TCRLA_Public/050613.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                    L A T I N   A M E R I C A

            Monday, June 13, 2005, Vol. 6, Issue 115

                            Headlines


A R G E N T I N A

BERSA: Nuevo Banco de Santa Fe Makes Biggest Offer
EMPRECO S.A.: Trustee to Pass Individual Reports
ENGIMATIC S.A.: Verification Deadline Fixed
ENTOOLS S.A.: Court Appoints Trustee for Reorganization
EXPRESO RUBAL: Reports Submission Set

FRANCISCO KRAPOVICKAS: Reorganization Proceeds To Bankruptcy
FRIGORIFICO LA COLORADA: Debt Payments Halted, Set To Reorganize
LA SOLITA: Liquidates Assets to Pay Debts
SERVICIOS DE EXCELENCIA: Enters Bankruptcy on Court Orders
TELECOM ARGENTINA: S&P Assigns 'B-' Rating to Senior Notes

TRANSTRAM S.R.L.: Files Petition to Reorganize


B E R M U D A

LORAL SPACE: Delivers World's Largest Satellite to Launch Base


B R A Z I L

BANCO SANTOS: To Undergo Bankruptcy Proceedings Under New Law
CSN: S&P Assigns Rating to CSN Islands Notes Series 2005-1
GRUPO VOTORANTIM: Talks to Sell Unit Nearing End


C H I L E

COCA COLA EMBONOR: S&P Withdraws Ratings at Company's Behest


C O L O M B I A

EMCALI: Commences Bidding Processes for $8.5M Worth of Projects


E C U A D O R

PETROECUADOR: Ups Total 2005 Budget for Importing Derivatives


M E X I C O

AOL LATIN AMERICA: Enters Into Severance Agreement With Hauser
DIRECTV HOLDINGS: Fitch Rates Senior Notes 'BB'
GRUPO ELEKTRA: Gives Notice to Terminate GDS Program
GRUPO IUSACELL: Gives Notice to Terminate ADR Program
SATMEX: Mexicans Expected to File Bankruptcy Petition

TV AZTECA: Gives Notice To Terminate ADR Program
TV AZTECA: Distributes $59M In Cash To Shareholders


P A R A G U A Y

COPACO: Delays Launching of Mobile Unit


P E R U

* PERU: IMF Completes Second Review Under Stand-By Arrangement


T R I N I D A D   &   T O B A G O

BWIA: Bourse May Levy Fine for Late Filing


U R U G U A Y

* URUGUAY: World Bank Announces New CAS and Loans

     -  -  -  -  -  -  -  -

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

BERSA: Nuevo Banco de Santa Fe Makes Biggest Offer
--------------------------------------------------
Local bank Nuevo Banco de Santa Fe surfaced as the highest
bidder for Banco de Entre Rios (BERSA), according to Business
News Americas.

The minimum bidding price for BERSA was ARS30 million
(US$10.4mn). Santa Fe offered ARS172 million, beating offers
from Banco de Santiago del Estero (ARS120 million) and Comafi
(ARS98 million).

"BERSA is a provincial bank. This means it has the government as
a client and all wages, taxes and deposits, as well as a large
number of government employees. The three banks evaluated what
it meant for their operations to acquire BERSA to expand their
businesses. However, the conditions by which Bersa may keep the
government as a client still need to be negotiated," said a
local analyst.

The announcement of the BERSA winner is scheduled for June 15.

The three bids will be studied by a committee composed by
Argentina's economy ministry and Banco Naci›n executives. Their
decision will be based on the financial proposal and also the
banks' solvency and other factors, such as its business plan.


EMPRECO S.A.: Trustee to Pass Individual Reports
------------------------------------------------
Mr. Jose Valentin Benitez, the court-appointed trustee for the
reorganization of Empreco S.A., will submit individual reports
on June 16, 2005, states Infobae.

After submitting the said reports, Mr. Benitez will then present
a general report for court review on Aug. 12, 2005. The report
will contain Empreco's audited accounting and business records
as well as the summary of the important events pertaining to its
reorganization.

An informative assembly is set on March 3, 2006. This is the
final stage of reorganization where the Company's settlement
proposal is presented for approval by the creditors. The
proposal is drafted from the submitted claims that were verified
by the trustee until May 4, 2005.

Empreco S.A. successfully petitioned for reorganization after
Court No. 10 of Resistencia's civil and commercial tribunal
issued a resolution opening the Company's insolvency
proceedings.

CONTACT: Empreco S.A.
         Marcelo T. de Alvear 998
         Resistencia (Chaco)

         Jose Valentin Benitez
         Avda Las Heras 383
         Resistencia (Chaco)


ENGIMATIC S.A.: Verification Deadline Fixed
-------------------------------------------
The verification of creditors' claims for the Engimatic S.A.
insolvency case is set to end on July 8, 2005, states Infobae.
Ms. Angel Vello Vazquez, the court-appointed trustee tasked with
examining the claims, is required by the court to submit the
validation results as individual reports. She will also present
a general report. Dates for the submission of these reports are
yet to be disclosed.

On April 14, 2006, the Company's creditors will vote on the
settlement proposal prepared by the Company. Infobae adds that
the Company's reorganization is being handled by Buenos Aires'
civil and commercial Court No. 17. Clerk No. 34 assists the
court in the proceedings.

CONTACT: Engimatic S.A.
         San Jose 910
         Buenos Aires

         Ms. Angel Vello Vazquez, Trustee
         Sarmiento 1586
         Buenos Aires


ENTOOLS S.A.: Court Appoints Trustee for Reorganization
-------------------------------------------------------
Entools S.A., a company operating in Buenos Aires, is ready to
start its reorganization after Court No. 17 of Buenos Aires'
civil and commercial tribunal appointed Angel Vello Vazquez to
supervise the proceedings as trustee. Clerk No. 34 assists the
court on this case.

An Infobae report states that Ms. Vazquez will verify creditors
claims until July 8, 2005. Afterwards, she will present these
claims as individual reports for final review by the court. She
will also provide the court with a general report pertaining to
the Company's reorganization. The court has scheduled the
informative assembly for April 14, 2006.

CONTACT: Entools S.A.
         Uruguay 880
         Buenos Aires

         Ms. Angel Vello Vazquez, Trustee
         Sarmiento 1586
         Buenos Aires


EXPRESO RUBAL: Reports Submission Set
-------------------------------------
Ms. Analia Alba Susana Ferrando, the trustee assigned to
supervise the liquidation of Expreso Rubal S.R.L., will submit
the validated individual reports for court approval on June 24,
2005, following the verification of the creditors' claims which
ended on May 11, 2005. The individual reports explain the basis
for the accepted and rejected claims. The trustee will also
submit a general report of the case on Aug. 22, 2005.

Infobae reports that Court No. 10 of Chaco's civil and
commercial tribunal has jurisdiction over this bankruptcy case.

CONTACT: Expreso Rubal S.R.L.
         Avda Alberdi 1335
         Chaco

         Ms. Analia Alba Susana Ferrando, Trustee
         Julio Acosta 125
         Chaco


FRANCISCO KRAPOVICKAS: Reorganization Proceeds To Bankruptcy
------------------------------------------------------------
The reorganization of Francisco Krapovickas S.R.L. has
progressed into bankruptcy. Argentine news source Infobae
relates that Lomas de Zamora's civil and commercial Court No. 7
ruled that the Company is "Quiebra Decretada".

The report adds that the court assigned Anai Amancay Perez as
trustee, who will verify creditors' proofs of claim until June
15, 2005.

The court also ordered the trustee to prepare individual reports
after the verification process is completed. The submission of
the general report will then follow.

CONTACT: Francisco Krapovickas S.R.L.
         David Prando 270
         Lomas de Zamora

         Ms. Anai Amancay Perez, Trustee
         Basavilbaso 2026
         Lanus


FRIGORIFICO LA COLORADA: Debt Payments Halted, Set To Reorganize
----------------------------------------------------------------
Buenos Aires' civil and commercial Court No. 2 is now analyzing
whether to grant Frigorifico La Colorada S.A. approval for its
petition to reorganize. Infobae recalls that the Company filed a
"Concurso Preventivo" petition following cessation of debt
payments. Clerk No. 3 is assisting the court on the Company's
case.

CONTACT: Frigorifico La Colorada S.A.
         Avda Belgrano 535
         Buenos Aires


LA SOLITA: Liquidates Assets to Pay Debts
-----------------------------------------
Buenos Aires based La Solita S.R.L. will begin liquidating its
assets following the pronouncement of the city's civil and
commercial Court No. 16 that the Company is bankrupt, reports
Infobae.

The bankruptcy ruling places the Company under the supervision
of court-appointed trustee, Claudio Jorge Haimovici. The trustee
will verify creditors' proofs of claim until July 28, 2005. The
validated claims will be presented in court as individual
reports on Sep. 8, 2005.

Mr. Haimovici 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 Oct. 21, 2005.

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

CONTACT: Mr. Claudio Jorge Haimovici, Trustee
         Sarmiento 3843 Capital Federal


SERVICIOS DE EXCELENCIA: Enters Bankruptcy on Court Orders
----------------------------------------------------------
Servicios de Excelencia S.A. Hospital Central de San Isidro
enters bankruptcy protection after Court No. 5 of Buenos Aires'
civil and commercial tribunal, with the assistance of Clerk No.
10, ordered the Company's liquidation. The order effectively
transfers control of the Company's assets to a court-appointed
trustee who will supervise the liquidation proceedings.

Infobae reports that the court selected Noemi Zulema Vivares as
trustee. Ms. Zulema Vivares will be verifying creditors' proofs
of claim until the end of the verification phase on Aug. 18,
2005.

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 Sep. 26, 2005 followed by the general report, which is due on
Nov. 10, 2005.

CONTACT: Ms. Noemi Zulema Vivares, Trustee
         Avda Cordoba 2626
         Buenos Aires


TELECOM ARGENTINA: S&P Assigns 'B-' Rating to Senior Notes
----------------------------------------------------------
Standard & Poor's Rating Services assigned Thursday its 'B-'
rating to the US$1.9 billion of new debt to be issued by Telecom
Argentina S.A. (TECO) as part of its debt restructuring process,
including Series A notes with final maturity in October 2014 for
up to the equivalent of $877 million and Series B notes with
final maturity in October 2011 for up to US$ 995 million. These
figures are calculated using exchange rates as of Aug. 4, 2004.

On May 26, 2005, the company obtained a court endorsement to
restructure its financial debt under an out of court agreement
(Acuerdo Preventivo Extrajudicial, APE). According to Argentine
bankruptcy law, after the judiciary homologation of the APE,
which was approved by 94.4% of creditors, the agreement is also
binding for lenders voting against it. After the publication of
judiciary notices, nonconsenting lenders will have 10 days to
choose one of the options presented by TECO. The company then
has up to 90 days to effectively issue the new bonds.

"Standard & Poor's does not foresee any material risk to the
completion of the exchange," said Standard & Poor's credit
analyst Ivana Recalde. "Once the APE is completed, Standard &
Poor's expects to raise TECO's local and foreign currency long-
term corporate credit ratings to 'B-' from 'D', where they were
placed on April, 2, 2002 and, since none of the defaulted debt
will remain unpaid, to withdraw its issue ratings on the debt
that is currently in default."

Standard & Poor's expects to assign a stable outlook to the
corporate credit rating as it emerges from default, reflecting
expectations that the company's good competitive position and a
relatively stable economic scenario will allow TECO to further
reduce debt and to consolidate financial improvements after the
restructuring. The rating upside would be limited given the
current business environment in Argentina, especially as regards
regulatory risk, but the ratings could be pressured if tariff
inflexibility persists under a higher-than-expected inflationary
and exchange rate scenario, government intervention increases,
or financial flexibility deteriorates significantly.

As of March 31, 2005, TECO's debt amounted to US$3.1 billion on
an individual basis, including US$450 million in past-due
interest as well as US$65 million in penalties. The APE proposal
includes three options by which the company will pay
approximately US$563 million in principal and about US$184
million in interest, as well as the issuance of Series A and B
notes for about $1.9 billion (including a principal adjustment
factor of about US$150 million for the accrued but unpaid
interest on restructured debt). The restructuring implies an
average recovery value, in nominal terms, of about 85% of
principal and accrued interest. As a direct result of the
exchange, TECO's gross debt will drop to US$1.9 billion on an
individual basis and US$2.2 billion on a consolidated basis.
However, in conjunction with the exchange, TECO will cancel
current maturities for about US$123 million and apply excess
cash to prepay additional debt. This should take consolidated
debt to US$1.7 billion at the end of the process from US$3.5
billion at the end of March 2005.

TECO's financial profile should improve after the restructuring
given much lower debt levels, longer debt terms, a manageable
maturity schedule, and a lighter financial burden, mainly as a
result of the lower debt levels. Assuming the company repays
debt with cash balances, TECO will not face any significant
maturity up to 2008, aside from a mandated cash sweep in case of
excess cash, reducing short- and medium-term refinancing risk.
Since the new notes will accrue interest at a fixed rate, the
restructuring will also imply a decrease in interest rate
volatility. Assuming relatively stable U.S. and Euro exchange
rates and inflation levels in Argentina and depending on the
final tariff renegotiation, TECO should be able to continue
reducing debt and gradually consolidate its financial profile.

Nortel Inversora S.A. controls TECO with a 57.74% share, while
TECO's employees own about 4.68% through an employee stock
ownership program, and the remainder of the stock (40.58%)
trades on the Buenos Aires, New York, and Mexico City stock
exchanges. Nortel is a holding company jointly controlled by the
Telecom Italia Group (BBB+/Stable/A-2) and a local investor
group, which together own 67.79% of its equity.


TRANSTRAM S.R.L.: Files Petition to Reorganize
----------------------------------------------
Transtram S.R.L. filed a "Concurso Preventivo" motion to
reorganize its finances following cessation of debt payments.
According to Infobae, the Company's case is pending before Court
No. 26 of Buenos Aires' civil and commercial tribunal.

Clerk No. 52 assists the court on this case.

CONTACT: Transtram S.R.L.
         Avda Rivadavia 2462
         Buenos Aires



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

LORAL SPACE: Delivers World's Largest Satellite to Launch Base
--------------------------------------------------------------
Space Systems/Loral (SS/L) announced Thursday that the iPSTAR-1
satellite has arrived at the Arianespace spaceport in Kourou,
French Guiana, and is undergoing preparations for launch aboard
an Ariane 5 rocket on July 7.

Weighing in with a launch weight of 14,341 pounds (6505
kilograms), iPSTAR-1 will be the heaviest commercial satellite
ever delivered to geosynchronous orbit.

"iPSTAR-1 is one of the largest and most technologically
advanced satellites ever built for a commercial customer," said
C. Patrick DeWitt, president of Space Systems/Loral. "SS/L's
1300 platform is becoming an industry standard when it comes to
developing highly-powered satellites for direct-to-user
applications like broadband access. We're pleased to be working
with Shin on this important project and look forward to the
satellite's launch next month."

Built for Shin Satellite, Plc of Thailand, iPSTAR-1 is designed
to provide both enterprises and consumers throughout Asia,
Australia and New Zealand with various levels of Internet access
services, competing with cable modems and digital subscriber
lines (DSL).

iPSTAR-1 has a massive total data throughput capacity of over 40
Gbps. The satellite will provide users with data speeds of up to
eight Mbps on the forward link and four Mbps on the return link.
From its 119.5 degrees East longitude orbital position, iPSTAR-1
will use its seven on-board antennas to create 112 spot and
regional beams in the Ku and Ka frequency bands. The satellite
will generate 14 kW of electrical power throughout its planned
12-year service life.

Shin Satellite, a turnkey satellite operator, provides C- and
Ku-band transponder leasing, teleport and other value-added and
engineering services to users in Asia, Africa, Europe and
Australia. Shin Satellite owns and operates Thaicom 1A, located
at 120 degrees East, and Thaicom 2 and 3, co-located at 78.5
degrees East. The satellites carry a total of 49 C-band and 20
Ku-band transponders offering over 70 channels. Thaicom is the
Hotbird for Indochina and India, an emerging platform of choice
for transcontinental satellite television broadcasts from Europe
to Australia. The company has spent years researching and
developing new technology to make Internet via satellite more
efficient, thus reducing costs and improving the service to end-
users.

Space Systems/Loral, a subsidiary of Loral Space &
Communications (OTCBB: LRLSQ), is a premier designer,
manufacturer, and integrator of powerful satellites and
satellite systems. SS/L also provides a range of related
services that include mission control operations and procurement
of launch services. Based in Palo Alto, Calif., the company has
an international base of commercial and governmental customers
whose applications include broadband digital communications,
direct-to-home broadcast, defense communications, environmental
monitoring, and air traffic control. SS/L satellites have
amassed more than 1,200 years of reliable on-orbit service. SS/L
is ISO 9001:2000 certified.

Loral Space & Communications is a satellite communications
company. In addition to Space Systems/Loral, through its Skynet
subsidiary Loral owns and operates a fleet of telecommunications
satellites used to broadcast video entertainment programming,
and for broadband data transmission, Internet services and other
value-added communications services.

CONTACT: LORAL SPACE
         John McCarthy
         (212) 338-5345
         Web site: http://www.loral.com



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

BANCO SANTOS: To Undergo Bankruptcy Proceedings Under New Law
-------------------------------------------------------------
Intervened bank Banco Santos will undergo bankruptcy proceedings
under the new bankruptcy law, which came into effect on June 9,
reports Business News Americas.

Banco Santos receiver Vanio Aguiar was expected to begin the
bankruptcy proceedings earlier but the documentation gathering
has delayed the process.

Under the new bankruptcy law, one option for a distressed
company is to present creditors with alternatives on how it
plans to stay in business and pay debts in a process overseen by
a judge. The process could include restructuring debt or selling
assets to raise cash.

Should creditors fail to agree on a restructuring plan, the
judge would declare the company bankrupt, opening the way for
the sale of assets. Once a company goes bankrupt, the new law
also provides better protection for creditors and potential
investors.

The law changes the priority of creditors' claims, putting labor
liabilities first, secured creditors second and the tax
authorities and unsecured creditors third.

Previously, unpaid salaries and benefits were paid out first
with the government next in line and secured creditors such as
banks in third place.

The Banco Santos bankruptcy will be one of the largest in the
history of the Brazilian financial system, according to Febraban
chief economist Roberto Troster.

Sao Paulo-based Banco Santos is a wholesale bank that was geared
mainly towards corporate banking and chiefly focused on the
medium-sized enterprise segment. Banco Santos was ranked as
Brazil's 21st largest bank in January in terms of assets.

The central bank intervened the bank and its brokerage in
November last year due to financial woes and alleged
irregularities. Last month, the central bank announced it would
liquidate both entities.


CSN: S&P Assigns Rating to CSN Islands Notes Series 2005-1
----------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BBB-' rating to
CSN Islands VI Corp.'s US$250 million fixed-rate notes series
2005-1 due May 06, 2015. The originator, Companhia Siderśrgica
Nacional (CSN), is the largest single-site flat steel producer
and the only fully integrated steel maker in Brazil.

The rating addresses the ability of the issuer to pay timely
interest and principal on the notes. The rating does not address
the payment of a make-whole payment or additional amounts to
noteholders.

The series 2005-1 notes are the fourth issuance out of the CSN
Islands program. A portion of proceeds will prepay the series
2003-2 notes in their entirety. Similar to the previous series,
series 2005-1 is secured through a true-sale structure by all of
CSN's steel exports with eligible buyers to CSN Export. CSN
Export sold the rights to the receivables to the issuer. Steel
export products include hot-rolled, cold-rolled, slabs, tin
mill, and galvanized steel products. The receivables are
predominantly U.S. dollar denominated.

The 'BBB-' rating reflects Standard & Poor's corporate
performance assessment of CSN over the term of the transaction.
The corporate performance assessment reflects CSN's ability to
generate the necessary assets to service the transaction even
under a state of selective default or other financial
impairment. The rating is also based on several structural and
credit characteristics of the issuance that mitigate originator
bankruptcy risk, sovereign interference risk, and other risks
pertinent to a cross-border steel-export future flow
securitization. This mitigation allows the transaction to
achieve a rating two notches higher than CSN's local currency
rating (BB/Stable) and three notches higher than CSN's foreign
currency rating (BB-/Stable) and the long-term foreign currency
sovereign rating of Brazil (BB-/Stable).

Credit factors that support the 'BBB-' rating include:

     -- The strength of CSN's performance risk assessment of
'BBB-';

     -- Strong levels of enhancement through
overcollateralization;

     -- The offshore payment mechanism, eligible buyer
eligibility criteria, and minimum receivable cash flow tests
from eligible buyers;

     -- The mitigation of sovereign interference risk through
historical noninterference by the Brazilian authorities in the
steel industry and domestic demand for the exported products
already being met; and

     -- Other key credit and structural features, including DSC
triggers, a debt service reserve account, and provisions for an
early amortization of outstanding debt if certain adverse events
occur.

The notes pay interest at a rate of 6.148% quarterly each
February, May, August, and November. Principal amortization of
the notes will begin after the expiration of the interest-only
period in August 2008. The notes will mature in May 2015.

PRIMARY CREDIT ANALYST: Pedro Gazoni, Sao Paulo
(55) 11-5501-8648; pedro_gazoni@standardandpoors.com

SECONDARY CREDIT ANALYSTS:

Gary Kochubka, New York (1) 212-438-2514;
gary_kochubka@standardandpoors.com

Reginaldo Takara, Sao Paulo (55) 11-5501-8932;
reginaldo_takara@standardandpoors.com



GRUPO VOTORANTIM: Talks to Sell Unit Nearing End
------------------------------------------------
Mining and industrial conglomerate Grupo Votorantim is close to
wrapping up negotiations to sell one of its packaging units for
a price that could reach US$140 million. According to Dow Jones
Newswires, Votorantim is looking to sell its Votocel unit and
the main candidate for the purchase is Vitopel, a company
controlled by JP Morgan and Credit Suisse First Boston.



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

COCA COLA EMBONOR: S&P Withdraws Ratings at Company's Behest
------------------------------------------------------------
Standard & Poor's Ratings Services withdrew Thursday its 'BB+'
local and foreign currency corporate credit and debt ratings on
Coca Cola Embonor S.A. (Embonor) at the company's request.
Embonor is the second-largest Coca-Cola bottler in Chile and the
largest Coca-Cola bottler in Bolivia.



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

EMCALI: Commences Bidding Processes for $8.5M Worth of Projects
---------------------------------------------------------------
Cali's multi-utility Emcali has opened bidding processes for
three projects worth approximately COP20 billion (US$8.5
million), reports Business News Americas.

Emcali is scheduled to hold a meeting on June 10 to explain the
details of the main project that is worth COP9.2 billion. The
said project aims to design the city's aqueduct network and
improve sewerage services. The contract for this project is
likely to be awarded by the end of the month.

Meanwhile, Emcali will accept proposals until June 14 for the
other two projects, one of which aims to carry out construction
works on the Canaveralejo wastewater treatment plant. This
project is worth COP4.33 billion.

The last one, worth some COP3 billion, aims to replace aqueduct
and sewer pipes in the neighborhoods of El Guabal, Olimpico,
Calima and Alfonso Lopez.

Emcali provides public services, including waterworks,
telecommunications and electric power.



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

PETROECUADOR: Ups Total 2005 Budget for Importing Derivatives
-------------------------------------------------------------
State oil company Petroecuador will raise its total 2005 budget
to import oil derivatives from US$490 million to US$1.01 billion
following authorization from its board, reveals Business News
Americas.

The original budget, which the board approved at end-February,
was based on an average price of US$28.87 a barrel. However, the
average import price in Q1 was actually US$61.84/b.

Petroecuador imported 4.83 million barrels of oil derivates in
Q1 at a total cost of US$299 million, which used up 61% of the
Company's 2005 oil derivative import budget.

Moreover, Petroecuador began last week a 52-day routine
maintenance on a catalytic cracker unit at the Company's
Esmeraldas refinery, which means Petroecuador will have to
import more oil derivatives than usual to make up for the
deficit.

Esmeraldas, which has a processing capacity of 110,000 barrels a
day (b/d), is currently processing 102,000b/d.



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

AOL LATIN AMERICA: Enters Into Severance Agreement With Hauser
--------------------------------------------------------------
On June 3, 2005, America Online Latin America, Inc. ("AOLA")
entered into a Severance Agreement and Release of Claims (the
"Severance Agreement") with Eduardo Hauser. Mr. Hauser served as
AOLA's Executive Vice President--AOL Services and Business
Affairs until May 25, 2005. Under the Severance Agreement, AOLA
will pay Mr. Hauser approximately $373,000, which reflects a
severance amount and a retention payment to which he would have
been entitled under the Executive Retention Agreement that Mr.
Hauser and AOLA previously entered into. In addition, Mr. Hauser
is eligible for a bonus of up to $51,000 based on the actual
amount of AOLA's advertising and other revenue for the second
quarter of 2005 as compared with budgetary objectives for the
second quarter of 2005.

Below is a copy of the Severance Agreement and Release of Claims
between America Online Latin America, Inc. and Eduardo Hauser:

May 25, 2005

Mr. Eduardo Hauser
962 Sanibel Dr.
Hollywood, FL 33019

Separation Agreement and Release of Claims

Dear Mr. Hauser:

This letter will serve as confirmation that your employment with
America Online Latin America, Inc. ("AOLA", together with any
successors, subsidiaries, merged entities, parent entities and
their respective affiliates, collectively the "Company") will
end as set forth in this letter. This Separation Agreement and
Release of Claims ("Agreement"), upon your signature, will
constitute the complete agreement between you and the Company
regarding the terms of your separation of employment.

1. Your employment with the Company will cease at the close of
business on May 25, 2005 (the "Separation Date") on the terms
and conditions set forth in this Agreement. Effective at the
close of business on the Separation Date, you will cease to
perform your duties for the Company. The obligations of the
Company set forth in this letter are conditioned on your
continuing to perform your duties through the Separation Date
and your compliance with all other terms and conditions of this
Agreement.

2. You will be paid a total severance amount equal to
$373,009.98 as wages in lieu of notice, accrued, but unused
vacation time, and payment of a retention bonus and severance
payment pursuant to that certain Executive Retention Agreement
(the "Retention Agreement") dated as of June 5, 2004
(collectively, the "Severance Amount"). The Severance Amount
will be paid in a lump sum on or before July 1, 2005, subject to
customary payroll deductions and withholdings. In addition, you
will be eligible for a bonus ("Potential Bonus") for the second
quarter of 2005 based on actual performance as compared with
budgetary objectives for the entire quarter. The Potential Bonus
would be subject to customary payroll deductions and
withholdings. In addition, you will be entitled to keep
possession of your personal computer (subject to your deleting
Company information contained on such computer as set forth in
Paragraph 4 below).

3. Your benefits will continue through the Separation Date. With
respect to the Consolidated Omnibus Budget Reconciliation Act
("COBRA"), your COBRA period will begin on the day following the
Separation Date. You will receive separate information regarding
your option to continue health benefits under COBRA. To the
extent that you elect to continue health benefits under COBRA,
the Company will reimburse you for the premiums you pay under
COBRA for June, July, August, September, October, November and
December 2005 and for January, February, March, April and May
2006. All other benefits will terminate on the Separation Date.

4. Prior to your departure from work on the Separation Date, you
must return to the Company all the Company property in your
possession, including, but not limited to, keys and the original
and all copies of any written, recorded, or computer-readable
information about Company practices, procedures, trade secrets,
customer lists, or product marketing associated with the
Company's online services business. As provided in the
Confidentiality, Non-Competition and Proprietary Rights
Agreement which you signed with America Online, Inc. ("AOL")
dated March 3, 1999 (the "NDA"), you have agreed not to disclose
to others information about AOL's and the Company's practices,
procedures, trade secrets, customer lists, or product marketing,
except as required by law, and that agreement remains in full
force and effect, and shall remain in full force and effect
following your separation from the Company.

5. The agreement of the Company to agree to pay you the
Severance Amount (which includes payment of the retention
amount) and your eligibility for the Potential Bonus is being
offered solely in consideration for your release of claims, as
set forth in Paragraph 6, your compliance with this Agreement
and your continued compliance with the NDA as set forth above,
and you acknowledge that this is compensation to which you are
not otherwise entitled. Such agreements are not, and should not
be construed as, an admission of any kind whatsoever by the
Company, and the Company denies it has engaged in any wrongdoing
against you. In addition, you agree that the payment of the
Severance Amount constitutes full payment to you under the
Retention Agreement and that you are not entitled to any
additional payments under the Retention Agreement. You further
agree that this agreement supercedes the Retention Agreement and
the Retention Agreement shall no longer be in force or effect.

6. In consideration of the Company's agreement as stated above,
you agree to discharge and release unconditionally the Company,
its successors and their respective predecessors, subsidiaries,
affiliates, related entities, merged entities and their parent
entities, and their respective officers, directors,
stockholders, employees, benefit plan administrators and
trustees, agents, attorneys, insurers, representatives,
affiliates, successors and assigns (the "Releasees") from any
and all claims, actions, causes of action, demands, obligations
or damages of whatever nature, whether known or unknown to you,
which you ever had or now have upon or by reason of any matter,
cause or thing, up to and including the day on which you sign
this Agreement, arising from your employment with the Company
and separation of your employment with the Company or otherwise,
including any claim arising out of or related to any stock
options held by you or granted to you by the Company which are
scheduled to vest subsequent to the Separation Date (all of the
foregoing, collectively "Claims"). The Claims you are waiving
include, but are not limited to, any and all claims arising out
of or related to or under: any stock options held by you or
granted to you by the Company which are scheduled to vest
subsequent to your Separation Date; Title VII of the Civil
Rights Act of 1964, as amended; the Employee Retirement Income
Security Act; the Americans with Disabilities Act; the Fair
Labor Standards Act; the Worker Adjustment and Retraining
Notification Act (WARN), or similar statutes; the Family Medical
Leave Act; the National Labor Relations Act; the Employee
Retirement Income Security Act; 42 U.S.C. 1981; the Older
Workers Benefits Protection Act; Chapter 760, Florida Statutes;
Chapter 448, Florida Statutes; analogous federal, state and
local laws, regulations, statutes or ordinances; any principle
of common law; all claims for any type of relief from the
Releasees, and any other federal, state and local claims,
whether statutory or common law, and whether tort or contract.
This release of claims does not affect any pending claim for
workers' compensation benefits, your vested rights, if any, in
the Company's 401(k) plan, or your rights to exercise any and
all Company stock options held by you that are exercisable as of
your Separation Date during the applicable period of exercise
and in accordance with all other terms of those options and the
stock option plans, agreements and notices under which such
options were granted.

7. You agree to assist the Company, upon its reasonable request,
in connection with any litigation, investigation or other matter
arising out of or related to your service as an employee,
officer, or director of the Company. The Company will reimburse
you for the reasonable out-of-pocket costs incurred by you in
rendering such assistance to the Company. In addition, you agree
to assist the Company in canceling the letter of credit
established to secure the retention payment under the Retention
Agreement.

8. You represent and agree that you have not filed any complaint
or charge or lawsuit of any kind whatsoever against the Company
with any other governmental agency or any court and you further
represent and agree that you will not file or institute or
participate in any litigation, award or judgment with any State
or Federal court any time hereafter or, unless required by law
or pursuant to Paragraph 7 above, testify or provide documents
or information for or to any other person or entity with regard
to any matter related to or arising out of your employment with
the Company or the termination thereof, this Agreement or any
matters released herein; provided, that this shall not limit you
from filing a lawsuit for the purpose of enforcing your rights
under this Agreement.

9. [intentionally omitted].

10. You agree not to make any untruthful remarks or statements
about the Releasees and their respective officers, directors,
employees or agents.

11. You agree that in the event you breach any of your
obligations under paragraph 1, 4, 7, 8, 9 or 10 of this
Agreement, the Company will be entitled to seek recovery or
setoff of the full amount of the Severance Payment, Potential
Bonus and other amounts paid or to be paid to you following the
Separation Date.

12. This Agreement shall be governed by and construed in
accordance with the laws of the State of Florida, with regard to
any otherwise applicable principles of conflicts of law.

13. If any portion of this Agreement should ever be determined
to be unenforceable, it is agreed that this will not affect the
enforceability of any other clause of the remainder of this
Agreement.

Sincerely,

Charles M. Herington
President and CEO


DIRECTV HOLDINGS: Fitch Rates Senior Notes 'BB'
-----------------------------------------------
Fitch Ratings has assigned a 'BB' rating to a proposed offering
of 10-year $1.0 billion senior unsecured notes jointly issued by
DIRECTV Holdings, LLC (DIRECTV) and DIRECTV Financing Co, Inc.
in accordance with Rule 144A. Fitch currently rates DIRECTV's
senior secured credit facility 'BB+' and the company's senior
unsecured debt 'BB'. The Rating Outlook for each of the ratings
remains Stable.

Fitch believes that the proceeds from the offering will be used
to repay up to $500 million of borrowings from the company's
senior secured credit facility and for general corporate
purposes. Fitch expects the remaining proceeds will stay at
DIRECTV and will not be paid as a dividend to DIRECTV Group,
Inc. (DTVG). From Fitch's perspective, the issuance increases
DIRECTV's overall leverage and weakens the company's position
within its current ratings. The proposed transaction will reduce
the amount of secured debt claims above the senior unsecured
debtholders, but this benefit is mitigated by a larger overall
debt balance. Pro forma for the new debt issue, as well as the
bank debt financing and equity contribution by DTVG, completed
in April as if they were completed on March 31, 2005, Fitch
believes that total debt will increase by $500.0 million to
approximately $3.4 billion. Based on LTM EBITDA for the period
ending March 31, 2005 of approximately $653.5 million, Fitch
estimates DIRECTV's pro forma leverage would be 5.2 times (x).

Overall, Fitch's ratings reflect DIRECTV's strong market
position, positive subscriber metrics including robust
subscriber growth and growing average revenue per unit, and the
support and liquidity position of DTVG. Also incorporated into
the ratings is DIRECTV's high cost to acquire and retain
subscribers. Fitch expects these costs (on a per subscriber
basis) to increase as subscribers migrate to more advanced set
top boxes and DIRECTV controls subscriber churn. Fitch believes
that reducing subscriber churn and controlling the growth of
subscriber acquisition and retention costs will be key to
growing EBITDA and expanding margin. Fitch's ratings also
reflect DIRECTV's lack of revenue diversity and narrow product
offering relative to the cable MSOs and Fitch's perception that
DIRECTV's competitive position relative to the cable operators
may diminish as the cable MSOs introduce telephony service to
their product bundle.

Fitch expects the company's total leverage metric to improve
during 2005 and targets a year-end leverage metric ranging
between 3.8x and 4.0x.

The company's liquidity position is supported by a combination
of cash on hand, which Fitch estimates to be approximately $646
million on a pro forma basis as of the end of the first quarter,
and available borrowing capacity under the company's $500
million revolver contained within the company's $2.5 billion
senior secured credit facility.

Fitch's Stable Rating Outlook incorporates Fitch's expectation
for subscriber growth to continue during 2005 albeit at a
moderately slower pace relative to 2004. Fitch expects the
company to balance subscriber growth with subscriber acquisition
and retention costs while reducing subscriber churn to drive
increasing EBITDA and operating margins.

CONTACT: David Peterson +1-312-368-3177, Chicago
         Michael Weaver +1-312-368-3156, Chicago

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


GRUPO ELEKTRA: Gives Notice to Terminate GDS Program
----------------------------------------------------
Grupo Elektra S.A. de C.V. (NYSE: EKT) (BMV: ELEKTRA*) (Latibex:
XEKT) ("The Company"), Latin America's leading specialty
retailer, consumer finance and banking and financial services
company, announced Thursday that it gave notice to The New York
Stock Exchange (NYSE) and The Bank of New York (BoNY) to
terminate the Global Depositary Shares (GDS) program that the
Company has in the United States. With the notice of
termination, the company also instructed BoNY to amend the
deposit agreement to reduce to 60 days the period to exchange
GDSs for common shares traded on the Mexican Stock Market (BMV).

As was previously announced at an Extraordinary Shareholders'
Meeting held on June 1, shareholders approved termination of
Grupo Elektra's GDS program, after an analysis and discussion of
the costs and benefits of continued listing in the US capital
markets.

The trading of the GDSs in the United States shall continue for
30 days from the date on which BoNY notifies GDS holders of the
termination of the deposit agreement. Grupo Elektra expects BoNY
to provide notice within the next few days.

After the 30-day notice period, the NYSE will suspend trading of
the GDSs in the United States, and the GDS holders will have 60
days to exchange their GDSs for common shares that are traded on
the BMV. Upon the expiration of the 60-day period, BoNY will be
entitled to sell the common shares underlying the GDSs that were
not surrendered in the BMV and distribute the proceeds of the
sale to holders.

Grupo Elektra is Latin America's leading specialty retailer,
consumer finance and banking services company. Grupo Elektra
sells retail goods and services through its Elektra, Salinas y
Rocha, Bodega de Remates and Elektricity stores and over the
Internet. The Group operates more than 1,000 stores in Mexico,
Guatemala, Honduras and Peru. Grupo Elektra also sells and
markets its consumer finance, banking and financial products and
services through its more than 1,440 Banco Azteca branches
located within its stores, as a stand-alone, and in other
channels in Mexico and Panama. Banking and financial services
include consumer credit, personal loans, money transfers,
extended warranties, savings accounts, term deposits, pension-
fund management and insurance.

CONTACT: Grupo Elektra, S.A. de C.V.
         Investor and Press Inquiries:
         Esteban Galindez, CFA

         Director of Finance and I.R.
         Phone: 52 (55) 1720-7819
         Fax: 52 (55) 1720-7822
         E-mail: egalindez@elektra.com.mx

         URL: http://www.grupoelektra.com.mx


GRUPO IUSACELL: Gives Notice to Terminate ADR Program
-----------------------------------------------------
Grupo Iusacell, S.A. de C.V., (NYSE: CEL) (BMV: CEL), announced
Thursday that it has gave notice to The New York Stock Exchange
(NYSE) and The Bank of New York (BoNY) to terminate the American
Depositary Shares (ADRs) program that the Company has in the
United States, listed on the NYSE. With the notice of
termination, the company also instructed BoNY to amend the
deposit agreement to reduce to 60 days the period to exchange
ADRs for shares traded on the Mexican Stock Market (BMV).

As was previously announced, the Iusacell Extraordinary
Shareholders' Meeting held on June 1 approved the termination of
its ADR program, after an analysis and discussion of the costs
and benefits of continued listing in the U.S. capital markets.

The trading of the ADRs in the United States shall continue for
the next 90 days from the date on which BoNY notifies the
termination of the deposit agreement to ADR holders, which is
expected to happen within the next few days.

After the 90-day notice period, the NYSE will suspend trading of
the ADRs in the United States, and the ADR holders will have 60
days to exchange their ADRs for shares that are traded on the
BMV. Upon the expiration of the 60-day period, BoNY will be
entitled to sell the remaining shares, corresponding to ADRs
that were not surrendered in the BMV and distribute the proceeds
of the sale to holders.

Grupo Iusacell, S.A. de C.V. (NYSE: CEL) (BMV: CEL) is a
wireless cellular and PCS service provider in Mexico
encompassing a total of approximately 92 million POPs,
representing approximately 90% of the country's total
population.

Independent of the negotiations towards the restructuring of its
debt, Iusacell reinforces its commitment with customers,
employees and suppliers and guarantees the highest quality
standards in its daily operations, offering more and better
voice communication and data services through state-of-the-art
technology, such as its new 3G network, throughout all of the
regions in which it operates.

CONTACT: Grupo Iusacell
         Jose Luis Riera K.
         Chief Financial Officer
         Phone: 011-5255-5109-5927

         J. Victor Ferrer
         Finance Manager
         Phone: 011-5255-5109-5927
         E-mail: vferrer@iusacell.com.mx

         URL: http://www.iusacell.com


SATMEX: Mexicans Expected to File Bankruptcy Petition
-----------------------------------------------------
U.S. bondholders of at least US$379 million owed by Satelites
Mexicanos (Satmex) may find it a great effort to start
bankruptcy proceedings against the Mexican satellite operator in
the U.S.

Last month, the bondholders filed a suit in New York to force
Satmex, which has been in default since 2003, into involuntary
bankruptcy.

Already, the bondholders have hammered out a prepackaged
restructuring plan with Satmex's management that would provide
US$55 million in new capital -- more than enough to launch the
Satmex 6 satellite. The vehicle, which has been gathering dust
on a launchpad in French Guyana, would provide fresh revenue and
help pay off some debt.

However, the proceedings have been stalled, as some Mexicans
want any bankruptcy proceeding to unfold in Mexico.

Satmex majority shareholder Principia has been warned by its
legal advisors that opting for the US proceeding would entail
certain risks.

Principia and US company Loral Space & Communications have a 75%
joint controlling stake, while the remaining 25% is state-owned.

What is complicating the matter is that the government holds a
US$188-million note for a loan it made to a holding company
controlled by Principia head Sergio Autrey, called Firmamento,
when Satmex was privatized in 1997.

The government reportedly wants the Firmamento loan treated
differently than it would normally be in a restructuring under
US laws. The idea is for the loan to be treated as a debt of
Satmex when it is actually a debt of Firmamento and, therefore,
considered shareholder debt.

According to Mexican daily Reforma, the structural change
support group at the transport and communications ministry SCT
wants the government loan to be recognized as a Satmex debt and
not a debt of Firmamento, which has no guarantee.

For this reason, the U.S. bondholders hoping to begin a court-
supervised restructuring as soon as next week can expect a
counter-petition from SatMex seeking bankruptcy in Mexico.


TV AZTECA: Gives Notice To Terminate ADR Program
------------------------------------------------
TV Azteca, S.A. de C.V. (BMV: TVAZTCA; NYSE: TZA; Latibex:
XTZA), one of the two largest producers of Spanish-language
television programming in the world, announced Thursday that it
gave notice to The New York Stock Exchange (NYSE) and The Bank
of New York (BONY) to terminate the American Depositary Receipt
(ADR) program that the Company has in the United States. With
the notice of termination, the company also instructed BONY to
amend the deposit agreement to reduce to 60 days the period to
exchange ADRs for CPOs traded on the Mexican Stock Market (BMV).

As was previously announced at an Extraordinary Shareholders'
Meeting held on June 1, shareholders approved termination of TV
Azteca's ADR program, after an analysis and discussion of the
costs and benefits of continued listing in the US capital
markets.

The trading of the ADRs in the United States shall continue for
30 days from the date on which BONY notifies ADR holders of the
termination of the deposit agreement. TV Azteca expects BONY to
provide notice within the next few days.

After the 30-day notice period, the NYSE will suspend trading of
the ADRs in the United States, and the ADR holders will have 60
days to exchange their ADRs for CPOs that are traded on the BMV.
Upon the expiration of the 60-day period, BONY will be entitled
to sell the CPOs underlying the ADRs that were not surrendered
in the BMV and distribute the proceeds of the sale to holders.

TV Azteca is one of the two largest producers of Spanish
language television programming in the world, operating two
national television networks in Mexico, Azteca 13 and Azteca 7,
through more than 300 owned and operated stations across the
country. TV Azteca affiliates include Azteca America Network, a
new broadcast television network focused on the rapidly growing
US Hispanic market, and Todito.com, an Internet portal for North
American Spanish speakers.

CONTACT: TV Azteca, S.A. de C.V.
         Investor Relations:
         Bruno Rangel
         Phone: 52 (55) 1720 9167
         E-mail: jrangelk@tvazteca.com.mx

         Rolando Villarreal
         Phone: 52 (55) 1720 0041
         E-mail: rvillarreal@gruposalinas.com.mx

         Press Relations:
         Daniel McCosh
         Phone: 52 (55) 1720 0059
         E-mail: dmccosh@tvazteca.com.mx


TV AZTECA: Distributes $59M In Cash To Shareholders
---------------------------------------------------
TV Azteca, S.A. de C.V. (NYSE: TZA; BMV: TVAZTCA; Latibex:
XTZA), one of the two largest producers of Spanish language
television programming in the world announced that it made
Thursday a US$59 million cash distribution to shareholders,
equivalent to US$0.019 per CPO or US$0.309 per ADR.

On April 29, TV Azteca's Annual Ordinary Shareholders' Meeting
approved distributions for an aggregate amount of approximately
US$80 million to be paid during 2005, which include the payment
of US$59 million made on Thursday, and another payment of
approximately US$21 million to be made on December 1.

The company noted Thursday's cash distribution is part of its
ongoing plan to allocate a substantial portion of TV Azteca's
cash generation to make distributions to shareholders of over
US$500 million, and to reduce the company's debt by
approximately US$250 million within a six-year period that
started in June 2003.

The distributions under the cash usage-plan made to date,
represent an aggregate amount of US$384 million, equivalent to a
25% yield on the June 8, 2005 ADR closing price. Prior
distributions include: US$125 million on June 30, 2003; US$15
million on December 5, 2003; US$33 million on May 13, 2004;
US$22 million on November 11, 2004; and US$130 million on
December 14, 2004.

"TV Azteca's ongoing distributions reflect strong financial
results and robust cash generation," said Mario San Rom n, Chief
Executive Officer of TV Azteca. "Growing operations domestically
and in the US Hispanic market provide us with solid perspectives
for cash creation going forward, allowing for strict adherence
to our cash plan as scheduled."

TV Azteca is one of the two largest producers of Spanish
language television programming in the world, operating two
national television networks in Mexico, Azteca 13 and Azteca 7,
through more than 300 owned and operated stations across the
country. TV Azteca affiliates include Azteca America Network, a
new broadcast television network focused on the rapidly growing
US Hispanic market, and Todito.com, an Internet portal for North
American Spanish speakers.

CONTACT: TV Azteca, S.A. de C.V.
         Investor Relations:
         Bruno Rangel
         Phone: 52 (55) 1720 9167
         E-mail: jrangelk@tvazteca.com.mx

         Rolando Villarreal
         Phone: 52 (55) 1720 0041
         E-mail: rvillarreal@gruposalinas.com.mx

         Press Relations:
         Daniel McCosh
         Phone: 52 (55) 1720 0059
         E-mail: dmccosh@tvazteca.com.mx



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

COPACO: Delays Launching of Mobile Unit
---------------------------------------
State-run fixed line operator Copaco will delay the launching of
its GSM mobile service, presently scheduled for August, until
November 2005, reports Business News Americas.

In preparation for the launching of the mobile service, the
Company will open a tender to purchase mobile handsets. Copaco
expects to attract 140,000 GSM subscribers to be served by a
network of 140 base stations.

"According to our studies, we should invest US$12mn in the GSM
project and US$4mn in a data network project, but it could prove
to be less," Copaco's CEO Omar Ramos said.

With this launch, Copaco will become the fifth Paraguayan mobile
operator in a market of nearly 2 million subscribers.

Private operators expressed some opposition to Copaco's plans to
launch a mobile unit. But Copaco commercial manager Osmar Lopez
said the decision is already made and the project is developing
as expected.



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

* PERU: IMF Completes Second Review Under Stand-By Arrangement
--------------------------------------------------------------
The Executive Board of the International Monetary Fund (IMF)
completed the second review of Peru's economic performance under
a 26-month Stand-By Arrangement (see Press Release No. 04/112).
The completion of the review makes available a total amount
equivalent to SDR 149.1 million (about US$219.8 million), but
the Peruvian authorities intend to continue treating the
arrangement as precautionary.

In completing the review, the Executive Board also approved
Peru's request for a waiver of the nonobservance of a
performance criterion and the modification and resetting of
another performance criterion. In addition, the Board also
approved a rephasing of the country's future disbursements into
five equal amounts of SDR 27.6 million (about US$40.7 million).

Following the Executive Board discussion, of Peru on June 8,
2005, Mr. Agustin Carstens, Deputy Managing Director and Acting
chair, said:

"Peru's economic performance has continued to be strong in 2004
and the first half of 2005. Inflation remains low and official
reserves are at a comfortable level. The outlook is positive, as
the economy is expected to continue to benefit from the global
recovery. In addition, Peru has built important buffers to
mitigate vulnerabilities associated with public debt and
financial dollarization. In the context of the national
elections scheduled for early 2006, it will be important to
maintain the consensus for policies aimed at promoting sustained
growth and reducing poverty over the medium-term.

"Prudent fiscal management is at the core of the authorities'
economic strategy, and fiscal policies are consistent with
further consolidation in 2005. Given that part of the revenue
increase projected for 2005 is expected to be temporary, the
authorities need to avoid boosting expenditures on a permanent
basis. They are also encouraged to keep expenditure in the
supplementary budget to a minimum, and to use part of any excess
tax revenue to reduce the fiscal deficit below program levels.
This will help reduce Peru's public debt-to-GDP ratio and
further bolster investor sentiment. The authorities are
committed to strengthening the institutional framework to ensure
efficient and transparent use of scarce resources for public
investment. In this context it is important that procedures to
identify projects eligible under the Private-Public Partnerships
program be strictly observed.

"The central bank remains committed to keeping inflation low.
Allowing the exchange rate to move more freely will be important
to help insulate the economy against external shocks and
speculative capital flows. It is also important that the central
bank continues to gradually raise the limit on pension funds'
investments abroad and further strengthen domestic capital
markets in order to help diversify the risks of these funds.

"The authorities are making progress in increasing the
resilience and efficiency of the financial sector. They are
strengthening prudential regulations on lending to unhedged
economic agents and improving the supervision of offshore bank
subsidiaries. The authorities also intend to discourage mortgage
lending in foreign currency, and are promoting greater
efficiency in financial intermediation, including through the
development of the domestic capital market. It will be important
that the authorities strictly observe the limit on consumer
lending by the state-owned bank, Banco de la Nacion.

"Progress is continuing in the implementation of growth-
enhancing reforms. In recent months, the authorities' focus has
been on reforming the Cedula Viva public pension regime and on
bolstering private investment by awarding infrastructure
transportation in concession under transparent and fiscally
responsible procedures. The establishment of a commercial court
in April 2005 and the centralization of collateral registries by
end-September are expected to further enhance the business
climate. Progress has also been made in strengthening the legal
framework for prudent fiscal management, and the authorities
have continued to actively pursue trade liberalization through
bilateral and multilateral negotiations," Mr. Carstens said.

CONTACT: International Monetary Fund
         IMF External Relations Department

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

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



=================================
T R I N I D A D   &   T O B A G O
=================================

BWIA: Bourse May Levy Fine for Late Filing
------------------------------------------
The Stock Exchange may slap national airline BWIA a fine that
could reach $50,000 for submitting its annual financial results
late, the Trinidad Guardian reports.

Originally, the airline was given until end of March to deliver
the statements.

But due to operational difficulties over the Christmas period,
which, according to the Company, resulted in the unanticipated
delay in the finalizing of the audit of the financial
statements, BWIA sought to extend the deadline to May 30.

It was granted the extension in provision with Clause 6 of the
Listing Requirement.

However, the Company, which was late in filing its accounts
three years in a row, delivered the results on June 6.

Meanwhile, a representative of the Stock Exchange said that
while the bourse had received BWIA's financial statements, the
Company was not obligated to publish the results in the daily
newspapers.

To see important facts about BWIA:
http://bankrupt.com/misc/BWIA.pdf

CONTACT: BRITISH WEST INDIES AIRWAYS (BWIA)
         Phone: + 868 627 2942
         E-mail: mail@bwee.com
         Home Page: http://www.bwee.com



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

* URUGUAY: World Bank Announces New CAS and Loans
-------------------------------------------------
The World Bank's Board of Executive Directors discussed Thursday
the new Country Assistance Strategy (CAS) for Uruguay, which
projects financial assistance of up to US$800 million between
2005 and 2010, as well as technical and advisory services. In
addition, the Board of Directors approved a Social Program
Development Policy Loan and two investment projects for
transport infrastructure and natural resources management.

"Now that the economy is rebounding from the crisis, the
Government's priorities have shifted from crisis response to the
achievement of longer-term equitable and sustainable economic
development," said Axel van Trotsenburg, World Bank Country
Director for Argentina, Chile, Paraguay and Uruguay. "The new
strategy, accompanied by these three projects, represents a
strong beginning to a renewed partnership with Uruguay in
supporting critical public policies and investments."

The new Bank's program of lending and advisory services supports
the new administration's development plan "Government of Change
-Responsible Transition (El Gobierno de Cambio - La Transicion
Responsable)".  To achieve equitable and sustainable economic
development, the Government faces three broad development
challenges: reducing vulnerability, sustaining growth, and
improving living standards.

The new CAS is the result of close collaboration with the
Government and has benefited from wide consultations with
government and non-governmental representatives including youth
groups, private sector, international agencies and academia.

During the Board discussion, Executive Directors appreciated the
wide-ranging reforms undertaken so far, but stressed the need to
further pursue structural reforms to ensure longer-term
equitable and sustainable development. Directors welcomed the
smooth political transition following the October 2004
elections. They noted the Government's commitment to maintain
macroeconomic stability and pursue sustainable economic and
social development, including increased efforts to help the
poor. Several Directors emphasized the importance of private
sector participation and the potential for IFC and MIGA to
contribute in these areas.

In addition to discussing the CAS, the Board approved three new
operations for a total of US$175 million to support social
programs, and investments in transport and natural resources.

Social Program Development Policy Loan

The US$75.38 million Social Program Development Policy Loan
(SPDPL) supports the Government's policy actions to increase the
efficiency, coverage and sustainability of Uruguay's health,
education and social protection programs. The policy measures
supported by this loan are expected to contribute to a reduction
in poverty and improved equity and efficiency of social sector
expenditures, while setting the stage for further Bank
involvement in the social sectors.   The US$75.38 million,
fixed-spread loan is repayable in 15 years, including five years
of grace.

"We are supporting the new government's policies in education,
health and social protection in order to increase access and
efficiency of social services within a framework of fiscal
sustainability.  Uruguay's social programs were successful in
maintaining core social indicators like infant mortality and
school attendance despite the economic shock of the crisis,"
said van Trotsenburg.

Transport Infrastructure Maintenance and Rural Access Project

The US$70 million Transport Infrastructure Maintenance and Rural
Access Project seeks to upgrade the country's transport
infrastructure to facilitate cost-efficient and safe transport
of freight and passengers. The project focuses on rehabilitating
key transport links, removing existing bottlenecks, arresting
any further deterioration of infrastructure due to budgetary
constraints, and improving infrastructure management and safety.
The US$70 million, fixed-spread loan is repayable in 15 years,
including five years of grace.

Natural Resources and Biodiversity Management Project

The Natural Resources and Biodiversity Management Project will
be financed with a US$30 million loan from the World Bank and a
US$7 million grant from the Global Environment Facility (GEF).
It is an innovative project that blends both rural development
and environmental conservation.

"This project gives new opportunities to Uruguay's rural
population," added van Trotsenburg. "It will enable them to
improve their competitiveness and their market opportunities,
demonstrating how to achieve economic development in harmony
with the conservation of the natural environment, upon which
their long-term future depends."

The project will directly benefit 13,000 rural families in the
adoption of economically and environmentally sustainable
integrated production systems which focus on the management and
conservation of soils, water and rangelands; as well as the
mainstreaming of biodiversity conservation. The US$30 million,
fixed-spread loan is repayable in 15 years, including five years
of grace.

CONTACT: World Bank
         In Washington:
         Alejandra Viveros
         Phone:(202) 473-4306
         E-mail: Aviveros@worldbank.org

         In Buenos Aires:
         Yanina Budkin
         Phone:(5411) 4316-9700
         E-mail: Ybudkin@worldbank.org
         URL: http://www.worldbank.org/gef



                            ***********


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
Sheryl Joy P. Olano, Editors.

Copyright 2005.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.

Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

The TCR Latin America subscription rate is $575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are $25 each.  For subscription
information, contact Christopher Beard at 240/629-3300.


* * * End of Transmission * * *