TCRLA_Public/060331.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

          Friday, March 31, 2006, Vol. 7, Issue 65

                            Headlines

A R G E N T I N A

ACTUAR MED: Claims Verification Deadline Is May 16
ALTA MEDICINA: Trustees to Stop Validating Claims on May 11
ARPISOL S.R.L.: Trustee Verifies Creditors' Claims Until June 19
BRANDO HERMANOS: Trustee Sets May 31 as Last Day to File Claims
CALANDRELLI Y ASOCIADOS: Trustee Sets April 17 Verification End

CARBI S.A.: Seeks Reorganization Approval from Court
CLAXSON INTERACTIVE: Reports 2005 Annual Financial Results
CONSTRUCCIONES DISARQ: Sets June 16 Claims Verification Deadline
DOCANE S.A.: Seeks Reorganization Approval from Court
TELECOM ARGENTINA: Obtains Unanimous Approval from Noteholders

* ARGENTINA: Inks Gas Supply Pact with Chile, Scraps 10% Cut
* BUENOS AIRES: S&P's Rating Upgrade Shows Solid Economic Growth

B E R M U D A

LORAL SPACE: Has US$627,164,000 Shareholders' Equity at Dec. 31

B R A Z I L

ABN AMRO: Inks Card Processing Pact with Bradesco & Fidelity
BANCO BRADESCO: Inks Card Processing Pact with ABN and Fidelity
CEB: Moody's Lowers Senior Unsecured Debentures' Rating to B3
COPEL: Realizes R$502 Million Net Income in 2005
GOL FINANCE: Announces Pricing of Perpetual Bond Offering

MACRO BANSUD: Selects Bank of NY as Depositary Bank for ADR
PARMALAT ALIMENTOS: Completes Sale of Etti Division to Assolan
PETROLEO BRASILEIRO: Targets Nigeria & Japan as Ethanol Markets
PETROLEO IPIRANGA: Extends Tender Offer Deadline to May 2

* BRAZIL: Currency, Bonds, Stock Suffer on New Minister Concerns
* BRAZIL: IMF Issues Statement on Finance Minister's Resignation
* Brazil: Fitch Suggests Keeping 4.25% of GDP Surplus Target

C A Y M A N   I S L A N D S

MILLENNIUM SHOPPING: Sets April 6 Claims Filing Deadline
NEW EDGE: Creditors Have Until April 6 to File Proofs of Claim
NEW EDGE CAPITAL: Creditors Must File Proofs of Claim by April 6
OBEREK II: Creditors Have Until April 6 to File Proofs of Claim
OL FRN: Sets April 6 Proofs of Claim Filing Deadline

C H I L E

COEUR D'ALENE: Subsidiary Agrees to Modify Silver Purchase Deal

C O L O M B I A

* COLOMBIA: State-Run Power Companies Report Profits for 2005

D O M I N I C A N   R E P U B L I C

* DOMINICAN REPUBLIC: U.S. Demands Approval of Purchase Law

E C U A D O R

* ECUADOR: Buying Back US$740 Million of 2012 Bonds by May 15

H O N D U R A S

* HONDURAS: Secures EUR20M Loan from EIB to Finance Road Project

J A M A I C A

SUGAR COMPANY: Potential Buyer Concerned About Bidding Delay

M E X I C O

CABLEMAS: Reschedules Filing of 2005 Fourth Quarter Results
CALPINE CORP: Agrees to Sell 45% Interest in Mexico Power Plant
TV AZTECA: Grupo Elektra Board Wants to Preserve 18.1% Stake

P A N A M A

* PANAMA: IDB Approves US$5 Million Loan for Coastal Management

P U E R T O   R I C O

DORAL FINANCIAL: Appoints Lidio Soriano as Chief Fin'l Officer
MUSICLAND HOLDING: Trans World Completes Acquisition of Assets

U R U G U A Y

* Venezuela's Bandes Plans to Expand to Other LatAm Countries

V E N E Z U E L A

* VENEZUELA: Wants BP Plc to Pay US$61.4 Million in Back Taxes


                            - - - - -

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


ACTUAR MED: Claims Verification Deadline Is May 16
--------------------------------------------------
The verification of creditors' claims for the Actuar Med S.A.
insolvency case is set to end on May 16, 2006, states Infobae.

Susana Graciela Marino, the court-appointed trustee tasked with
examining the claims, will submit the validation results as
individual reports on July 14, 2006.  She will also present a
general report in court on Sep. 11, 2006.

Infobae adds that a Buenos Aires court handles the company's
reorganization case.

The trustee can be reached at:

         Susana Graciela Marino
         Uruguay 560
         Buenos Aires, Argentina


ALTA MEDICINA: Trustees to Stop Validating Claims on May 11
-----------------------------------------------------------
Samuel Gregorio Szuchet -- the trustee appointed by the Buenos
Aires court for the Alta Medicina Asistencial S.A. bankruptcy
case -- will stop validating claims from the company's creditors
on May 11, 2006.

Mr. Szuchet will present the validated claims in court as
individual reports on June 26, 2006.  The trustee will also
submit a general report on the case on Aug. 21, 2006.

The debtor can be reached at:

         Alta Medicina Asistencial S.A.
         Avenida Directorio 4769
         Avenida Montes de Oca 1783
         Buenos Aires, Argentina

The trustee can be reached at:

         Samuel Gregorio Szuchet
         Avenida Corrientes 1309
         Buenos Aires, Argentina


ARPISOL S.R.L.: Trustee Verifies Creditors' Claims Until June 19
----------------------------------------------------------------
Creditors' claims against Arpisol S.R.L. will be verified until
June 19, 2006.  Court-appointed trustee Abraham Yalovetzky is
tasked with the verification.

Infobae relates that validated claims will be presented in court
as individual reports on Aug. 1, 2006.

The submission of a general report will follow on Sep. 13, 2006.

A Buenos Aires court handles the company's bankruptcy case.

The trustee can be reached at:

         Abraham Yalovetzky
         Lavalle 1567
         Buenos Aires, Argentina


BRANDO HERMANOS: Trustee Sets May 31 as Last Day to File Claims
---------------------------------------------------------------
Court-appointed trustee will stop verifying claims from Brando
Hermanos S.A.'s creditors on May 31, 2006, according to Infobae.

Infobae relates that an informative assembly is scheduled on
Dec. 6, 2006.

Brando Hermanos started reorganization after Buenos Aires' Court
No. 24 approved its petition to reorganize and appointed Mirts
Calfun de Bendersky as trustee.

Clerk No. 47 assists the court on this case.

The debtor can be reached at:

         Brando Hermanos S.A.
         Mario Bravo 58
         Buenos Aires, Argentina

Ms. Isabel Ana Ramirez, the trustee, can be reached at:

         Mirta Calfun de Bendersky
         Humahuaca 4165
         Buenos Aires, Argentina


CALANDRELLI Y ASOCIADOS: Trustee Sets April 17 Verification End
---------------------------------------------------------------
Court-appointed trustee Juan Marcelo Villoldo will stop
verifying claims from Calandrelli y Asociados S.A.'s creditors
on April 17, 2006.  Infobae relates that verified claims will be
used as basis in creating individual reports.

Infobae did not reveal in its Web site the date of the
presentation of individual reports in court.

Calandrelli y Asociados S.A. was declared bankrupt by a Buenos
Aires court after defaulting on its debt payments.

The trustee can be reached at:

         Juan Marcelo Villoldo
         Uruguay 651
         Buenos Aires, Argentina


CARBI S.A.: Seeks Reorganization Approval from Court
----------------------------------------------------
A court based in Buenos Aires is currently reviewing the merits
of the reorganization petition filed by Carbi S.A.  Argentine
daily La Nacion reports that the company filed the request after
defaulting on its debt payments.

The reorganization petition, if granted by the court, will allow
Carbi S.A. to negotiate a settlement with its creditors in order
to avoid a straight liquidation.


CLAXSON INTERACTIVE: Reports 2005 Annual Financial Results
----------------------------------------------------------
Claxson Interactive Group Inc. announced its financial results
for the three and twelve-month periods ended December 31, 2005.
As previously announced, the Company finalized the sale of its
TV Broadcast operation, Chilevision, on April 18, 2005.  In
addition, on May 6, 2005 Claxson completed the sale of the
language localization operations of The Kitchen.  In accordance
with applicable accounting principles, the assets, liabilities
and operations of Chilevision and the language localization
operations of The Kitchen were reflected as assets and
liabilities held for sale in the balance sheet and as
discontinued operations in the statement of operations of the
Company until the time of their sale.

                    Fourth Quarter 2005

Net revenue for the fourth quarter of 2005 was US$22.3 million,
a 20% increase from net revenue of US$18.6 million for the
fourth quarter of 2004.  Operating expenses for the three months
ended December 31, 2005 were US$19.6 million, an 18% increase
from the US$16.6 million for the fourth quarter of 2004.
Operating income was US$2.6 million for the three-month period
ended December 31, 2005 compared to US$2.0 million for the
three-month period ended December 31, 2004.  Foreign currency
exchange loss for the three-month period ended December 31, 2005
was US$1.4 million compared to a foreign exchange gain of US$0.3
million for the three-month period ended December 31, 2004.  Net
income from continuing operations for the three months ended
December 31, 2005 was US$0.5 million (US$0.02 per common and
diluted share), compared to US$0.8 million (US$0.04 per common
and diluted share) for the same period in 2004.  Net income for
the three months ended December 31, 2005 was US$0.1 million
(US$0.01 per common and diluted share), compared to US$2.3
million (US$0.11 per common and diluted share) for the same
period in 2004.

During the fourth quarter of 2005, the average exchange rate of
the Argentine and Chilean currencies compared to the U.S. dollar
depreciated 1% and appreciated 13%, respectively, versus the
same period in 2004.

                       Fiscal Year 2005

Net revenue for the twelve-month period ended December 31, 2005
was US$80.5 million, a 22% increase compared to $65.8 million
for the same period in 2004.  Operating expenses for the twelve-
month period ended December 31, 2005 were US$66.4 million, a 14%
increase compared to US$58.2 million in the same period of 2004.
Operating income was US$14.2 million for the twelve-month period
ended December 31, 2005 compared to US$7.5 million for the same
period in 2004.  Foreign currency exchange loss for the twelve-
month period ended December 31, 2005 was US$1.1 million, a
US$0.9 million difference with the US$0.2 million foreign
currency exchange loss for the same period of 2004.  Net income
from continuing operations for the twelve-month period ended
December 31, 2005 was US$8.0 million (US$0.39 per common and
US$0.37 per diluted share), versus US$4.9 million (US$0.25 per
common and US$0.24 per diluted share) for the same period in
2004.  Net income for the twelve-month period ended December 31,
2005 was US$5.3 million (US$0.26 per common and US$0.25 per
diluted share), versus US$6.7 million (US$0.34 per common and
US$0.33 per diluted share) for the same period in 2004.

During the twelve-month period ended December 31, 2005, the
average exchange rate of the Chilean currency compared to the
U.S. dollar appreciated 9%, while the Argentine currency
appreciated 1% versus the same period in 2004.

"We are really proud of Claxson's performance.  We have had an
excellent 2005 with more than $80 million in net revenues.  I
would like to highlight the growth of Pay TV, which increased
revenues by 18% for the year," said Roberto Vivo, Chairman and
CEO.  "After the merger in 2001; we went through a restructuring
period in 2002, and now have finally achieved a consolidation
stage."

                          Pay TV

Net revenue for the fourth quarter of 2005 was US$15.0 million,
a 19% increase from net revenue of US$12.6 million for the
fourth quarter of 2004.  The increase in net revenue is
principally attributable to an increase in subscriber-based fees
and to a lesser extent to advertising.  Net revenue for the
twelve-month period ended December 31, 2005 was US$56.1 million
compared to US$47.5 million for the same period of 2004.  The
increase in net revenue is principally attributable to an
increase in subscriber-based fees and to a lesser extent to
advertising and content and production services sold to third
parties.

Operating expense (before depreciation and amortization) for the
fourth quarter of 2005 was US$10.8 million compared to US$10.4
million for the same period in 2004.  The increase is
principally attributable to higher programming expenditures as a
result of increased original productions.  Operating expenses
(before depreciation and amortization) for the twelve-month
period ended December 31, 2005 were US$40.0 million compared to
US$36.7 million for the same period of 2004 primarily as a
result of higher programming expenditures.

Operating income for the fourth quarter of 2005 was US$3.7
million compared to operating income of US$1.5 million for the
same period in 2004.  Operating income for the twelve-month
period ended December 31, 2005 was US$14.0 million compared to
US$7.8 million for the same period of 2004.

As of December 31, 2005, the Company's owned basic and premium
channels reached (49.9) million aggregate subscribers, a 20%
growth compared to its subscriber base as of December, 2004.
Playboy TV, FTV, and Retro were the Company's channels that
reported the strongest growth compared to the same period in
2004.

                       Broadcast Radio

Net revenue for the fourth quarter of 2005 was US$7.2 million, a
22% increase from net revenue of US$5.9 million for the fourth
quarter of 2004.  The increase is primarily attributable to an
increase in Radio Chile's audience share to 39.4% as compared to
38.9% in the 2004 period as well as an 13% appreciation in the
Chilean peso as compared to 2004. Net revenue for the twelve-
month period ended December 31, 2005 was US$24.0 million
compared to $18.1 million for the same period of 2004. The
increase is primarily attributable to improved audience share in
Chile as well as an 9% appreciation in the Chilean peso as
compared to 2004.

Operating expenses (before depreciation and amortization) for
the fourth quarter of 2005 were US$6.1 million compared to
US$3.6 million for the same period in 2004.  The increase is due
to the appreciation of the Chilean peso, the increase in sales
and marketing costs directly related to the increase in
revenues, as well as increased production costs.  Operating
expenses (before depreciation and amortization) for the twelve-
month period ended December 31, 2005 were US$16.6 million
compared to US$11.6 million for the same period of 2004.  As was
the case in the fourth quarter, this increase is due to the
appreciation of the Chilean Peso, the increase in sales and
marketing costs and the increased production expenditures.

Operating income for the fourth quarter of 2005 was US$0.7
million, compared to US$1.8 million for the same period in 2004.
Operating income for the twelve-month period ended December 31,
2005 was US$5.5 million compared to US$4.8 million for the same
period of 2004.

                     Broadband & Internet

Net revenue for the fourth quarter of 2005 increased to
US$25,000 from $24,000 for the fourth quarter of 2004.  Net
revenue for the twelve-month period ended December 31, 2005 was
US$96,000 compared to US$100,000 for the same period of 2004.

Operating expenses (before depreciation and amortization) for
the fourth quarters of 2005 and 2004 were US$0.3 million.
Operating expense (before depreciation and amortization) for the
twelve-month period ended December 31, 2005 was US$1.1 million,
compared to US$1.0 million for the same period of 2004.

Operating loss for the fourth quarter of 2005 was US$0.3 million
compared to a US$0.2 million loss for the same period in 2004.
Operating loss for the twelve-month period ended December 31,
2005 was US$1.0 million, practically unchanged from the same
period of 2004.

"Although we are still recording losses, in the last quarter we
confirmed the interest in our ESDC platform from a number of
potential clients, especially record labels," said Roberto Vivo,
Chairman and CEO.

                          Liquidity

As of December 31, 2005, Claxson had cash and cash equivalents
of US$25.1 million and financial debt of US$68.8 million
including principal and accrued but unpaid interest.  In
addition, future interest payments on the Company's 8.75% Senior
Notes due in 2010, totaling US$13.0 million as of December 31,
2005, are recorded as debt.

For the twelve-month period ended December 31, 2005, Claxson's
operating activities generated cash flows of US$16.3 million
compared to US$3.6 million for the same period of 2004.  The
difference is primarily due to improved operating results.  Cash
generated from operating activities was primarily used for the
payment of debt obligations and for capital expenditures.  In
addition, during the twelve-month period ended December 31,
2005, Claxson received US$10.9 million, net of transaction
expenses paid, from the sale of assets (primarily Chilevision).
As part of the terms of the Chilevision sale, we retained
approximately US$5.9 million of Chilevision's accounts
receivable which are being collected as expected.

                 About Claxson Interactive

Claxson Interactive Group Inc. distributes content through pay
and broadcast television, radio, and the Internet. It owns or
distributes interests in more than a dozen pay TV channels,
including Playboy TV Latin America (81%).  The company also owns
a handful of Internet businesses (under the El Sitio name).
Claxson, which operates throughout North and South America, was
formed by the 2001 merger of El Sitio and Ibero-American Media
Partners, a joint-venture between the Cisneros Group of
Companies and HM Capital Partners.  CGC and HM Capital together
own about 60% of the company.

                        *    *    *

As reported in the Troubled Company Reporter on Jan. 2, 2006,
Fitch Argentina Calificadora de Riesgo S.A. maintained its
'B(arg)-' rating on US$44.4 million worth of undated
"Obligaciones negociables" bonds issued by Claxson Interactive
Group Inc.


CONSTRUCCIONES DISARQ: Sets June 16 Claims Verification Deadline
----------------------------------------------------------------
The verification of creditors' claims for the Construcciones
Disarq S.R.L. bankruptcy case is set to end on June 16, 2006,
states Infobae.

Infobae adds that Buenos Aires' Court No. 21, with the
assistance of Clerk No. 41, declared the company bankrupt in
favor of La Caja Aseguradora de Riesgos del Trabajo ART S.A.,
whom the company owes $6,910.30.  Liliana Rodriguez was
appointed as trustee.

The debtor can be reached at:

         Construcciones Disarq S.R.L.
         Combate de los Pozos 1835
         Buenos Aires, Argentina

The trustee can be reached at:

         Liliana Rodriguez
         Viamonte 2359
         Buenos Aires, Argentina


DOCANE S.A.: Seeks Reorganization Approval from Court
-----------------------------------------------------
A Buenos Aires court is currently reviewing the merits of the
reorganization petition filed by Docane S.A.  Argentine daily
Infobae reports that the company filed the request after
defaulting on its debt payments.

The reorganization petition, if granted by the court, will allow
Docane S.A. to negotiate a settlement with its creditors in
order to avoid a straight liquidation.


TELECOM ARGENTINA: Obtains Unanimous Approval from Noteholders
--------------------------------------------------------------
Telecom Argentina S.A. obtained unanimous approval from all
holders represented at the Extraordinary Meeting of Noteholders
held on March 27.  On March 21, 2006, the company announced that
it had obtained a level of authorizations equivalent to 63.35%
aggregate outstanding principal amount of the notes.

On February 24, 2006, the company initiated a consent
solicitation process by which it summoned holders of Series A
Notes (due October 15, 2014) and Series B Notes (due October 15,
2011) to attend, through the submission of a letter of
authorization or the completion of electronic proxies, to the
mentioned Extraordinary Meeting of Noteholders in order to
obtain the consent to approve certain amendments to the
Indenture dated August 31, 2005, between Telecom Argentina and
The Bank of New York as Trustee, Registration Agent, Paying
Agent and Transfer Agent.

In accordance with the resolutions passed by the Extraordinary
Meeting of Noteholders, the Trustee is empowered to execute a
supplemental indenture and related documentation in order to
introduce the approved modifications.

Headquartered in Buenos Aires, Telecom Argentina S.A. --
http://www.telecom.com.ar/index-flash.html-- is the fixed-line
operator for local and long-distance services in northern and
southern Argentina.  It also provides cellular and PCS phone
services in Argentina, as well as in Paraguay through a 68%
stake in Nocleo.  France Telecom formerly controlled the company
through its Nortel Inversora venture with Telecom Italia.
France Telecom sold most of its stake in 2003 to the Werthein
Group, an Argentine agricultural concern owned in part by vice
chairman Gerardo Werthein. Nortel continues to be Telecom
Argentina's largest shareholder with a 55% stake.  Nortel is
owned by Sofora, a consortium owned by Telecom Italia (50%), the
Werthein Group (48%), and France Telecom (2%).

                        *    *    *

Telecom Argentina's $64,128,000 and $54,124,000 notes due Oct.
15, 2014, carry Standard & Poor's and Fitch's B- ratings.


* ARGENTINA: Inks Gas Supply Pact with Chile, Scraps 10% Cut
------------------------------------------------------------
Argentina has inked an agreement with Chile which scrapped an
earlier proposal to cut natural gas suppy by 10%, Xinhua online
edition reports.

Due to rising local demands in Argentina, its gas supply to
Chile has been restricted since 2004.

Under the agreement, Argentine President Nestor Kirchner and his
Chilean counterpart Michelle Bachelet decided to give the
Bilateral Energy Matters Group the task of seeking a long-term
solution to Chile's gas supply issue, Xinhua reports.

The Bilateral Energy Matters panel will work out an agend for
2006-2010 focusing on government planning, public services,
energy, mines and transportation.

                        *    *    *

Fitch Ratings assigns these ratings on Argentina:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling     RD      Dec. 14, 2005
   Long Term IDR       B       Dec. 14, 2005
   Short Term IDR      B-      Jun.  3, 2005
   Local Currency
   Long Term Issuer
   Default Rating      B       Jun.  3, 2005


* BUENOS AIRES: S&P's Rating Upgrade Shows Solid Economic Growth
----------------------------------------------------------------
Standard & Poor's Ratings Services' recent upgrade of its rating
on the City of Buenos Aires reflects the links between different
levels of governments in the Republic of Argentina (B/Stable/B),
despite the city's high level of fiscal and financial autonomy.

In addition, the city's upgrade was also supported by its solid
economic and fiscal performances in recent years and the
expectation that this trend will continue over the next two
years despite the commencement in 2006 of most of the
amortization of the bonds restructured in 2003.

On March 23, 2006, Standard & Poor's raised its long-term issuer
credit rating on the City of Buenos Aires to 'B' from 'B-'
following a similar upgrade of Argentina's long-term sovereign
credit rating.  At the same time, Standard & Poor's raised its
national scale rating on the city to 'raAA-' from 'raA'.

Debt service on Buenos Aires' US$600 million outstanding bonds
totaled only US$67 million in 2005, mostly interest payments,
but the amount increases to US$130.7 million in 2006 and
US$124.5 million in 2007. However, anticipating the burden these
financial commitments will have in the budget, the city
authorities established an anticyclical fiscal fund whose
resources will be used to pay financial obligations.  The total
outstanding amount in the fund was US$120 million at the end of
2005.

The city's recent political problems ended with the mayor's
removal from office; however, this event has had no impact on
the city's economic, fiscal, and financial performance or
prospects. The legislative process against the mayor involved
the evaluation of the government's response to a tragic fire
during a concert in December 2004 that killed 194.  Former Mayor
Anibal Ibarra was first suspended and finally removed from
office in March 2006.  According to the city's Constitution,
Vice-Mayor Jorge Telerman replaced Mr. Ibarra and will lead the
city government until the 2007 elections.

The city's rating will continue to be constrained by the same
factors restricting Argentina's ratings, in particular the
uncertainty regarding the conclusion of contract renegotiations
with some privatized utilities and its effect upon investment
and prices. In addition, Argentina's access to international
capital markets is uncertain, and could limit the sovereign's
financial flexibility over the medium term.  Despite its
declining debt burden, the city's finances will continue to be
vulnerable to changing economic conditions in Argentina-in
particular due to its high exposure to exchange-rate movements
resulting from the city's high level of foreign-currency-
denominated debt, which is 80% of total.

These weaknesses are somehow offset at the current rating level
by a relatively wealthy and high-income economy, in which tax
collections are not as vulnerable to economic stress as
elsewhere in Argentina. This structural base, combined with the
rapid recovery of the economy after the deep economic, fiscal,
and financial crisis, has led to a solid fiscal performance that
accumulated three years of fiscal surpluses (equivalent to 12.4%
of operating revenue in 2003, 16.8% in 2004 and 3.8% in 2005).
Consequently, debt levels declined significantly during the same
period to 36% of total revenue in 2005 from 45% in 2004 and 55 %
in 2003.  However, as shown by the decrease in the fiscal
surplus from 2004 to 2005, the rapid recovery of revenue is
expected to slow in the future while expenditure pressures are
expected to rise, somehow enhancing the fiscal challenge going
forward.

Finally, the city's almost complete independence from federal
transfers, which accounted only for 12.9% of total revenue in
2005, diminishes the possible risk into the city's finances of
any potential, albeit unlikely, change to Argentina's
intergovernmental system (the coparticipation system).

Buenos Aires was one of the first Argentine entities, either
private or public, to concluded debt-restructuring negotiations
with international and local investors in March 2003.  In
general, the restructuring reduced the interest rate on the
existing bonds by just under one-third and extends their
maturities by one to four years; however, unlike the case of the
debt of Argentina, no change was made to the outstanding
principal.  Buenos Aires' foreign currency debt went into
default on April 11, 2002.

The stable outlook is based upon the expectation that the city's
economic, fiscal, and financial performances will continue to be
influenced by the challenges facing Argentina as it continues
the process of normalizing of its economic performance in the
wake of the economic crisis.


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


LORAL SPACE: Has US$627,164,000 Shareholders' Equity at Dec. 31
---------------------------------------------------------------
Loral Space & Communications Inc. reported its financial results
for the periods ended December 31, 2005.

Loral emerged from bankruptcy on November 21, 2005.  Its
financial statements reflect fresh-start accounting effective
October 1, 2005. References to full-year 2005 financial
information throughout this release combine the periods of
January 1, 2005, to October 1, 2005 (old Loral) with October 2,
2005, to December 31, 2005 (new Loral).

               Financial Results for the Periods
                   Ended December 31, 2005

For the full year 2005, Loral's revenue was US$626 million, an
increase from US$522 million in 2004.  New orders at Space
Systems/Loral coupled with a full year of service on Loral
Skynet's new Telstar 18 satellite led to the overall increase.
In 2005, Loral's net loss, excluding a US$1.102 billion gain on
the discharge of pre-petition obligations and fresh-start
adjustments, was US$74 million, versus a net loss of US$177
million in 2004.  Loral's 2005 Adjusted EBITDA was US$37 million
versus an Adjusted EBITDA loss of US$49 million in 2004.

Fourth quarter revenue was US$197 million, an increase over
US$106 million in the fourth quarter of 2004.  The company's net
loss in the fourth quarter of 2005 was US$15 million versus a
net loss of US$43 million in the fourth quarter of 2004.  In the
fourth quarter of 2005, Loral's Adjusted EBITDA was US$11
million, compared to an Adjusted EBITDA loss of US$20 million
for the fourth quarter of 2004.

Increases in Adjusted EBITDA for the quarter and the year were
driven by increased sales and improved operating performance at
both business units.

Loral ended 2005 with US$276 million in cash and cash
equivalents.  All undisputed pre-petition claims and chapter 11
expenses have been satisfied with the exception of US$54 million
to be paid in 2006.  Principal amount of long-term debt at year-
end 2005 was US$126 million.

                   Satellite Manufacturing

Space Systems/Loral (SS/L), the company's satellite
manufacturing subsidiary, had 2005 revenues before eliminations
of US$491 million, compared to US$437 million in 2004.  Adjusted
EBITDA for SS/L in 2005 was US$27 million, compared to an
Adjusted EBITDA loss of US$14 million in 2004.

For the fourth quarter, SS/L had revenues before eliminations of
US$162 million, versus US$137 million in the fourth quarter of
2004.  SS/L Adjusted EBITDA in the fourth quarter was US$12
million, up from an Adjusted EBITDA loss of US$12 million in the
year-ago quarter.  SS/L results were driven by increased sales
and improved performance on programs in process.

As a result of four new construction awards in 2005, backlog at
SS/L at December 31, 2005 rose to US$815 million, including
intercompany backlog of US$0.3 million.  At year-end 2004,
SS/L's backlog totaled $483 million, with intercompany backlog
of US$12 million.

In 2005, SS/L delivered five satellites, including iPSTAR, the
largest commercial communications satellite ever placed into
orbit.  In addition to Spainsat, which was launched on March 11,
four satellites currently under construction at SS/L are
scheduled for launch in 2006.

                     Satellite Services

Loral Skynet, the company's satellite services subsidiary, had
2005 revenues before eliminations of US$152 million, up from
US$141 million (excluding US$87 million from a sales-type lease
arrangement in 2004) in 2004.  The increase was driven primarily
by a full year of service from Telstar 18, which entered service
in August 2004, and increased utilization across Skynet's fleet.
At the end of 2005, utilization on Loral Skynet's satellite
fleet was 70 percent compared to 60 percent at the end of 2004.

Adjusted EBITDA for Loral Skynet in 2005 totaled US$51 million,
compared to 2004's $16 million (excluding US$7.7 million
associated with the sales-type lease arrangement).

Loral Skynet's fourth quarter 2005 revenues before eliminations
totaled US$37 million, versus $36 million in the same period a
year ago.  Adjusted EBITDA for Skynet in the fourth quarter was
US$12 million, versus US$9 million in the fourth quarter of
2004.

Satellite services backlog on December 31, 2005, was US$453
million versus US$543 million at the end of 2004.  Nearly three
times current annual revenue, 2005 backlog includes intercompany
backlog of US$20 million and 2004 backlog includes US$33 million
of intercompany backlog.

On March 18, 2006, Loral Skynet resumed offering fixed satellite
services to customers in North America.  It had been precluded
from offering basic FSS capacity leasing services to customers
in North America for two years pursuant to Loral's agreement to
sell certain of its North American assets to Intelsat in March
2004.

In addition, Loral Skynet recently announced the start of
construction of Telstar 11N, a new multi-beam Ku-band satellite
designed to take advantage of commercial and government
opportunities in key growth areas across the Americas, Europe
and Africa.  Skynet expects the satellite to enter service in
2008.

Loral Space & Communications -- http://www.loral.com/-- is a
satellite communications company.  It owns and operates a fleet
of telecommunications satellites used to broadcast video
entertainment programming, distribute broadband data, and
provide access to Internet services and other value-added
communications services.  Loral also is a world-class leader in
the design and manufacture of satellites and satellite systems
for commercial and government applications including direct-to-
home television, broadband communications, wireless telephony,
weather monitoring and air traffic management.

The Company and various affiliates filed for chapter 11
protection (Bankr. S.D.N.Y. Case No. 03-41710) on July 15, 2003.
Stephen Karotkin, Esq., and Lori R. Fife, Esq., at Weil, Gotshal
& Manges LLP, represent the Debtors in their successful
restructuring.  As of Dec. 31, 2004, the Company listed assets
totaling approximately $1.2 billion and liabilities totaling
approximately $2.3 billion.  The Court confirmed the Debtors'
chapter 11 Plan on Aug. 1, 2005.

At Dec. 31, 2005, Loral Space's balance sheet showed a positive
US$627,164,000 shareholders' equity compared with
US$1,044,101,000 shareholders' equity deficit at Dec. 31, 2004.


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


ABN AMRO: Inks Card Processing Pact with Bradesco & Fidelity
------------------------------------------------------------
Banco Bradesco S.A., Banco ABN AMRO Real and Fidelity National
Information Services, Inc., signed a definitive agreement to
form a joint venture company to provide comprehensive, fully
outsourced credit and prepaid card processing services to
Brazilian card issuers.  This partnership also includes
processing and services for Visa Vale, a leading provider of
prepaid meal vouchers to the Brazilian market.  This joint
venture will position Fidelity as the leading third-party card
processor in Brazil.

The joint venture is expected to generate revenue of
approximately US$2.0 billion over the next 12 years.  Once the
card portfolios are fully converted, profit margins are expected
to be consistent with overall company margins.

The new company, which will be named Fidelity Processadora e
Servicos S.A., will provide Brazil's most comprehensive range of
card processing and support services, including call center
management, back office support, card transaction processing,
risk management and collection services.

Fidelity expects to convert all card portfolios over the next 24
months.  Once the conversions are completed, Fidelity will
process over 20 million cards in Brazil, and over 63 million
cards worldwide, based on the existing card base.

"This joint venture will fundamentally change the way cards are
processed in Brazil," said Lee A. Kennedy, president and chief
executive officer of Fidelity.  "We are pleased to have been
selected as the technology and support services partner."

"We are committed to providing the most competitive range of
card processing services available in the Brazilian marketplace,
with the highest level of service possible," said Reginaldo
Zero, chief executive officer for Fidelity in Brazil.

"Working together with Fidelity and the other partners in this
joint venture, we anticipate a significant improvement in the
time to market and product availability, which will enable us to
become more competitive," said Arnaldo Vieira, executive vice-
president of Banco Bradesco.

"When the conversion is complete, this joint venture company
will be the largest third-party card processor in Brazil," said
Marcos Matioli, executive director of Banco ABN AMRO Real. "We
are impacting the market and look forward to the benefits we
will achieve, and can pass on to our customers."

                   About Fidelity National

Fidelity National Information Services, Inc., is a leading
provider of core processing for financial institutions; card
issuer and transaction processing services; mortgage loan
processing and mortgage-related information products; and
outsourcing services to financial institutions, retailers,
mortgage lenders and real estate professionals.  FIS has
processing and technology relationships with 35 of the top 50
global banks, including nine of the top ten.  Nearly 50 percent
of all U.S. residential mortgages are processed using FIS
software. Headquartered in Jacksonville, Florida, FIS maintains
a strong global presence, serving over 7,800 financial
institutions in more than 60 countries worldwide.

                   About Banco ABN AMRO

Banco ABN AMRO Real, a subsidiary of Dutch ABN AMRO, is the 4th
largest Brazilian private retail bank, operating though 1,900
branches and mini-branches and serving more than 12 million
clients.  As of December 2005, Banco Real managed over BRL46
billion in credit assets, including guarantees, and BRL78
billion in client savings.

                   About Banco Bradesco

Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco
-- http://www.bradesco.com.br/-- prides itself on serving low-
and medium-income individuals in Brazil since the 1960s.
Bradesco is Brazil's largest private bank, with more than 3,000
banking branches, and also a leader in insurance and private
pension management.  Bradesco has branches throughout Brazil as
well as one in New York, two in the Bahamas, and four in the
Cayman Islands.  Bradesco offers Internet banking, insurance,
pension plans, annuities, credit card services (including
football-club affinity cards for the soccer-mad population), and
Internet access for customers.  The bank also provides personal
and commercial loans, along with leasing services.

                        *    *    *

As reported by Troubled Company Reporter on Feb. 23, 2006,
Moody's Investors Service shifted Banco Bradesco S.A.'s 'C-'
bank financial strength rating to positive from stable.

                        *    *    *

On Oct. 19, 2005, Moody's Investors Service upgraded Banco ABN
Amro Real S.A.'s long-term foreign currency deposit rating to B1
from B2.  Moody's maintained a positive outlook on the rating.

This action followed Moody's upgrade of Brazil's foreign
currency ceiling for deposits to B1, from B2, and the foreign
currency country ceiling for bonds and notes to Ba3, from B1.
The country ceilings have a positive outlook.


BANCO BRADESCO: Inks Card Processing Pact with ABN and Fidelity
---------------------------------------------------------------
Banco Bradesco S.A., Banco ABN AMRO Real and Fidelity National
Information Services, Inc., signed a definitive agreement to
form a joint venture company to provide comprehensive, fully
outsourced credit and prepaid card processing services to
Brazilian card issuers.  This partnership also includes
processing and services for Visa Vale, a leading provider of
prepaid meal vouchers to the Brazilian market.  This joint
venture will position Fidelity as the leading third-party card
processor in Brazil.

The joint venture is expected to generate revenue of
approximately US$2.0 billion over the next 12 years.  Once the
card portfolios are fully converted, profit margins are expected
to be consistent with overall company margins.

The new company, which will be named Fidelity Processadora e
Servicos S.A., will provide Brazil's most comprehensive range of
card processing and support services, including call center
management, back office support, card transaction processing,
risk management and collection services.

Fidelity expects to convert all card portfolios over the next 24
months.  Once the conversions are completed, Fidelity will
process over 20 million cards in Brazil, and over 63 million
cards worldwide, based on the existing card base.

"This joint venture will fundamentally change the way cards are
processed in Brazil," said Lee A. Kennedy, president and chief
executive officer of Fidelity.  "We are pleased to have been
selected as the technology and support services partner."

"We are committed to providing the most competitive range of
card processing services available in the Brazilian marketplace,
with the highest level of service possible," said Reginaldo
Zero, chief executive officer for Fidelity in Brazil.

"Working together with Fidelity and the other partners in this
joint venture, we anticipate a significant improvement in the
time to market and product availability, which will enable us to
become more competitive," said Arnaldo Vieira, executive vice-
president of Banco Bradesco.

"When the conversion is complete, this joint venture company
will be the largest third-party card processor in Brazil," said
Marcos Matioli, executive director of Banco ABN AMRO Real. "We
are impacting the market and look forward to the benefits we
will achieve, and can pass on to our customers."

                   About Fidelity National

Fidelity National Information Services, Inc., is a leading
provider of core processing for financial institutions; card
issuer and transaction processing services; mortgage loan
processing and mortgage-related information products; and
outsourcing services to financial institutions, retailers,
mortgage lenders and real estate professionals.  FIS has
processing and technology relationships with 35 of the top 50
global banks, including nine of the top ten.  Nearly 50 percent
of all U.S. residential mortgages are processed using FIS
software. Headquartered in Jacksonville, Florida, FIS maintains
a strong global presence, serving over 7,800 financial
institutions in more than 60 countries worldwide.

                   About Banco ABN AMRO

Banco ABN AMRO Real, a subsidiary of Dutch ABN AMRO, is the 4th
largest Brazilian private retail bank, operating though 1,900
branches and mini-branches and serving more than 12 million
clients.  As of December 2005, Banco Real managed over BRL46
billion in credit assets, including guarantees, and BRL78
billion in client savings.

                   About Banco Bradesco

Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco
-- http://www.bradesco.com.br/-- prides itself on serving low-
and medium-income individuals in Brazil since the 1960s.
Bradesco is Brazil's largest private bank, with more than 3,000
banking branches, and also a leader in insurance and private
pension management.  Bradesco has branches throughout Brazil as
well as one in New York, two in the Bahamas, and four in the
Cayman Islands.  Bradesco offers Internet banking, insurance,
pension plans, annuities, credit card services (including
football-club affinity cards for the soccer-mad population), and
Internet access for customers.  The bank also provides personal
and commercial loans, along with leasing services.

                        *    *    *

As reported by Troubled Company Reporter on Feb. 23, 2006,
Moody's Investors Service shifted Banco Bradesco S.A.'s 'C-'
bank financial strength rating to positive from stable.

                        *    *    *

On Oct. 19, 2005, Moody's Investors Service upgraded Banco ABN
Amro Real S.A.'s long-term foreign currency deposit rating to B1
from B2.  Moody's maintained a positive outlook on the rating.

This action followed Moody's upgrade of Brazil's foreign
currency ceiling for deposits to B1, from B2, and the foreign
currency country ceiling for bonds and notes to Ba3, from B1.
The country ceilings have a positive outlook.


CEB: Moody's Lowers Senior Unsecured Debentures' Rating to B3
-------------------------------------------------------------
Moody's America Latina downgraded CEB aka Companhia Energetica
de Brasilia's senior unsecured debentures due in 2006 to B3 from
Ba3 on its global scale and to B1.br from Baa1.br on its
Brazilian national scale.  The outlook is negative.  The rating
action concludes the review process initiated on June 28th,
2005.

The downgrade of CEB's debentures ratings reflects essentially
the overall deterioration of the company's credit metrics and
significant refinancing risk, while also incorporating a joint-
default analysis with the Federal District of Brazil as its
controlling shareholder, in line with Moody's rating methodology
for Government-Related Issuers.

With over 89% of its voting shares directly and indirectly owned
by the government of the Federal District, Moody's regard CEB as
a Government-Related Issuer.  According to Moody's rating
methodology for GRIs, the global local currency rating of CEB's
debentures reflects its baseline rating of 6, along a scale of 1
to 6 where 1 is ranked the lowest risk, and incorporates Moody's
view of the high default dependence between CEB and the Federal
District in addition to Moody's expectation of a low level of
support that would be provided by the Federal District if CEB
were to require an extraordinary bailout.

CEB's baseline rating of 6 reflects Moody's view of the
company's high fundamental credit risk and, consequently, of a
high likelihood that the company will require an extraordinary
bailout in the foreseeable future.  To a large extent, this is
based on the high refinancing risk resulting from CEB's
excessive indebtedness when compared to cash flow generation,
its increasing operational inefficiencies, and the still
existing uncertainties related to Brazil's regulatory framework
for the energy sector.  The baseline rating is, however,
supported by the company's essentially monopolistic position in
energy distribution in its attractive concession territory, by
the financial support received from Eletrobras, and by the
increasing revenues from power generation based on long-term
power purchase agreements.

According to regulatory requirements, in December 2005 CEB
concluded an organizational restructuring aiming at de-
verticalizing its power generation and distribution operations,
which were spun-off into newly created subsidiaries while CEB
remained as a holding company.  The rated unsecured debentures
remained at CEB as its only debt, however, guaranteed by CEB
Lajeado, a relatively small subsidiary that owns 12% of the
Lajeado hydropower plant.  Based on the aforesaid, the B1.br
rating of the debentures also incorporates the structural
subordination of CEB's debt relative to substantial secured
obligations at its operating subsidiaries representing some 72%
of consolidated total adjusted debt at September 30, 2005.

The B1.br national scale rating assigned to the debentures
reflects the standing of the company's issuance credit quality
relative to its domestic peers.  Moody's National Scale Ratings
are intended as relative measures of creditworthiness among debt
issues and issuers within a country, enabling market
participants to better differentiate relative risks. NSRs in
Brazil are designated by the ".br" suffix.  NSRs differ from
global scale ratings in that they are not globally comparable to
the full universe of Moody's rated entities, but only with other
rated entities within the same country.

CEB's operating performance has been impaired by increasing
delinquency rates and energy losses, besides insufficient tariff
increases to cover the company's heavy cost structure.  During
2005 CEB implemented a severance program aiming at adjusting its
costs to the regulator's benchmark level.  Moody's believes the
impact of the severance plan will be negative in a first moment
as related expenses will constrain free cash flow.  In addition,
Moody's is concerned about the potential impact that experienced
professionals leaving the company could have on the quality of
CEB's operating and administrative capabilities.

Moody's continues to see CEB's BRL 620 million adjusted
indebtedness as of September 30, 2005, including BRL 353 million
renegotiated energy supply payables owed to Furnas and Itaipu,
as excessive relative to the company's cash flow. Total Adjusted
Debt to LTM EBITDA ratio further deteriorated to 10.5x at
September 30, 2005, up from 8.5x in 2004 fiscal year.

Due to its weak free cash flow generation, CEB has been forced
to refinance the bulk of maturing debt with new loans and has
relied upon expensive floating rate short-term local currency
bank loans backed by receivables, which has led to a further
deterioration of its liquidity position and cash flow.  At
September 30, 2005 some BRL140 million of its adjusted debt was
due within one year through September-2006, including the BRL 21
million outstanding debentures rated by Moody's.   The lack of
committed credit lines, which are not usual in Brazil, combined
with the weak cash flow expected for 2006 further support
Moody's opinion that CEB faces high refinancing risk.

The ratings' outlook is negative based on Moody's belief that
CEB will continue to struggle to generate sufficient free cash
flow in the quarters ahead, which will demand significant
efforts by the company's management to refinance the existing
short-term debt.

The ratings of CEB's debentures could be under pressure for a
possible downgrade if the company is not able to refinance its
maturing debt in a timely fashion.  Since Moody's does not
believe that the free cash flow generation will dramatically
improve in the foreseeable future, Moody's does not anticipate
an upgrade of CEB's debentures ratings.  However, substantial
and sustainable improvements in financial performance and
flexibility could improve the company's credit profile.

Headquartered in Brasilia, Brazil, CEB is an electricity
distribution company serving about 714,000 consumers of the
Federal District, besides holding investments in power
generation utilities.  CEB reported consolidated net revenues of
approximately BRL 848 million or about USD 330 million in the
twelve months ended September 30, 2005.


COPEL: Realizes R$502 Million Net Income in 2005
------------------------------------------------
Companhia Paranaense de Energia aka COPEL, a company that
generates, transmits, and distributes power to the State of
Parana, announces its operating results for 2005.  All figures
included in this report are in thousands of Reais (R$1,000) and
were prepared in accordance with Brazilian GAAP, a corporate
law.

                     2005 Highlights

     * Net Operating Revenue: R$4,854 million -- a 23.6%
       increase compared to  the same period of 2004.

     * Operating Income: R$728 million -- 21.2% higher than the
       amount recorded in the previous year.

     * Net Income: R$502 million (R$1.84 per thousand shares),
       34.3% higher than the amount recorded in 2004 (R$374
       million).

     * Increase in total electric power consumption at COPEL's
       concession area is 3.6%.

     * EBITDA (earnings before interest, taxes, depreciation and
       amortization): R$1,149 million.

     * Return on Equity: 10.1% p.a. and

     * As from June 1, 2005, COPEL has no longer been recording
       provisions for payments under the gas supply contract
       between COPEL, Petrobras and Compagas, due to its
       termination.

Headquartered in Parana, Brazil, COPEL aka Companhia Paranaense
de Energia SA -- http://www.copel.com/-- transmits and
distributes electricity to more than 3 million customers in the
state of Paran and has a generating capacity of nearly 4,600 MW,
primarily from hydroelectric plants.  COPEL also offers
telecommunications, natural gas, engineering, and water and
sanitation services.  The company restructured its utility
operations in 2001 into separate generation, transmission, and
distribution subsidiaries to prepare for full privatization,
which has been indefinitly postponed.  In response, COPEL is
re-evaluating its corporate structure.  The government of Paran
controls about 59% of COPEL.

                        *    *    *

Copel's BRL100,000,000 debentures due March 1, 2007, is rated
Ba3 by Moody's.


GOL FINANCE: Announces Pricing of Perpetual Bond Offering
---------------------------------------------------------
Gol Finance -- a wholly owned subsidiary of GOL Linhas Aereas
Inteligentes aka Gol, Brazil's low-cost, low-fare airline -- has
priced an offering of US$200 million aggregate principal amount
of 8.75% perpetual notes in a transaction exempt from
registration under the United States Securities Act of 1933, as
amended.  The company's parent and another subsidiary -- Gol
Transportes Aereos S.A. -- will guarantee the notes.

The perpetual notes will be senior unsecured debt obligations of
Gol Finance and have no fixed final maturity date, but will be
callable at par after five years.  Gol intends to use the
proceeds of the offering to finance the acquisition of Boeing
737 Next Generation aircraft, as a complement to its U.S. Exim
Bank guaranteed bank financing.  The transaction is expected to
close on April 5, 2006.

The notes -- and the guarantees -- have not been and will not be
registered under the Securities Act and may not be offered or
sold:

    (a) in the United States absent registration or an
        applicable exemption from registration under the
        Securities Act; or

    (b) in any other jurisdiction in which such offer or sale is
        prohibited.

                        *    *    *

As reported by the Troubled Company Reporter on March 23, 2006,
Moody's Investors Service has assigned a Ba2 Foreign Currency
Debt Rating to the proposed USD $250 million guaranteed senior
unsecured perpetual bonds to be issued by Gol Finance, an
offshore subsidiary of Gol Linhas Aereas Inteligentes S.A.  The
bond will be jointly, severally and unconditionally guaranteed
on a senior unsecured unsubordinated basis by Gol Transportes
Aereos S.A., which is its primary operating subsidiary, and Gol
Linhas Aereas Inteligentes S.A..  Simultaneously, Moody's
assigned a Ba2 Global Local Currency Corporate Family Rating to
Gol.  The outlook is stable.


MACRO BANSUD: Selects Bank of NY as Depositary Bank for ADR
-----------------------------------------------------------
Banco Macro Bansud S.A. has selected the Bank of New York as
depositary bank for its American depositary receipt aka ADR
program.

Each Banco Macro Bansud ADR represents 10 Class B shares.  The
ADRs trade on the New York Stock Exchange under the symbol BMA.
The Class B shares trade on the Buenos Aires Stock Exchange
under the symbol BSUD.

The Bank of New York is depositary for more than 1,230 American
and global depositary receipt programs, a 64% market share,
acting in partnership with leading companies from 60 countries.
With an unrivalled commitment to helping securities issuers
succeed in the world's rapidly evolving financial markets, the
Bank delivers the industry's most comprehensive suite of
integrated depositary receipt, corporate trust and stock
transfer services.

The Bank of New York has been conducting business in Argentina,
Mexico and Brazil for over 100 years.  The company offers a full
range of securities servicing, global payments, asset management
and trade finance products.

                       *    *    *

On Dec. 13, 2005, Moody's Investors Service affirmed the credit
ratings of Banco Macro Bansud S.A. following the latter's
announcement that it has acquired the 75% stake in
Banco del Tucuman S.A. from Banco Comafi S.A. for US$17.3
million.

In affirming Macro's ratings, Moody's said that the acquisition,
which is pending regulatory approval, does not change the bank's
risk or business profile.

Macro announced on November 9 it was taking over selected assets
and liabilities of Banco Empresario de Tucuman, worth
approximately US$35.8 million, which included eight branches in
the Province of Tucuman. These acquisitions should grant the
Macro group a dominant position in the province.

Banco Macro Bansud S.A. is headquartered in Buenos Aires,
Argentina. As of June 2005, the bank's total assets were US$2.4
billion.

The following ratings of Banco Macro Bansud S.A. were affirmed:

    -- Bank Financial Strength Rating: E -- Positive Outlook
    -- Long- Term Global Local Currency Deposits: Ba3
    -- Short -Term Global Local Currency Deposits: Not Prime
    -- National Scale Rating for Local Currency Deposits: Aa2.ar
    -- Long -Term Foreign Currency Deposits: Caa1
    -- Short -Term Foreign Currency Deposits: Not Prime
    -- National Scale Rating for Foreign Currency Deposits:
       Ba1.ar.


PARMALAT ALIMENTOS: Completes Sale of Etti Division to Assolan
--------------------------------------------------------------
The Brazilian unit of bankrupt Italian food company, Parmalat
Finanziaria SpA, has completed the sale of its tomato division
-- Etti -- to Assolan.

Assolan, a subsidiary of the Monte Cristalina group, bought the
tomato division for an undisclosed amount.

Etti is located in Aracatuba in Sao Paulo, Brazil.

Headquartered in Wallington, New Jersey, Parmalat USA
Corporation -- http://www.parmalatusa.com/-- generates more
than 7 billion euros in annual revenue.  The Parmalat Group's
40-some brand product line includes milk, yogurt, cheese,
butter, cakes and cookies, breads, pizza, snack foods and
vegetable sauces, soups and juices and employs over 36,000
workers in 139 plants located in 31 countries on six continents.
The Company filed for chapter 11 protection on February 24, 2004
(Bankr. S.D.N.Y. Case No. 04-11139).  Gary Holtzer, Esq., and
Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP,
represent the Debtors.  When the U.S. Debtors filed for
bankruptcy protection, they reported more than $200 million in
assets and debts.  The U.S. Debtors emerged from bankruptcy on
April 13, 2005.


PETROLEO BRASILEIRO: Targets Nigeria & Japan as Ethanol Markets
---------------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras has the capacity to export
50 million litres of ethanol a month.  Currently all of the
company's exports go to Venezuela.

According to Petrobras' ethanol manager Sillas Oliva Filho, the
company should start selling to Nigeria this year.  Japan is
another of Petrobras' targets.  In 2005, the company created the
Brasil-Japan Ethanol joint-venture with Japan Ethanol Trading,
according to Noticias Financieras.

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
S.A. aka Petrobras was founded in 1953.  The company explores,
produces, refines, transports, markets, distributes oil and
natural gas and power to various wholesale customers and retail
distributors in the country.

                        *    *    *

Petroleo Brasileiro SA's long-term corporate family rating is
rate Ba3 by Moody's and its foreign currency long-term debt is
rated BB- by Fitch.

                        *    *    *

Fitch assigns these ratings to Petroleo Brasileiro's senior
unsecured notes:

  Maturity Date           Amount        Rate       Ratings
  ______________          ______        ____       _____
  April  1, 2008        $400,000,000    9%          BB-
  July   2, 2013        $750,000,000    9.125%      BB-
  Sept. 15, 2014        $650,000,000    7.75%       BB-
  Dec.  10, 2018        $750,000,000    8.375%      BB-


PETROLEO IPIRANGA: Extends Tender Offer Deadline to May 2
---------------------------------------------------------
Companhia Brasileira de Petroleo Ipiranga extended the deadline
for its previously announced cash tender offer for any and all
of its outstanding 7.875% Step-Up Notes due 2008 (CUSIP Nos.
20440RAB2 and P3057NAA6) and the related consent solicitation,
it has extended the expiration date for the Tender Offer from
5:00 p.m., New York City time, on April 11, 2006, to 9:00 a.m.,
New York City time, on May 2, 2006, unless further extended or
earlier terminated.

Accordingly, the price determination date will be at 2:00 p.m.,
New York City time, on April 18, 2006.

On March 8, 2006, Ipiranga commenced the Tender Offer and
Consent Solicitation pursuant to an Offer to Purchase and
Consent Solicitation Statement and a Consent and Letter of
Transmittal, each dated March 8, 2006.

As of 5:00 p.m., New York City time, on March 28, 2006, which
was the "Consent Payment Deadline," US$75.1 million aggregate
principal amount of the notes had been tendered, representing
56.2% of the US$133,715,000 aggregate principal amount of notes
outstanding, and related consents delivered.

As the Consent Payment Deadline has passed, holders who validly
tender notes after 5:00 p.m., New York City time, on March 28,
2006, but before the expiration date will be eligible to receive
the "Tender Offer Consideration" set forth in the Offer to
Purchase plus accrued interest, but will not be eligible to
receive the US$30 per US$1,000 principal amount consent payment.

As the withdrawal rights deadline has passed, tendered notes may
not be withdrawn and consents delivered may not be revoked,
except in the limited circumstances described in the Offer to
Purchase.  The Tender Offer and Consent Solicitation are subject
to Ipiranga's arranging new debt financing and other customary
general conditions.

Following Ipiranga's receipt of the requisite consents in the
Consent Solicitation, on March 22, 2006, Ipiranga entered into a
supplemental fiscal agency agreement relating to the notes that
effects the proposed amendments described in the Offer to
Purchase.  The proposed amendments would, among other things,
eliminate substantially all of the restrictive covenants and
certain events of default contained in the notes.  The proposed
amendments will not become operative, however, unless and until
the notes are accepted for purchase pursuant to the terms of the
Tender Offer.  Holders of Notes not tendered in the Tender Offer
will be bound by the proposed amendments once they become
operative.

Banc of America Securities LLC is the exclusive dealer manager
for the Tender Offer and exclusive solicitation agent for the
Consent Solicitation and questions should be directed to:

        High Yield Special Products
        +(1) 888-292-0070 (U.S. toll-free)
        +(1) 704-388-9217 (collect)

Copies of the Offer to Purchase may be obtained from the
Information Agent:

        D.F. King & Co., Inc.,
        +(1) 800-859-8511 (U.S. toll-free)
        +(1) 212-269-5550 (collect)

This press release does not constitute an offer to purchase or
the solicitation of an offer to sell or a solicitation of
consents with respect to the Notes.  The Tender Offer and
Consent Solicitation may only be made in accordance with the
terms of and subject to the conditions specified in the Offer to
Purchase, which more fully sets forth the terms and conditions
of the Tender Offer and Consent Solicitation.  Except as
modified, all other terms and conditions of the Tender Offer and
the Consent Solicitation remain the same.

Companhia Brasileira de Petroleo Ipiranga distributes diesel,
gasoline, hydrated alcohol, industrial and automotive
lubricating oils and greases, natural gas and other related
products and activities.

                        *    *    *

As reported on Feb. 28, 2006, Moody's Investors Service upgraded
to Ba3 from B1 the foreign currency rating of Companhia
Brasileira de Petroleo Ipiranga's outstanding US$134 million
step-up senior unsecured notes due 2008.  The outlook of the
notes rating was changed from positive to stable.  The Ba3
foreign currency rating of the notes is presently not
constrained by Brazil's sovereign ceiling.

The rating is supported by Ipiranga's position as the second
largest fuel distribution company in Brazil, and its
demonstrated ability to defend and expand its market share in
the Brazilian fuel distribution market while maintaining
acceptable operating margins.  In addition, the rating
incorporates the company's efficient logistics and strong brand
recognition, as well as the improved competitive environment for
the diesel and gasoline markets in Brazil.

At the same time, the rating is constrained by Ipiranga's
volatile working capital needs, its high dependence on
Petrobras' for fuel supply, the increased capex and dividends
distribution which have negatively impacted its free cash flow
generation, and by the fierce competition in the fast-growing
ethanol market.


* BRAZIL: Currency, Bonds, Stock Suffer on New Minister Concerns
----------------------------------------------------------------
The appointment of Guido Mantega as Brazil's new finance
minister has raised concerns that negatively affected the
country's currency, bonds and stocks.

According to Bloomberg News, Brazil's currency, bonds and stocks
declined on concern that the new finance minister will raise
government spending and push for lower interest rates before a
presidential election this year.

Former finance minister Antonio Palocci resigned amidst charges
he violated bank secrecy laws by pulling account information on
a congressional witness that was leaked to the press and
frequented a house in Brasilia where lobbyists threw parties
with prostitutes and apparent bribe money arrived by the
suitcase.

Mr. Mantega, a former budget minister and state development bank
president, doesn't have the same credibility as an inflation
fighter as the former finance minister who was hailed as the
architect of Brazil's economic recovery.  Mr. Palocci helped cut
the inflation rate by more than half, control government
spending and curb the budget deficit since 2003.

"Mantega has had a different attitude in terms of government
spending, inflation controls," Joao Medeiros, a partner at Sao
Paulo-based Pioneer Corretora de Cambio, which handles about a
third of Brazil's daily foreign exchange trading, told
Bloomberg.  "We may have a loosening of all the controls we've
seen implemented successfully so far."

Brazil's currency had its biggest decline since Aug. 11, sinking
3.2% to 2.2435 reals to the dollar on Mar. 28 at 4:24 p.m. New
York time. The real has weakened more than 5% since March 16,
trimming its gains over the past 12 months to 21%, according to
Bloomberg.

The yield on Brazil's benchmark bonds callable in 2015 rose to
its highest since Dec. 20.  The yield to call rose 18 basis
points, or 0.18 percentage point, to 6.92%, according to
JPMorgan Chase & Co. The bond's price, which moves inversely to
the yield, declined 1.45 cents on the dollar to 127.8.

As a result of the yields' increase, Brazil cancelled its weekly
sale of domestic fixed-rate bonds.

Mr. Mantega, speaking for the first time as finance minister
said that he plans to lower interest rates further and faster to
stimulate production and consumption.

"The Brazilian economy is moving forward like someone driving a
car with their foot on the brake," Mr. Mantega has said at a
news conference on Nov. 30, 2005, at the state development bank.

Mr. Mantega is opposed to Mr. Palocci's "market-friendly
policies" the last three years, Bloomberg quoted Christian
Stracke, emerging market strategist at CreditSights Inc. in
Augusta, Georgia.

The choice of Mantega "reflects deep down the discomfort that
President Lula has felt regarding the weak economic expansion
Brazil had last year because of the restrictive monetary
policy," Rubens Ricupero, a former Brazilian finance minister,
told Bloomberg.  "This change signals the beginning of an
inflection in monetary policy."

Mr. Mantega was planning minister between January 2003 and
November 2004.  In that post, he sought to encourage Brazilian
companies to use more locally made goods and substitute imports
to boost the trade surplus.

                        *    *    *

As reported on Mar. 29, 2006, Standard & Poor's Ratings Services
said that the resignation of Mr. Antonio Palocci, the finance
minister of the Federative Republic of Brazil, does not affect
the country's sovereign credit ratings.

"Minister Palocci's resignation does not hurt Brazil's credit
rating or change the underlying economic policies or conditions
in the country," said Standard & Poor's credit analyst Lisa
Schineller.  "The sovereign ratings reflect a broad view of
Brazil and its government.  Finance Minister Palocci's policies
embodied prudence but, in our view, this was government policy
and not the minister's personal strategy," she added.

Ms. Schineller noted that the recent improvements in Brazil's
sovereign ratings reflect a consistent macroeconomic framework
that includes a floating exchange-rate regime as well as
inflation and fiscal consolidation strategies.

"This policy framework has bolstered the sovereign's fiscal
performance and we expect that it will be followed by his
successor," she concluded.

Standard & Poor's raised its long-term sovereign credit ratings
on Brazil on Feb. 28, 2006.  The long-term foreign currency
rating was raised to 'BB' from 'BB-', and the long-term local
currency rating was raised 'BB+' from 'BB'.  At the same time,
Standard & Poor's raised its national scale credit rating on
Brazil to 'brAA+' from 'brAA'.  In addition, Standard & Poor's
affirmed its 'B' short-term foreign and local currency sovereign
credit ratings on the republic.  The outlook is stable.

                        *    *    *

Fitch Ratings assigns these ratings on Brazil:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling    BB-      Nov. 18, 2004
   Long Term IDR      BB-      Dec. 14, 2005
   Short Term IDR     B        Dec. 14, 2005
   Local Currency
   Long Term Issuer
   Default Rating     BB-      Dec. 14, 2005


* BRAZIL: IMF Issues Statement on Finance Minister's Resignation
---------------------------------------------------------------
Mr. Rodrigo de Rato, Managing Director of the International
Monetary Fund, issued the following statement on the resignation
of Brazilian Finance Minister Antonio Palocci:

"I have just learned of Minister Palocci's resignation. I would
like to take this opportunity to emphasize Brazil's achievements
under Minister Palocci's stewardship.  Sound macroeconomic
policies, supported by steps to strengthen the underlying policy
framework and institutions and important fiscal structural
reforms, have been critical in attaining a welcome degree of
macroeconomic stability.  This stability has been key to
Brazil's encouraging recent growth performance, which in turn is
reflected in indications of progress in reducing poverty.  On
these foundations, further progress can be made in the period
ahead toward securing a higher living standard for all
Brazilians.

"I look forward to working closely with Minister Mantega, who
has a distinguished record as Minister of Planning and president
of the National Development Bank."

                        *    *    *

As reported on Mar. 29, 2006, Standard & Poor's Ratings Services
said that the resignation of Mr. Antonio Palocci, the finance
minister of the Federative Republic of Brazil, does not affect
the country's sovereign credit ratings.

"Minister Palocci's resignation does not hurt Brazil's credit
rating or change the underlying economic policies or conditions
in the country," said Standard & Poor's credit analyst Lisa
Schineller.  "The sovereign ratings reflect a broad view of
Brazil and its government.  Finance Minister Palocci's policies
embodied prudence but, in our view, this was government policy
and not the minister's personal strategy," she added.

Ms. Schineller noted that the recent improvements in Brazil's
sovereign ratings reflect a consistent macroeconomic framework
that includes a floating exchange-rate regime as well as
inflation and fiscal consolidation strategies.

"This policy framework has bolstered the sovereign's fiscal
performance and we expect that it will be followed by his
successor," she concluded.

Standard & Poor's raised its long-term sovereign credit ratings
on Brazil on Feb. 28, 2006.  The long-term foreign currency
rating was raised to 'BB' from 'BB-', and the long-term local
currency rating was raised 'BB+' from 'BB'.  At the same time,
Standard & Poor's raised its national scale credit rating on
Brazil to 'brAA+' from 'brAA'.  In addition, Standard & Poor's
affirmed its 'B' short-term foreign and local currency sovereign
credit ratings on the republic.  The outlook is stable.

                        *    *    *

Fitch Ratings assigns these ratings on Brazil:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling    BB-      Nov. 18, 2004
   Long Term IDR      BB-      Dec. 14, 2005
   Short Term IDR     B        Dec. 14, 2005
   Local Currency
   Long Term Issuer
   Default Rating     BB-      Dec. 14, 2005


* Brazil: Fitch Suggests Keeping 4.25% of GDP Surplus Target
------------------------------------------------------------
Maintaining the Brazilian government's 4.25% of GDP primary
budget surplus target, in spite of Finance Minister Antonio
Palocci's stepping down, will be important to ensuring that
fiscal restraint continues in Brazil, one of the cornerstones of
improvements in sovereign creditworthiness in recent years,
according to Fitch Ratings.

Fitch currently rates Brazil as follows:

   -- Foreign currency Issuer Default Rating (IDR) 'BB-';
   -- Local currency Issuer Default Rating (IDR) 'BB-';
   -- Rating Outlook Positive.

"The continuity of sound macroeconomic policies through
personnel changes is critical to improving sovereign
creditworthiness in an emerging market economy such as Brazil,"
said Roger Scher, Managing Director, Latin American Sovereigns,
Fitch Ratings.

Finance Minister Palocci has been a linchpin of fiscal policy in
the Lula government, the architect of policies that helped yield
primary surplus performance in excess of the 4.25% of GDP target
for the non-financial public sector over the three years of
President Lula's administration, including 4.84% achieved last
year.

Given Brazil's very high debt burden and poor GDP growth record,
any relaxation of the fiscal targets would send the wrong policy
signal, put the debt to GDP ratio (75.2% last year) on an upward
trajectory, and could create difficulties for the government in
the domestic debt auctions, where over a third of the domestic
debt is rolled over every twelve months.

"Recent spending pressures, including from the proposed minimum
wage hike, have been a cause for concern as well," said Scher.

Likewise the Finance Minister is a member of the National
Monetary Council that sets the inflation targets for the central
bank.  Any slippage in these targets could jeopardize monetary
policy credibility.

"Any weakening in the credibility of monetary policy will make
it harder to sustain further reductions in real interest rates
necessary to fundamentally improve Brazil's public debt
dynamics, which remain a constraint on Brazil's sovereign
ratings," said Scher.

Positive trends in Brazil's sovereign creditworthiness have been
seen in recent months.  A declining exposure of the public
sector to foreign exchange risk and to international creditors
is one such development. This has been evidenced by a decline in
the ratio of Net Public External Debt to Current External
Receipts to 23.9% at end 2005, down from 53.3% in 2004 but still
above the BB median of 17.3%.  In addition, the decline in
dollar-linked domestic debt to near zero has reduced the
sovereign's exposure to exchange rate risk.  The government's
external debt buyback program announced in February and the
paydown of IMF obligations late last year will reduce its
external debt service burden in the coming years.

Moderating inflation expectations and declining real interest
rates have buoyed Brazil's credit story as well in recent
months.  With expectations for lower inflation (2006 IPCA
inflation is expected to hit close to the 4.5% central bank
target), Brazil's central bank cut interest rates 300 bps since
last October when Fitch revised the Outlook on Brazil's ratings
to Positive.  As a result, the real interest rate has fallen
from 14.8% to a still-high 12.2% currently.  Yet the Bazilian
Real strengthened 3.5% against the US dollar since that time,
even as US interest rates moved higher.  With solid balance of
payments performance, external debt ratios moving lower, and
inflation under control, real interest rates could continue to
fall. This of course assumes there is no additional risk premium
required due to increased risks to the macro policy framework.

Fitch will monitor developments in macroeconomic policy in the
wake of Palocci's stepping down and other potential changes in
the economic team.  Likewise the October 2006 elections, no
matter who the victors are, will determine the scope for reform
in the government that takes office in January 2007.  The
incoming government, no matter whether it is led by President
Lula in a second term or someone from the opposition, will be
challenged to assemble a coalition in Brazil's historically
fragmented Congress to pass reforms that will support non-
inflationary growth as well as a downward trend in the public
debt to GDP ratio.


===========================
C A Y M A N   I S L A N D S
===========================


MILLENNIUM SHOPPING: Sets April 6 Claims Filing Deadline
--------------------------------------------------------
Creditors of Millennium Shopping Corp. II, which is being
voluntarily wound up, are required on or before April 6, 2006,
to present proofs of claim to Carlos Farjallah and Richard
Gordon, the company's joint voluntary liquidators.

Millennium Shopping Corp. II started liquidating assets on Feb.
22, 2006.

Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidators will specify.  Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.

The joint voluntary liquidators can be reached at:

            Carlos Farjallah
            Richard Gordon
            Maples Finance Limited
            P.O. Box 1093, George Town
            Grand Cayman, Cayman Islands


NEW EDGE: Creditors Have Until April 6 to File Proofs of Claim
--------------------------------------------------------------
New Edge Limited's creditors are required to submit particulars
of their debts or claims on or before April 6, 2006, to the
company's appointed liquidator, Alun Davies.  Failure to do so
will exclude them from receiving the benefit of any distribution
that the company will make.

New Edge Limited started liquidating assets on Dec. 16, 2006.

The liquidators can be reached at:

            Alun Davies
            P.O. Box 10034 APO
            Grand Cayman, Cayman Islands
            Telephone: (345) 946 5353
            Facsimile: (345) 947 5353


NEW EDGE CAPITAL: Creditors Must File Proofs of Claim by April 6
----------------------------------------------------------------
Creditors of New Edge Capital Partners Offshore, Limited are
required to submit particulars of their debts or claims on or
before April 6, 2006, to Alun Davies, the company's appointed
liquidator.  Failure to do so will exclude them from
receiving the benefit of any distribution that the company will
make.

Creditors must send their full names, addresses, descriptions,
the full particulars of their debts or claims and the names and
addresses of their solicitors (if any) to the liquidator.

New Edge Capital Partners Offshore, Limited started liquidating
assets on Dec. 30, 2006.

The liquidator can be reached at:

         Alun Davis
         P.O. Box 10034 APO
         Grand Cayman, Cayman Islands
         Telephone: (345) 946 5353
         Facsimile: (345) 947 5353


OBEREK II: Creditors Have Until April 6 to File Proofs of Claim
---------------------------------------------------------------
Creditors of Oberek II Ltd., which is being voluntarily wound
up, are required on or before April 6, 2006, to present proofs
of claim to Martin Couch and Emile Small, the company's joint
voluntary liquidators.

Creditors must send their full names, addresses, descriptions,
the full particulars of their debts or claims and the names and
addresses of their solicitors (if any) to the liquidator.

Oberek II Ltd. started voluntary wind up on Feb. 17, 2006.

The joint voluntary liquidators can be reached at:

             Martin Couch
             Emile Small
             Maples Finance Limited
             P.O. Box 1093, George Town
             Grand Cayman, Cayman Islands


OL FRN: Sets April 6 Proofs of Claim Filing Deadline
----------------------------------------------------
Creditors of Ol Frn Investments (Cayman) Inc. are required to
submit particulars of their debts or claims on or before April
6, 2006, to Richard E. L. Fogerty and G. James Cleaver, the
company's appointed joint liquidators.  Failure to do so will
exclude them from receiving the benefit of any distribution that
the company will make.

Ol Frn Investments (Cayman) Inc. started liquidating assets on
Feb. 9, 2006.

The liquidator can be reached at:

             Attention: Korie Drummond
             Richard E. L. Fogerty
             G. James Cleaver
             Kroll (Cayman) Limited
             4th Floor, Bermuda House
             Dr. Roy's Drive
             Grand Cayman, Cayman Islands
             Telephone: +1 (345) 946-0081
             Fax: +1 (345) 946-0082


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


COEUR D'ALENE: Subsidiary Agrees to Modify Silver Purchase Deal
---------------------------------------------------------------
Coeur d'Alene Mines Corporation said that its wholly owned
Australian subsidiary, CDE Australia Pty, Ltd., has reached an
agreement with CBH Resources Ltd. to modify the terms of the
original silver purchase agreement entered into in April of 2005
under which Coeur acquired the silver production and reserves of
the CBH Endeavor mine in Australia.

Under the modified terms, CDE Australia will own all silver
production up to a total of 20.0 million ounces, up from 17.7
million ounces in the original agreement.  Moreover, the silver
price-sharing provision will be deferred until such time as
Coeur has received approximately 2 million cumulative ounces of
silver from Endeavor or June 2007, whichever is later.  In
addition, Coeur will retain additional cash flow by increasing
the silver price-sharing threshold to US$7.00 per ounce, from
the previous level of US$5.23 per ounce.

In exchange for these improved economic terms, CDE Australia has
agreed to provide CBH with an advance of up to A$15.0 million of
the A$30 million that remains to be paid under the terms of the
original transaction.  The final payment from Coeur to CBH is
subject to the Endeavor mine achieving certain operational
benchmarks.  The advance, in the form of a loan facility, will
bear interest at 7.75% once drawn by CBH.

Dennis E. Wheeler, Coeur's Chairman, President and Chief
Executive Officer, said, "The modifications to our original
transaction should provide Coeur with additional cash flow over
the duration of the agreement.  We believe this is an excellent
way to utilize Coeur's strong balance sheet to improve the
economics of the original transaction with CBH and to enable CBH
to accelerate its plans to enhance development and operations at
the Endeavor mine.  This transaction is also a testament to the
strength of the strategic partnership between Coeur and CBH."

Coeur expects the Endeavor mine to produce approximately 1
million ounces of silver in 2006.

Coeur d'Alene Mines Corporation is the world's largest publicly
traded primary silver producer and has a strong presence in
gold.  The Company has mining interests in Alaska, Argentina,
Australia, Bolivia, Chile, Nevada, and Idaho.

                   *    *    *

Coeur d'Alene Mines Corporation's $180 Million notes due Jan.
15, 2024, carry Standard & Poors' B- rating.


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


* COLOMBIA: State-Run Power Companies Report Profits for 2005
-------------------------------------------------------------
Colombia's ten state-controlled power distribution companies
reported a consolidated profit in 2005 for the first time ever,
Camilo Acosta, the coordinator of electricity companies at the
Colombian Mines and Energy Ministry was quoted by Dow Jones
Newswires as saying.

The ten regional power distributors reported a net income of 119
billion Colombian pesos (US$52.7 million) in 2005 compared with
a COP40 billion loss the previous year, Mr. Acosta informed Dow
Jones.

The companies improved their profitability by teaming up to
negotiate fees from generators.  "You don't get the same price
if you buy 100 or 100,000 megawatt-hours. Generators had to
reduce their fees," Mr. Acosta said.

The government has also appointed appointed private-sector
officials to run the companies instead of civil servants in
order to improve their performances, Mr. Acosta explained.

Mr. Acosta disclosed that he is working on a project to sell
four of the ten companies by the end of the year.  The stakes of
remaining companies will be consolidated into one holding
company and will be sold by the government later on, Mr. Acosta
said.

                     Enertolima Sale

According to Mr. Acosta, the government plans to sell a 99.9%
stake of Enertolima to the company that offers to inject at
least 205 billion Colombian pesos (US$90 million) in the state-
run electricity distributor and assume its COP32 billion debt.

The auction has been moved several times after a former
contractor sued the company.  The government has set the auction
for April 21.

Enertolima, a regional electricity distribution company,
supplies power to 315,000 homes and some industries located in
the Tolima state around the city of Ibague, about 120 kilometers
west of Bogota.

The six companies pre-qualified for the auction are:

   -- Codensa SA ESP, a Bogota-based unit of Spain's Endesa SA;

   -- Interaseo SA ESP, a waste management company controlled by
      Colombian investors;

   -- Aguas Capital SA ESP, a water and sewage company
      controlled by the Cuban government; and

   -- three other consortia of Colombian investors.

                        *    *    *

On May 30, 2005, Fitch Ratings has affirmed Colombia's ratings
as:

      -- Long-term foreign currency 'BB';
      -- Country ceiling 'BB';
      -- Local currency 'BBB-';
      -- Short-term 'B'.

Fitch said the Rating Outlook is Stable.


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


* DOMINICAN REPUBLIC: U.S. Demands Approval of Purchase Law
-----------------------------------------------------------
The United States demands approval of a purchase law before
certifying the Dominican Republic's entrance into the Free Trade
Agreement.

The U.S. is demanding Congressional approval of the law that
will cover all governmental purchases.  The U.S. Department of
Commerce says that it is not satisfied with the decree, and the
renewal of pressure by the U.S. puts an additional weight on the
Ministry of Industry and Commerce.

The FTA bill, which died in Congress last session, must be re-
introduced by legislators in the course of this session in order
for it to be passed.  The bill will require the government to
hold open, public bidding for all government purchases exceeding
US$58,000 in services or US$6,725,000 in construction.

                        *    *    *

Fitch Ratings assigns these ratings on Dominican Republic:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling     B-       May 11, 2005
   Long Term IDR       B-      Dec. 14, 2005
   Short Term IDR      B       Dec. 14, 2005
   Local Currency
   Long Term Issuer
   Default Rating      B        May 11, 2005


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


* ECUADOR: Buying Back US$740 Million of 2012 Bonds by May 15
-------------------------------------------------------------
Diego Borja, Ecuador's finance minister, disclosed that his
government will complete by May 15 the repurchase US$740 million
of its dollar-denominated bonds due 2012.  Currently, the
country has US$1.5 billion outstanding in 2012 bonds.

Ecuador will finance the buy back from a US$400 million loan
from Latin American Reserve Fund and from the US$340 proceeds of
its sale of 10-year bonds in Dec. 2005.

The US$650 million bond sale in December was Ecuador's first
issue on international markets since defaulting on US$6.5
billion of debt in 1999.  Ecuador only has dollar-denominated
debt after adopting the U.S. dollar as its currency in 2000,
Bloomber News relates.

The debt repurchase will save the government about US$20 million
in yearly interest payments.

                        *    *    *

Fitch Ratings assigns these ratings on Ecuador:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling     B-      Aug. 29, 2005
   Long Term IDR       B-      Dec. 14, 2005
   Short Term IDR      B       Dec. 14, 2005


===============
H O N D U R A S
===============


* HONDURAS: Secures EUR20M Loan from EIB to Finance Road Project
----------------------------------------------------------------
Honduras has obtained 20 million euros (475.5 million lempiras)
from the European Investment Bank that will be used to fund the
inter-oceanic road project connecting the nation's Atlantic
coast to its Pacific coast, La Tribuna reports.

These resources will be managed by the Centro-American Bank of
Economic Integration.  The construction of the road will link la
Villa San Antonio in the Department of Comayagua to Goascoran in
the Department of Valle in the south of the country.  The
project will also help join Puerto Cortes with the Puerto de la
Union in El Salvador, considered the main ports in Central
America, La Tribuna says.

                        *    *    *

Moody's Investor Service assigned these ratings on Honduras:

                     Rating     Rating Date
                     ------     -----------
   Senior Unsecured    B2       Sept. 29, 1998
   Long Term IDR       B2       Sept. 29, 1998


=============
J A M A I C A
=============


SUGAR COMPANY: Potential Buyer Concerned About Bidding Delay
------------------------------------------------------------
Allan Rickards, head of All-Island Jamaica Cane Farmers
Association -- AIJCFA, which formed an alliance with Brazilian
sugar company Aracatu, has expressed concerns that the bidding
for the five sugar factories and lands owned by the Sugar
Company of Jamaica might stretched into the first quarter of
2007, the Jamaica Observer relates.

The bidding is scheduled in May this year.

"By the time the Sugar Enterprise Team recommend to cabinet a
preferred bid, cabinet approves it, negotiate with that
preferred bidder on the actual divestment, the year would have
ended," Mr. Rickards told Sunday Finance.

AIJCFA represents about 10,000 farmers and supplies
approximately 45% of the cane delivered to Sugar's factories.

According to the Observer, the sale of the factories by the
Jamaican government coincides with the phased reduction in the
price that the EU will be paying African, Caribbean and Pacific
(ACP) countries for the commodity.

Mr. Rickards said in the same article in Sunday Finance that he
is concerned about the timeliness of the process.  "It is
looking to go into the 2007 crop, scheduled to start at the end
of November, with the same SCJ management in place and when the
first EU reduction is slated to take effect - a 5.1 per cent
reduction in the price obtained in Europe."

The ACP countries are facing cuts close to 36% over five years.
The reduction is part of the EU's efforts to cut agricultural
subsidies in line with a mandate from the World Trade
Organisation, the Observer says.

The Observer notes that sugar prices in the open market are
trending down: sugar futures scheduled for delivery in October
2007 sold for 15.56 US cents per pound.

"The new owners will come in not having enjoyed the benefits of
a year without a cut and we will be facing the same management
which is part of the problem," charged Mr. Rickards.

Aubyn Hill, National Investment Bank of Jamaica's chairman, said
in an interview with Sunday Finance that the process could take
weeks becaue information will be gathered from several
government agencies and private entitites.

Mr. Hill promised that "by the end of April or the first week of
May we should be ready to formally launch the website with
various interested parties... from that day on everyone can
proceed to bid."

The Sugar Company of Jamaica is 60% owned by the government.
The government has sought to improve the efficiency and
productivity of the factories, but has, to date, lost billions
of dollars.

Last year, the SCJ factories lost US$602 million from 181,000
metric tons of sugar -- an improvement over 2003, when a loss of
US$807 million was made from 153,500 tons of sugar produced.

SCJ registered a net loss of almost US$1.1 billion for the
financial year ended Sept. 30, 2005, 80% higher than the
US$600 million reported in the previous financial year.  The SCJ
blamed its financial deterioration to the reduction in sugar
cane production.

According to the Observer, SCJ also saw a US$522-million
increase in its operating loss (before depreciation and interest
costs) during the 2004/05 financial year.

SCJ's five factories normally produces about 60% of the island's
sugar output and earn roughly US$100 million per year.


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


CABLEMAS: Reschedules Filing of 2005 Fourth Quarter Results
-----------------------------------------------------------
Cablemas, S.A. de C.V., will delay reporting fourth quarter and
full year 2005 results until Tuesday, April 11, 2006, when
figures from certain affiliates will be available.

The company expects to hold a conference call the following day,
Wednesday April 12.  The time will be announced.

Cablemas S.A. de C.V. -- http://www.cablemas.com-- is the
second-largest cable television operator in Mexico based on the
number of subscribers and homes passed.  As of June 30, 2005,
the company's network served over 546,000 cable subscribers and
in excess of 87,000 high-speed Internet subscribers, with more
than 1,647,000 homes passed.  It is the concessionaire with the
broadest coverage in Mexico, operating in 46 cities throughout
the country's oil, maquiladora and tourist regions.

                        *    *    *

As reported by the Troubled Company Reporter on Dec. 30, 2005,
Moody's Investors Service assigned a B1 corporate family rating
to Cablemas.  The outlook is stable.  This rating action is in
accordance with the B1 ratings Moody's assigned to Cablemas'
US$175 million of senior unsecured notes, with a stable outlook,
on November 4th, 2005.  The proceeds of the issue were used to
refinance debt and for capital expenditures.


CALPINE CORP: Agrees to Sell 45% Interest in Mexico Power Plant
---------------------------------------------------------------
Calpine Corporation's (OTC Pink Sheets: CPNLQ) foreign non-
debtor affiliate agreed to sell its 45% interest in the 525-
megawatt Valladolid III Power Plant, currently under
construction on the Yucatan Peninsula in Mexico.  Calpine is
selling its equity interest to the two remaining partners in the
project, Mitsui & Co., Ltd. and Chubu Electric Power Co., Inc.,
for a purchase price of approximately $43 million.

                   Terms of Agreement

Calpine will receive a cash payment of approximately $43
million, less a 10% holdback, at closing.  The Buyers will
return the 10% holdback after a period of one-year following
closing of the transaction.  At closing, Calpine will also
eliminate its 45% share of the non-recourse unconsolidated
project debt.

In addition, at closing $9.1 million of Calpine funds held in
escrow for credit support for the project will be released to
Calpine.  The company expects to record a non-cash impairment
charge of approximately $41 million on its investment in the
project and expects to complete the transaction in the next 30
days.

"The sale of the Valladolid project will provide Calpine with
additional liquidity and is consistent with our strategy of
focusing on our core business, power generation in key power
markets in the United States," said Robert P. May, Calpine's
Chief Executive Officer.  "As part of our restructuring program,
Calpine will continue to assess opportunities to sell non-
strategic assets, with the goal of emerging from Chapter 11 as a
sustainable, competitive and profitable power company."

Valladolid III is a natural gas-fired, combined-cycle power
plant that will provide up to 525 megawatts of energy through a
25-year power purchase agreement with the Comision Federal de
Electricidad.  Calpine had supplied two General Electric F-class
combustion gas turbines in exchange for its 45% interest in the
project.  Calpine also provided engineering, construction and
commissioning services for the construction subcontractor.
Construction of the project is scheduled for completion in June
2006.

Headquartered in San Jose, California, Calpine Corporation --
http://www.calpine.com/-- supplies customers and communities
with electricity from clean, efficient, natural gas-fired and
geothermal power plants.  Calpine owns, leases and operates
integrated systems of plants in 21 U.S. states and in three
Canadian provinces.  Its customized products and services
include wholesale and retail electricity, gas turbine components
and services, energy management and a wide range of power plant
engineering, construction and maintenance and operational
services.  The Company filed for chapter 11 protection on Dec.
20, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-60200).  Richard M.
Cieri, Esq., Matthew A. Cantor, Esq., Edward Sassower, Esq., and
Robert G. Burns, Esq., Kirkland & Ellis LLP represent the
Debtors in their restructuring efforts.  Michael S. Stamer,
Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the
Official Committee of Unsecured Creditors.  As of Dec. 19, 2005,
the Debtors listed $26,628,755,663 in total assets and
$22,535,577,121 in total liabilities.


TV AZTECA: Grupo Elektra Board Wants to Preserve 18.1% Stake
------------------------------------------------------------
Grupo Elektra, S.A. de C.V., the leading retail, consumer
finance and banking and financial services provider in Latin
America, announced that the Board's audit and related parties
committees recommended not to exercise the option to exchange
shares of Comunicaciones Avanzadas for Certificados de
Participacion Ordinaria of TV Azteca, maintaining the company's
18.1% indirect participation in TV Azteca.

As was previously announced, in March 1996, Grupo Elektra
acquired a 35.9% equity stake of CASA, a holding company that
controls 89.9% of Azteca Holdings.  The latter holds a 56.2%
stake of TV Azteca, resulting in Grupo Elektra having an
indirect participation equivalent to 18.1% of TV Azteca's
equity.

Until March 25, 2006, Grupo Elektra had the right to exchange
its indirect stake of 18.1%, which has a market value of
approximately US$294 million, for CPOs that represent 7.6% of TV
Azteca's equity which is equivalent to approximately US$142
million.  The audit and related parties committees, fully
comprised of independent directors, unanimously recommended not
to exercise the exchange option, in order not to lose value
through the exercise.

The committees considered that the recommendation not to
exercise the option is a superior alternative for shareholders
of the company, given the important capitalization value of TV
Azteca, its solid position in the dynamic media sector in
Mexico, and expectations of notable growth domestically and in
the U.S. Hispanic market.  It is expected that the Board, during
its next session to be held in May, ratify the recommendation of
the committees.

Grupo Elektra is committed to continuously search for
alternatives that enhance the creation of value for its
shareholders, and for the growing middle class in Mexico and
Latin America.

                        *    *    *

Moody's Investor Services rated TV Azteca's senior unsecured
debt at B1.


===========
P A N A M A
===========


* PANAMA: IDB Approves US$5 Million Loan for Coastal Management
---------------------------------------------------------------
The Inter-American Development Bank approved US$5 million in
loans to Panama for a project to improve the country's
institutional capacities for managing marine and coastal
resources.

The project will strengthen the Panama Maritime Authority-
particularly its Marine and Coastal Resources Department - and
assist the agency in its transition from a traditional focus on
managing fisheries to a broader approach based on the integrated
management of marine and coastal resources at the national,
regional and local levels.

This approach will involve communities, municipalities, the
private sector, government agencies and other key actors,
seeking to ensure the conservation of critical ecosystems such
as coral reefs and mangroves, while improving socio-economic
conditions in coastal areas and enhancing the competitiveness of
Panamanian industries that depend on marine and coastal
resources, such as tourism and fisheries.

"The sustainable use of coastal and marine resources is a
strategic priority for a country like Panama, which has more
than 3,000 kilometers of coastline and a maritime territory four
times larger than its land area," said IDB project team leader
Henrik Franklin.  "This project will place the AMP in a better
position to manage resources more effectively, control pollution
and resolve conflicts in cooperation with other institutions and
stakeholders."

The loan will help finance technical assistance, training and
equipment to improve AMP's capacity for environmental
management, both at the central level and in its provincial
offices.  A plan for monitoring the quality of coastal waters
will be designed, technical tools will be developed to guide
integrated coastal management and a national system will be
established to compile, evaluate and disseminate results of
these activities.

Under the project at least four regional integrated coastal
management plans will be drafted, consensus-building workshops
will be held and pilot projects will be implemented to increase
management capacities at the local level.

The loan is for 12 years, with a 4 -year grace period and a
variable interest rate. Local counterpart resources for the
project will total US$400,000.

                        *    *    *

Fitch Ratings assigns these ratings on Panama:

                     Rating     Rating Date
                     ------     -----------
   Country Ceiling    BBB      Apr.  8, 2005
   Long Term IDR      BB+      Dec. 14, 2005
   Short Term IDR       B      Dec. 14, 2005
   Local Currency
   Long Term Issuer
   Default Rating     BB+      Dec. 14, 2005


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


DORAL FINANCIAL: Appoints Lidio Soriano as Chief Fin'l Officer
--------------------------------------------------------------
Doral Financial Corporation (NYSE: DRL) reported the appointment
of Lidio Soriano as its Chief Financial Officer.  Mr. Soriano
has served as interim Chief Financial Officer of the Company
since August 2005.

"We are very pleased with Mr. Soriano's outstanding contribution
during the restatement process.  His financial and accounting
experience, and his familiarity with the residential mortgage
market make him an ideal fit for Doral as we continue to rebuild
our senior management team," said John A. Ward, III, the
Company's Chairman and Chief Executive Officer.

Prior to his appointment as interim Chief Financial Officer, Mr.
Soriano served as Senior Vice President and Risk Management
Director of the Company since January 2005.  As Risk Management
Director, Mr. Soriano was a member of the Company's Asset
Liability Management Committee.  From June 2004 until December
2004, Mr. Soriano served as President of Doral Money, a New York
based subsidiary of Doral Bank, specializing in commercial and
construction mortgage lending.  Before joining the Company, Mr.
Soriano was Vice President in charge of the Mortgage Division of
Citibank Puerto Rico.

The Company also reported that, effective Feb. 17, 2006, Arturo
Tous had become Chief Accounting Officer.  After joining the
Company in 2005, Mr. Tous played an important role in the
completion of the Company's restatement process.  Prior to
joining the Company, Mr. Tous was a Senior Associate at
PricewaterhouseCoopers LLP.  Mr. Tous is a Certified Public
Accountant and holds a bachelor's degree from Marquette
University and a Masters in Business Administration degree from
the University of Wisconsin-Madison.

The Company also announced that it has tentatively set Aug. 23,
2006 for its 2006 Annual Meeting of Stockholders.

On Feb. 27, 2006, the Company completed the restatement of its
previously issued consolidated financial statements for the
years 2000 through 2004.  Due to the work required to complete
the restatement and to prepare and file the Company's quarterly
reports on Form 10-Q for the first three quarters of 2005, the
Company does not expect that it will be able to complete its
audited financial statements for the year ended Dec. 31, 2005,
in time for the regular date of the annual meeting, which is
generally held in April.  The Board has not set a record date
for determining the shareholders entitled to vote at the annual
meeting.

The Board of Directors also adopted an amendment to the
Company's Bylaws with respect to the annual meeting.  Prior to
the amendment, the Bylaws provided that the Company's annual
meeting of shareholders would be held "at such time and date as
the Board of Directors, by resolution, shall determine."  In
addition, the Bylaws provided that "in the event the Board of
Directors fails so to determine the time, date and place of the
meeting, the annual meeting of shareholders shall be held on the
third Wednesday in April of each year."  The amended Bylaws
eliminate the reference to the third Wednesday in April as a
default date for the annual meeting, and continue to provide
that the annual meeting will be held at the time and date fixed
by the Board.

              About Doral Financial Corporation

Doral Financial Corporation -- http://www.doralfinancial.com/--  
a financial holding company, is the largest residential mortgage
lender in Puerto Rico, and the parent company of Doral Bank, a
Puerto Rico based commercial bank, Doral Securities, a Puerto
Rico based investment banking and institutional brokerage firm,
Doral Insurance Agency, Inc. and Doral Bank FSB, a federal
savings bank based in New York City.

                        *    *    *

As reported in the Troubled Company Reporter on March 27, 2006,
Moody's Investors Service downgraded to B1 from Ba3 the senior
debt ratings of Doral Financial Corporation, and reiterated the
negative rating outlook.  Moody's action follows cease and
desist orders placed by banking regulators on Doral and some of
its subsidiaries, including Doral Bank, San Juan, Puerto Rico.
When Moody's last downgraded Doral's debt on Oct. 28, 2005, it
issued a negative rating outlook, but noted that any credit
deterioration including regulatory consequences or liquidity
issues could result in a review for possible downgrade or an
outright downgrade.


MUSICLAND HOLDING: Trans World Completes Acquisition of Assets
--------------------------------------------------------------
Trans World Entertainment Corporation (Nasdaq: TWMC) has
completed the acquisition of substantially all of the assets of
Musicland Holding Corp.

Musicland, an entertainment specialty retailer which operates
retail stores and websites under the names Sam Goody
(SamGoody.com), Suncoast Motion Picture Company (Suncoast.com),
On Cue and MediaPlay.com, filed a voluntary petition to
restructure under Chapter 11 of the United States Bankruptcy
Code in January 2006.

As previously reported in the Company Reporter on March 24,
2006, the transaction represents total consideration of $104.2
million in cash and $18.1 million in assumed liabilities.

                 About Trans World Entertainment

Trans World Entertainment is a leading specialty retailer of
music, video and video game products. The Company operates
approximately 800 retail stores in 46 states, the District of
Columbia, the U.S. Virgin Islands, Puerto Rico and e-commerce
sites, http://www.fye.com,http://www.coconuts.com,
http://www.wherehouse.comand http://www.secondspin.com. In
addition to its mall locations, operated primarily under the FYE
brand, the Company also operates freestanding locations under
the names Coconuts Music and Movies, Strawberries Music,
Wherehouse, CD World, Spec's, Second Spin and Planet Music.

                  About Musicland Holding

Headquartered in New York, New York, Musicland Holding Corp., is
a specialty retailer of music, movies and entertainment-related
products.  The Debtor and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064).  James H.M. Sprayregen, Esq., at Kirkland & Ellis,
represents the Debtors in their restructuring efforts.   Mark T.
Power, Esq., at Hahn & Hessen LLP, represents the Official
Committee of Unsecured Creditors.  When the Debtors filed for
protection from their creditors, they estimated more than $100
million in assets and debts.


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


* Venezuela's Bandes Plans to Expand to Other LatAm Countries
-------------------------------------------------------------
The Venezuelan Economic and Social Development Bank -- Bandes --
is to be established in Uruguay for the purposes of hemispheric
expansion, Planning Vice-President Julio Perez informed the
Caracas-daily El Universal.

"We arrived in Uruguay in order to make a win-win deal for all
the parties, and we also view this country as a platform for the
hemisphere."  However, the expansion plan for subsequent
countries "will be later on," Mr. Perez said, according to Efe.

Bandes deposited US$10 million in an escrow account to buy
Uruguay's Cofac savings and credit cooperative.  A company
contracted by mutual consent of Bandes and the Uruguayan Central
Bank have started an audit to set "the fair price" of Cofac
assets and liabilities, El Universal relates.

Bandes' operations in Uruguay will be through a board of
directors composed of members of Bandes, Banfoandes and Cofac.
The bank will have 400 employees.

Savers' deposits in Cofac "will be observed and there will be no
reschedule," Mr. Perez promised.

                        *    *    *

Venezuela's foreign currency long-term debt is rated B2 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.


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


* VENEZUELA: Wants BP Plc to Pay US$61.4 Million in Back Taxes
--------------------------------------------------------------
The Venezuelan government's tax authority -- Seniat -- is now
after U.K. oil company BP Plc for allegedly not paying US$61.4
million in taxes.

As previously reported, Seniat has also asked French company
Total and U.S. firm Chevron Corp. to pay millions in back taxes
for the years 2001 through 2004.  Both balked at Venezuela's
claims.  Total's offices in Caracas had been shut after failing
to pay US$107 million in taxes. Chevron has been given until an
unspecified date in April to pay US$43 million in taxes.  If
can't pay, Chevron could face fines of up to 250% percent.

The tax notice, which results from an income tax review of the
years 2001 through 2004, is one of the last in a wholesale
review of the oil industry, Seniat announced in a statement.
The bill includes the balance plus a 10% fine that could climb
if the company fails to pay up.  Companies notified by the
Seniat under the review usually have 15 days to pay or reach a
payment agreement with tax authorities.

The Seniat has mostly focused on billing the companies involved
in running the Andean country's 32 oil operating contracts.

Under President Hugo Chavez's administration, the tax agency has
launched a "zero evasion" campaign that includes fines and
temporary office shutdowns for companies that violate tax laws,
Dow Jones Newswires relates.

                        *    *    *

Venezuela's foreign currency long-term debt is rated B2 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.

                        *    *    *

On Nov. 29, 2005, Fitch Ratings assigned expected 'BB-' ratings
to the pending issues of Venezuelan government bonds maturing
Feb. 26, 2016, and Dec. 9, 2020.  The 2016 bond has a 5.75%
fixed coupon and the 2020 bond has a 6% fixed coupon.  The bonds
are being marketed in Venezuela to be purchased in local
currency at the official exchange rate but under New York law,
with all coupon and principal payments in U.S. dollars.

Venezuela's sovereign ratings are supported by superior
international liquidity and low external financing
requirements relative to similarly rated sovereigns.  The
ratings are constrained by vulnerability to external shocks
because of oil dependency; diminished capacity of the private
sector to absorb shocks because of heavy government
intervention in the productive sector; recent spending
increases that reduce fiscal flexibility; and concerns about
the rule of law and potential political instability.  Fitch said
the Rating Outlook is Stable.


                            ***********


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
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Copyright 2006.  All rights reserved.  ISSN 1529-2746.

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