/raid1/www/Hosts/bankrupt/TCRLA_Public/030128.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Tuesday, January 28, 2003, Vol. 4, Issue 19

                            Headlines



A R G E N T I N A


ACINDAR: Delays Guidance Pending New Government Changeover
BANCO GALICIA: Forecasts International Pullout Finished by Q1
IMPSA: Opposition to Controversial Power Contract in RP Swells
PECOM ENERGIA: Completes US$101 Million Exchange Offer
PECOM ENERGIA: Readies Money to Meet Interest Payments

* Argentina Seeks 70% Write Off of Defaulted Debt
* IMF OKs Transitional Stand-By Credit Support for Argentina


B E R M U D A


CRP: Gets A.M. Best Downgrade; Negative Implications
SCOR GROUP: To Sell Bermuda Unit, Top Execs Resign


B O L I V I A


SEMAPA: Bad Debt Cleared, Awaits US$18.5 Million IDB Loan


B R A Z I L


BCI: 4Q Results Include Telecom Americas Final Sale
BCP: Expected to Break Up in Coming Weeks
CEMIG: Net Loss Up Due to Huge Debt Provision Ordered by CVM
CERJ: Chilean Investor Ups Stake in Rio de Janeiro Power Firm
LIGHT SERVICOS: May Hit Chopping Block if Losses Continue

LIGHT SERVICOS: Workers Ready to Strike if Layoffs Begin
SABESP: To Complete Phase Two of Tiete Project in 2005
TELEMAR: Secures US$550 Million from European, Japanese Lenders


C H I L E


SAESA: Pre-Pays US$106 Million Debt After Successful Bond Issue
TELEFONICA CTC: Wins Appeal vs. US$10.8 Million Labor Judgment


D O M I N I C A N   R E P U B L I C


UNION FENOSA: Government Adamant About Collecting Debts
UNION FENOSA: Claims Government's Debt Figures Erroneous


E C U A D O R


EMASEO: Continued Losses May Force Quito City to Liquidate Firm


M E X I C O


FAR-BEN: Ahumada to Close 23 Unprofitable Stores
IUSACELL: Future Mexican Investment Hinges on Debt Talks
GRUPO MEXICO: Workers Seek Bonus, Share in Cananea Mine


P A N A M A


BLADEX: Stable Outlook; Cash Hike Receives Strong Backing


P E R U


WIESE SUDAMERIS: Posts PEN20.9 Million Net Income for 2002


T R I N I D A D   &   T O B A G O


BWIA: Maintenance Crew Suspected of Holding Illegal Strike
CARONI LTD: Unions to Present Common Alternative Plan Soon


V E N E Z U E L A


CITGO: Moving to Boost Cashflow to Weather Strike Woes
SINCOR: Remains Shut Due to Strike



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


ACINDAR: Delays Guidance Pending New Government Changeover
----------------------------------------------------------
Gustavo Pittaluga, an official from Argentine long products
steelmaker, Acindar, told Business News Americas that the
company is waiting for a new government to take over on May 25
before it reveals projections for this year.

According to Mr. Pittaluga, the domestic market is complicated
by the doubts people have about the policies and direction a new
government would take. He added the construction sector needs to
pick up if the overall economy is to improve.

Mr. Pittaluga added that the country needs a new president who
will give an incentive to the construction industry, to the
stock market and to industry generally. According to him, the
construction industry has to improve in order for the overall
economy to recover.

Despite numerous setbacks, Acindar's shares went up to ARS0.94
on January 8 this year from a low of ARS0.16 in June last year.

By tradition, the company sells about 70 percent of its output
to the local market, and exports the rest. However, the company
increased its exports to take advantage of the sharp devaluation
of the local currency. Mr. Pittaluga said that about 40 percent
of last year's production was exported, compared to 20 percent
in 2001. However, he said, the company's goal is remains at
satisfying the necessities of the depressed domestic market.

The company, whose installed capacity is 1.35Mt, and is
Argentina's largest producer of long steel, is 20.5 percent
owned by Brazilian steelmaker Belgo-Minera. Another 20.5 percent
belongs to the Acevedo family, and 5.9 percent to the World
Bank's International Finance Corporation. The rest is traded on
the Buenos Aires stock market.

CONTACTS:  ACINDAR
           Jose I. Giraudo
           Investor Relations Manager
           (54 11) 4719 8674

           Andrea Dala
           Investor Relations Officer
           (54 11) 4719 8672


BANCO GALICIA: Forecasts International Pullout Finished by Q1
-------------------------------------------------------------
Restructuring Argentinean banking group, Banco Galicia, projects
the closure of its foreign branches to be completed by the first
quarter, Business News Americas said late last week. Citing an
unnamed spokesman, the paper said barring any hitches the
closure of its largest international unit in New York should be
done before the second quarter.  Already, the bank has withdrawn
from the Cayman Islands and London.

Heavily hit by the Argentine financial crisis in 2001 that
lasted well into last year, the bank was one of numerous
financial groups that teetered on the brink of bankruptcy.  The
closing of overseas offices and branches is part of the bank's
aggressive cost-cutting program to recover from the debilitating
effects of the crisis.  Overall, the bank has reduced its
branches by 30%.

Last year, the bank raised US$400 million in cash by selling
part of its loan portfolio.  The central bank also came to its
aid, the paper said.

Of its international units, Galicia plans to retain only Banco
Galicia Uruguay.  Uruguyuan authorities intervened and suspended
the subsidiary last year due to liquidity problems, which had
been aggravated by its parent's financial woes, the paper said.

Galicia Uruguay recently received approval to gradually return
frozen deposits and is now waiting for Uruguay's central bank to
provide a list of conditions for reopening the bank, the
spokesman told Business News Americas.

Banco Galicia is one of Argentina's three largest private banks
and is the main asset of local financial group Grupo Financiero
Galicia.

CONTACT:  Teniente General Juan D. Peron 456, Piso 3
          1038 Buenos Aires, Argentina
          Phone: (54 11) 4343 7528 / 9475
          Web site: http://www.gfgsa.com
          Contacts:
          Eduardo J. Escasany,  Chairman and CEO
          Sergio Grinenco, CFO, Banco de Galicia y Buenos Aires


IMPSA: Opposition to Controversial Power Contract in RP Swells
--------------------------------------------------------------
The pressure from various sectors to rescind the contract
entered into by the Philippine government and Argentinean power
firm, Industrias Metalurgicas Pescarmona Sociedade Anonima
(Impsa), is mounting. Over the weekend, non-government
organization, Freedom from Debt Coalition, added its voice to
the throng calling for the immediate cancellation of the
Caliraya-Botocan-Kalayaan (CBK) power contract awarded to the
Argentine company.

Besides being grossly disadvantageous, the CBK-Impsa deal,
currently being investigated by the Senate, has been shown to be
"tainted with fraud," a coalition statement quoted by ABS-CBN
News, reads. "Taxpayers and consumers alike should not be made
to pay for the costs of this onerous contract," the coalition
adds.

Accordingly, the confusion on whether or not the CBK power
project in Laguna carries a direct or indirect government
guarantee should not mar the Senate inquiry on the CBK-Impsa
controversy, the group says.

Meanwhile, the senate inquiry into the controversial deal will
resume today.  The so-called fraudulent contract was first
exposed by Senator Sergio Osme¤a III, who claimed that the
government has already overpaid Impsa by at least US$150
million, owing to changes in the contract's provisions after it
was awarded.  He has vowed to file graft charges against
government officials responsible for the irregularity.

In an earlier interview, Mr. Osme¤a said resigned Secretary
Hernando Perez, who issued a Department of Justice opinion
endorsing the Impsa deal on January 24, 2001, or two working
days into the Arroyo administration, is not yet off the hook in
the case.

"So what if he [Perez] has resigned, a crime is a crime," Mr.
Osme¤a told ABS-CBN, noting that the Impsa deal became final
only after Mr. Perez signed the justice department opinion
attesting that everything in the contract was legal.

Mr. Osme¤a also observed that the terms of reference in the
original contract provided that there should be no government
guarantee for the US$470 million CBK-Impsa project.

"But whether there is guarantee or not is no longer the issue
because this contract should not have been awarded in the first
place," he added.

Owned by Argentine businessman Enrique Pescarmona, IMPSA
operates in 20 countries across Asia, Europe and Latin America
and employs as many as 6,000 workers worldwide. The Company
makes products from hydro-mechanical equipment to auto parts to
wine. IMPSA also sells auto parts to Ford Motor Co., Renault SA
and Volkswagen AG.

In addition to building power plants, it generates electricity
and handles waste management. About 97 percent of IMPSA's
revenue comes from overseas operations.

CONTACT:  (Latin America)
          Hern n Gui azœ
          Carril Rodr­guez Pe a 2451 (M5503AHY)
          Godoy Cruz, Mendoza, Argentina.
          Tel: (+54-261) 4131374
          Fax.(+54-261) 4131429 - 4131423
          Email: guinazu@IMPSA.com.ar

          (Asia and South East Asia)
          Juan Carlos Fern ndez
          6-4 Level 6th Tower Block,
          Menara Milenium
          Jalan Damanlela,
          Pusat Bandar Damansara
          Damansara Heights
          50490 Kuala Lumpur, Malaysia
          Tel:  (+60-3) 252 3744
          Fax: (+60-3) 252 3743
          Email: fernandez@IMPSA-sea.com


PECOM ENERGIA: Completes US$101 Million Exchange Offer
------------------------------------------------------
Pecom Energia finalized the necessary steps on an exchange offer
replacing a US$101 million in trust-preferred securities that
expires in June 2002 with a new series of bonds, reported
Business News Americas. The notes, which expire in June 2011,
will pay an annual interest rate of Libor plus 1 percent.
The offer was extended to 10:30 am local time on January 23,
after the sufficient number of security holders failed to
subscribe by the original January 15 deadline.

The source from the Argentine energy company also said that more
than 95 percent of the trust investors subscribed to the
exchange offer. UK Bank HSBC, which managed the old securities,
acts as issuer for the new notes. According to the report, the
exchange offer will swap each US$1 of trust notes for a US$1
bond plus US$0.035 in cash corresponding to interest on the
notes.

Under the terms of agreement, bondholders will get US$0.10 in
cash for every US$1 bond yesterday. The remaining US$0.90 will
be paid in June 2011.

Last year, a dispute erupted between the company and HSBC, on
the issue that the loan would be converted to Argentine pesos,
which has lost almost 70 percent of its value to the dollar. The
company had failed to repay the loan because of the sharp
devaluation.

CONTACT:  PECOM ENERGIA S.A. DE PEREZ COMPANC S.A.
          Maipo 1 - Piso 22 - C1084ABA
          Buenos Aires, Argentina
          Phone: (54-11) 4344-6000
          Fax: (54-11) 4344-6315
          URL: http://www.pecom.com.ar/


PECOM ENERGIA: Readies Money to Meet Interest Payments
------------------------------------------------------
Energy concern, Pecom Energia, will make required interest
payments on its US$272.8 million debentures due 2004, Business
News Americas said, citing a disclosure to the Argentine stock
exchange.

According to the disclosure, Pecom will pay US$1.03 million on
the series four debentures of US$22.8 million due 2004 and
US$11.3 million on the series G debentures of US$250 million
2007.

The interest, paid at 9% annually for both series, corresponds
to the six-month period from July 30, 2002 to January 30, 2003.
The series four and series G debentures are registered with the
US-based Citibank and Bank of New York respectively, the paper
said.

CONTACT:  PECOM ENERGIA S.A. DE PEREZ COMPANC S.A.
          Maipo 1 - Piso 22 - C1084ABA
          Buenos Aires, Argentina
          Phone: (54-11) 4344-6000
          Fax: (54-11) 4344-6315
          URL: http://www.pecom.com.ar


* Argentina Seeks 70% Write Off of Defaulted Debt
-------------------------------------------------
On approximately US$95 billion of debt, Argentine President
Eduardo Duhalde is hoping for a significant write down in order
to go forward. The country originally defaulted on amount in
December 2001.

"Argentina needs extremely significant write down of its debt, a
minimum of 70 percent, so we are left with a debt that we can
handle," Duhalde's statements on his official website was quoted
by Bloomberg News.

Signs of the country's willingness to negotiate with bondholders
of the defaulted debt have helped the country earn permission to
defer payments on about US$11 billion it owes to multilateral
lenders.

Last week, the country narrowed its candidates for debt talks
adviser down to three: Morgan Stanley, UBS Warburg LLC and
Lazard LLC. The country may make its final decision "within
days" said the president.

According to Bloomberg, Argentina US$51 billion of remaining
foreign currency debt after forcing holders of domestic bonds to
convert them into pesos at a rate of one-to-one.

The local currency has lost almost 70 percent of its value
against the dollar last year. Last week, the Argentine peso
declined by 45 centavos to ARS3.18 to one US dollar, said
Bloomberg.


* IMF OKs Transitional Stand-By Credit Support for Argentina
------------------------------------------------------------
January 24, 2003
International Monetary Fund
700 19th Street, NW
Washington, D.C. 20431 USA

IMF Approves Transitional Stand-By Credit Support for Argentina
The Executive Board of the International Monetary Fund (IMF)
approved today an eight-month, SDR 2.17 billion (about US$2.98
billion) Stand-by Credit Arrangement for Argentina that is
designed to provide transitional financial support through the
period ending August 31, 2003, and which replaces Argentina's
previous arrangement with the Fund (see Press Releases No.
01/37, No. 01/3 and No. 00/17). This arrangement is designed to
cover all payment obligations to the IMF through August 2003.

In addition to approval of the credit arrangement, the Executive
Board approved the authorities' request to extend by one year
SDR 2.77 billion (about US$3.80 billion) in payments Argentina
would have been expected to make during the first eight months
of 2003. This extension would cover Argentina's remaining
payment under the Supplemental Reserve Facility (SRF) of SDR
2.09 billion (about US$2.87 billion) and payments of SDR 683.65
million under the previous Stand-by arrangement (about US$938.20
million). This extension is allowed under the Fund's general
policies governing such payment expectations, including policies
under the SRF, which states that an extension can be granted if
repayment would cause undue hardship and provided the borrower
is taking actions to strengthen its balance of payments. At the
end of the extension the country is obligated to repay the SRF
financing.

The combined actions of the Executive Board affect SDR 4.94
billion (about US$6.78 billion) in payment obligations or
expectations in the period January-August 2003. These actions
were taken with the expectation that the transitional stand-by
credit will be succeeded by a multi-year IMF arrangement after
the election in late April 2003 of a new government, and that
the subsequent medium-term program will anchor support by the
international financial institutions for more comprehensive
economic reforms in Argentina.

Argentina has cleared its arrears to the World Bank and the
Inter American Development Bank, enabling these institutions to
resume their support.

Following the 24-member Executive Board's discussion of
Argentina, Mr. Horst K”hler, Managing Director and Chairman of
the Board, stated:

"The IMF Executive Board has approved the Argentine authorities'
requests for a Stand-By Arrangement and the extension of
repurchase expectations arising during the period of the
arrangement through August 2003. These requests were approved in
the context of a short-term economic program that seeks to
preserve macroeconomic stability through the transition to a new
government that is expected to take office in May. In addition,
the program provides a framework for the multilateral
development banks to resume their support of social programs
following Argentina's recent clearance of arrears to them.

"The transitional program is focused on maintaining monetary and
fiscal discipline, avoiding policy reversals, and rebuilding
legal certainty. Its implementation will be monitored closely by
the authorities and the IMF. The monetary program envisages that
monetary policy will provide an anchor for inflation
expectations, while the fiscal program calls for firm control
over primary expenditures at the federal and provincial levels.
The authorities intend to work closely with the Congress to
secure approval of the revenue measures needed to meet the
fiscal targets. The program provides for a strong social safety
net that is being implemented in collaboration with the World
Bank and the IDB. To prepare the ground for the successor
government, the authorities will formulate the needed fiscal
structural reforms to broaden the tax base, improve tax
administration, and reform intergovernmental relations to help
deliver medium-term fiscal sustainability.

"The program contains steps towards a banking strategy. The
regulatory and prudential framework is being strengthened, the
reform of the public banks will be initiated, and central bank
autonomy increased. Another key aspect of the program is the
commitment to enhance collaboration with private creditors on a
debt restructuring strategy, which should gain momentum
following the early appointment of a debt advisor.

"The transitional program is viewed as a step to a comprehensive
medium term program which is needed to re-establish investor
confidence and capital inflows, achieve fiscal and external
viability, and establish sustainable growth in Argentina. Such a
program would need to carry forward fundamental reforms in many
areas. These include structural fiscal reforms to raise
substantially the consolidated primary fiscal surplus of the
federal government and the provinces over the medium term,
increase the openness of the economy, restore financial
intermediation, complete the process of debt restructuring, and
assure legal certainty and respect for the rule of law.
Regarding the agenda ahead is, therefore, necessarily ambitious,
and Executive Directors emphasized that the key to a durable
improvement in the economic situation lies in the actions that
Argentina takes itself," Mr. K”hler stated.

ANNEX

Program Summary

The Argentine authorities view the transitional program as a
step to a comprehensive program required to restore fiscal and
external viability. By maintaining macroeconomic stability
during the presidential election period, the authorities hope
the program will create conditions that will facilitate a
successor government, which is expected to take office in late
May, to adopt a comprehensive medium-term economic program.

The transitional program is focused on monetary and fiscal
policies, and steps towards banking reform, during the first
half of 2003. The monetary program seeks to restrain monetary
growth so as to establish a nominal anchor and to avoid
inflationary pressure. The program is centered around
maintaining the adjusted monetary base broadly at its end-
December 2002 level through mid-2003. Operationally, the
authorities will seek to control the monetary base by acting on
net domestic assets of the central bank and limiting sales of
foreign exchange reserves for intervention, within the framework
of a continued flexible exchange rate policy. The monetary
program would be reviewed regularly and the authorities have
committed to adopt corrective measures as necessary.

The fiscal program seeks to secure a consolidated cash primary
surplus of about 2.5 percent of GDP in 2003. In order to reach
the primary surplus target and for the fiscal gap to be
consistent with the monetary program, a number of spending cuts,
revenue measures and the elimination of certain tax exemptions
will need to be approved by Congress by end-March 2003.
Provincial adjustment is being achieved through spending
controls and administrative reforms and is to be underpinned by
the bilateral agreements for 2003 that are planned to be
ratified by provincial legislatures by mid-May 2003.

The authorities intend to complement core monetary and fiscal
policies with a number of structural measures aimed at paving
the way to a more comprehensive approach under a successor
program. The implementation of the initial strategy includes
institutional and legal reforms to strengthen the framework for
banking sector restructuring, including preliminary steps toward
reform of public banks, revisions to prudential regulations, and
measures to enhance the autonomy of the central bank. Other
measures include tax reform aimed at broadening the tax base,
and the reform of intergovernmental relations to encourage
fiscal discipline in the provinces.

The Argentine authorities have committed to remain current on
the government's financial obligations to the IMF under the
program.

Argentina joined the IMF on September 20, 1956. Its quota 1 is
SDR 2.117 billion (about US$2.905 billion). Its outstanding use
of IMF credit currently totals SDR 9.747 billion (about
US$13.376 billion).

A member's quota in the IMF determines, in particular, the
amount of its subscription, its voting weight, its access to IMF
financing, and its allocation of SDRs.

CONTACT:  IMF EXTERNAL RELATIONS DEPARTMENT
          Public Affairs
          Tel: 202-623-7300
          Fax: 202-623-6278

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


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


CRP: Gets A.M. Best Downgrade; Negative Implications
----------------------------------------------------
The financial strength ratings of Bermuda-based Commercial Risk
Partners (CRP) and its U.S. subsidiary, Commercial Risk Re-
Insurance Company of Vermont were downgraded to B++(Very Good),
from A- (Excellent) by A.M. Best.

The two companies are also placed "under review with negative
implications". The status shows A.M. Best's concerns regarding
to future of these companies, and the uncertainty as to the
outcome of the annual year-end review being carried out.

The downgrades came after CRP's parent company, French reinsurer
Scor Group announced the it is looking to sell CRP.


SCOR GROUP: To Sell Bermuda Unit, Top Execs Resign
--------------------------------------------------
The Bermuda subsidiary of Commercial Risk Partners (CRP) is put
up for sale by its parent, French reinsurer Scor Group.

The Bermuda Sun reported that CRP is now considered as "non-
strategic" and will cease underwriting new business. Scor posted
a loss of EU400 million last year, US$99.7 million of this is
attributed to CRP's underwriting losses.

In related news, the company also confirmed the resignation of
its chairman and chief executive officer, Graham Pewter. Scor's
chief operating officer and chief actuary Francois Bertrand has
also resigned.

A report from the Royal Gazette said that Mr. Pewter intends to
stay in Bermuda and is pursuing other opportunities in the
country.

CONTACT:  SCOR
          1, Avenue du General de Gaulle
          92074 La D,fense Cedex, France
          Phone: +33-1-46-98-70-00
          Fax: +33-1-47-67-04-09
          Home Page: http://www.scor.com
          Contact:
          Jacques Blondeau, Chairman and CEO
          Denis Kessler, Chairman and CEO
          Serge Osouf, President and COO


=============
B O L I V I A
=============


SEMAPA: Bad Debt Cleared, Awaits US$18.5 Million IDB Loan
---------------------------------------------------------
The government of Bolivia has granted a public credit
certificate to Cochabamba water utility Semapa, reports Opinion
on Thursday. The move clears the way for Semapa to obtain a
US$18.5 million loan from the Inter-American Development Bank.
An IDB representative said that the bank might grant the loan,
on the condition that the Bolivian government sticks to the
laws, said the paper.

The first disbursement of US$4 million will be spent on
improving drinking water systems and treatment plants. Business
News Americas reported that the company has already prepared the
paperwork and bidding rules, so it can launch tenders right
after receiving the funds.

Acting basic services minister Jose Barragan met with utility
and local officials last week to work out a solution to Semapa's
woes. Aside from the issuance of a certificate clearing the
company of all bad credit, two other proposals were submitted
last week. One was involved the assumption of SEMAPA's debt by a
third party, such as the Cochabamba municipal government, and
the other was to have SEMAPA draw up a financial restructuring
plan.


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


BCI: 4Q Results Include Telecom Americas Final Sale
---------------------------------------------------
As a result of the adoption on July 17, 2002 of the Plan of
Arrangement, and the completion of the sale of Bell Canada
International Inc.'s ("BCI") interest in Telecom Americas Ltd.
("Telecom Americas") on July 24, 2002, BCI's consolidated
statements of earnings and cash flows for the fourth quarter of
2002 reflect only the activities of BCI as a holding company.
Axtel S.A de C.V. ("Axtel") and Canbras Communications Corp.
("Canbras") are recorded under Investments on the balance sheet
at the lower of carrying value and estimated net realizable
value and their operating results are not reflected on BCI's
consolidated statements of earnings.

Fourth Quarter Results

BCI's balance sheet as at December 31, 2002 includes cash and
temporary investments of $149.1 million, down $4.4 million from
September 30, 2002. The reduction is mainly due to the payment
of administrative expenses during the quarter. Current assets
also include a $268.5 million note receivable, being the
equivalent of US$170 million, which represents the remaining
proceeds to be received on March 1, 2003 from the payment of the
balance due under the America Movil S.A. de C.V. note (the
"America Movil Note"). The carrying value of the America Movil
Note declined by $1 million in the quarter reflecting a decline
in the US dollar exchange rate. On July 25, 2002, BCI purchased
a foreign currency option (the "FX Option") to protect against
adverse currency fluctuations related to the US dollar
denominated America Movil Note. The FX Option will ensure that
the proceeds from the America Movil Note in Canadian dollars
will not be less than $264 million.

BCI's interests in Axtel and Canbras are recorded on the balance
sheet at $25 million, reflecting a write-down in the quarter of
$71.6 million. The write-down is based on management's best
estimates of net realizable value taking into account prevailing
market conditions.

Total liabilities include BCI's 11% senior unsecured notes due
September 2004 in the amount of $160 million and accrued
liabilities of $23.3 million.

The net loss for the fourth quarter was $71.1 million, or $1.78
per share, reflecting the write-down of investments,
administrative expenses, accrued interest expenses and
unrealized foreign exchange losses on the America Movil Note and
on cash and temporary investments held in US dollars, partially
offset by the reduction of accrued liabilities for future costs
related to discontinued operations.

Cash outlays from January 1, 2003 to December 31, 2003 are
estimated at approximately $40 million, including accounts
payable, accrued liabilities, net interest and administrative
expenses. The foregoing estimate excludes any amounts that may
be required to settle contingent liabilities such as law suits,
the Vesper guarantees and the Comcel voice over IP claim.

Update on Assets Held for Disposition

BCI is actively seeking to dispose of its remaining assets,
Canbras and Axtel. The following is a summary of the fourth
quarter financial and operational results of both companies.

-- Canbras' revenues reached $13.1 million in the quarter, down
$1.9 million or 13% compared to the fourth quarter of 2001. This
decrease is mainly as result of a devaluation of 45% in the
Brazilian real compared to the Canadian dollar, partially offset
by cable and internet access subscriber growth and price
increases. EBITDA was $4 million, up from $0.5 million in the
fourth quarter of 2001, primarily due to a reduction in
operating expenses driven by the devaluation in the Brazilian
real and a reduction in programming costs as a result of
favourable price negotiations with programmers, partially offset
by lower revenues. For the full year, revenues reached $62
million, an increase of $6 million, or 11%, relative to 2001.
This growth was achieved despite a devaluation in the Brazilian
real compared to the Canadian dollar of 20%. EBITDA in 2002 was
$12 million up from nil in 2001. Debt at the end of 2002 was $29
million. As existing cash and cash generated from operations are
not expected to be sufficient to meet current liabilities over
the next 12 months, Canbras is pursuing refinancing alternatives
as well as new sources of financing. There can be no assurance
that such refinancing alternatives or any new financing can be
arranged on acceptable terms or at all. -- Axtel's revenues were
$99 million for the quarter, an increase of $5 million over the
fourth quarter of 2001 driven by higher revenue per subscriber.
EBITDA reached $31 million, up $27 million over the same quarter
last year due primarily to reduced general, administrative and
bad debt expenses. For the full year, revenues reached $384
million compared to $326 million in 2001. EBITDA for 2002 was
$98 million compared to $6 million in 2001. Debt at the end of
2002 was $838 million. Axtel is pursuing refinancing
alternatives as well as new sources of financing. For example,
Axtel is currently in discussions with its major supplier with
respect to the terms of its supply and financing contracts.
There can be no assurance that such refinancing or any new
financing can be arranged on acceptable terms or at all.

Plan of Arrangement Update

-- On December 2, 2002, the Ontario Superior Court of Justice
(the "Court") approved a Claims Identification Process for BCI.
The Claims Identification Process establishes a procedure by
which all claims against BCI will be identified within a
specified period. This period will begin following the Court's
decision with respect to the certification as a class action of
the lawsuit filed by Mr. Wilfred Shaw, a BCI shareholder, which
certification decision is expected in the second quarter of
2003. BCI intends to contest the certification of Mr. Shaw's
action.

-- On the same day, the Court also ruled on certain
proceduralsteps with respect to the class action lawsuit filed
by certain former holders of BCI's 6.75% convertible unsecured
subordinated debentures. In accordance with an agreement reached
among the parties to this lawsuit, the Court has ordered that
the lawsuit be certified as a class action within the meaning of
applicable legislation. The certification order does not
constitute a decision on the merits of the class action, and BCI
continues to be of the view that the allegations contained in
the lawsuit are without merit and intends to vigorously defend
its position. As part of the agreement among the parties, the
plaintiffs in the class action have abandoned their claim for
punitive damages (the statement of claim originating the lawsuit
sought $30 million in punitive damages). The plaintiffs have
also agreed to the dismissal of the class action as against BMO
Nesbitt Burns, Inc., one of the original defendants in the
proceeding.

BCI is operating under a court supervised Plan of Arrangement,
pursuant to which BCI intends to monetize its assets in an
orderly fashion and resolve outstanding claims against it in an
expeditious manner with the ultimate objective of distributing
the net proceeds to its stakeholders and dissolving the company.
BCI is listed on the Toronto Stock Exchange under the symbol BI
and on the NASDAQ National Market under the symbol BCICF. Visit
our Web site at www.bci.ca.
To see financial statements: http://bankrupt.com/misc/BCI.htm

CONTACT:  Bell Canada International Inc.
          Howard N. Hendrick, 514/392-2260
          howard.hendrick@bci.ca


BCP: Expected to Break Up in Coming Weeks
-----------------------------------------
Brazilian wireless company BCP, S.A. is planning to divide into
strategic units in the coming weeks, according to Dow Jones
newswires. Analysts say, a split up would allow BCP's core unit
in southeast Brazil to recover its current debt crisis faster,
facilitating its eventual takeover.

The company's northeastern business, known as BCP Nordeste has
two prospective buyers. Although the company did not confirm the
names of these buyers, industry followers indicate that they are
Telecom Americas, a unit of Mexico's American Movil SA (AMX),
and Brasilcel - a joint venture between Portugal Telecom SA (PT)
and Telefonica Moviles SA (TEM).

Telecom Americas seem to have the greater need to acquire BCP
Nordeste because it is yet to establish its presence in the
northeast. Telecom Americas has four million clients and has
operations in southeast, central west and south Brazil.

Brazilcel, meanwhile, operates in two-thirds of the country,
with 17 million clients when its purchase of Tele Centro Oeste
Participacoes SA (TRO) gets regualtor's approval.

"I believe that the BCP Nordeste deal could be concluded either
in the next few days or in the next few weeks," said Luis Felipe
Schiriack, BCP's vice president of administration and finance.

BCP Nordeste's buyer would inherit BRL320 million in debt.

BCP's Sao Paulo-based operation has a number of rumored bid
contenders, including Telecom Americas, Oi - the recently-
launched mobile phone service of Brazil's biggest telecoms
company, Tele Norte Leste Participacoes SA (TNE), and Telecom
Italia Mobile SA (I.TIM), which has a nationwide license and
five million customers, is considered another interested party,
as it's easier to take over an existing operation than build
from scratch.

But Mr. Schiriack said that no interested party had approached
his company concerning a possible takeover in Sao Paulo.

Adriano Pitoli, an analyst for local consultancy Tendencias,
said that Telecom Americas seems to be the favorite to buy the
two BCP businesses.

According to him, "The market is consolidating to the point that
there will only be four or five big companies," naming
Brasilcel, Telecom Americas, TIM, Oi and possibly Brasil Telecom
Participacoes SA (BRP).

For the third quarter of last year, BCP has posted a net loss of
BRL1.66 billion as foreign-exchange charges widened a year-
earlier loss of BRL318.8 million, according to the report. The
company debt load is reported at BRL1.6 billion.

The company, which has one million clients in the northeast and
1.7 million in Sao Paulo, is controlled by BellSouth Corp. (BLS)
and principals of local banking giant Banco Safra.

CONTACT:  Banco Comercial Portugues SA BCP
          Rua Augusta n 62/96, 2 piso
          Lisboa, Portugal 1149-023
          Tel  +351 213 211 000
          Fax  +351 213 211 739
          Web  http://www.bcp.pt/
          Contacts:
          Jorge M. Jardim Goncalves, Chairman
          Felipe de Jesus Pinhal, Deputy Chairman
          Christopher de Beck, Deputy Chairman


CEMIG: Net Loss Up Due to Huge Debt Provision Ordered by CVM
------------------------------------------------------------
Brazil's securities commission, CVM, has ordered state-run power
firm, Cemig, to provide for the debts owed to it by the state of
Minas Gerais, forcing the company to re-state its financial
results, Business News Americas said last week.

As a result of the restatement, the company will now book a net
loss of BRL1.15 billion, according to the paper, up from the
original loss of only BRL268 million.  The restatement will
affect the first nine months of 2002, Cemig Investor Relations
Director Luiz Fernando Rolla told the paper.

Mr. Rolla said these debts date back to the years before 1993
when the federal government kept electric power prices
artificially low to control inflation and placed credits in a
special account for each company, called the CRC accounts.
The federal government, he said, transferred Cemig's CRC credits
to the Minas Gerais state government in 1995, as part of debt
renegotiations.

By the end of 2002, the total CRC debts owed to Cemig by the
state government had risen to BRL2.02 billion, of which BRL735
million had expired and BRL1.28 billion was outstanding.
According to the paper, the state government and Cemig have
split the total debts in two parts: BRL791 million to be paid by
the state government from Cemig dividends and BRL1.05 billion
that would be transferred to the federal government, which would
pay off Cemig with cash and become a creditor of the state.

The CVM did not accept these talks between the state, company
and federal government as sufficient guarantee the debts would
be paid and obliged Cemig to make the provisions, Mr. Rolla told
the paper.  Cemig is confident the negotiations will be
completed shortly.

"We consider these receivables still collectable," Mr. Rolla
said in an interview. The state government wants to improve the
poor image it has on the international credit markets and
resolving the Cemig impasse would be the first step, he added.

The CVM did accept state government guarantees to pay BRL971
million of the debts from Cemig dividends, he explained, adding
that the state would pay interest of the IGP-DI inflation rate
plus 12%.  Cemig's dividend policy would be more aggressive
through 2003 to allow it to recoup that part of the CRC debts,
Mr. Rolla said. The state government's finances are in a
precarious state and the CRC debt cannot be paid off from cash
flow, so instead Cemig will be retaining 100% of dividends to
the state, he explained.

"The state is committed to running Cemig in the best way
possible. Cemig will be run considering that the dividend value
is the key issue to getting the CRC receivables," he told the
paper.

The provisions do not affect operations or cash flow at Cemig,
he said, allowing investments for this year to be maintained as
planned.

"Our financial position is still solid because we had a large
enough income reserve to accommodate the provision," Mr. Rolla
said. "We believe in 2003 we will generate enough internal funds
to afford capital expenditure and do not see any change in the
expansion plans."

Considering a stable economy and growth in consumption during
2003, Cemig should be able to post a profit by year-end, he
added.


CERJ: Chilean Investor Ups Stake in Rio de Janeiro Power Firm
-------------------------------------------------------------
Chilean power firm, Enersis, now controls 86% of Brazil's Rio de
Janeiro state power distributor, Cerj, after buying another 771
million ordinary shares recently, Business News Americas says.

The move completes the latest capital increase of the company
via the capitalization of a BRL370 million loan through Cerj
Overseas.  The paper said Enersis paid BRL370 million in return
for the ordinary shares.

Other minority shareholders acquired 4.2 million shares totaling
just over BRL2 million.  But Enersis' main partners, such as
Endesa Internacional and EDP, did not buy shares in line with
their existing shares and saw their overall participation in the
company drop, the report said.

The capital increase will boost Cerj's shareholder equity to
BRL915 million.  Just four months ago, Enersis provided BRL260
million reais in fresh capital through the conversion into
shares of bonds issued in November 1998.

Cerj has 1.69 million customers in its 31,741 sq. km concession
area, the paper says.


LIGHT SERVICOS: May Hit Chopping Block if Losses Continue
---------------------------------------------------------
Chances are leading European power firm, Electricite de France,
will exit from Brazil's power industry should a crisis plan for
subsidiary, Light Servicos de Eletricidade SA, fail to bear
fruit by June, Light President Jean Pierre Bel told O Globo last
week.

Mr. Bel said the French parent is no longer willing to spend
US$200 million a month supporting Light.  He said should the
plan drafted in December fail anew the local unit would likely
be sold.

Under the plan, losses must be stopped by 2005.  However, the
paper said, a regular monthly review will be conducted by EDF,
which could decide to sell any time it deems the Brazilian
venture is no longer viable.

The paper said Light has not made a profit since 1999, when a 30
percent decline in the value of Brazil's real against the dollar
caused the cost of servicing its dollar-debts to soar, even as
the government limited its ability to raise rates to consumers.

One of the last major state-owned energy monopolies in Europe,
EDF has a generating capacity of nearly 100,000 MW and provides
power to 32 million French customers.  Internationally, the
company has interests in electric and gas utilities that serve
11 million customers and operates power plants that generate
19,000 MW of capacity in Europe, Africa, the Americas, Asia, and
the Middle East.

CONTACT:  LIGHT SERVICOS DE ELETRICIDADE S.A.
          Avenida Marechal Floriano, 168
          20080-002 Rio de Janeiro, Brazil
          Phone: +55-21-2211-2794
          Fax:   +55-21-2211-2993
          Home Page: http://www.lightrio.com.br
          Contact:
          Bo Gosta Kallstrand, Chairman
          Michel Gaillard, President and CEO
          Joel Nicolas, Executive Director, Operation
          Paulo Roberto Ribeiro Pinto, Executive Director,
                                 Investor Relations and CFO


LIGHT SERVICOS: Workers Ready to Strike if Layoffs Begin
--------------------------------------------------------
Urbano do Vale, a spokesman for Sintergia energy workers union
said that employees at Rio de Janeiro state distributor, Light,
is ready to restart a strike if the company starts laying off
employees, reports Business News Americas, after the Rio state
labor court (TRT) refused to examine the dispute between the
company and the unions.

According to the Company, the case was thrown out because the
unions failed to meet all the conditions that would legitimize
its involvement. Specifically, the TRT pointed to the
"evolution" of Light's proposal and asked the unions to review
their rejection, according to Light.

"We don't expect the company to start laying off employees, as
it has expressed a commitment to restart negotiations," Mr. Vale
told BNamericas.

He added, "The TRT washed its hands of the process. It was a
measure that surprised us, as we expected the court to dispose
itself to examine the case and issue a ruling. The court has now
returned the responsibility to the two parties."

The unions and the management had disagreements over the planned
layoffs for this year. The unions want a clause saying the
company could not layoff more than 2 percent of its workforce
per annum to remain this year. But Light is seeking to be
allowed to layoff up to 8 percent of its workers, roughly 350
employees. The Company also has a program encouraging
retirement.

Another point of disagreement between the two parties is the
issue of an increase in the workers' pay. According to Mr. Vale,
workers deserve a 10.22 percent increase, based on the INPC
inflation index, but the union is only asking for a 6 percent
rise effective from November 2002, to be paid in June. However,
the company, which has started the process of hiring 400
employees, is offering only 5 percent effective from February
this year.

Meanwhile, both parties said that they are willing to start
negotiations. Vale admitted that initial contacts had been made
and talks could begin by the end of last week, or early this
week.


SABESP: To Complete Phase Two of Tiete Project in 2005
------------------------------------------------------
Governor Geraldo Alckmin announced on Friday that Sao Paulo
state water utility, Cia. de Saneamento Basico do Estado de Sao
Paulo (SABESP), expects to complete the US$400 million second
phase of its Tiete river pollution reduction program in 2005.

The governor made the announcement during his inspection visit
to the program's largest work: an 18-kilometer long, 3.5-meter
wide Pinheiros 6 sewage interceptor, which will have the
capacity to transport 3,000l/s of sewage to the Barueri
treatment plant. Barueri can process up to 9,500l/s of sewage.

Business News Americas reported that the company and the Inter-
American Development Bank funded the program equally. More than
US$1 billion was invested in the first phase, which ran from
1992 to 1998. Most of the investment went to treatment
infrastructure.

The second phase, which started in 2000, will have implemented a
total of 1,200 kilometers of sewage collection network, 290,000
residential connections, 107 kilometers of sewage collection
mains, and 33 kilometers of interceptors by 2005.

In Sao Paulo's metropolitan region, sewage collection is
expected to increase to 81 percent from 78 percent and treatment
should rise to 68 percent from 63 percent.

Last week, Sabesp shares went up 4.1 percent, closing at BRL3.20
on the Sao Paulo stock exchange after the company posted losses
that were lower than expected.

CONTACT: Sabesp
         Helmut Bossert
         Tel:(5511) 3388-8664
         Email: hbossert@sabesp.com.br

         Marisa Guimaraes
         Tel: (5511) 3388-9135
         Email: marisag@sabesp.com.br
         Web site: http://www.sabesp.com.br


TELEMAR: Secures US$550 Million from European, Japanese Lenders
---------------------------------------------------------------
Brazilian telecom Tele Norte Leste Participacoes S.A. (Telemar)
said on Friday that it borrowed US$550 million from
international banks, reports Business News Americas. In a
statement, Telemar's investor relations manager Marcos
Grodestzky said, "Telemar is really optimistic about the
behavior of the exchange rate and the prospect of increased
capital flows into Brazil."

The company loaned a total of US$300 million from Societe
General and German development bank KFW. The money will be used
to restore credit lines with suppliers. Telemar will have a two-
year grace period before starting amortization. The cost of
these loans will be the libor rate plus an annual spread ranging
from 0.75 percent to 4.30 percent. Societe General will be paid
in nine years, KFW in ten.

Japan Bank for International Cooperation (JBIC) also loaned that
company US$250 million, which will be repaid in eight years in
six-month amortizations.  According to the report, this loan
will cost yen libor, about 0.07 percent, plus a 1.25 percent
spread. Proceeds from this loan will be used to raise corporate
investments.

Mr. Grodestzky added, "Telemar was the first Brazilian telecom
to borrow from the Japan Bank for International Cooperation in
2001. This reflects the company's good relationship with the
Japanese lender."

CONTACT:  TNE - INVESTOR RELATIONS
          Roberto Terziani
          Email: terziani@telemar.com.br
          Tel: 55 21 3131 1208

          Carlos Lacerda
          Email: carlosl@telemar.com.br
          Tel: 55 21 3131 1314

          Fax: 55 21 3131 1155

          THOMSON FINANCIAL CORPORATE GROUP
          Rick Huber
          Email: richard.huber@tfn.com

          Mariana Crespo
          Email: mariana.crespo@tfn.com

          Tel: 1 212 807 5026
          Fax: 1 212 807 5025


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


SAESA: Pre-Pays US$106 Million Debt After Successful Bond Issue
---------------------------------------------------------------
Chilean distributor Saesa has pre-paid US$106mn of a US$150mn
loan due April 4 reports Business News Americas, citing a
statement filed by the company to Chilean securities regulator
SVS. The pre-payment comes after Saesa concluded successfully a
bond issue on January 16. In a statement, the company said that
the bonds, placed by Salomon Smith Barney, was oversubscribed by
48 percent.

The loan, of which US$115 million was by Saesa, the remaining
US$35 million, by sister company Frontel was originally due on
October 8 last year. The deadline had been postponed twice.

The report said that Saesa's US-based parent company PSEG will
take on the remaining US$9 million of Saesa's share of the loan,
without indicating whether Frontel has paid its share.

According to the report, the loan was administered by the New
York branch of German bank West LB and shared between JP Morgan
Chase, Citibank, BankBoston, Nassau Branch, BBVA, Banco Sud
Americano, BCI, Desdner, and Credit Lyonnais. It was guaranteed
by PSEG and Saesa's subsidiaries Edelaysen and STS, according to
a company statement.

Meanwhile, Saesa will use part of a US$93 million syndicated
loan to Saesa and Frontel from Chilean banks BICE (which led the
loan), BCI, Corpbanca, and Estado to pay its debt. The
syndicated loan, which was used to pay debts and boost working
capital, is for seven years and will be paid back at Chilean
benchmark interest rate TAB plus 2 percent spread.

CONTACT:  SAESA
          Gerencia y Administracion Zonal de Osorno
          Bulnes 441, Osorno
          Telefono: (64) 206400
          Fax: (64) 206209 - Casilla: 21 -0


TELEFONICA CTC: Wins Appeal vs. US$10.8 Million Labor Judgment
--------------------------------------------------------------
An appeals court has overturned an earlier judgment ordering
Telefonica CTC Chile, Chile's largest telephone firm, to pay
workers US$10.8 million in productivity bonuses and incentives,
Business News Americas said last week. The same court also
ordered the unions to cover the company's legal expenses related
to the matter.  A labor court had originally decided against the
company, citing provisions in the collective bargaining
contract, which expired June last year.

The bonus and incentives were supposed to be paid to 6,900
employees, including 1,000-plus staff who were laid-off in
October as part of a company-wide restructuring plan.

CONTACT:  TELEFONICA CTC
          Avenida Providencia 111, Piso 2
          Santiago, Chile
          Phone: +56-2-691-2020
          Fax: +56-2-691-2392
          Homepage: http://www.ctc.cl
          Contacts:
          Mr. Bruno Philippi, President
          Mr. Jacinto D¡az, Vice President
          Gisela Escobar, Head of Investor Relations


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


UNION FENOSA: Government Adamant About Collecting Debts
-------------------------------------------------------
In a final act of frustration, the government says it will
employ all its resources to compel Union Fenosa and its power
distributors to cough up RD$1 billion in debt payments to the
Dominican Electric Company, Finance Minister Jose Lois Malkum
said late last week.

"The problem with the distributors is the fact that there is a
significant debt owed by the three distributors to the CDE, and
this debt is over one billion pesos, but the distributors
continually deny this and look for any loophole to question this
amount," Mr. Malkum said.

He said the decision to compel payment was reached during a
meeting with President Hipolito Mejia last Wednesday.
Meanwhile, the minister said the government has now reduced its
debt with power generators.  He said only one large debt --
US$18 million owed to Smith-Enron -- remains unpaid of the
original amount of US$50 million.

Based in Spain, Union Fenosa currently controls two-thirds of
power distributors in the Dominican Republic.  In December, the
company sought the government for US$200 million in financial
assistance to help pay the debts of these power distributors.
The Spanish firm claimed these subsidiaries have piled up RD$14
billion of debts.

The government has since discovered, however, that half of these
debts is owed by Edesur and Edenorte to Union Fenosa.  The
discovery has prompted speculations that the Spanish firm had a
hidden agenda when it accumulated debts with power generators.
El Caribe, a local daily, suggested a few weeks ago that Union
Fenosa may have accumulated these debts to gain a better
position in its negotiations to abandon its affiliates by
declaring bankruptcy.

Economist Alfonso Abreu Collado, who agrees with El Caribe's
views, told the daily that it is only a matter of time before
these subsidiaries would become insolvent.  He said the
government could end up with RD$10 billion in debts should the
Spanish firm abandon local affiliates.

Mario Lopez, general manager of Union Fenosa's Edenorte and
Edesur distribution companies, has categorically denied the
Spanish firm is about to abandon its local units after losing
millions of pesos for sometime now.

Notwithstanding the assurance, Dominican Republic Superintendent
of Power Julio Cross plans to take Union Fenosa to international
arbitration in order to know how it managed local subsidiaries.
It is not clear when he will make this move.

CONTACT:  Union Fenosa SA
          Head Office
          Avda San Luis No 77
          28033 Madrid
          Spain
          Tel: +34 91 567 6000
          Fax: +34 91 571 4593
          Telex: 27412
          Web site: http://www.unionfenosa.es
          Contacts:
          Antonio Basagoiti, Chairman
          Vicente Arias Mosquera, Vice Chairman
          Antonio Barrera de Irimo, Vice Chairman


UNION FENOSA: Claims Government's Debt Figures Erroneous
--------------------------------------------------------
The local affiliates of Spanish power firm, Union Fenosa, is
disputing the government's claim that it owes the Dominican
Electricity Corporation RD$1 billion, Dr1.com says.

Reacting to the finance ministry's assertion, Edenorte and
Edesur, both Union Fenosa power distributors, said the
government is in fact indebted to them for about RD$560 million,
representing power consumption of its various agencies.  The two
also claimed that their books only show RD$65 million in
outstanding debt to the state-run power corporation.

The distributors say they do not owe the government the asserted
amount because they discount the government departments'
consumption from what they are due to pay the Dominican
Electricity Corporation.

The Superintendence of Power has recently threatened to penalize
the Union Fenosa affiliates for delays in their payments to the
power generators that supply the power they distribute to
consumers, Dr1.com said.


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


EMASEO: Continued Losses May Force Quito City to Liquidate Firm
---------------------------------------------------------------
The City of Quito, Ecuador's capital, may be forced to liquidate
its municipal waste management company, Emaseo, according to
Business News Americas. Reports say the company has continued to
lose money -- about US$1.4 million annually -- forcing the
government to consider other options. A committee, headed by
city councilor Mauricio Pinto, is expected to come up with
recommendations in the coming weeks.

With an annual budget of US$16 million, the company is said to
be on the verge of collapse largely because of an inefficient
workforce.  Nearly 85% of its costs are operational, the paper
said. One of the possible options for the city, aside from
liquidation, is to privatize the company's operations, the paper
said.  Already, waste collection for the city's center and south
to Quito Limpio is now in private hands.  Mr. Pinto is allegedly
in favor of further privatizing operations, particularly for the
city's north district.


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


FAR-BEN: Ahumada to Close 23 Unprofitable Stores
------------------------------------------------
Twenty-three unprofitable stores owned by Far-Ben S.A. will be
closed as Farmacias Ahumada S.A. steps up efforts to stop Far-
Ben's losses, reports Bloomberg News. Far-Ben had posted losses
in five of the last six quarters. Far-Ben has losses of MXP169.6
million (US$15 million) since the second quarter of 2001, said
the report. The company's debt is down to US$30 million from
US$80 million after an agreement with the company's creditors
that was part of Ahumada's purchase of 68 percent of the chain
from Mexico's Benavides family.

The acquisition made Ahumada Latin America's largest pharmacy
chain, with 640 pharmacies in Mexico, 235 stores in Chile, 90 in
Peru and 110 in Brazil, where the company plans to open another
20 stores this year, according to Ahumada's Chief Executive
Officer Enrique Cibie.

This year, Ahumada plans to invest US$18 million in Far-Ben.
Computer systems, designed to reduce loss and theft of
inventory, are to be installed.

Mr. Cibie said that the company will liquidate assets not
related to Far-Ben's pharmacy business within two years. The
report indicated that Ahumada hopes to raise about US$30 million
from the sale of a baseball field and other assets owned by Far-
Ben. Other assets to be sold include a restaurant chain, and a
large estate near Far-Ben's headquarters in Monterrey, Mexico.

Mr. Cibie also said that s drop in financing costs at Far-Ben
also will help the company to break even this year. Far-Ben
accounts for more than half of Ahumada's revenue of about US$1
billion this year. About 40 percent comes from Ahumada's sales
in Chile, while the rest is from its stores in Brazil and Peru.

Ahumada posted sales of MXP289.8 billion (US$694 million) in
2001.

CONTACT:  FARMACIAS AHUMADA S.A. (Chile)
          Alejandro Rosemblatt, Corporate Finance Manager
          011-56-2-661-9620
          arosemblatt@fasa.ci
          Web site: http://www.fasa.cl

          FARMACIAS BENAVIDES, IN MEXICO
          Enrique Villareal, Finance Director
          Phone: 011- 52-81-8399930
          E-mail: evillareal@benavides.com.mx/


IUSACELL: Future Mexican Investment Hinges on Debt Talks
--------------------------------------------------------
Iusacell General Director Carlos Espinal declared last week that
the company is no longer in crisis, as it is now restructuring
its debts. In an interview with El Economista, Mr. Espinal
acknowledged, however, that should the restructuring of some
US$800 million in debts fail, the company would discontinue
investments in Mexico.  He clarified, though, that Iusacell
would "fulfill 100% of loans" in the event debt negotiations
would bog down.

The third-largest mobile operator in Mexico, the company has
earmarked about US$130 million in investments this year, the
Mexican daily said.  Mr. Espinal did not disclose details of the
restructuring plan.

The executive, meanwhile, said Iusacell is currently studying an
appeal against the IEPS special tax on cellular services
implemented this year, adding that the company preferred to
transfer the benefits to users by reducing the cost of prepaid
cards to less than 350 pesos (US$32.20) and not give it to the
government because it is applying "quasi-control of prices."

In December, the company warned investors that it could be
delisted from the New York Stock Exchange after its American
Depositary Receipts fell below the bourse's minimum US$1/ADR
trading value.

Finance Vice President Russell Olson said at the time that the
company has retained U.S. investment bank Morgan Stanley to
advise on debt restructuring alternatives.

INVESTOR CONTACTS:  Russell A. Olson
                    Chief Financial Officer
                    Tel: 011-5255-5109-5751
                    Email: russell.olson@iusacell.com.mx

                    Carlos J. Moctezuma
                    Manager, Investor Relations
                    Tel: 011-5255-5109-5780
                    Email: carlos.moctezuma@iusacell.com.mx


GRUPO MEXICO: Workers Seek Bonus, Share in Cananea Mine
-------------------------------------------------------
Grupo Mexico's workers mining its copper concession in Cananea,
State of Sonora, are demanding for a 32% productivity bonus, a
5.25% wage hike and a 5% stake in the mine, Business News
Americas said last week.

Citing El Economista, the paper said workers would only agree to
end their strike if these demands are met. The 5% share in the
mine correlates to the selling price of Mexicana de Cananea to
G-Mex by the federal government in 1999.

In a separate report, El Universal newspaper said Cananea
workers are threatening to block border crossings between Sonora
and the United States, in an apparent move to further pressure
the company into granting their demands.

It is not clear whether this time Grupo Mexico would relent.
Last week, it threatened to shut down the mine permanently if
the workers refuse to get back to work, describing the strike as
"without legal basis."

The strike began last Tuesday after management and union
representatives failed to reach a new wage agreement.  Almost
all of the 3,000 workers that work in the open-pit mine put down
their tools Tuesday morning, the paper said.

The strike at the mine, which produces around 150,000t/y copper
of which 50,000t is in the form of cathodes using SX-EW
technology is expected to "have an immediate impact" on the
group's production, Juan Rebolledo, vice president for
international affairs was quoted last week as saying.

Grupo Mexico has been hurt by strikes in Mexico and Peru and
slumping copper prices because of slowing world economies that
have cut into profit and caused the company to default on debts,
says the paper.

CONTACT:  GRUPO MEXICO S.A. DE C.V.
          Avenida Baja California 200,
          Colonia Roma Sur
          06760 M,xico, D.F., Mexico
          Phone: +52-55-5264-7775
          Fax: +52-55-5264-7769
          Home Page: http://www.gmexico.com
          Contacts:
          Germ n Larrea Mota-Velasco, Chairman and CEO
          Xavier Garca de Quevedo Topete, President and COO
          Alfredo Casar P,rez, COO, Ferrocarril Mexicano
          Daniel Ch vez Carre n, COO, Industrial Minera M,xico
          Daniel Tellechea Salido, VP and Administration and
                                      Finance  President


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


BLADEX: Stable Outlook; Cash Hike Receives Strong Backing
---------------------------------------------------------
In support of the bank's plan to raise additional capital of at
least US$100 million in Tier I equity from core shareholders,
Moody's affirmed the ratings of Banco Latinoamericano de
Exportaciones, S.A. last week and changed its outlook to stable
from negative.

The bank, whose ownership consists of 23 central banks of Latin
America and the Caribbean and over 150 regional and
international commercial banks, is rated Baa3 (long-term),
Prime-3 (short-term) and E+ in terms of Bank Financial Strength
Rating.

The recent action affected these ratings:

(1) Long Term Deposits: Affirmed at Baa3, outlook changed to
              stable from negative

(2) Long Term Debt: Affirmed at Baa3, outlook changed to stable
              from negative

(3) Issuer Rating: Affirmed at Baa3, outlook changed to stable
              from negative

(4) Short Term Deposits: Affirmed at Prime-3, outlook changed to
              stable from negative

(5) Bank Financial Strength Rating: Affirmed at E+, outlook
              changed to stable from negative

"The change in outlook reflects the significant progress BLADEX
has made in its plan to raise additional capital of at least
$100 million," Moody's said in a statement.  "The explicit
additional financial commitment of the core shareholders
reflects their view of the importance of BLADEX' special mission
as a trade finance bank for Latin America and the Caribbean."

"The outlook change also reflects BLADEX' ability to manage the
financial pressures brought on by the Argentine debt crisis,"
said Moody's, noting in particular "BLADEX' significant and
disciplined provisioning by risk category of its Argentine loan
book, its improved capitalization and maintenance of solid
liquidity levels during a period of extremely high stress in
order to meet all obligations."

Meanwhile, Moody's said, the E+ BFSR "reflects the bank's still
weak stand-alone financial strength due to its diminished
earnings capacity, capitalization and reserve coverage levels,
and weaker funding access relative to historical levels."

"BLADEX has halved its balance sheet by winding down its loan
portfolio by over US$2.2 billion in order to build liquidity and
to meet obligations," Moody's said.  "The E+ BFSR also reflects
the bank's risk concentrations in Argentina and Brazil as well
as its reduced access to the capital and bank markets. The
bank's exposure to Venezuela, while much more modest, is an
additional limitation to the BFSR."

The BFSR is Moody's opinion of a bank's intrinsic
creditworthiness and measures the likelihood that a bank may
require assistance from third parties.

With US$2.9 billion in assets and US$329 million in equity as of
December 31, 2002 and based in Panama City, BLADEX is a
supranational bank specializing in trade finance and country
risk insurance for Latin America and the Caribbean.  The bank
was established in 1979 under the aegis of the International
Finance Corporation and by mandate of the region's central banks
to ensure that financing for trade flows in the region would be
available even in the case of market volatility, economic
slowdown, or financial crisis.

For more information, please contact:

Gregory W. Bauer (New York)
Managing Director
Financial Institutions Group
Moody's Investors Service

Jeanne Del Casino (New York)
Vice President - Senior Analyst
Financial Institutions Group
Moody's Investors Service


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


WIESE SUDAMERIS: Posts PEN20.9 Million Net Income for 2002
----------------------------------------------------------
Fourth quarter losses of Banco Wiese Sudameris SA, Peru's
second-largst bank, improved greatly last year at PEN1.1 million
compared with a loss of PEN65 million a year earlier, Dow Jones
Newswires said late last week.

Although fourth quarter financial income dipped slightly to
PEN231.6 million in the fourth quarter from PEN277.0 million
year-on-year, full year net income improved to PEN20.91 million
compared with a loss of PEN69.44 million in 2001, the bank said.

Italy's banking group IntesaBci SpA (I.ITB) has a controlling
share in Banco Wiese Sudameris SA.  Banco Wiese Sudameris has
delisted its New York-traded ADR, but it continues to have a
small float on the Lima Stock Exchange, the newswire said.

In December, the bank figured in rumors suggesting that it had
been sold to Chile's Corp Group.  Accordingly, the bank's
Italian shareholder is in the process of exiting Latin America
after posting losses in four of the last five quarters.

Citing newspaper accounts, TCR-Latin America identified last
month former finance minister Pedro Pablo Kuczynski and JP
Morgan Chase & Co executive, Susana de la Puente, as among those
leading negotiations.

Banco Wiese Sudameris holds a 20.03% market share in terms of
loans and a 17.35% market share in term of deposits. As of the
end of October, its past-due loan ratio was 13.57%, over 50%
higher than the 8.15% average for the total banking system.

Last month, the bank approved a previously announced US$300
million capital increase.  Before that capital injection,
according to a government official, the bank's foreign
shareholders had invested about US$560 million since the 1999
merger that created the bank.

Banco Wiese Sudameris is the result of the September 1999 merger
of Banco Wiese and Banco de Lima-Sudameris. Prior to its
acquisition, Banco Wiese had been experiencing severe liquidity
problems since the second half of 1998.

CONTACT:  IntesaBci
          Investor Relations:
          Piazza della Scala, 6
          20121 - Milano
          Fax: (39) 02 8850 2587
          E-mail: investorelations@intesabci.it
          Contacts:
                Andrea Tamagnini, Tel: (39) 02 8850 3180
                Marco Delfrate, Tel: (39) 02 8850 2622
                Cristina Paltrinieri, Tel: (39) 02 8850 3571
                Carla De Alberti, Tel: (39) 02 8850 3159
                Giorgio Grossi, Tel: (39) 02 8850 3189
                Anna Gervasoni, Tel: (39) 02 8850 3466
                Maria Vittoria Buscicchio, Tel: (39) 02 8850
                                                     7114
                Manuela Banfi, Tel: (39) 02 8850 3273

          BANCO WIESE SUDAMERIS
          Dionisio Derteano, 102 Esquina con Miguel Seminario
          Lima 27, Peru
          Phone: +51-1-211-6000
          Fax: +51-1-440-7945
          Website: http://www.bws.com.pe
          Luis F. Wiese de Osma, Chairman
          Eugenio Bertini, CEO
          Carlos Palacios Rey, President, Executive Committee


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


BWIA: Maintenance Crew Suspected of Holding Illegal Strike
----------------------------------------------------------
An annual aircraft maintenance check was delayed last week as
maintenance and engineering workers failed to show up for work
Wednesday, prompting BWIA to threaten to terminate the absent
employees. In an interview with The Trinidad Guardian, BWIA
Corporate Communications Director Clint Williams said the
workers could face harsh penalties, including termination, if it
will be proven that they conspired in taking the "sick-out"
action last week.

"Two thirds of the maintenance and engineering shift did not
turn up for work [on Wednesday]," he said, saying the carrier
will look into the matter seriously.

In a company communique Wednesday, BWIA Vice President Frank
Sampson said: "The legal ramifications of any such action are
clearly set out in (Section 67, sub section 2,) of the
Industrial act Chapter 8801."

That section of the Act states: "An employer or a worker
carrying on or engaging in an essential service shall not tale
industrial action in connection with any such essential
service."

According to the local daily, rumors have been circulating that
BWIA intends to send home most of its maintenance and
engineering crew and contract outside professionals to do their
job.  This is probably the reason for the "sick-out" action, the
paper said.


CARONI LTD: Unions to Present Common Alternative Plan Soon
----------------------------------------------------------
All six trade unions of the country's sugar industry are opposed
to the government's plan for cash-strapped Caroni Ltd. But, in a
progressive move last week, the groups agreed to come up with a
common alternative to be presented to the government.

According to The Trinidad Guardian, the Association of Technical
& Supervisory Staff, Sugar Industry Staff Association, Sugar
Boilers' Association, Estate Police Association and the Cane
Producers' Association of TT attended the historic meeting,
which was presided by Trinidad Sugar & General Workers' Trade
Union president-general Rudranath Indarsingh.

Mr. Indarsingh said the group would soon name the task force
that will present the group's common alternative to the
government's present restructuring plan.  He said a sub-
committee of the Inter-Ministerial Committee on the Caroni
restructuring plan has been set up.  This sub-committee, he
said, has been mandated to listen to the unions' concerns and
report to the Cabinet-appointed committee.

CONTACT:  Caroni Limited
          Old Southern Main Road, Caroni,
          Trinidad & Tobago
          Phone: (868) 663-1781 or 662-0879
          Fax: (868) 663-1404

          All Trinidad Sugar and General Workers' Trade Union
          Rienzi Complex
          Exchange Village
          Southern Main Road, Couva.
          President: Mr. Boysie Moore-Jones
          General Secretary: Mr. Rudranath Indarsingh
          Tel. 868-636-2354
          Fax. 868-636-3372
          E-mail: atsgwtu@opus.co.tt


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


CITGO: Moving to Boost Cashflow to Weather Strike Woes
------------------------------------------------------
Citgo Petroluem Corporation will reduce capital expenditure by
about US$200 million this year, according to a company filing
with the Securities and Exchange Commission earlier this week.
Oswaldo Contreras, Citgo's president outlined other measures the
company will take to boost cash flow. These include delaying a
US$250 million public offering and inventory reduction to
minimum levels this year.

Mr. Contreras also disclosed a plan to shut down the Lake
Charles, La. Conversion Optimization Project and a mixed
distillate hydrotreater project in its refinery in Corpus
Christi, Texas. The company, which owns a plane and leases
another, would reduce its corporate airplanes to one.

The company has also received downgrades from Moody's, Fitch,
and Standard & Poor's in the recent weeks. The moves, brought
about by the uncertainty in the crude supply in the country, had
worsened the company's liquidity problems.

Wall Street quoted Mr. Contreras saying credit-rating downgrades
and the slowdown in crude-oil supplies from Venezuela, which
provides about half of the oil Citgo needs to run its
refineries, had raised the company's cost to do business. The
company had to resort to buying additional volumes of crude in
the open market to maintain plant operations. Mr. Contreras
complained that the company paid more for the oil, in less-
favorable payment terms.

Citgo is a wholly owned subsidiary of Petroleos de Venezuela SA,
the state oil company of Venezuela.

CONTACT:  Petroleos de Venezuela SA
          Head Office
          Apdo 169
          Avenida Libertador La
          Campina
          Caracas
          Venezuela
          1010-A
          Tel  +58 212 708 4111
          Fax  +58 212 708 4661
          Homepage: http://www.pdvsa.com/
          Contact:
          Ali Rodriguez Araque, Chairman
          Jorge Kamkoff, Joint Vice Chairman
          Jose Rafael Paz, Joint Vice Chairman


SINCOR: Remains Shut Due to Strike
----------------------------------
Sincor remains shut because of the ongoing nationwide strike,
reports Bloomberg News, citing European oil company Total Fina
Elf, S.A., which has a 47 percent share in the project.

Total Fina Elf has the biggest losses among the foreign
companies in the country, according to a report by Wood
Mackenzie, Ltd. Daily loss was about US$1.4 million. Losses
comes from Sincor's closure were reported to be an average of
75,000 barrels a day, since mid-December, said the report.

Sincor, which is 38 percent owned by state power company
Petroleos de Venezuela, S.A., and 15 percent by Norway's Statoil
ASA, pumps extra heavy crude from Venezuela's Orinoco belt and
transports it by pipeline to the Caribbean coast where it is
upgraded into lighter, more valuable synthetic crude.

The project started two years ago and was producing about
160,000 barrels a day before the strike began. Sincor is one of
the four heavy crude upgrade projects in Venezuela. The others
are Petrozuata, Cerro Negro and Hamaca.


                           ***********


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 American is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton,
NJ, and Beard Group, Inc., Washington, DC. John D. Resnick, Edem
Psamathe P. Alfeche and Oona G. Oyangoren, Editors.

Copyright 2003.  All rights reserved.  ISSN 1529-2746.

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

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

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


                 * * * End of Transmission * * *