Daniel Schwartzer, special deputy commissioner of 'ssegregated account, has no plans to increase the interim payment percentagerelated to the account at present.

Schwartzer said that, although projected recoveries haveincreased for deferred amounts and surplus notes, the obligations are still notexpected to be paid in full in certain scenarios. The projected recoveries donot represent an immediate distribution of value, but rather payment by the endof the projected period, which is Dec. 31, 2052.

The special deputy commissioner also disclosed that AmbacAssurance parent Ambac FinancialGroup Inc. has made policy payments aggregating approximately $43million, net of a small amount of reinsurance, on its Puerto Rico exposures inJuly to date. It is anticipating an additional policy payment shortly on PuertoRico general obligation-guaranteed Public Buildings Authority bonds. Schwartzeradded that, without positive developments for these exposures, Ambac Financialmay be required to pay materially greater amounts over the next several years.