,
and will continue being very selective in its use of funds,
taking especially into account restrictions in the area of
credit for growth in investment."

According to the company, the only financing it receives is for
its export business, so it relies mostly on its own cash flow
for its operations.

Molinos' controlling shareholder is Perez Companc Family Group
(PCFG) with a 64% stake. The remaining stock trades publicly in
the local stock market.

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


NAVILLUS S.A.: Court Adjusts Liquidation Schedule
-------------------------------------------------
Key events in the Navillus S.A. bankruptcy case have been moved
to the following dates:

- Claims Verification Deadline: April 19, 2005
- Individual Reports Submission: May 31, 2005
- General Report Submission: July 15, 2005

Mr. Alberto Francisco Romeo oversees the Company's liquidation
proceedings as trustee. Proofs of claims must be submitted to
the trustee by the stated deadline to qualify for any post-
liquidation distributions.

Court No. 8 of Buenos Aires' civil and commercial tribunal
handles this case with the assistance of Clerk No. 15.

CONTACT: Mr. Alberto Francisco Romeo, Trustee
         Parana 275
         Buenos Aires


REPSOL YPF: To Sell 50% Petroken Stake to Basell for $58M
---------------------------------------------------------
Spanish oil company Repsol YPF (NYSE: REP) is selling its 50%
stake in Argentine petrochemical company Petroquimica Ensenada
(Petroken) to Dutch company Basell Ibericas Poliolefinas for
US$58 million, Business News Americas reports, citing a company
filing to the local bourse.

The sale, which is part of Repsol YPF's strategy to concentrate
its investments in companies in which it has majority control,
requires approval from Argentina's antitrust regulator, the
Comision Nacional de Defensa de la Competencia.

In the filing, Repsol said the sale will not make a significant
impact on the company's earnings. Basell, which is owned by
Shell and BASF, already owns the remaining 50% of Petroken.

According to Petroken's Web site, the company is the largest
producer of polypropylene in Argentina.

CONTACT: Repsol YPF, S.A.
         Paseo de la Castellana 278
         Madrid, 28046
         Spain
         Phone: 34-1-348-8100
         Website: http://www.repsol.com


R.S.M. ARGENTINA: Court Names Trustee for Bankruptcy
----------------------------------------------------
Buenos Aires accountant Santiago Manuel Quiben was assigned
trustee for the bankruptcy of local company R.S.M. Argentina
S.A., relates Infobae.

Mr. Quiben will verify creditors' claims until April 4, the
source adds. After that, he will prepare the individual reports,
which are to be submitted in court on May 16. The submission of
the general report should follow on June 29.

The city's civil and commercial Court No. 3 holds jurisdiction
over the Company's case. Clerk No. 6 assists the court with the
proceedings.

CONTACT: R.S.M. Argentina S.A.
         Sarmiento 767
         Buenos Aires

         Mr. Santiago Manuel Quiben, Trustee
         Esmeralda 783
         Buenos Aires


SANCOR COOP: $300M in Bonds Remain in Default
---------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. maintains the
'D' rating given to US$300 million worth of corporate bonds
issued by Sancor Coop. Unidas Ltda. under 'Program.'

The bonds affected were described as "Titulos de Deuda de
Mediano Plazo", the CNV reports, without revealing the maturity
date of the issue.

The rating given is based on the Company's financial standing as
of December 31, 2004.


TELECOM ARGENTINA: Debts, Net Loss Surge in FY04
------------------------------------------------
Telecom Argentina (BASE: TECO2), one of Argentina's largest
telecommunications companies, announced Tuesday a consolidated
net loss of P$666 million for the fiscal year ended December 31,
2004 ("FY04"). Comparatively, consolidated net income for fiscal
year 2003 ("FY03") was P$351 million. Consolidated net loss for
the fourth quarter of fiscal year 2004 ("4Q04") was P$175
million. Comparatively, consolidated net loss for ("4Q03") was
P$428 million.

Major Events and Developments

    -- During 4Q04 Telecom Personal and Nucleo (Paraguay) closed
their debt restructurings. As of December 31, 2004, net
financial debt of Telecom Personal and Nucleo reached P$1,168
(equivalent to US$392) and P$119 (equivalent to US$40)
respectively.

    -- Regarding Telecom Argentina's debt restructuring, at a
bondholders' meeting held  on February 4, 2005, creditors
representing 94.51% of outstanding bonds voted unanimously in
favor of the APE proposal.

    -- During FY04 the following results were recorded:

       -- Net Revenues amounted to P$4,494MM (+ P$741 MM or +20%
          vs. FY03), mainly due to the expansion of the mobile
          business.

       -- Operating Profit amounted to P$400 MM (+P$293 MM vs.
          FY03).

       -- Net loss of P$666 MM (P$ -1,017 MM vs FY03) as a
          consequence of negative financial and holding results,
          mainly due to higher interest and currency exchange
          losses.

    -- Shareholders Equity amounted to P$502 MM (-P$666 MM or -
57% vs. FY03).

    -- Net Financial Debt as of December 31, 2004, reached
P$7,032 MM (-P$548 MM or -7% vs. FY03).

       -- The Ratio Net Financial Debt / Operating Profit before
Depreciation and Amortization decreased to 3.4 (from 3.8 as of
December 31, 2003), mainly due to the debt restructurings of
Telecom Personal and Nucleo.

    -- The operations of the Company are still being influenced
by the "pesification" and freeze of regulated tariffs.
Additionally, the results of the Company continue to be highly
impacted by the fluctuation of the exchange rate of the Peso vs
the Dollar and the Euro.

                            As of December 31,     $         %
                            2004     2003     Change    Change
    Consolidated
     net revenues
     (in MM P$)             4,494    3,753       741       20%
    Fixed Telephony         2,718    2,556       162        6%
    Cellular                1,733    1,163       570       49%
    Directories edition        43       34         9       26%
    Operating Profit
     before D&A
     (in MM P$)             2,046    1,984        62        3%
    Operating Profit
    (in MM P$)                400      107       293      274%
    Net income/(Loss)
    (in MM P$)               (666)     351    (1,017)    -290%
    Shareholder's equity
    (in MM P$)                502    1,168      (666)     -57%
    Net financial debt
    (in MM P$)              7,032    7,580      (548)      -7%
    CAPEX (in MM P$)          428      120       308      257%
    Lines in service
     (Fixed lines -
      in thousands)         3,790    3,656       134        4%
    Cellular customers
     (in thousands)         4,337    3,130     1,207       39%
    Telecom Personal        3,835    2,603     1,232       47%
    Nucleo (Paraguay)         502      527       (25)      -5%
    ADSL Total lines
      (in thousands)          125       70        55       79%
    Arnet subscribers
      (in thousands)          233      200        33       17%
    Dial-up                   152      155        (3)      -2%
    ADSL                       81       45        36       80%
    Fixed traffic
     (in MM minutes)       16,642   16,065       577        4%
    Incoming/Outgoing
      cellular traffic
      (in MM minutes)       3,602    2,568     1,034       40%
    Average Revenue per
      User ARPU)
      Fixed Telephony
      (in P$)                  40       39         1        3%
    Average Revenue per user
     (ARPU) Cellular
     Telephony (in P$)         35       32         4       11%

Earnings/loss per share and ADR for FY04 amounted to P$(0.68)
and P$(3.38), respectively. Earnings per share/loss and ADR for
FY03 were P$0.35 and P$1.78, respectively. Earnings/loss per
share and ADR for 4Q04 amounted to P$(0.18) and P$(0.89),
respectively. In comparison, earnings/loss per share and ADR for
4Q03, were P$(0.43) and P$(2.17), respectively.

Operating profit before depreciation and amortization, operating
profit/(loss) and net income/(loss) for FY04 represented, 46%,
9% and (15%) of net sales, respectively; compared with 53%, 3%
and 9%, respectively, for FY03. Operating profit before
depreciation and amortization, operating profit/(loss) and net
income/(loss) for 4Q04 represented, 44%, 15% and (14%) of net
sales, respectively; compared with 52%, 8% and (41%),
respectively, for 4Q03.

The fall in the operating profit before depreciation and
amortization margin in FY04 and 4Q04 is a consequence of the
increased activity in the cellular telephony. In spite of this
fall in margin, operating profit before depreciation and
amortization for FY04 reached P$2.046 million, an increase of
P$62 million or 3% compared with FY03.

    Company Activities

Evolution of Consolidated Net Revenues (FY04 vs. FY03
comparison)

Consolidated net revenues for FY04 totaled P$4,494 million, an
increase of P$741 million, or 20%, compared with P$3,753 million
for FY03. The increase can be largely attributed to the increase
in demand, particularly in the cellular business in Argentina.

Fixed Telephony

In fixed telephony operations, local measured service revenues
increased by P$28 million, or 6%, to P$518 million during FY04.
Domestic long distance revenues increased by P$14 million, or
3%, reaching P$441 million. Revenues from both local and
domestic long distance telephony increased due to higher
traffic.

Total traffic volume (Local and DLD), measured in minutes,
increased by 4%.

Monthly charges increased by P$33 million, or 5%, to P$635
million for FY04, mainly due to the increase in customer lines.
Customer lines as of December 31, 2004, increased to
approximately 3,484,000, due to the recovery in demand, compared
to approximately 3,361,000 as of December 31, 2003. However, the
current level of lines in service is still lower than before the
economic crisis (December 2001). Moreover, fixed telephony
tariffs remained stable after the "pesification" and freeze
enforced by the Argentine Government in January 6, 2002.

Revenues generated by interconnection services increased by P$46
million, or 28%, to P$210 million, mainly due to the increase of
traffic transported by the fixed and cellular networks.

Regarding international telephony activities, during FY04
revenues reached P$215 million, increasing by P$2 million or 1%,
mainly due to higher traffic.

Internet and Data Transmission

Revenues generated by data transmission and Internet business
totaled P$416 million, representing an increase of P$24 million,
or 6%, mainly due to the increase of the in the number of ADSL
clients partially offset by lower prices for data transmission
services.

As of December 31, 2004, total lines in service with ADSL
connections amounted to 124,700, an increase of 55,000, or 79%.
The number of Arnet's ADSL subscribers reached approximately
81,200, increasing by 80% while Internet dial-up customers
reached approximately 152,000, decreasing 2%. Internet minutes
represented 30% of total traffic measured in minutes transported
over the fixed-line network. However, the internet minutes have
fallen due to the steady migration of clients to ADSL services.

Cellular Telephony

The revenues generated by the cellular business during FY04
increased by P$ 570 million, or 49%, to P$1,733 million.

Revenues of Telecom Personal in Argentina increased by P$564
million, or 56%, to P$1,567 million, mainly due to the higher
number of subscribers, to the increase in total traffic, and to
the increase in sales of handsets as a consequence of the
increase in the demand for cellular services and the development
of the GSM network.

Furthermore, average revenue per user increased by 11% (to P$35
per customer, including revenues for TLRD or termination of
calls coming from other cellular operators). Likewise, total
cellular traffic increased by 40%.

Total cellular subscribers of Telecom Personal in Argentina
reached approximately 3,835,000 at December 31, 2004,
representing an increase of approximately 1,232,000 customers,
or 47%. This increase in the client's base was fueled by the
impressive growth in the number of GSM subscribers.

The level of competition in the cellular market continues to be
significantly high after the launch of GSM services. In this
environment, Telecom Personal continues to increase the coverage
and capacity of its GSM network and has continued its marketing
campaigns and promotions aimed to reposition its brand and
strengthen its market position.

The customer base as of December 31, 2004 amounted to
approximately 2,831,000 prepaid subscribers, representing 74% of
the total customer base, and approximately 1,004,000 post-paid
subscribers, representing the remaining 26%. These percentages
were 81% and 19%, respectively, as of December 31, 2003.

Nucleo, Telecom Personal's subsidiary that provides cellular
services in Paraguay, generated P$166 million in revenues during
FY04, which are consolidated into the mobile telephony business
together with the revenues of Telecom Personal. Nucleo's FY04
revenues represented an increase of P$6 million, or 4%.

As of December 31, 2004, Nucleo had approximately 502,000
customers, a decrease of approximately 5% due to the loss of
dormant prepaid customers whose elimination from Nucleo's
customer base was ordered by the Paraguayan regulatory
authority. However, Nucleo's postpaid subscribers increased by
44%, reaching 114,000 clients, representing 23% of the customer
base. Additionally, Nucleo launched its GSM services in
Paraguay, becoming the operator with the largest GSM/GPRS
coverage in the country.

Directories

In the telephone directories' publishing business, revenue from
the affiliated company Publicom increased by P$9 million to P$43
million during FY04 due to higher sales of advertising space in
Paginas Amarillas' directories and the launch of several new
special directories.

Evolution of Operating Costs

The cost of services provided, administrative expenses and
selling expenses for FY04 increased by P$448 million, or 12%, to
P$4,094 million, mainly due to the increase in commissions for
handset sales, cost of handsets, TLRD costs and advertising
expenses. The evolution of costs is mainly related to the
increase in sales and increasing competition in the mobile
telephony business.

Salaries and social security contributions increased by P$87
million, or 17%, to P$593 million, primarily due to the increase
in salaries granted during the year. Additionally, labor costs
rose as a consequence of the increase in headcount. As of
December 31, 2004, the headcount totaled 14,053, compared to
13,949 as of December 31, 2003.

The allowance for doubtful accounts decreased by P$6 million, or
55%, to P$5 million. This positive evolution was related to the
improvement in the levels of collection and the recovery of past
due accounts, mainly in the fixed telephony business.

Sales commissions increased by P$81 million, or 84%, to P$177
million for FY04, as a consequence of higher commissions paid
for new customers and higher sales of cellular prepaid cards.

Costs related to advertising increased by P$49 million, or 111%,
to P$93 million for FY04. This increase was mainly due to higher
media advertising expenses for the cellular and Internet
businesses.

In the cellular telephony business, TLRD costs (termination
charges in third party cellular networks), which have been
accounted for since mid-2003, reached P$137 million.
Additionally, in FY04 the cost of cellular handsets increased by
P$215 million, reaching P$237 million, mainly due to the
increase in handsets sales as a consequence of the cellular
business growth after the launch of GSM services.

Depreciation of fixed and intangible assets decreased by P$231
million, or 12%, to P$1,646 million during FY04 as a consequence
of the end of the amortization period of certain assets.

Financial and Holding Results

The loss resulting from financial and holding results reached
P$1,172 million for FY04 as compared to a gain of P$48 million
in FY03. The difference can be largely attributed to a decrease
of P$1,084 million related to net currency exchange differences.
The gap was a consequence of the effect that the evolution of
the Argentine Peso against the Dollar and the Euro had on the
financial debt of the Company.

Debt Restructuring Results

The debt restructuring processes of Telecom Personal and Nucleo
generated positive results for P$209 million, as a result of the
agreements that Telecom Personal and Nucleo reached with their
creditors. The positive results were generated by the haircut
(P$72 million), the forgiveness of compensatory interest (P$142
million), and the valuation of the debt at net present value
(P$41 million), partially offset by other expenses (P$46
million).

After their restructuring, Telecom Personal and Nucleo debts as
of December 31, 2004, reached US$416 million and US$44 million,
respectively.

Additionally, once the Company obtains final homologation of its
APE and the debt exchange is performed, Telecom Argentina will
account for the corresponding gains as a result of the
restructuring of its debt. Such gains will arise from the
haircut and the forgiveness of compensatory interests.

Other Expenses

Other expenses (net) decreased by P$90 million, or 54%, to P$78
million for the FY04, mainly as a result of lower severance
payments and lower provisions for lawsuits.

Cash Flow and Net Financial Debt

Net Debt (Loans minus Cash and Banks plus Investments) decreased
by P$548 million, or 7%, to P$7,032 million for FY04 compared
with FY03 (P$7,580 million), mainly as a consequence of the
successful restructuring of Telecom Personal and Nucleo's debts
and the cash flow generation of the

Company partially offset by the evolution of the Argentine Peso
against the Euro and the Dollar.

Investments

Of the total amount of P$428 million invested during FY04, P$160
million, or 37%, corresponds to fixed-line telephony, data
transmission and Internet, and P$268 million, or 63%, to the
cellular business as Telecom Personal continues with the
deployment of its GSM network.

We note that the investments made during FY04 were lower than
those allowed under the debt restructuring covenants that are
applicable to Telecom Argentina and its subsidiaries. The
amounts not used during the present Fiscal Year can be carried
forward to the next Fiscal Year.

Telecom Argentina Board of Director's Proposal to Transfer
Balance of Retained Earnings to the New Fiscal Year -- Article
206 of Argentine Corporate Law.

As the negative Unappropriated Retained Earnings as of December
31, 2004, exceed the Legal Reserve and the 50% of the Adjustment
to Capital Stock, the Company would be in the situation foreseen
by the Article 206 of Argentine Corporate Law that mandates for
these cases the obligatory reduction of capital.

The Argentine Government had suspended, through consecutive
decrees, the application of the above-mentioned Article 206
until December 10, 2004, but until today the suspension has not
been prorogated. Under these circumstances the Board of
Directors must propose to the Shareholders the measures to be
adopted. The Board of the Company deems that this situation may
be considered transitory, as it is expected that, during Fiscal
Year 2005, the debt restructuring process will conclude. In such
process, the Bondholders meeting was held with creditors
representing 94.51% of the outstanding notes who voted
unanimously in favor of the proposal included in its Acuerdo
Preventivo Extrajudicial ("APE"). Moreover, it must be noted
that the court that deals with the homologation of the APE has
resolved the admittance of such agreement and has instructed the
publication of the corresponding judicial notices. The debt
restructuring would significantly improve the Shareholders'
Equity structure and would allow the Company to absorb a
substantial part of the accumulated losses. Therefore, the Board
of Directors will propose to the Shareholders:

    a) to approve the transfer to the new Fiscal Year the
negative Unappropriated Retained Earnings as of December 31,
2004, and to differ the adoption of a measure regarding Article
206 until the end of the restructuring process.

    b) In the case that no new decree of suspension had been
issued about the applicability of Article 206, the Board of
Directors should call for a Shareholders' Meeting to address the
issue after the first Financial Statements reflecting the gains
of the debt restructuring had been approved.

Other Matters

New Organizational Structure

On January 5, 2005, the Telecom Group decided to implement a new
organizational model, creating a new unit dedicated to the fixed
telephony business. This unit is joined to the one that is
dedicated to the cellular business (represented by Telecom
Personal S.A.). Both units (fixed telephony and cellular) will
report to the Chief Executive Officer, Mr. Carlos Felices.

Moreover, Mr. Edmundo Poggio was designated as General Director
of the Fixed Telephony Unit, while Mr. Carlos Felices will be
General Director of Telecom Personal (the Cellular Unit), in an
interim manner.

The Telecom Group has designed this new organizational model in
response to the changing needs of its business and to continue
with the most effective and responsive offer for its clients.

Bondholders Meeting

On February 4, 2005, a Bondholders' Meeting was held ordered by
the National Commercial Court No. 19, where the APE was filed
for its homologacion.

Creditors representing 94,51% of outstanding bonds voted
unanimously in favor of the proposal contemplated in the APE.

Telecom is the parent company of a leading telecommunications
group in Argentina, where it offers directly or through its
controlled subsidiaries local and long distance fixed-line
telephony, cellular, PCS, data transmission, and Internet
services, among other services. Additionally, through a
controlled subsidiary the Telecom Group offers cellular services
in Paraguay. The Company commenced operations on November 8,
1990, upon the Argentine Government's transfer of the
telecommunications system in the northern region.

Nortel Inversora S.A. ("Nortel"), which acquired the majority of
the Company from the Argentine government, holds 54.74% of
Telecom's common stock. Nortel is a holding company where the
common stock (approximately 68% of capital stock) is owned by
Sofora Telecomunicaciones S.A. Additionally, the capital stock
of Nortel is comprised of preferred shares that are held by
minority shareholders.

On December 31, 2004, Telecom had 984,380,978 shares
outstanding.

CONTACT: Telecom Argentina S.A.
         Alicia Moreau de Justo
         No. 50
         Buenos Aires, 1107
         Argentina
         Phone: (54-11) 4968-3627

TGS: Techint Nets Pipeline Expansion Contract
---------------------------------------------
Argentine gas transporter TGS has awarded local construction
company Techint a contract to expand the San Martin and Neuba II
natural gas pipelines in the south of the country, according to
Business News Americas.

Techint, whose partners include Swedish engineering firm
Skanska, local company Contreras Hermanos and Brazil's
Odebrecht, is one of two consortiums that submitted a bid for
the US$285-million project in December.

The other one is Iecsa, which partnered with Brazil's Camargo
Correa.

The project is to expand the 296km, 30-inch diameter San Martín
pipeline and the connecting 160km, 36-inch diameter Neuba II
pipeline so they can transport an additional 2.9 million cubic
meters of gas a day (Mm3/d) to the province of Buenos Aires.

Brazil's national development bank BNDES will provide a US$142-
million loan for the project. TGS is controlled by Brazil's
federal energy company Petrobras (NYSE: PBR).

TGS's operates the largest gas pipeline system in Latin America
capable of transporting 2.2 billion cubic feet per day
("bcf/d"). Its system connects the main gas fields in the south
and west areas of Argentina with the gas distributors in the
city of Buenos Aires and other areas.

CONTACT: Transportadora de Gas del Sur S.A.
         Don Bosco 3672, 5th Floor
         1206 Capital Federal
         Buenos Aires,
         Phone: (212) 688-5144
         Fax: (212) 688-5213
         E-mail: eduardo_pawluszek@tgs.com.ar
         Web Site: http://www.tgs.com.ar/


VINTAGE PETROLEUM: Board Approves 2004 Performance Bonus
--------------------------------------------------------
In 1999, the Board of Directors of Vintage Petroleum, Inc. (the
"Company") established the Vintage Petroleum, Inc. Discretionary
Performance Bonus Program (as amended, the "Program"). The
purpose of the Program is to enhance stockholder value by
providing eligible employees of the Company, including executive
officers, with an added incentive to achieve specific annual
targets and goals. The Program also allows the Company to remain
competitive with its peers in attracting and retaining qualified
personnel. The targets and goals are approved by the Board of
Directors.

In 2004, the Company's executive officers and all other U.S.
employees were eligible for cash incentive awards under the
Program. Each executive officer of the Company was eligible to
earn an individual award expressed as a percentage of base
salary paid during the Program year. Executive officer cash
incentive award opportunities varied by level of responsibility.
There was no minimum incentive award. The maximum percentage of
base salary payable as a cash incentive award was 75%, 105% or
150%, depending on the executive officer's position. Awards
could be granted if specified Company financial and operating
performance targets and individual performance levels were
achieved and the Board of Directors determined to grant such
bonuses.

On March 2, 2005, the Board of Directors, upon the
recommendation of the Compensation Committee of the Board of
Directors, granted bonuses for 2004 under the Program to
eligible U.S. employees, including executive officers, of the
Company. The following table sets forth the bonuses approved for
2004 for the "named executive officers" of the Company who will
appear in the Company's proxy statement for its 2005 Annual
Meeting of Stockholders:

Charles C. Stephenson, Jr.
Chairman, President and Chief Executive Officer
2004: US$300,267

William C. Barnes
Executive Vice President and Chief Financial Officer
2004: US$192,321

William L. Abernathy
Executive Vice President and Chief Operating Officer
2004: US$186,015

Larry W. Sheppard
Senior Vice President - New Ventures
2004: US$104,296

William E. Dozier
Senior Vice President - Business Development
2004: US$91,516

CONTACT: Vintage Petroleum, Inc.
         110 W. 7th St.
         Tulsa, OK 74119
         USA
         Phone: 918-592-0101
         Website: http://www.vintagepetroleum.com


* UTILITY COMPANIES: Govt. Schedules Public Hearings
----------------------------------------------------
The Argentine government has scheduled public hearings for a
dozen public utility companies, which have held out on state
offers for new contracts, reports Dow Jones Newswires.

In a surprise move, the government published the hearing
schedule in Monday's Official Bulletin, burying the notice in a
back section and omitting it from the table of contents. The
hearings, coordinated by the state's ad hoc agency for contract
talks, Uniren, are to begin on April 20 and run through May 31.

The companies involved are:

- Edenor S.A., a unit of Electricite de France (EDF.YY)
- Edesur, a unit of Chile's Enersis (ENI)
- Metrogas (MGS)
- Gas Natural Ban SA (GRAN.BA)
- Camuzzi's Gas del Sur and Gas Pampeana
- Transportadora de Gas del Norte (TGN)
- Transportadora de Gas del Sur (TGS)
- Transnea
- Transoa
- Transcomahue
- Transpa
- Ente Provincial de Energia del Neuquen

The government has made little ground renegotiating contracts
with 62 public utility companies, with a handful of companies
reaching preliminary agreements. The dozen companies listed in
Monday's resolution hail from the energy sector.

Further public hearing schedules for other sectors could surface
in the coming days, the report suggests.



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

BANCO INDUSVAL: Moody's Withdraws Ratings
-----------------------------------------
Moody's Investors Service withdrew, for business reasons, all of
its ratings for Banco Indusval Multistock S.A. Those ratings
were E+ for bank financial strength, B2/Not Prime for long and
short-term foreign currency deposits, B2/Not Prime for long and
short-term global local currency deposits, and Ba2.br/BR-4 for
long and short-term deposits in the Brazilian national scale.
The outlook on those ratings was stable.

Banco Indusval Multistock S.A. is headquartered in Sao Paulo,
Brazil and, as of December 2004, it had total assets of R$724
million (approximately US$ 274 million).

The following ratings were withdrawn:

Bank financial strength rating of E+

- Long and short-term, foreign currency deposit ratings of B2
and Not Prime

- Long and short-term global local currency deposit ratings of
B2 and Not Prime

- Long and short-term Brazil national scale deposit ratings of
Ba2.br and BR-4


COPEL: Ratifies $43M Investment Program for Curitiba Region
-----------------------------------------------------------
Copel, an integrated power company controlled by the Parana
state government, has ratified an BRL115-million (US$43 million)
investment program, reports Business News Americas.

The program, part of Copel's BRL260-million transmission
investment planned for 2005, aims to strengthen power supply in
the greater Curitiba region by mid-2007.

A large chunk of the investment is earmarked for building six
new substations and connections to the transmission network.

According to Copel, the first two substations are scheduled to
start commercial operations in the 2H06 and the other four will
start operations in 2007.

Also, Copel will invest BRL3 million to boost power transmission
capacity in Curitiba's metropolitan area by 65% in the short-
term.

The company will install cables that can withstand higher
temperatures in 108km of lines that will be hung at a greater
height from the ground, allowing them to carry higher voltages.

Meanwhile, Copel has obtained authorization from power regulator
Aneel to continue selling power to Paraguay's state power
company Ande through 2014. The company can sell up to 70MW to
the Paraguayan company.

The contract between the two companies has existed since 1969
and power is transported through a line linking the Foz do
Iguacu substation in Brazil to Parguay's Aracary frequency
conversion station.

CONTACT: Companhia Paranaense de Energia (COPEL)
         Investor Relations team
         Phone: (55-41) 222-2027
         E-mail: ri@copel.com
         Web site: http://http://www.copel.com/


LOCALIZA: S&P Affirms 'BB-' LC, FC Rating; Ups Outlook
------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-' local and
foreign currency corporate credit ratings on Localiza Rent a Car
S.A. (Localiza). The outlook on the local currency rating was
revised to positive from stable. The outlook on the foreign
currency rating remains stable.

"The outlook change reflects Localiza's improving financial
flexibility, with a more active presence in the domestic capital
markets and the resolution of refinancing risks," said Standard
& Poor's credit analyst Beatriz Degani. The company has already
secured the refinancing of its senior notes due October 2005
with bank loans that will be ultimately replaced by a debentures
issuance in the domestic market. After the debentures placement,
we expect Localiza to improve its financial profile further,
maintaining strong liquidity and an overall conservative capital
structure.

"The outlook also incorporates our expectation that positive
market conditions will allow the company to improve further cash
generation in 2005, even considering a flatter growth pattern
for its fleet management business," Ms. Degani added.

Localiza's ratings reflect the relatively early stages of the
car rental industry in Brazil and the political and economic
risks inherent in any investment in this country, which is
partially offset by the company's dominant position in the
Brazilian car rental market, its expertise in weathering
volatility, and its conservative financial profile based on high
liquidity and low leverage relative to cash flow.

The positive local currency outlook reflects Standard & Poor's
assessment of an improving financial flexibility for Localiza
and expectations that favorable market conditions will allow the
company to report strong cash generation in 2005 (with strong
profitability in the used car sale business) and thus reduce
short-term debt throughout the year. A positive rating action
could derive from the conclusion on the refinancing of the
senior notes combined with strong operating performance so that
liquidity and capital structure improve further. However, the
ratings could face downward pressure if the company does not
reduce short-term debt as a way to finance temporary working
capital requirements or if the used car operation profitability
declines substantially. The stable foreign currency outlook
reflects that of the foreign currency sovereign rating of the
Federative Republic of Brazil.

Localiza is the leading car rental company in Brazil and
benefits from an efficient distribution network with about 70
key locations in the country. A well-balanced revenue portfolio
from individuals and corporations has allowed the company to
report strong cash generation, even under fairly stressful
economic conditions.



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

INVERLINK: Only $20M in Stolen Funds Recovered
----------------------------------------------
Business News Americas reveals that the ongoing drive to
retrieve stolen funds in the case of defunct financial group
Inverlink has so far resulted in the recovery of US$20 million,
out of an estimated US$145 million.

Development agency Corfo is the lead agency in the investigation
of the Inverlink affair, which is considered as the biggest
financial scandal in the history of Chile. The case, which
greatly contributed to Inverlink's collapse last year, stemmed
from the theft of tens of millions of dollars of Corfo deposits
as well as fraud at the country's central bank. The theft had
been made possible through an elaborate scheme engineered by the
executives of Inverlink.

The scandal led to the resignation of then central bank
president Carlos Massad and securities and insurance regulator
Alvaro Clarke.



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

BANCAFE: Government Creates Two New Banks
-----------------------------------------
After a series of failed attempts to sell state-run bank
Bancafe, the Colombian government decided late Monday to
restructure the bank, said Bancafe president Jorge Castellanos.
The restructuring, according to Dow Jones Newswires, included
the creation of two new institutions, Granbanco-Bancafe and
Banco Cafetero.

Granbanco-Bancafe, which was formally created Tuesday, is
receiving a capital injection of COP430 billion ($1=COP2,322.00)
and is free to negotiate new labor conditions with 4,200
employees at more than 250 branches.

Banco Cafetero, on the other hand, will manage COP212 billion in
funds for severance payments to workers laid off in the
restructuring. But according to Dow Jones, it will probably
operate for at least two years, and disappear once payments to
all laid off workers have been made.

The Colombian government decided to restructure Bancafe to
relieve it of its heavy pension liabilities, which have hampered
privatization attempts in the past.

Castellanos did not elaborate on whether the bank could be
privatized in the future. Yet the privatization of Bancafe was
written into Colombia's US$2.1 billion standby loan agreement
with the International Monetary Fund in 2004.



===============
D O M I N I C A
===============

* DOMINICA: IMF Board Completes Review of PRGF Arrangement
----------------------------------------------------------
The Executive Board of the International Monetary Fund (IMF) has
completed the third and fourth reviews of Dominica's performance
under its three-year Poverty Reduction and Growth Facility
(PRGF) arrangement.

Dominica's macroeconomic performance under the program has
remained very strong. All quantitative performance criteria were
met during the June-December 2004 period, except for the
continuous performance criterion on non-accumulation of external
payment arrears.

The Board also reviewed a noncomplying disbursement under the
PRGF arrangement, which arose as a result of misreporting on the
observance of the continuous performance criterion on non-
accumulation of external payments arrears due to administrative
oversights. The Board was satisfied with the authorities' swift
actions to correct this problem and granted a waiver for the
noncomplying disbursement.

As a result of the Executive Board review, Dominica can draw an
amount equivalent to SDR 1.2 million (about US$1.8 million)
under the arrangement, which will bring total disbursements to
SDR 4.2 million (about US$6.4 million). The Executive Board
approved Dominica's three-year PRGF arrangement on December 29,
2003 (see Press Release No. 03/228) for an amount equivalent to
SDR 7.7 million (about US$11.7 million).

Following the Executive Board's discussion of Dominica, on March
7, 2005, Mr. Agustin Carstens, Deputy Managing Director and
Acting Chair, said:

"The Dominican authorities deserve much credit for the continued
successful implementation of their economic program. Significant
fiscal consolidation has been achieved ahead of schedule, and
substantial progress has been made in debt restructuring. As a
result, recent macroeconomic trends are positive. In particular,
the economic recovery is gathering strength, notwithstanding the
earthquake late last year, and inflation has declined.

"The conduct of fiscal policy, the corner-stone of Dominica's
adjustment program, has been especially commendable. Higher-
than-anticipated revenues have been saved, providing a budgetary
cushion which the authorities appropriately have decided to use
toward meeting pressing rehabilitation and reconstruction needs
following the earthquake, which caused an estimated damage to
public infrastructure amounting to 7 percent of GDP. Less urgent
earthquake-related projects will be incorporated into the
government's medium-term investment program which, together with
strengthened public expenditure management, will help ensure
overall budgetary discipline going forward.

"Dominica continues to make progress in resolving its debt
problems. The authorities have followed international best
practice in seeking to pre-emptively restructure Dominica's
debt, and, for the most part, creditors have responded very
favorably. The authorities continue to maintain an open dialogue
with creditors who have so far chosen to remain outside the
restructuring process, and continue to make good-faith efforts
to reach collaborative agreements with them. In this context,
these creditors are encouraged to work with the authorities
towards a timely agreement.

"Despite the substantial progress that has already been
achieved, the task of placing Dominica's public finances on a
firm footing is not yet complete. The debt restructuring is
still ongoing, a medium-term economic growth strategy remains to
be finalized, and the economy needs to be shielded from the
impact of natural disasters. Accordingly, the authorities plan
to undertake a comprehensive review of their medium-term fiscal
framework, taking into account potential negative shocks.

"Dominica's remaining structural reform agenda for the medium-
term remains large but appropriate for consolidating the gains
in macroeconomic stabilization and achieving sustained high
growth. Specific measures included in the program at this time
are steps to improve the fiscal framework and strengthen the
financial sector. Going forward, the government that takes
office after the elections will need to continue to push ahead
vigorously with the implementation of the reform agenda. For its
part, the international donor community will need to continue to
provide timely technical and financial assistance in support of
the authorities' program objectives, " Mr. Carstens said.

On the issue of the noncomplying disbursement, Mr. Carstens
said:

"The Executive Board regretted the Dominican authorities'
failure to ensure the accuracy of information relating to the
continuous performance criterion on non-accumulation of external
arrears, which gave rise to a noncomplying disbursement under
the PRGF arrangement. The Board took note of the authorities'
explanation that the missed payments on external debt were due
to an oversight, and of the very prompt settlement of the
payments upon the discovery of the errors. In view of the minor
amount of the arrears and the additional corrective actions
taken to strengthen Dominica's monitoring capabilities in this
area, the Executive Board decided to grant a waiver for the
nonobservance of the performance criterion on external payments
arrears."

CONTACT: IMF - 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



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

EMELEC: Regulator Seeks to Recover $711M Debt
---------------------------------------------
State energy-regulator Cenace wants to collect US$711 million in
outstanding power purchase obligations from Guayaquil city
distributor Emelec, says Business News Americas.

Emelec, an affiliate of bankrupt bank Progreso, accumulated the
debt during the three and a half-period between April 1999 and
October 2002. Cenace, however, will not levy interest on the
said liability.

Emelec was formerly part of businessman Fernando Aspiazu's
holdings before he was charged for irregularities in connection
with the administration of his bank, Progreso. The Ecuadorian
government created a new company, Distriguayaquil, from Emelec's
assets when it assumed control of the defunct distributor on
July 2003.



=========
H A I T I
=========

* HAITI: Gets $75M World Bank Financing
---------------------------------------
World Bank Vice President for the Latin America and Caribbean
Region, Pamela Cox, traveled to Haiti this week to meet with
Government officials and open a new World Bank office in Port au
Prince.

"The Bank is committed to supporting the transition to social
and economic stability and to laying the groundwork to promote
inclusive growth and poverty reduction over the long term," said
Pamela Cox at a joint press conference with Prime Minister
Gerard Latortue.  "We are working to support the government's
efforts to deliver hope to the population and restore
credibility in public institutions while also paving the way for
working with the new government that will emerge from the
elections at the end of the year."

During her visit, the Vice President met with Haitian President
Boniface Alexander and Prime Minister Gerard Latortue and his
cabinet to discuss the Bank's programs and exchange views on the
country's economic development challenges.

"We very much welcome the first visit of a Vice President of the
World Bank to Haiti in ten years, the resumed cooperation and
the opening of their new office in Port-au-Prince," said Prime
Minister Gerard Latortue. (r) It reflects the institution's shared
objectives with the Transitional Government of restoring social
and economic stability and working toward a smooth transition
with the government that will be democratically elected."

On Monday, March 7, the Vice President inaugurated the new Bank
office with government officials, donors and civil society
representatives, sealing the Bank's reengagement in the country.
The Bank had reduced its presence in Haiti in 2001 and
maintained a liaison office until now.

The Bank's Board approved a two-year Transitional Support
Strategy for Haiti on January 6, 2005, along with two operations
for US$73 million to support economic governance reforms and
emergency recovery efforts in flood-affected areas.  The two
operations, financed by the International Development
Association (IDA), are the first approved by the Bank for the
Government of Haiti since 1996.

The Bank is providing a total of US$75 million in financing from
IDA this fiscal year, of which US$38 million will be provided in
the form of grants. The Bank has disbursed US$50 million from
IDA and from the Low-Income Countries Under Stress (LICUS) Trust
Fund. In addition, the Bank expects to be able to provide 100
percent of its IDA assistance on grant terms for investment
projects in World Bank fiscal year 2006.

The Bank's Transitional Support Strategy is built on two
pillars: one is to help the government deliver hope to the
population through quick wins-in the provision of basic services
and job creation; and the second is to restore credibility in
public institutions by helping the government launch reforms
that promote sound economic governance and institutional
development.

CONTACT: Ms. Alejandra Viveros
         Phone: (202) 473-4306
         E-mail: Aviveros@worldbank.org

         Ms. Cathy Russell
         Phone: (202) 458-8124
         E-mail: russell@worldbank.org

         In Port-au-Prince:
         Ms. Jean Sylvio Etienne
         Phone:(509) 510-3797
         E-mail: jetienne@worldbank.org

         Web site: http://www.worldbank.org/ht



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

AOL LATIN AMERICA: Announces Executive Bonus Details
----------------------------------------------------
On March 3, 2005, the Compensation Committee of the Board of
Directors of America Online Latin America, Inc. approved the
granting of bonuses with respect to the 2004 fiscal year. Such
amounts were previously approved by the Special Committee of the
Board of Directors.

Annual Bonus Earned in 2004.

The Compensation Committee approved annual cash bonus awards
earned during 2004 by the executive officers. The bonus awards
were earned based upon the achievement of performance goals
established in 2004, which were reviewed and approved by the
Compensation Committee.

The amounts of the bonus awards for the named executive officers
are as follows:

Charles Herington, CEO and President - $498,177;

Osvaldo Banos, Executive Vice President and CFO - $171,785;

Eduardo Escalante Castillo--President and General Manager, AOL
Mexico -- $143,856;

Milton Camargo, President and General Manager, AOL Brasil -
$94,320; and

David Bruscino, Vice President, General Counsel and Secretary -
$82,265.

CONTACT: America Online Latin America, Inc.
         6600 N. Andrews Ave.
         Suite 500
         Fort Lauderdale, FL 33309
         USA
         Phone: 954-229-2100


CINTRA: To Sell Mexicana With Repackaged Aerocaribe
---------------------------------------------------
Troubled carrier Mexicana de Aviacion will be sold along with a
restyled Aerocaribe in a bid by state-owned airline holding
company Cintra to clean up its floundering assets. Another
Cintra asset, the airline Aeromexico, is also being packaged
with regional carrier Aeroliteral.

Reuters reports that the move to re-launch Aerocaribe as a
budget carrier and its consequent amalgamation with Mexicana
will help Cintra's overall divestment plan by giving prospective
buyers two different airlines. Chairman Andres Conesa says that
"...If you have a very different subsidiary, it helps to
differentiate the products."

Investors will be informed in May or June if the airlines will
be sold through a shares issue, privately or through a
combination of the two.

Cintra is showing signs of recovery after years of losses. The
company returned to black in 2004 and it hopes to further
improve its performance with the sale of Aeromexico and
Mexicana.


DIRECTV: Underwriters to Purchase Additional Company Shares
-----------------------------------------------------------
The DIRECTV Group, Inc. (NYSE:DTV) has announced that it
received notice Monday that the underwriters have exercised an
option to purchase 2,077,800 shares of the common stock of the
Company from the General Motors Special Hourly Employees Pension
Trust, the General Motors Special Salaried Employees Pension
Trust and the Sub-Trust of the General Motors Welfare Benefit
Trust in connection with the previously announced secondary
offering of its common stock by the selling stockholders. The
exercised amount is out of a total option granted of 5,500,000
additional shares held by the selling stockholders. The DIRECTV
Group will not receive any of the proceeds from the sale of
shares in the offering.

In connection with the offering, Goldman, Sachs & Co. and Morgan
Stanley & Co. Incorporated served as joint book running
managers, with Citigroup Global Markets Inc., Credit Suisse
First Boston LLC and J.P. Morgan Securities Inc. acting as co-
managers.

A registration statement relating to these securities has been
filed with the Securities and Exchange Commission. This press
release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of
these securities in any State in which such offer, solicitation
or sale would be unlawful prior to registration or qualification
under the securities laws of any such State.

A copy of the prospectus relating to these securities may be
obtained, when available, from Goldman, Sachs & Co., 85 Broad
Street, New York, New York 10004, (212-902-1171), Attn:
Prospectus Department or from Morgan Stanley & Co. Incorporated,
1585 Broadway, New York, New York 10036, (212-761-6775).

About DirecTV

The DIRECTV Group, Inc. is a world-leading provider of digital
multi-channel television entertainment, broadband satellite
networks and services. The DIRECTV Group is 34 percent owned by
Fox Entertainment Group, which is approximately 82 percent owned
by News Corporation.

CONTACT: The DIRECTV Group, Inc.
         Mr. Bob Marsocci
         Phone: 310-726-4656


VITRO: S&P Cuts Ratings; Outlook Improves to Stable
---------------------------------------------------
Standard & Poor's Ratings Services lowered the long-term local
and foreign currency corporate credit ratings assigned to glass
manufacturer Vitro S.A. de C.V. (Vitro) and its glass containers
subsidiary Vitro Envases Norteamerica S.A. de C.V. (Vena) to 'B'
from 'B+'. Standard & Poor's also lowered the long-term national
scale corporate credit rating assigned to Vitro to 'mxBBB-' from
'mxBBB'. The outlook was revised to stable from negative.

Standard & Poor's also lowered the rating assigned to Vitro's
notes due 2013 and to Servicios y Operaciones Financieras Vitro
S.A. de C.V. notes due 2007 (which are guaranteed by Vitro) to
'CCC+' from 'B-'. Standard & Poor's also lowered the rating
assigned to Vena's notes due 2011 to 'B' from 'B+'.

"The rating actions reflect the continued weakness in Vitro's
financial performance and profitability," said Standard & Poor's
credit analyst Jose Coballasi. "In Standard & Poor's opinion,
Vitro's financial performance is not commensurate with its
former credit rating."

The stable outlook reflects Standard & Poor's opinion that
Vitro's liquidity is adequate to meet its debt maturities due in
2005. The ratings could be lowered if the company's key
financial indicators fail to improve during the year, as it is
expected that excess cash balances will be directed toward debt
reduction as maturities come due. In particular, Standard &
Poor's expects Vitro's EBITDA interest coverage and its total
debt/EBITDA ratio to move toward 2.0x and 4.0x during the year.
A positive rating action would demand a substantial improvement
in Vitro's operating and financial performance relative to
Standard & Poor's expectations.

Monterrey, Mexico-based Vitro, through its subsidiary companies,
is Mexico's leading glass producer. Vitro is a major participant
in three principal businesses: flat glass, glass containers, and
glassware. Vitro also produces raw materials and equipment and
capital goods for industrial use.



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

PDVSA: Minister Clarifies Citgo As Partial Sale
-----------------------------------------------
Citgo, the U.S.-based refining arm of Venezuelan state oil
company Petroleos de Venezuela (PDVSA), will not be sold
completely. According to energy and oil minister Rafael Ramirez,
only some of Citgo's refineries are to go under the hammer.

Ramirez, who is also PDVSA's president, said the company will
inform the National Assembly, the seat of Venezuela's
legislative power, soon about its plans for Citgo.

"We don't have a decision yet, about how many and which
refineries will be sold. What we are sure of is that Citgo will
not be totally sold and only those refineries that are not
commercially viable will be divested," he said.

Ramirez said Citgo does not make sense financially for PDVSA.
"To any business analyst, a US$10bn investment with a return of
US$400mn [a year] is not a good business."


PDVSA: Clarifies Report on Small Oil Spill at El Palito
-------------------------------------------------------
Petroleos de Venezuela stated that at dawn Tuesday, the duty
shift at its El Palito Refinery had detected a crude oil
spillage from a storage tank reported that a total of some 90
barrels has been spilt, and that 60 of these had reached the
sea.

The El Palito Refinery is located in the State of Carabobo in
Venezuela 's north-central region, on the Caribbean shore. The
storage tank in question is the 265X1, located near the
refinery's southern boundary.

According to its industrial safety experts, the accident was due
to the fracture of a flange which connects a 32-inch pipeline to
the tank's inlet valve. Similarly, Health Safety and Environment
(HSE) personnel established that neither the pipe, flange nor
valve showed any signs of corrosion, and that the fracture had
probably been caused by the earth tremors (2.9 and 3.8 on the
Richter Scale) which had shaken Carabobo late yesterday morning.

Once the situation had been notified, the refinery activated the
National Contingency Plan which deals with oil spillage's on
water, coordinating the assistance provided by the Puerto
Cabello Port Authority, the local garrison's Command, the
Ministry of Energy and Petroleum, as well as other organizations
concerned, in their efforts to combat the effects of this
accident.

It is also reported that the crude spill on the sea has been
successfully confined to a beach belonging to the installation,
and had no impact on adjacent communities nor on the El Palito's
own workforce.

El Palito operations -it was stated- have not otherwise been
disrupted, continuing to process 140,000 barrels per day of
crude and manufacturing 60,000 barrels of gasoline per day.
Also, crude supplies pumped from the State of Barinas continue
to arrive at regular rates, as is the pipeline transmission of
products from the refinery to the Yagua and Barquisimeto
terminals, in the country's central region.

CONTACT: Petroleos de Venezuela S.A.
         Edificio Petroleos de Venezuela
         Avenida Libertador, La Campina, Apartado 169
         Caracas, 1010-A, Venezuela
         Phone: +58-212-708-4111
         Fax: +58-212-708-4661
         http://www.pdvsa.com.ve



                            ***********


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 2005.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed
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