Reuters,, 04.02.03, 12:00 PM ET By Missy Ryan LIMA, Peru, April 2 (Reuters) - Housekeeper Dulia Aguilar has heard President Alejandro Toledo's promises of cheap, subsidized houses for thousands of poor Peruvians, but she can't come up with the $164 a month she would need to buy her own. That means she continues to take the daily hour-and-a-half bus ride to work from the humble neighborhood where she and her daughter rent a sparsely furnished room and share a bathroom with a dozen others for 200 soles ($57) a month. Aguilar is just one of the millions of Peruvians who shake their heads in dismay as they listen to the Toledo government boast that Peru has Latin America's fastest growing and most promising economy. "They say that to look good outside of Peru, but things at home are different," she said. "We don't feel (growth)." The Peruvian economy has indeed shown signs of strength and potential -- growing 5.2 percent in 2002 -- and the Toledo government is hoping those figures will attract needed trade and investment. But it remains to be seen if the nation can fully turn the page and attract new business only three years after being rocked by a corruption scandal that ended the 10-year presidency of Alberto Fujimori and a decades-long rebel conflict involving the Maoist Shining Path. Dark as parts of Peru's political side have been, opportunities to capitalize on the country's growth may help to shroud its past. "The numbers don't lie. Peru's doing extremely well by Latin American standards and better than anyone, even government officials, had anticipated," said Mauro Leos, sovereign credit analyst at Moody's ratings agency. But it's "difficult to get a sense of what lies ahead," he added, echoing other analysts' warnings that Peru must work hard to keep fiscal and political challenges in line to fend off world economy woes and sustain growth. They insist that Peru -- which has long relied on exporting raw materials like minerals and marine products -- must create more jobs, boost private investment and resist the temptation to take on too much debt. NEW LIFE AFTER SLUMP The Toledo government says Latin America's No. 7 economy is booming after a four-year slump, thanks to rekindled consumer demand, manufacturing growth, a state housing push, strong mining output and prospects for increased trade. Peru's strong showing last year contrasts those of neighbors like Argentina, whose economy contracted an estimated 11 percent last year amid currency and debt woes. Peru shares borders with violence-ridden Colombia and Brazil, which last year elected left-leaning Luiz Inacio Lula da Silva as president. In oil-rich Venezuela, the economy shrank 8.9 percent last year amid political unrest and a crippling two-month-long nationwide strike that aimed to oust President Hugo Chavez. The region's biggest economy, Brazil, grew just 1.5 percent in 2002 and the entire region shrank around 0.5 percent last year, according to the United Nations Economic Commission for Latin America and the Caribbean (ECLAC). The Peruvian government forecasts 4 to 5 percent economic growth for this year -- almost double the region-wide growth estimate of 2.1 percent for 2003. But some economists say the country will fall short of its projection. "There is an economic advance, but unfortunately it's not sustainable over time and doesn't enhance people's quality of life because it isn't creating jobs," said Enrique Cornejo, an adviser to the main opposition party APRA in Peru's Congress. Peru grew at a brisk pace in the early 1990s, but in 1998 was hit by fallout from the Asian financial crisis and the devastating weather phenomenon El Nino. Then came the downfall of Fujimori, who had been praised for bringing economic reform and growth to Peru in the 1990s. Fujimori's chief of secret police and close adviser, Vladimiro Montesinos, was also accused of corruption, bribery and lesser crimes. Montesinos fled the country in 2000, but was back earlier this year to stand trial. On March 24, he was sentenced to five years and four months in jail for arranging favors for his former mistress' relatives. The Fujimori/Montesinos debacle, as well as a bloody rebel conflict that killed 30,000 people and inflicted $25 billion in damages in the 1980s and 1990s, rattled some investors. The Shining Path, Peru's fiercest rebel group, is now a shadow of its former self but the government says rebel die-hards still pose a threat. All this has left President Toledo with the task of restoring Peru's patina with the international community. POLISHING THE IMAGE Analysts say that even now Peru cannot let strong headline economic figures distract it from such critical issues as tax reforms and making sure that the country's labor laws favor companies and not just workers. They say Toledo, whose popularity dipped to 21 percent in a recent poll, must remain focused on political issues that could create distractions for him if they go unattended. Toledo's Peru Posible party boasts the largest bloc in Congress, but the leader has faced divisions, such as a heated debate over phone rates, even among party loyalists. Toledo sparred with Congress over a bill to eliminate a fixed monthly telephone fee, which would have altered a 1994 privatization contract and reduced revenue for telecoms leader Telefonica del Peru (nyse: TDP - news - people). Some analysts say that kind of legislative action could frighten investors. "There is a perceived risk from Congress ... but it can be minimized because of the executive's tendency to reject laws that could cloud the long-term outlook for investment risk," said Jorge Luis Rodriguez, an analyst at Centura brokerage. Peru must kindle private investment, which the Central Bank says should grow 5.4 percent in 2003, to sustain growth, while increasing export capacity to take advantage of trade deals. Last year, the country cheered inclusion of new products like apparel in a trade deal that gives duty-free access to U.S. markets for certain goods from Peru, Bolivia, Ecuador and Colombia. Peru is also seeking a bilateral U.S. trade deal. Debt, which worries investors, must also be kept under control, analysts say. The Toledo government has faced fiscal shortfalls after failing as planned to privatize state assets. Peru has sold $750 million in bonds on world capital markets so far this year. "(The new debt) solves a problem in the short term, but in 10 years, will Peru have the cash it needs to meet those obligations?" APRA economist Cornejo said, warning that debt service costs were out of proportion with exports. Peru generally pays $2.5 billion a year in debt service while exports grew to $7.68 billion in 2002. But the government says the new debt will help shelter it from the effects of war and a shaky world economy. "We're about to enter a period of heightened uncertainty ... and if there's one thing we've learned in Latin America, it's how sensitive and vulnerable economies are. Peru is no exception to external shocks," Moody's analyst Leos added.

NEWSDESK 01 Apr 2003 18:56:05 GMT

LA PAZ, Bolivia, April 1 (Reuters) - Heavy rains triggered a massive landslide in a remote gold-prospecting town in northern Bolivia, killing at least 14 people and leaving 200 missing, officials said on Tuesday.

A mountainside washed into the town of Chima, 117 miles (190 km) from the capital of La Paz, on Monday, burying more than 100 houses in mud.

"Fourteen bodies have been found so far," government health official Beatriz Peinado told Reuters.

Peinado said the first of a convoy of rescuers had arrived in the town, accessible only by a winding 360 mile (580 km) road, after a 10-hour journey. The area was declared a disaster zone by President Gonzalo Sanchez de Lozada.

Government officials said the U.S. Embassy lent rescue teams, four helicopters and an airplane that are usually used in efforts to eradicate illegal crops of coca, the plant used to make cocaine, to aid rescue efforts. But bad weather was hampering air travel to the area.

About 1,200 families live in the town beneath Chima mountain, where mining cooperatives prospect for gold with rudimentary equipment, desperate to escape poverty that envelops about 60 percent of the country's 8 million people.

Monday's mudslide was the latest in a series of similar disasters that have killed hundreds of people over the last decade in the gold-rich north near the border with Peru and Brazil, where miners in one of the Western Hemisphere's poorest countries pan for gold using century-old technology.

Sixty people were killed by a mudslide in the jungle gold-mining town of Mocotoro in 1998, while a mountain slide was estimated to have killed hundreds in 1992 in Llipi.

Thousands of people were killed by mudslides in Venezuela in 1999 on the mountainous northern coast near Caracas.

Web source 10:30 AM EST Monday

Miami-based Panamerican (NYSE: PB) said it entered into a Bridge Credit Agreement with ING Bank N.V. for a loan of $150 million for a four-month term.

The proceeds of the loan will be used to pay the principal of the 8 1/8 percent Senior Notes due April 1 issued by Panamco in an aggregate principal amount of $150 million.

Once the acquisition of the company by Coca-Cola FEMSA is completed, the loan will be repaid.

ING Capital LLC acted as the sole arranger and administrative agent in connection with the loan.

Panamco is a large soft drink bottler in Latin America and one of the three largest bottlers of Coca-Cola products in the world, the company said. The company produces and distributes a majority of the Coca-Cola soft drink products in its franchise territories in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela and Brazil, along with bottled water, beer and other beverages in some of these territories.

On March 28, Panamco filed with the U.S. Securities and Exchange Commission a proxy statement regarding the proposed business combination transaction with Coca-Cola FEMSA. Panamco is seeking shareholder approval of the proposed transaction.

Shares of Panamco were down three cents to $21.67 in morning trading. The 52-week low was $7.45 on Oct. 23. The 52- week high was $21.70 on March 28.

herald.com Posted on Wed, Mar. 26, 2003 BY ANDRES OPPENHEIMER aoppenheimer@herald.com

President Bush announced Tuesday that he will nominate White House Latin American advisor John F. Maisto as U.S. ambassador to the Organization of American States as part of a reshuffling of his Western Hemisphere policy team.

The announcement came after the nomination Monday of current OAS Ambassador Roger Noriega to be assistant secretary of state for Western Hemisphere affairs, the top job overseeing U.S. ambassadors in Latin America, the Caribbean and Canada. Both jobs require congressional approval.

Noriega, a grandson of Mexican immigrants who made his name in Latin American affairs as a staffer for conservative former Sen. Jesse Helms, R-N.C, has played a key role in defining U.S. policy at the OAS toward Haiti and is considered a hard-liner on Cuban affairs.

According to well-placed administration officials, Maisto, who reports to National Security Advisor Condoleezza Rice, will be replaced by Tom Shannon, a career diplomat who currently serves as deputy assistant secretary of state for Andean Affairs, a job that also oversees all Caribbean countries except Cuba.

In the new setup, Noriega and Shannon would be the Bush administration's top policy-makers for the region, alongside special envoy for Western Hemisphere initiatives Otto Reich.

''They are excellent choices,'' says Luis Lauredo, a former U.S. ambassador to the OAS. ``Shannon is one of the most brilliant young foreign service officers I've met.''

Maisto is a veteran career officer who has served as U.S. ambassador to Venezuela and Nicaragua and as deputy assistant secretary of state for Central American affairs. He was best known in Venezuela for adopting a wait-and-see attitude toward the government of leftist president Hugo Chávez when much of the opposition was demanding a harder U.S. line.

Shannon, who has served with the State Department for the past two decades, was posted in Venezuela, South Africa, Guatemala and Brazil, and served as deputy ambassador to the OAS during the Clinton Administration. He was heavily involved in drafting the Inter-American Democracy Charter, his colleagues say.

The White House President George W. Bush today announced his intention to nominate five individuals and appoint 23 individuals to serve in his administration:

The President intends to nominate John F. Maisto of Pennsylvania, to be the Permanent Representative of the United States to the Organization of American States, with the rank of Ambassador. Ambassador Maisto currently serves on the National Security Council as Special Assistant to the President and Senior Director for Western Hemisphere Affairs. Prior to his appointment to the NSC, he served as the United States Ambassador to Venezuela and as Ambassador to Nicaragua. He also previously served as Deputy Assistant Secretary of State for Central American Affairs. Ambassador Maisto was recognized with the Superior Honor Award in 1998 and 1982, the Superior Group Award in 1988 and the Meritorious Honor Award in 1986. He received his bachelor's degree from Georgetown University's School of Foreign Service and his master's degree from the University of San Carlos, Guatemala.

The President intends to nominate John F. Bardelli of Connecticut, to be United States Marshal for the District of Connecticut, for a term of four years. Mr. Bardelli currently serves as a consultant for the Commission on Accreditation for Law Enforcement Agencies. In 2001, after a 35-year career with the Connecticut Department of Public Safety, Mr. Bardelli retired as Deputy Commissioner of Public Safety and Commanding Officer of State Police. He currently serves as an active member of the International Association of Chiefs of Police and as a lifetime member of the Connecticut Police Chiefs Association. Mr. Bardelli is a graduate of the University of New Haven, and received his law degree from the University of Connecticut.

The President intends to nominate Adam N. Torres of California, to be United States Marshal for the Central District of California, for a term of four years. Mr. Torres currently serves as Supervisory Special Agent for Criminal Investigations with the Internal Revenue Service. He is responsible for overseeing criminal investigations of sophisticated financial crimes and criminal organizations, including violations of internal revenue laws, Bank Secrecy Act and other related financial crimes. He is a member of both the Federal Law Enforcement Officers' Association and the National Latino Police Officers' Association. Mr. Torres is a graduate of California State University, San Bernardino.

The President intends to nominate Robert N. Davis of Florida, to be a Judge of the United States Court of Appeals for Veterans Claims, for a term prescribed by law. Mr. Davis currently serves as Professor of Law at Stetson University College of Law. His past teaching appointments include the University of Mississippi School of Law and Georgetown University Law Center. Earlier in his career he served as Special Assistant to the U. S. Attorney for the District of Columbia and as General Attorney for the U.S. Department of Education. Mr. Davis currently serves in the United States Navy Reserve Intelligence Program. He is a graduate of the University of Hartford and earned his law degree from the Georgetown University Law Center.

The President intends to nominate Marsha E. Barnes of Maryland, to be Ambassador Extraordinary and Plenipotentiary of the United States of America to the Republic of Suriname. Ms. Barnes currently serves as Assessor for the Board of Examiners at the Department of State. Her previous domestic assignments include Director of the Office of Caribbean Affairs and Deputy Executive Director of the Bureau of Consular Affairs. She has served overseas as Chief of the Consular Section in Bonn and as a visa officer in Moscow. Ms. Barnes graduated from Lake Forest College in Lake Forest, Illinois.

The President intends to appoint Gary Ray Mitchell of Kansas, to be the Federal Member of the Kansas-Nebraska Big Blue River Compact Administration (Kansas and Nebraska).

The President intends to appoint the following individuals to be Members of the Advisory Committee on the Arts, John F. Kennedy Center for the Performing Arts: Joan D. Austin of Oregon Kristen A. Avansino of Nevada Kathryn Burke of Wisconsin Robert J. Dellenback of Wyoming Mary Galvin of Illinois Janet H. Geary of Oregon Arthur J. Hackney of Alaska Diana Kelley of Kansas Arthur K. Langlie of Washington James V. Nepola of Iowa Sandy Peltyn of Nevada Evelyn J. Wiginton of Alabama

The President intends to appoint the following individuals to be Members of the United States Holocaust Memorial Council: For the remainder of a five-year term expiring 01/15/08: Debra Lerner Cohen of the District of Columbia Solomon M. Devinki of Missouri Donald Etra of California David M. Flaum of New York Eric F. Ross of New Jersey Richard Sambol of New Jersey Merryl H. Tisch of New York

The President intends to appoint the following individuals to be Members of the Commission for the Preservation of America's Heritage Abroad: The President intends to appoint Gary J. Lavine of New York (Speaker), for the remainder of a three-year term expiring August 2, 2005. The President intends to appoint Rachmiel Liberman of Massachusetts (Senate President Pro Tempore), for the remainder of a three-year term expiring July 13, 2005. The President intends to appoint Harriet Rotter of Michigan (Speaker), for the remainder of a three-year term expiring August 9, 2004.