<Page>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File No. 811-06094
---------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
---------------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
466 Lexington Avenue, New York, New York 10017-3140
---------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Hal Liebes, Esq.
The Latin America Equity Fund, Inc.
466 Lexington Avenue
New York, New York 10017-3140
Registrant's telephone number, including area code: (212) 875-3500
Date of fiscal year end: December 31
Date of reporting period: January 1, 2004 to June 30, 2004
<Page>
ITEM 1. REPORTS TO STOCKHOLDERS.
<Page>
THE LATIN AMERICA
EQUITY FUND, INC.
SEMI-ANNUAL REPORT
JUNE 30, 2004
[LAQ LISTED NYSE(R) LOGO]
3019-SA-04
<Page>
CONTENTS
<Table>
Letter to Shareholders 1
Portfolio Summary 3
Schedule of Investments 5
Statement of Assets and Liabilities 8
Statement of Operations 9
Statement of Changes in Net Assets 10
Financial Highlights 12
Notes to Financial Statements 14
Results of Annual Meeting of Shareholders 20
Privacy Policy Notice 21
Description of InvestLink(SM) Program 22
Proxy Voting 25
</Table>
- --------------------------------------------------------------------------------
<Page>
LETTER TO SHAREHOLDERS
August 17, 2004
DEAR SHAREHOLDER:
For the six months ended June 30, 2004, The Latin America Equity Fund, Inc. had
a loss of 0.96%, based on net asset value and assuming reinvestment of dividends
and distributions. By comparison, the Morgan Stanley Capital International Latin
America Index* had a decline of 1.56% for the period.
THE MARKETS: STRONG START, WEAKER FINISH
The world's stock markets performed well over the first half of the period, but
then tumbled on worries that interest rates would begin to rise. In addition,
investor sentiment was dampened by fears of a "hard landing" for the Chinese
economy and by heightened geopolitical risk factors in general. Emerging stock
markets outpaced developed markets during the initial rally, and underperformed
when markets turned down in April and May. As of the end of June, many emerging
markets had positive results for the period, though the best performers were
mostly smaller markets and the group as a whole posted a slight loss. Within the
Emerging Markets, Latin America outperformed in aggregate.
Brazil was the weakest market in the region in the first half of 2004, falling
around 12%. After successive interest rate cuts during 2003, the Central Bank
has kept rates broadly flat in 2004, which was a disappointment to the market.
Conversely, the market anticipated the U.S. Federal Reserve's decision to begin
raising interest rates once more. This has had a disproportionate impact on
Brazil, given the country's debt service requirements. Furthermore, Brazil is
also relatively more susceptible to demand from China given the scale of its
commodity exports, so the hard landing fears hit Brazil hardest.
Mexico, on the other hand, performed well after a poor 2003. The market rose
14%. Unlike Brazil, the market remains more focused on bottom up issues and has
shrugged off the political deadlock and lack of any kind of reform momentum.
This says much about Mexico's status as a North American convergence play.
THE PORTFOLIO: DEFENSIVE SHIFT AIDS OUTPERFORMANCE
Our portfolio positioning was generally defensive in the period. For most of the
period we have been overweight Mexico at the expense of Brazil, which has served
the portfolio well. After the sell off in Brazil in May/June, we began to close
this position and finished the quarter essentially neutral. At the stock level
our focus has been on stocks of companies that pay relatively high dividends
(when the market reached its lows in May, some of the stocks we purchased were
offering double-digit yields) and/or derive much of their business domestically.
We increased our emphasis on these companies when the market began to falter,
and the move contributed positively to the Fund's relative performance.
Our favored themes have been stocks with exposure to infrastructure spending in
Mexico, particularly the homebuilders, but also construction companies involved
in larger projects. Our general focus in Brazil remained on companies that stand
to benefit from domestic demand, such as electricity and telecommunications
companies. We also added to Brazilian steel producers on the back of evidence of
continuing strong global demand for steel. We also continued to favor
higher-yielding stocks.
IPO activity has been strong and we have participated in several of these
offerings. In Brazil, these include a cosmetics company, a low cost airline and
a railroad company. In Mexico, two homebuilders and in Chile a retailer.
- --------------------------------------------------------------------------------
1
<Page>
LETTER TO SHAREHOLDERS
OUTLOOK: CHOPPY MARKETS AND BUYING OPPORTUNITIES
Looking ahead, we believe that the main risk to Latin American equity markets,
aside from any unsettling geopolitical events, is rising interest rates in the
U.S. This could especially impact high-debt countries such as Brazil. That said,
we also believe that the region has strong underlying economic fundamentals, and
is better positioned to withstand an upward trend in rates than in previous
cycles. We continue to view valuation levels as attractive, particularly within
Brazil. Provided that the magnitude and timing of interest rate increases does
not surpass expectations, we would view any weakness as a buying opportunity.
Respectfully,
/s/ Emily Alejos /s/ Matthew J.K. Hickman
Emily Alejos Matthew J.K. Hickman
Co-Chief Investment Officer** Co-Chief Investment Officer***
INTERNATIONAL INVESTING ENTAILS SPECIAL RISK CONSIDERATIONS, INCLUDING CURRENCY
FLUCTUATIONS, LOWER LIQUIDITY, ECONOMIC AND POLITICAL RISKS, AND DIFFERENCES IN
ACCOUNTING METHODS; THESE RISKS ARE GENERALLY HEIGHTENED FOR EMERGING-MARKET
INVESTMENTS.
IN ADDITION TO HISTORICAL INFORMATION, THIS REPORT CONTAINS FORWARD-LOOKING
STATEMENTS, WHICH MAY CONCERN, AMONG OTHER THINGS, DOMESTIC AND FOREIGN MARKET,
INDUSTRY AND ECONOMIC TRENDS AND DEVELOPMENTS AND GOVERNMENT REGULATION AND
THEIR POTENTIAL IMPACT ON THE FUND'S INVESTMENT PORTFOLIO. THESE STATEMENTS ARE
SUBJECT TO RISKS AND UNCERTAINTIES AND ACTUAL TRENDS, DEVELOPMENTS AND
REGULATIONS IN THE FUTURE AND THEIR IMPACT ON THE FUND COULD BE MATERIALLY
DIFFERENT FROM THOSE PROJECTED, ANTICIPATED OR IMPLIED. THE FUND HAS NO
OBLIGATION TO UPDATE OR REVISE FORWARD-LOOKING STATEMENTS.
- --------------------------------------------------------------------------------
* The Morgan Stanley Capital International Latin America Index is a free
float-adjusted market capitalization index that is designed to measure
equity-market performance in Latin America. It is the exclusive property of
Morgan Stanley Capital International Inc. Investors cannot invest directly in an
index.
** Emily Alejos, Director, is Chief Investment Officer for Latin American
equities and shares primary responsibility for management of the Fund's assets.
She joined in 1997 from Bankers Trust, where she was an emerging markets
portfolio manager. Previously, she focused on Latin American equities at G.T.
Capital Management in San Francisco. Ms. Alejos holds a B.A. in economics and
development studies from Brown University and an M.B.A. from Stanford
University. She also studied economics at L'Institut d'Etudes Politiques in
Paris and was a Rotary Scholar at Instituto di Tella in Buenos Aires. She is
fluent in Spanish and conversant in French, and is a Chartered Financial
Analyst. Ms. Alejos is Co-Chief Investment Officer of the Fund. She is also the
Chief Investment Officer of The Brazilian Equity Fund, Inc. and The Emerging
Markets Telecommunications Fund, Inc. and an Investment Officer of The Chile
Fund, Inc.
*** Matthew J.K. Hickman, Vice President, is a portfolio manager specializing in
emerging equity markets and shares primary responsibility for management of the
Fund's assets. He joined in 2003 from Compass Group Investment Advisors, where
he was general manager of the private wealth management division based in
Santiago, Chile. Previously, he was a financial advisor in Credit Suisse First
Boston's Private Client Services channel; an equity analyst focusing on Latin
American telecommunications companies and several Latin American country markets
at ABN AMRO, Lehman Brothers, Bear, Stearns and Co. Inc. and James Capel; and an
equity analyst and member of the management team for the Five Arrows Chile Fund
at Rothschild Asset Management. Mr. Hickman holds a B.A. in modern languages
from Cambridge University and a diploma in corporate finance from London
Business School. He is fluent in Spanish, Portuguese and French, and is a
candidate for Level II of the Chartered Financial Analyst Examination in 2004.
He is also the Chief Investment Officer of The Chile Fund, Inc.
- --------------------------------------------------------------------------------
2
<Page>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
PORTFOLIO SUMMARY - AS OF JUNE 30, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
[CHART]
GEOGRAPHIC ASSET BREAKDOWN
AS A PERCENT OF NET ASSETS
<Table>
<Caption>
JUNE 30, 2004 DECEMBER 31, 2003
Argentina 3.27% 0.58%
Brazil 45.85% 49.09%
Chile 8.68% 9.58%
Latin America 1.11% 1.07%
Mexico 36.59% 36.14%
Venezuela 2.07% 1.12%
Global 1.36% 1.29%
Cash and Other Assets 1.07% 1.13%
</Table>
[CHART]
SECTOR ALLOCATION
AS A PERCENT OF NET ASSETS
<Table>
<Caption>
JUNE 30, 2004 DECEMBER 31, 2003
Banking 7.75% 7.12%
Bottling 1.59% 5.56%
Broadcast, Radio & Television 3.80% 3.77%
Cellular Telecommunications 11.63% 9.21%
Cement 5.67% 3.75%
Electric-Integrated 4.14% 5.06%
Food-Retail 1.11% 3.97%
Mining 7.03% 9.17%
Oil & Natural Gas 12.19% 12.73%
Retail-Major Department Stores 2.77% 3.76%
Telephone-Integrated 17.12% 16.17%
Other 25.20% 19.73%
</Table>
- --------------------------------------------------------------------------------
3
<Page>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
PORTFOLIO SUMMARY - AS OF JUNE 30, 2004 (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
TOP 10 HOLDINGS, BY ISSUER
<Table>
<Caption>
PERCENT OF
HOLDING SECTOR COUNTRY NET ASSETS
- -------------------------------------------------------------------------------------------------------
1. Petroleo Brasileiro S.A. Oil & Natural Gas Brazil 10.4
2. America Movil, S.A. de C.V. Cellular Telecommunications Mexico 9.4
3. Companhia Vale do Rio Doce Mining Brazil 7.0
4. Telefonos de Mexico, S.A. de C.V. Telephone-Integrated Mexico 6.2
5. Cemex, S.A. de C.V. Cement Mexico 5.7
6. Tele Norte Leste Participacoes S.A. Telephone-Integrated Brazil 4.4
7. Grupo Televisa, S.A. Broadcast, Radio & Television Mexico 3.8
8. Banco Itau Holding Financeira S.A. Banking Brazil 3.2
9. Wal-Mart de Mexico, S.A. de C.V. Retail-Major Department Stores Mexico 2.2
10. Fomento Economico Mexicano, S.A. de C.V. Food & Beverages Mexico 2.1
</Table>
- --------------------------------------------------------------------------------
4
<Page>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
SCHEDULE OF INVESTMENTS - JUNE 30, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
NO. OF
DESCRIPTION SHARES VALUE
- -------------------------------------------------------------------------------------------
EQUITY OR EQUITY-LINKED SECURITIES-98.93%
ARGENTINA-3.27%
OIL & NATURAL GAS-1.78%
Tenaris S.A., ADR 60,500 $ 1,981,375
---------------
TELEPHONE-INTEGRATED-1.49%
Telecom Argentina S.A., ADR+ 183,200 1,656,128
---------------
TOTAL ARGENTINA
(Cost $3,707,666) 3,637,503
---------------
BRAZIL-45.85%
AIRLINES-1.63%
Gol - Linhas Aereas
Inteligentes S.A., ADR+ 106,800 1,815,600
---------------
BANKING-6.22%
Banco Bradesco S.A., PN 39,600 1,809,299
Banco Itau Holding
Financeira S.A., PN 38,760,000 3,604,417
Uniao de Bancos
Brasileiros S.A., GDR 75,900 1,500,543
---------------
6,914,259
---------------
BOTTLING-1.59%
Companhia de Bebidas das
Americas, PN, ADR 88,000 1,766,160
---------------
CELLULAR TELECOMMUNICATIONS-2.27%
Telemig Celular
Participacoes S.A. 102,800,000 245,631
Telemig Celular
Participacoes S.A., PN 597,300,000 875,603
Telesp Celular Participacoes
S.A., ADR+ 111,600 879,408
Telesp Celular Participacoes
S.A., PN+ 167,200,000 524,221
---------------
2,524,863
---------------
COSMETICS & TOILETRIES-1.29%
Natura Cosmeticos S.A.+ 89,000 1,433,713
---------------
ELECTRIC-INTEGRATED-2.84%
Centrais Eletricas Brasileiras
S.A., PNB 160,500,000 1,591,007
Companhia Energetica de
Minas Gerais, ADR 103,900 $ 1,560,578
---------------
3,151,585
---------------
MINING-7.03%
Companhia Vale do Rio
Doce, ADR 199,600 7,804,360
---------------
OIL & NATURAL GAS-10.41%
Petroleo Brasileiro S.A., ADR 459,000 11,566,800
---------------
PAPER & RELATED PRODUCTS-1.78%
Aracruz Celulose S.A., ADR 33,200 1,084,312
Votorantim Celulose e Papel
S.A., ADR 28,000 890,400
---------------
1,974,712
---------------
PUBLIC THOROUGHFARES-0.75%
Companhia de Concessoes
Rodoviarias 72,200 827,374
---------------
STEEL-2.52%
Companhia Siderurgica
Nacional S.A., ON 34,400 420,753
Gerdau S.A., ADR 11,200 135,744
Gerdau S.A., PN 121,600 1,458,650
Usinas Siderurgicas de Minas
Gerais S.A., PNA 75,300 782,906
---------------
2,798,053
---------------
TELEPHONE-INTEGRATED-6.88%
Brasil Telecom Participacoes
S.A., ADR 40,600 1,246,420
Tele Norte Leste
Participacoes S.A. 152,660,773 1,645,897
Tele Norte Leste Participacoes
S.A., ADR 251,300 3,199,049
Telecomunicacoes de Sao Paulo
S.A., PN 106,600,000 1,553,049
---------------
7,644,415
---------------
TOBACCO-0.64%
Souza Cruz S.A., ON 74,100 705,828
---------------
TOTAL BRAZIL
(Cost $43,416,230) 50,927,722
---------------
</Table>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
5
<Page>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
SCHEDULE OF INVESTMENTS - JUNE 30, 2004 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
NO. OF
DESCRIPTION SHARES VALUE
- -------------------------------------------------------------------------------------------
CHILE-8.68%
BANKING-1.53%
Banco de Chile 4,155,849 $ 207,711
Banco Santander Chile S.A. 29,273,000 745,340
Banco Santander Chile
S.A., ADR 14,900 397,830
Corpbanca S.A., ADR@ 14,818 354,002
---------------
1,704,883
---------------
CHEMICALS-DIVERSIFIED-0.67%
Sociedad Quimica y Minera de
Chile S.A., Class B 182,100 741,251
---------------
CONTAINERS-METAL/GLASS-0.17%
Cristalerias de Chile S.A. 22,603 184,732
---------------
DIVERSIFIED OPERATIONS-1.57%
Empresas Copec S.A. 238,785 1,739,556
---------------
ELECTRIC-INTEGRATED-1.30%
Colbun S.A. 4,250,000 420,825
Enersis S.A.+ 2,500,000 295,678
Enersis S.A., ADR 123,000 733,080
---------------
1,449,583
---------------
FOOD & BEVERAGES-0.43%
Embotelladora Andina
S.A., PNA 47,000 96,031
Vina Concha y Toro S.A. 404,311 384,453
---------------
480,484
---------------
FOOD-RETAIL-1.11%
Cencosud S.A., ADR+ 66,500 1,230,709
---------------
PAPER & RELATED PRODUCTS-0.83%
Empresas CMPC S.A. 50,000 919,450
---------------
RETAIL-MAJOR DEPARTMENT STORES-0.55%
S.A.C.I. Falabella, S.A. 310,000 609,037
---------------
TELEPHONE-INTEGRATED-0.52%
Empresa Nacional de
Telecomunicaciones S.A. 101,000 577,823
---------------
TOTAL CHILE
(Cost $6,485,586) 9,637,508
---------------
<Caption>
NO. OF
DESCRIPTION SHARES/UNITS VALUE
- -------------------------------------------------------------------------------------------
LATIN AMERICA-1.11%
TELECOMMUNICATIONS-0.00%
International Wireless
Communications Holdings
Corp.++ 12,636 $ 0
---------------
VENTURE CAPITAL-1.11%
J.P. Morgan Latin America Capital
Partners (Cayman), L.P.+++ 880,437 747,746
J.P. Morgan Latin America Capital
Partners (Delaware), L.P.+++# 1,398,860 485,390
---------------
1,233,136
---------------
TOTAL LATIN AMERICA
(Cost $1,951,954) 1,233,136
---------------
MEXICO-36.59%
AIRPORT DEVELOPMENT/MAINTANANCE-1.42%
Grupo Aeroportuario del
Sureste S.A. de C.V., ADR 85,200 1,576,200
---------------
BROADCAST, RADIO & TELEVISION-3.80%
Grupo Televisa S.A., ADR 93,300 4,223,691
---------------
BUILDING-HEAVY CONSTRUCTION-1.10%
Empresas ICA Sociedad
Controladora S.A. de C.V.+ 4,004,900 1,218,868
---------------
CELLULAR TELECOMMUNICATIONS-9.36%
America Movil, S.A. de C.V.,
Series L, ADR 285,800 10,394,546
---------------
CEMENT-5.67%
Cemex, S.A. de C.V., ADR 216,607 6,303,264
---------------
ENGINEERING & CONSTRUCTION-1.01%
Corporacion GEO, S.A. de C.V.,
Series B+ 854,500 1,122,490
---------------
FOOD & BEVERAGES-2.63%
Fomento Economico Mexicano,
S.A. de C.V., ADR 51,900 2,379,096
Grupo Modelo, S.A. de C.V.,
Series C 218,700 548,030
---------------
2,927,126
---------------
</Table>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
6
<Page>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
SCHEDULE OF INVESTMENTS - JUNE 30, 2004 (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
NO. OF
DESCRIPTION SHARES/UNITS VALUE
- -------------------------------------------------------------------------------------------
METAL-DIVERSIFIED-1.40%
Grupo Mexico S.A. de C.V.,
Class B+ 500,100 $ 1,561,051
---------------
REAL ESTATE DEVELOPMENT-1.82%
Consorcio ARA, S.A. de C.V.+ 384,500 1,105,192
Desarrolladora Homex S.A.
de C.V., ADR+ 18,500 320,235
Urbi, Desarrollos Urbanos,
S.A. de C.V.+ 183,300 591,239
---------------
2,016,666
---------------
RETAIL-MAJOR DEPARTMENT STORES-2.22%
Wal-Mart de Mexico, S.A. de
C.V., Series V 198,700 589,226
Wal-Mart de Mexico, S.A. de
C.V., Series V, ADR 63,106 1,871,345
---------------
2,460,571
---------------
TELEPHONE-INTEGRATED-6.16%
Telefonos de Mexico, S.A. de
C.V., Class L, ADR 205,600 6,840,312
---------------
TOTAL MEXICO
(Cost $32,391,657) 40,644,785
---------------
VENEZUELA-2.07%
TELEPHONE-INTEGRATED-2.07%
Compania Anonima Nacional
Telefonos de Venezuela, ADR
(Cost $1,837,504) 114,300 2,303,145
---------------
GLOBAL-1.36%
VENTURE CAPITAL-1.36%
Emerging Markets
Ventures I L.P. +++#
(Cost $1,648,204) 2,194,792 1,510,895
---------------
TOTAL EQUITY OR EQUITY-LINKED
SECURITIES (Cost $91,438,801) 109,894,694
---------------
<Caption>
NO. OF
DESCRIPTION SHARES VALUE
- -------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS-1.51%
CHILEAN MUTUAL FUND-0.11%
Fondo Mutuo Moneda Liquidez,
Series A (Cost $122,619) 77,368 $ 125,033
---------------
<Caption>
PRINCIPAL
AMOUNT (000'S)
---------------
GRAND CAYMAN-1.40%
Brown Brothers Harriman & Co.,
overnight deposit, 0.51%,
07/01/04* (Cost $1,551,000) $ 1,551 1,551,000
---------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $1,673,619) 1,676,033
---------------
TOTAL INVESTMENTS-100.44%
(Cost $93,112,420) (Notes A,D,F) 111,570,727
---------------
LIABILITIES IN EXCESS OF CASH AND
OTHER ASSETS-(0.44)% (483,147)
---------------
NET ASSETS-100.00% $ 111,087,580
===============
</Table>
- --------------------------------------------------------------------------------
+ Security is non-income producing.
@ SEC Rule 144A security. Such securities are traded only among "qualified
institutional buyers."
++ Restricted security, not readily marketable; security is valued at fair
value as determined in good faith under procedures established by the Board
of Directors. (See Notes A and G.)
# As of June 30, 2004, the Fund has committed to investing additional capital
as follows: J.P. Morgan Latin America Capital Partners (Delaware), L.P.
($3,680,883 ) and Emerging Markets Ventures I, L.P. ($305,208), The
aggregate amount of open commitments for the Fund is $3,986,091.
* Variable rate account. Rate resets on a daily basis; amounts are available
on the same business day.
ADR American Depositary Receipts.
GDR Global Depositary Receipts.
ON Ordinary Shares.
PN Preferred Shares.
PNA Preferred Shares, Class A.
PNB Preferred Shares, Class B.
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
7
<Page>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES - JUNE 30, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
ASSETS
Investments, at value (Cost $93,112,420) (Note A,D,F) $ 111,570,727
Cash (including $2,672 of foreign currencies with a cost of $62,664) 3,541
Dividends receivable 162,707
Prepaid expenses 17,164
---------------
Total Assets 111,754,139
---------------
LIABILITIES
Payables:
Investments purchased 292,300
Investment advisory fee (Note B) 226,626
Administration fees (Note B) 32,340
Directors' fees 21,203
Other accrued expenses 94,090
---------------
Total Liabilities 666,559
---------------
NET ASSETS (applicable to 6,322,240 shares of common stock outstanding) (Note C) $ 111,087,580
===============
NET ASSETS CONSIST OF
Capital stock, $0.001 par value; 6,322,240 shares issued and outstanding
(100,000,000 shares authorized) $ 6,322
Paid-in capital 140,606,867
Undistributed net investment income 1,105,306
Accumulated net realized loss on investments and foreign currency related
transactions (49,027,458)
Net unrealized appreciation in value of investments and translation of other
assets and liabilities denominated in foreign currencies 18,396,543
---------------
Net assets applicable to shares outstanding $ 111,087,580
===============
NET ASSET VALUE PER SHARE ($111,087,580 DIVIDED BY 6,322,240) $ 17.57
===============
MARKET PRICE PER SHARE $ 14.36
===============
</Table>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
8
<Page>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
STATEMENT OF OPERATIONS - FOR THE SIX MONTHS ENDED JUNE 30, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
INVESTMENT INCOME
Income (Note A):
Dividends $ 2,336,378
Interest 991
Net investment loss allocated from partnerships (110,461)
Less: Foreign taxes withheld (93,335)
---------------
Total Investment Income 2,133,573
---------------
Expenses:
Investment advisory fees (Note B) 474,223
Administration fees (Note B) 97,023
Custodian fees 49,601
Legal fees 41,563
Printing (Note B) 31,649
Audit fees 31,609
Directors' fees 30,822
Accounting fees 21,469
Transfer agent fees 12,183
NYSE listing fees 11,810
Insurance 10,156
Other 4,954
Brazilian taxes (Note A) 1,453
---------------
Total Expenses 818,515
---------------
Net Investment Income 1,315,058
---------------
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS AND
FOREIGN CURRENCY RELATED TRANSACTIONS
Net realized gain from:
Investments 9,125,248
Foreign currency related transactions 9,266
Net change in unrealized appreciation in value of investments and translation
of other assets and liabilities denominated in foreign currencies (11,539,585)
---------------
Net realized and unrealized loss on investments and foreign currency related
transactions (2,405,071)
---------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (1,090,013)
===============
</Table>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
9
<Page>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<Table>
<Caption>
FOR THE SIX MONTHS FOR THE YEAR
ENDED JUNE 30, 2004 ENDED
(UNAUDITED) DECEMBER 31, 2003
------------------- -----------------
INCREASE/(DECREASE) IN NET ASSETS
Operations:
Net investment income $ 1,315,058 $ 2,159,896
Net realized gain on investments and foreign currency related
transactions 9,134,514 2,669,385
Net change in unrealized appreciation/depreciation in value of
investments and translation of other assets and liabilities denominated
in foreign currencies (11,539,585) 35,187,981
------------------- -----------------
Net increase/(decrease) in net assets resulting from operations (1,090,013) 40,017,262
------------------- -----------------
Dividends to shareholders:
Net investment income -- (885,114)
------------------- -----------------
Total increase/(decrease) in net assets (1,090,013) 39,132,148
------------------- -----------------
NET ASSETS
Beginning of period 112,177,593 73,045,445
------------------- -----------------
End of period $ 111,087,580* $ 112,177,593
=================== =================
</Table>
- ----------
*Including undistributed net investment income of $1,105,306.
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
10
<Page>
This page intentionally left blank.
- --------------------------------------------------------------------------------
11
<Page>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
FINANCIAL HIGHLIGHTS@
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share of common
stock outstanding, total investment return, ratios to average net assets and
other supplemental data for each period indicated. This information has been
derived from information provided in the financial statements and market price
data for the Fund's shares.
<Table>
<Caption>
FOR THE SIX
MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, 2004 ----------------------------------------
(UNAUDITED) 2003 2002
------------- ---------------- ----------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $ 17.74 $ 11.55 $ 15.06
------------- ---------------- ----------------
Net investment income/(loss) 0.21+ 0.34+ 0.01**
Net realized and unrealized gain/(loss) on investments
and foreign currency related transactions (0.38) 5.99 (3.41)
------------- ---------------- ----------------
Net increase/(decrease) in net assets resulting from operations (0.17) 6.33 (3.40)
------------- ---------------- ----------------
Dividends and distributions to shareholders:
Net investment income -- (0.14) (0.21)
Net realized gain on investments and
foreign currency related transactions -- -- --
------------- ---------------- ----------------
Total dividends and distributions to shareholders -- (0.14) (0.21)
------------- ---------------- ----------------
Anti-dilutive impact due to capital shares tendered or
repurchased -- -- 0.10
------------- ---------------- ----------------
Dilutive impact due to capital share rights offering -- -- --
------------- ---------------- ----------------
Net asset value, end of period $ 17.57 $ 17.74 $ 11.55
============= ================ ================
Market value, end of period $ 14.36 $ 15.26 $ 9.67
============= ================ ================
Total investment return (a) (5.90)% 59.15% (18.83)%
============= ================ ================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 111,088 $ 112,178 $ 73,045
Ratio of expenses to average net assets (b) 1.45%(d) 1.37% 3.06%
Ratio of expenses to average net assets, excluding fee waivers 1.45%(d) 1.37% 3.06%
Ratio of expenses to average net assets, excluding taxes 1.44%(d) 1.49% 1.52%
Ratio of net investment income/(loss) to average net assets 2.33%(d) 2.49%(c) 0.21%
Portfolio turnover rate 40.46% 62.62% 75.28%
</Table>
- --------------------------------------------------------------------------------
@ Per share amounts prior to November10, 2000 have been restated to
reflect a conversion factor of 0.9175 for shares issued in connection
with the merger of The Latin America Investment Fund, Inc. and The
Latin America Equity Fund, Inc.
* Based on actual shares outstanding on November 21, 2001 (prior to the
2001 tender offer) and December31, 2001.
** Based on actual shares outstanding on November 6, 2002 (prior to the
2002 tender offer) and December 31, 2002.
+ Based on average shares outstanding.
++ Includes a $0.01 per share decrease to the Fund's net asset value per
share resulting from the dilutive impact of shares issued pursuant to
the Fund's automatic dividend reinvestment program.
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
12
<Page>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
FINANCIAL HIGHLIGHTS@
- --------------------------------------------------------------------------------
<Table>
<Caption>
FOR THE YEARS ENDED DECEMBER 31,
-----------------------------------------------------------
2001 2000 1999 1998
------------ ------------ ------------ ------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $ 16.60 $ 18.57 $ 10.96 $ 18.77
------------ ------------ ------------ ------------
Net investment income/(loss) 0.41* (0.11)+ 0.07+ 0.16
Net realized and unrealized gain/(loss) on investments
and foreign currency related transactions (1.50) (2.44) 7.07 (7.85)++
------------ ------------ ------------ ------------
Net increase/(decrease) in net assets resulting from operations (1.09) (2.55) 7.14 (7.69)
------------ ------------ ------------ ------------
Dividends and distributions to shareholders:
Net investment income (0.57) (0.08) -- (0.12)
Net realized gain on investments and
foreign currency related transactions -- -- -- --
------------ ------------ ------------ ------------
Total dividends and distributions to shareholders (0.57) (0.08) -- (0.12)
------------ ------------ ------------ ------------
Anti-dilutive impact due to capital shares tendered or repurchased 0.12 0.66 0.47 --
------------ ------------ ------------ ------------
Dilutive impact due to capital share rights offering -- -- -- --
------------ ------------ ------------ ------------
Net asset value, end of period $ 15.06 $ 16.60 $ 18.57 $ 10.96
============ ============ ============ ============
Market value, end of period $ 12.15 $ 12.875 $ 13.76 $ 7.834
============ ============ ============ ============
Total investment return (a) (1.07)% (5.87)% 75.65% (46.63)%
============ ============ ============ ============
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 112,009 $ 145,281 $ 123,262 $ 86,676
Ratio of expenses to average net assets (b) 1.51% 2.13% 2.14% 2.41%
Ratio of expenses to average net assets, excluding fee waivers 1.51% 2.19% 2.22% 2.60%
Ratio of expenses to average net assets, excluding taxes 1.40% 2.03% 2.05% 1.77%
Ratio of net investment income/(loss) to average net assets 2.52% (0.55)% 0.46% 1.12%
Portfolio turnover rate 101.73% 125.83% 161.71% 142.35%
<Caption>
FOR THE YEARS ENDED DECEMBER 31,
-----------------------------------------------------------
1997 1996 1995 1994
------------ ------------ ------------ ------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $ 18.41 $ 16.27 $ 19.53 $ 24.52
------------ ------------ ------------ ------------
Net investment income/(loss) 0.16 0.21 0.07 0.01+
Net realized and unrealized gain/(loss) on investments
and foreign currency related transactions 2.01 2.00 (3.07) 1.05
------------ ------------ ------------ ------------
Net increase/(decrease) in net assets resulting from operations 2.17 2.21 (3.00) 1.06
------------ ------------ ------------ ------------
Dividends and distributions to shareholders:
Net investment income (0.17) (0.07) -- (0.18)
Net realized gain on investments and
foreign currency related transactions (1.64) -- (0.26) (3.38)
------------ ------------ ------------ ------------
Total dividends and distributions to shareholders (1.81) (0.07) (0.26) (3.56)
------------ ------------ ------------ ------------
Anti-dilutive impact due to capital shares tendered or repurchased -- -- -- --
------------ ------------ ------------ ------------
Dilutive impact due to capital share rights offering -- -- -- (2.49)
------------ ------------ ------------ ------------
Net asset value, end of period $ 18.77 $ 18.41 $ 16.27 $ 19.53
============ ============ ============ ============
Market value, end of period $ 14.918 $ 15.259 $ 14.033 $ 19.21
============ ============ ============ ============
Total investment return (a) 10.29% 9.18% (25.65)% (17.78)%
============ ============ ============ ============
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 148,130 $ 145,230 $ 128,377 $ 153,128
Ratio of expenses to average net assets (b) 1.89% 1.69% 2.04% 1.94%
Ratio of expenses to average net assets, excluding fee waivers 2.02% 1.80% 2.15% --
Ratio of expenses to average net assets, excluding taxes 1.65% -- 1.81% 1.70%
Ratio of net investment income/(loss) to average net assets 0.77% 1.16% 0.42% 0.04%
Portfolio turnover rate 111.83% 43.22% 27.05% 68.46%
</Table>
- --------------------------------------------------------------------------------
(a) Total investment return at market value is based on the changes in market
price of a share during the period and assumes reinvestment of dividends
and distributions, if any, at actual prices pursuant to the Fund's dividend
reinvestment program.
(b) Ratios reflect actual expenses incurred by the Fund. Amounts are net of fee
waivers and inclusive of taxes.
(c) Ratio includes the effect of a reversal of Chilean repatriation tax
accrual; excluding the reversal, the ratio would have been 2.36%.
(d) Annualized.
- --------------------------------------------------------------------------------
13
<Page>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE A. SIGNIFICANT ACCOUNTING POLICIES
The Latin America Equity Fund, Inc. (the "Fund") is registered under the
Investment Company Act of 1940, as amended, as a closed-end, non-diversified
management investment company.
USE OF ESTIMATES: The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of America
("GAAP") requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts
of revenue and expenses during the reporting period. Actual results could differ
from those estimates.
SECURITY VALUATION: The net asset value of the Fund is determined daily as of
the close of regular trading on the New York Stock Exchange, Inc. ("the
Exchange") on each day the Exchange is open for business. The Fund's equity
investments are valued at market value, which is generally determined using the
closing price on the exchange or market on which the security is primarily
traded at the time of valuation (the "Valuation Time"). If no sales are
reported, equity investments are generally valued at the most recent bid
quotation as of the Valuation Time or at the lowest ask quotation in the case of
short sale of securities. Debt securities with a remaining maturity greater than
60 days are valued in accordance with the price supplied by a pricing service,
which may use a matrix, formula or other objective method that takes into
consideration market indices, yield curves and other specific adjustments. Debt
obligations that will mature in 60 days or less are valued on the basis of
amortized cost which approximates market value, unless the Board of Directors
determines that using this method would not reflect an investment's value.
Securities and other assets for which market quotations are not readily
available or whose values have been materially affected by events occurring
before the Fund's Valuation Time, but after the close of the securities primary
market, are valued at fair value as determined in good faith by, or under the
direction of the Board of Directors under procedures established by the Board of
Directors. The Fund may utilize a service provided by an independent third party
which has been approved by the Board of Directors to fair value certain
securities. At June 30, 2004, the Fund held 2.47% of its net assets in
securities valued at fair value as determined in good faith by the Board of
Directors with an aggregate cost of $3,600,158 and fair value of $2,744,031. The
Fund's estimate of fair value assumes a willing buyer and a willing seller
neither acting under a compulsion to buy or sell. Although these securities may
be resold in privately negotiated transactions, the prices realized on such
sales could differ from the prices originally paid by the Fund or the current
carrying values, and the difference could be material.
SHORT-TERM INVESTMENT: The Fund sweeps available cash into a short-term deposit
issued by Brown Brothers Harriman & Co., the Fund's custodian. The short-term
time deposit is a variable rate account classified as a short-term investment.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME: Investment transactions are
accounted for on a trade date basis. The cost of investments sold is determined
by use of the specific identification method for both financial reporting and
U.S. income tax purposes. Interest income is accrued as earned; dividend income
is recorded on the ex-dividend date.
TAXES: No provision is made for U.S. income or excise taxes as it is the Fund's
intention to continue to qualify as a regulated investment company and to make
the requisite distributions to its shareholders sufficient to
- --------------------------------------------------------------------------------
14
<Page>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
relieve it from all or substantially all U.S. income and excise taxes.
Income received by the Fund from sources within Latin America may be subject to
withholding and other taxes imposed by such countries. Also, certain Latin
American countries impose taxes on funds remitted or repatriated from such
countries.
The Fund accrues foreign taxes on realized gains and repatriation taxes in an
amount equal to what the Fund would owe if the securities were sold and the
proceeds repatriated on the valuation date as a liability and reduction of
realized/unrealized gains. Taxes on foreign income are recorded when the related
income is recorded.
FOREIGN CURRENCY TRANSLATIONS: The books and records of the Fund are maintained
in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on
the following basis:
(I) market value of investment securities, assets and liabilities at the
valuation date rate of exchange; and
(II) purchases and sales of investment securities, income and expenses at
the relevant rates of exchange prevailing on the respective dates of
such transactions.
The Fund does not isolate that portion of gains and losses on investments in
equity securities which is due to changes in the foreign exchange rates from
that which is due to changes in market prices of equity securities. Accordingly,
realized and unrealized foreign currency gains and losses with respect to such
securities are included in the reported net realized and unrealized gains and
losses on investment transactions balances.
The Fund reports certain foreign currency related transactions and foreign taxes
withheld on security transactions as components of realized gains for financial
reporting purposes, whereas such foreign currency related transactions are
treated as ordinary income for U.S. federal income tax purposes.
Net unrealized currency gains or losses from valuing foreign currency
denominated assets and liabilities at period end exchange rates are reflected as
a component of net unrealized appreciation/(depreciation) in value of
investments, and translation of other assets and liabilities denominated in
foreign currencies.
Net realized foreign exchange gains or losses represent foreign exchange gains
and losses from transactions in foreign currencies and forward foreign currency
contracts, exchange gains or losses realized between the trade date and
settlement dates on security transactions, and the difference between the
amounts of interest and dividends recorded on the Fund's books and the U.S.
dollar equivalent of the amounts actually received.
DISTRIBUTIONS OF INCOME AND GAINS: The Fund distributes at least annually to
shareholders substantially all of its net investment income and net realized
short-term capital gains, if any. The Fund determines annually whether to
distribute any net realized long-term capital gains in excess of net realized
short-term capital losses, including capital loss carryovers, if any. An
additional distribution may be made to the extent necessary to avoid the payment
of a 4% U.S. federal excise tax. Dividends and distributions to shareholders are
recorded by the Fund on the ex-dividend date.
The character of distributions made during the year from net investment income
or net realized gains may differ from their ultimate characterization for U.S.
income tax purposes due to U.S. generally
- --------------------------------------------------------------------------------
15
<Page>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
accepted accounting principles/tax differences in the character of income and
expense recognition.
PARTNERSHIP ACCOUNTING POLICY: The Fund records its pro-rata share of the
income/(loss) and capital gains/(losses) allocated from the underlying
partnerships and adjusts the cost of the underlying partnerships accordingly.
These amounts are included in the Fund's Statement of Operations.
OTHER: The Fund may invest in securities of foreign countries and governments
which involve certain risks in addition to those inherent in domestic
investments. Such risks generally include, among other currency risks
(fluctuations in currency exchange rates), information risk (key information may
be inaccurate or unavailable) and political risk (expropriation, nationalization
or the imposition of capital or currency controls or punitive taxes). Other
risks of investing in foreign securities include liquidity and valuation risks.
Some countries require governmental approval for the repatriation of investment
income, capital or the proceeds of sales of securities by foreign investors. In
addition, if there is a deterioration in a country's balance of payments or for
other reasons, a country may impose temporary restrictions on foreign capital
remittances abroad. Amounts repatriated prior to the end of specified periods
may be subject to taxes as imposed by a foreign country.
The Latin American securities markets are substantially smaller, less liquid and
more volatile than the major securities markets in the United States. A high
proportion of the securities of many companies in Latin American countries may
be held by a limited number of persons, which may limit the number of securities
available for the investment by the Fund. The limited liquidity of Latin
American country securities markets may also affect the Fund's ability to
acquire or dispose of securities at the price and time it wishes to do so.
The Fund, subject to local investment limitations, may invest up to 10% of its
assets (at the time of commitment) in illiquid equity securities, including
securities of private equity funds (whether in corporate or partnership form)
that invest primarily in emerging markets. When investing through another
investment fund, the Fund will bear its proportionate share of the expenses
incurred by the fund, including management fees. Such securities are expected to
be illiquid which may involve a high degree of business and financial risk and
may result in substantial losses. Because of the current absence of any liquid
trading market for these investments, the Fund may take longer to liquidate
these positions than would be the case for publicly traded securities. Although
these securities may be resold in privately negotiated transactions, the prices
realized on such sales could be substantially less than those originally paid by
the Fund or the current carrying values and these differences could be material.
Further, companies whose securities are not publicly traded may not be subject
to the disclosure and other investor protection requirements applicable to
companies whose securities are publicly traded.
NOTE B. AGREEMENTS
Credit Suisse Asset Management, LLC ("CSAM") serves as the Fund's investment
adviser with respect to all investments. CSAM receives as compensation for its
advisory services from the Fund, an annual fee, calculated weekly and paid
quarterly, equal to 1.00% of the first $100 million of the Fund's average weekly
market value or net assets (whichever is lower), 0.90% of the next $50 million
and 0.80% of amounts over $150 million. For the six months ended June 30, 2004,
CSAM earned $474,223 for advisory services. CSAM also provides certain
administrative services to the Fund and is reimbursed by the Fund for costs
incurred on behalf of the Fund (up to $20,000 per annum). For the six months
ended June 30, 2004, CSAM was reimbursed $8,624 for administrative services
rendered to the Fund.
- --------------------------------------------------------------------------------
16
<Page>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
CELFIN CAPITAL Servicios Financieros S.A. ("Celfin") serves as the Fund's
sub-adviser with respect to Chilean investments. As compensation for its
services, Celfin is paid a fee, out of the advisory fees payable to CSAM,
calculated weekly and paid quarterly at an annual rate of 0.25% of the assets
invested in Chilean securities reduced by a percentage equal to the discount at
which the Fund's shares are trading. For the six months ended June 30, 2004,
these sub-advisory fees amounted to $7,343.
For the six months ended June 30, 2004, Celfin earned approximately $600 in
brokerage commissions from portfolio transactions executed on behalf of the
Fund.
Bear Stearns Funds Management Inc. ("BSFM") serves as the Fund's U.S.
administrator. The Fund pays BSFM a monthly fee that is calculated weekly at an
annual rate of 0.10% of the first $100 million of the Fund's average weekly net
assets and 0.08% of amounts in excess of $100 million. For the six months ended
June 30, 2004, BSFM earned $55,183 for administrative services.
Celfin Capital S.A. Administradora de Fondos de Capital Extranjero ("AFCE")
serves as the Fund's Chilean administrator. For its services, AFCE is paid an
annual fee by the Fund equal to the greater of 2,000 Unidad de Fomentos
("U.F.s") (approximately $53,500 at June 30, 2004) or 0.10% of the Fund's
average weekly market value or net assets invested in Chile (whichever is lower)
and an annual reimbursement of out-of-pocket expenses not to exceed 500 U.F.s.
In addition, an accounting fee is also paid to AFCE. For the six months ended
June 30, 2004, the administration fees and accounting fees amounted to $33,216
and $2,700, respectively.
Merrill Corporation ("Merrill"), an affiliate of CSAM, has been engaged by the
Fund to provide certain financial printing services. For the six months ended
June 30, 2004, Merrill was paid $28,286 for its services to the Fund.
The Independent Directors receive fifty percent (50%) of their annual retainer
in the form of shares purchased by the Fund's transfer agent in the open market.
Directors as a group own less than 1% of the Fund's outstanding shares.
NOTE C. CAPITAL STOCK
The authorized capital stock of the Fund is 100,000,000 shares of common stock,
$0.001 par value. Of the 6,322,240 shares outstanding at June 30, 2004, CSAM
owned 13,746 shares.
NOTE D. INVESTMENT IN SECURITIES
For the six months ended June 30, 2004, purchases and sales of securities, other
than short-term investments, were $45,450,290 and $44,983,204, respectively.
NOTE E. CREDIT FACILITY
The Fund, together with other funds/portfolios advised by CSAM (collectively,
the "Participating Funds"), participates in a $75 million committed, unsecured
line of credit facility ( "Credit Facility") with Deutsche Bank, A.G. as
administrative agent and syndication agent and State Street Bank and Trust
Company as operations agent for temporary or emergency purposes. Under the terms
of the Credit Facility, the Participating Funds pay an aggregate commitment fee
at a rate of 0.10% per annum on the average unused amount of the Credit
Facility, which is allocated among the Participating Funds in such manner as is
determined by the governing Boards of the Participating Funds. In addition, the
Participating Funds pay interest on borrowing at the Federal Funds rate plus
0.50%. During the six months ended June 30, 2004, the Fund had no borrowings
under the Credit Facility.
- --------------------------------------------------------------------------------
17
<Page>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
NOTE F. FEDERAL INCOME TAXES
Income and capital gains distributions are determined in accordance with federal
income tax regulations, which may differ from GAAP. These differences are
primarily due to differing treatments of foreign currency transactions, losses
deferred due to wash sales, Post-October losses (as later defined), and excise
tax regulations.
The tax character of the dividend paid during the year ended December 31, 2003
for the Fund was ordinary income of $885,114.
Under current tax law, certain capital losses realized after October 31 within a
taxable year may be deferred and treated as occurring on the first day of the
following tax year ("Post-October losses"). For the tax period ended December
31, 2003, the Fund incurred and elected to defer net realized losses of $17,282
from foreign currency related transactions.
At December 31, 2003, the Fund had a capital loss carryover for U.S. federal
income tax purposes of $53,610,381 of which, $9,424,172, and $674,775 expire in
2006 and 2007, respectively. These amounts are subject to Internal Revenue Code
Sections limitations. Capital loss carryforwards of $8,426,620, $154,310,
$19,880,258 and 15,050,246 expire in 2005, 2006, 2009 and 2010, respectively. It
is uncertain whether the Fund will be able to realize the benefits before they
expire.
At June 30, 2004, the identified cost for federal income tax purposes, as well
as the gross unrealized appreciation from investments for those securities
having an excess of value over cost, gross unrealized depreciation from
investments for those securities having an excess of cost over value and the net
unrealized appreciation from investments were $97,036,676, $18,266,197,
$(3,732,146) and $14,534,051, respectively.
NOTE G. RESTRICTED SECURITIES
Certain of the Fund's investments are restricted as to resale and are valued at
fair value as determined in good faith under procedures established by the Board
of Directors in the absence of readily ascertainable market values. The table
below shows the number of units/shares held, the acquisition dates, aggregate
cost, fair value as of June 30, 2004, value per unit/share of such securities
and percent of net assets which the securities comprise.
<Table>
<Caption>
NUMBER FAIR PERCENT
OF VALUE AT VALUE PER OF NET
SECURITY UNITS/SHARES ACQUISITION DATES COST 06/30/04 UNIT/SHARE ASSETS
- --------------------------------- ------------ ------------------- ------------ ------------- ---------- -------
Emerging Markets
Ventures I L.P. 2,194,792 01/22/98 - 12/30/03 $ 1,648,204 $ 1,510,895 $ 0.69 1.36
--------- ------------ ------------- ----
International Wireless
Communications Holdings Corp. 12,636 12/08/97 274,680 0 0.00 0.00
--------- ------------ ------------- ----
J.P. Morgan Latin America Capital
Partners (Cayman), L.P. 880,437 04/10/00 - 5/28/03 854,576 747,746 0.85 0.67
--------- ------------ ------------- ----
</Table>
- --------------------------------------------------------------------------------
18
<Page>
- --------------------------------------------------------------------------------
THE LATIN AMERICA EQUITY FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
NUMBER FAIR PERCENT
OF VALUE AT VALUE PER OF NET
SECURITY UNITS/SHARES ACQUISITION DATES COST 06/30/04 UNIT/SHARE ASSETS
- --------------------------------- ------------ ------------------- ------------ ------------- ---------- -------
J.P. Morgan Latin America
Capital Partners (Delaware),
L.P. 1,295,734 04/10/00 - 04/17/03 $ 762,047 $ 449,606 $ 0.35 0.41
103,126 03/26/04 60,651 35,784 0.35 0.03
--------- ------------ ------------- ----
1,398,860 822,698 485,390 0.44
--------- ------------ ------------- ----
Total $ 3,600,158 $ 2,744,031 2.47
============ ============= ====
</Table>
The Fund may incur certain costs in connection with the disposition of the above
securities.
NOTE H. SELF-TENDER OFFERS
On December 4, 2003, the Board of Directors announced that it was suspending the
annual self-tender program that the Fund was previously engaged in, and had
authorized management to take the necessary actions to make the Fund's shares
eligible for sale to Chilean pension plans in Chile through a local market
listing in the belief that such eligibility may provide long term and sustained
investment interest in the Fund and thus afford both additional liquidity to
existing shareholders as well as a possible reduction in the discount from net
asset value at which the Fund's shares currently trade. If the Chilean listing
(which is expected to be completed in 2004) does not have its anticipated affect
within a reasonable period of time, the Board of Directors will consider other
actions, which may include a reinstitution of the annual self-tender offer
program, share repurchases, the combination of the Fund with another fund,
open-ending, liquidation or such other actions as the Board of Directors deems
appropriate under the circumstances.
NOTE I. CONTINGENCIES
In the normal course of business, the Fund may provide general indemnifications
pursuant to certain contracts and organizational documents. The Fund's maximum
exposure under these arrangements is dependent on future claims that may be made
against the Fund and, therefore, cannot be estimated: however, based on
experience, the risk of loss from such claims is considered remote.
- --------------------------------------------------------------------------------
19
<Page>
RESULTS OF ANNUAL MEETING OF SHAREHOLDERS (UNAUDITED)
On April 21, 2004, the Annual Meeting of Shareholders of The Latin America
Equity Fund, Inc. (the "Fund") (the "Meeting") was held and the following matter
was voted upon:
(1) To re-elect two directors to the Board of Directors of the Fund.
<Table>
<Caption>
NAME OF DIRECTOR FOR WITHHELD
- -------------------------------------------------- ---------- ----------
William W. Priest, Jr. 5,363,139 311,786
Martin M. Torino 5,541,140 133,785
</Table>
In addition to the directors re-elected at the Meeting, Enrique R. Arzac, James
J. Cattano and George W. Landau continue as directors of the Fund.
Effective August 9, 2004, Riordan Roett resigned as a Director of the Fund.
Effective August 9, 2004, Michael E. Kenneally was appointed as Chairman of the
Fund, Chief Executive Officer and President. Joseph D. Gallagher, who previously
held these positions, resigned from the Fund effective the same day.
- --------------------------------------------------------------------------------
20
<Page>
IMPORTANT PRIVACY CHOICES FOR CONSUMERS (UNAUDITED)
We are committed to maintaining the privacy of every current and prospective
customer. We recognize that you entrust important personal information to us,
and we wish to assure you that we take seriously our responsibilities in
protecting and safeguarding this information.
In connection with making available investment products and services to current
and potential customers, we may obtain nonpublic personal information about you.
This information may include your name, address, e-mail address, social security
number, account number, assets, income, financial situation, transaction history
and other personal information.
We may collect nonpublic information about you from the following sources:
- - Information we receive on applications, forms, questionnaires, web sites,
agreements or in the course of establishing or maintaining a customer
relationship; and
- - Information about your transactions with us, our affiliates, or others.
We do not disclose any nonpublic personal information about our customers or
former customers to anyone, except with your consent or as otherwise permitted
by law.
RESTRICT INFORMATION SHARING WITH AFFILIATES: In cases where we believe that
additional products and services may be of interest to you, we may share the
information described above with our affiliates unless you say "No."
/ / No, please do not share personal and financial information with your
affiliated companies. [If you check this box, you must send this notice
back to us with your name, address and account number to The Latin America
Equity Fund, Inc., c/o Credit Suisse Asset Management, LLC, 466 Lexington
Avenue, New York, New York 10017.]
We may also disclose this information to firms that perform services on our
behalf. These agents and service providers are required to treat the information
confidentially and use it only for the purpose for which it is provided.
We restrict access to nonpublic personal information about you to those
employees, agents or other parties who need to know that information to provide
products or services to you or in connection with your investments with or
through us. We maintain physical, electronic and procedural safeguards that
comply with federal standards to guard your nonpublic personal information.
NOTE: THIS NOTICE IS PROVIDED TO CLIENTS AND PROSPECTIVE CLIENTS OF CREDIT
SUISSE ASSET MANAGEMENT, LLC ("CSAM"), CSAM CAPITAL INC., AND CREDIT SUISSE
ASSET MANAGEMENT SECURITIES, INC., AND SHAREHOLDERS AND PROSPECTIVE SHAREHOLDERS
IN CSAM SPONSORED AND ADVISED INVESTMENT COMPANIES, INCLUDING CREDIT SUISSE
FUNDS, AND OTHER CONSUMERS AND CUSTOMERS, AS APPLICABLE. THIS NOTICE IS NOT
INTENDED TO BE INCORPORATED IN ANY OFFERING MATERIALS BUT IS MERELY A STATEMENT
OF OUR CURRENT PRIVACY POLICY, AND MAY BE AMENDED FROM TIME TO TIME UPON NOTICE
TO YOU. THIS NOTICE IS DATED AS OF MAY 19, 2004.
- --------------------------------------------------------------------------------
21
<Page>
DESCRIPTION OF INVESTLINK(SM) PROGRAM (UNAUDITED)
The InvestLink(SM) Program is sponsored and administered by EquiServe, L.P., not
by The Latin America Equity Fund, Inc. (the "Fund"). EquiServe, L.P., will act
as program administrator (the "Program Administrator") of the InvestLink(SM)
Program (the "Program"). The purpose of the Program is to provide existing
shareholders with a simple and convenient way to invest additional funds and
reinvest dividends in shares of the Fund's common stock ("Shares") at prevailing
prices, with reduced brokerage commissions and fees.
In order to participate in the Program, you must be a registered holder of at
least one Share of stock of the Fund. Purchases of Shares with funds from a
participant's cash payment or automatic account deduction will begin on the next
day on which funds are invested. All cash payments must be drawn on a U.S. bank
and payable in U.S. dollars. Checks must be made payable to EquiServe. If a
participant selects the dividend reinvestment option, automatic investment of
dividends generally will begin with the next dividend payable after the Program
Administrator receives his enrollment form. Once in the Program, a person will
remain a participant until he terminates his participation or sells all Shares
held in his Program account, or his account is terminated by the Program
Administrator. A participant may change his investment options at any time by
requesting a new enrollment form and returning it to the Program Administrator.
A participant will be assessed certain charges in connection with his
participation in the Program. All optional cash deposit investments will be
subject to a service charge. Sales processed through the Program will have a
service fee deducted from the net proceeds, after brokerage commissions. In
addition to the transaction charges outlined above, participants will be
assessed per share processing fees (which include brokerage commissions.)
Participants will not be charged any fee for reinvesting dividends.
The number of Shares to be purchased for a participant depends on the amount of
his dividends, cash payments or bank account or payroll deductions, less
applicable fees and commissions, and the purchase price of the Shares. The
investment date for cash payments is the 25th day of each month (or the next
trading day if the 25th is not a trading day). The investment date for dividend
reinvestment is the dividend payment date. The Program Administrator uses
dividends and funds of participants to purchase Shares of the Fund in the open
market. Such purchases will be made by participating brokers as agent for the
participants using normal cash settlement practices. All Shares purchased
through the Program will be allocated to participants as of the settlement date,
which is usually three business days from the purchase date. In all cases,
transaction processing will occur within 30 days of the receipt of funds, except
where temporary curtailment or suspension of purchases is necessary to comply
with applicable provisions of the Federal Securities laws or when unusual market
conditions make prudent investment impracticable. In the event the Program
Administrator is unable to purchase Shares within 30 days of the receipt of
funds, such funds will be returned to the participants.
The average price of all Shares purchased by the Program Administrator with all
funds received during the time period from two business days preceding any
investment date up to the second business day preceding the next investment date
shall be the price per share allocable to a participant in connection with the
Shares purchased for his account with his funds or dividends received by the
Program Administrator during such time period. The average price of all Shares
sold by the Program Administrator pursuant to sell orders received during such
time period shall be the price per share allocable to a participant in
connection with the Shares sold for his account pursuant to his sell orders
received by the Program Administrator during such time period. All sale requests
having an anticipated market value of $100,000.00 or more are expected to be
submitted in
- --------------------------------------------------------------------------------
22
<Page>
DESCRIPTION OF INVESTLINK(SM) PROGRAM (UNAUDITED) (CONTINUED)
written form. In addition, all sale requests received by the Program
Administrator within thirty (30) days of an address change are expected to be
submitted in written form.
EquiServe L.P., as Program Administrator, administers the Program for
participants, keeps records, sends statements of account to participants and
performs other duties relating to the Program. Each participant in the Program
will receive a statement of his account following each purchase of Shares. The
statements will also show the amount of dividends credited to such participant's
account (if applicable), as well as the fees paid by the participant. In
addition, each participant will receive copies of the Fund's annual and
semi-annual reports to shareholders, proxy statements and, if applicable,
dividend income information for tax reporting purposes.
If the Fund is paying dividends on the Shares, a participant will receive
dividends through the Program for all Shares held on the dividend record date on
the basis of full and fractional Shares held in his account, and for all other
Shares of the Fund registered in his name. The Program Administrator will send
checks to the participants for the amounts of their dividends that are not to be
automatically reinvested at no cost to the participants.
Shares of the Fund purchased under the Program will be registered in the name of
the accounts of the respective participants. Unless requested, the Fund will not
issue to participants certificates for Shares of the Fund purchased under the
Program. The Program Administrator will hold the Shares in book-entry form until
a Program participant chooses to withdraw his Shares or terminate his
participation in the Program. The number of Shares purchased for a participant's
account under the Program will be shown on his statement of account. This
feature protects against loss, theft or destruction of stock certificates.
A participant may withdraw all or a portion of the Shares from his Program
account by notifying the Program Administrator. After receipt of a participant's
request, the Program Administrator will issue to such participant certificates
for the whole Shares of the Fund so withdrawn or, if requested by the
participant, sell the Shares for him and send him the proceeds, less applicable
brokerage commissions, fees, and transfer taxes, if any. If a participant
withdraws all full and fractional Shares in his Program account, his
participation in the Program will be terminated by the Program Administrator. In
no case will certificates for fractional Shares be issued. The Program
Administrator will convert any fractional Shares held by a participant at the
time of his withdrawal to cash.
Participation in any rights offering, dividend distribution or stock split will
be based upon both the Shares of the Fund registered in participants' names and
the Shares (including fractional Shares) credited to participants' Program
accounts. Any stock dividend or Shares resulting from stock splits with respect
to Shares of the Fund, both full and fractional, which participants hold in
their Program accounts and with respect to all Shares registered in their names
will be automatically credited to their accounts.
All Shares of the Fund (including any fractional share) credited to his account
under the Program will be voted as the participant directs. The participants
will be sent the proxy materials for the annual meetings of shareholders. When a
participant returns an executed proxy, all of such Shares will be voted as
indicated. A participant may also elect to vote his Shares in person at the
Shareholders' meeting.
A participant will receive tax information annually for his personal records and
to help him prepare his U.S. federal income tax return. The automatic
reinvestment of dividends does not relieve him of any income tax which may be
payable on dividends. For further information as
- --------------------------------------------------------------------------------
23
<Page>
DESCRIPTION OF INVESTLINK(SM) PROGRAM (UNAUDITED) (CONCLUDED)
to tax consequences of participation in the Program, participants should consult
with their own tax advisors.
The Program Administrator in administering the Program will not be liable for
any act done in good faith or for any good faith omission to act. However, the
Program Administrator will be liable for loss or damage due to error caused by
its negligence, bad faith or willful misconduct. Shares held in custody by the
Program Administrator are not subject to protection under the Securities
Investors Protection Act of 1970.
The participant should recognize that neither the Fund nor the Program
Administrator can provide any assurance of a profit or protection against loss
on any Shares purchased under the Program. A participant's investment in Shares
held in his Program account is no different than his investment in directly held
Shares in this regard. The participant bears the risk of loss and the benefits
of gain from market price changes with respect to all of his Shares. Neither the
Fund nor the Program Administrator can guarantee that Shares purchased under the
Program will, at any particular time, be worth more or less than their purchase
price. Each participant must make an independent investment decision based on
his own judgment and research.
While the Program Administrator hopes to continue the Program indefinitely, the
Program Administrator reserves the right to suspend or terminate the Program at
any time. It also reserves the right to make modifications to the Program.
Participants will be notified of any such suspension, termination or
modification in accordance with the terms and conditions of the Program. The
Program Administrator also reserves the right to terminate any participant's
participation in the Program at any time. Any question of interpretation arising
under the Program will be determined in good faith by the Program Administrator
and any such good faith determination will be final.
Any interested shareholder may participate in the Program. All other cash
payments or bank account deductions must be at least $100.00, up to a maximum of
$100,000.00 annually. An interested shareholder may join the Program by reading
the Program description, completing and signing the enrollment form and
returning it to the Program Administrator. The enrollment form and information
relating to the Program (including the terms and conditions) may be obtained by
calling the Program Administrator at one of the following telephone numbers:
(800) 730-6001 (U.S. and Canada) or (781) 575-3100 (outside U.S. and Canada).
All correspondence regarding the Program should be directed to: EquiServe Trust
Company N.A., InvestLink(SM) Program, P.O. Box 43010, Providence, RI
02940-3010.
InvestLink is a service mark of EquiServe, L.P.
- --------------------------------------------------------------------------------
24
<Page>
PROXY VOTING (UNAUDITED)
The policies and procedures that The Latin America Equity Fund, Inc. (the
"Fund") uses to determine how to vote proxies relating to its portfolio
securities are available:
- by calling 1-800-293-1232;
- on the Fund's website, www.csam.com/us; or
- on the website of the Securities and Exchange Commission,
http://www.sec.gov.
- --------------------------------------------------------------------------------
25
<Page>
OTHER FUNDS MANAGED BY CREDIT SUISSE ASSET MANAGEMENT, LLC
Credit Suisse Capital Appreciation Fund
Credit Suisse Cash Reserve Fund
Credit Suisse Emerging Markets Fund
Credit Suisse Fixed Income Fund
Credit Suisse Global Fixed Income Fund
Credit Suisse Global Post-Venture Capital Fund
Credit Suisse High Income Fund
Credit Suisse International Focus Fund
Credit Suisse Japan Equity Fund
Credit Suisse Large Cap Value Fund
Credit Suisse Mid-Cap Growth Fund
Credit Suisse Municipal Money Fund
Credit Suisse New York Municipal Fund
Credit Suisse New York Tax Exempt Fund
Credit Suisse Select Equity Fund
Credit Suisse Short Duration Bond Fund
Credit Suisse Small Cap Growth Fund
Credit Suisse Small Cap Value Fund
Credit Suisse Strategic Small Cap Fund
Credit Suisse U.S. Government Money Fund
Fund shares are not deposits or other obligations of Credit Suisse Asset
Management, LLC or any affiliate, are not FDIC-insured and are not guaranteed by
Credit Suisse Asset Management, LLC or any affiliate. Fund investments are
subject to investment risks, including loss of your investment. There are
special risk considerations associated with international, global,
emerging-market, small-company, high-yield debt, single-industry, single-country
and other special, aggressive or concentrated investment strategies. Past
performance cannot guarantee future results.
More complete information about a fund, including charges and expenses, is
provided in the Prospectus, which should be read carefully before investing. You
may obtain copies by calling Credit Suisse Funds at 800-927-2874. For up-to-date
performance, please look in the mutual fund section of your newspaper under
Credit Suisse.
Credit Suisse Asset Management Securities, Inc., Distributor.
- --------------------------------------------------------------------------------
26
<Page>
SUMMARY OF GENERAL INFORMATION
The Fund--The Latin America Equity Fund, Inc.--is a closed-end, non-diversified
management investment company whose shares trade on the New York Stock Exchange,
Inc. Its investment objective is long-term capital appreciation through
investments primarily in Latin American equity securities. Credit Suisse Asset
Management, LLC (New York), the Fund's investment adviser, is part of Credit
Suisse Asset Management ("CSAM"), the institutional and mutual-fund
asset-management arm of Credit Suisse First Boston ("CSFB"). As of June 30,
2004, CSAM managed assets of over $335 billion in 14 countries, $12 billion of
which is managed in the U.S. by CSFB's Alternative Capital Division, an
affiliate of CSAM.
SHAREHOLDER INFORMATION
The market price is published in: THE NEW YORK TIMES (daily) under the
designation "LatAmerEq" and THE WALL STREET JOURNAL (daily), and BARRON'S (each
Monday) under the designation "LatAmEq". The Fund's New York Stock Exchange,
Inc. trading symbol is LAQ. Weekly comparative net asset value (NAV) and market
price information about The Latin America Equity Fund, Inc.'s shares are
published each Sunday in THE NEW YORK TIMES and each Monday in THE WALL STREET
JOURNAL and BARRON'S, as well as other newspapers, in a table called "Closed-End
Funds."
THE CSAM GROUP OF FUNDS
LITERATURE REQUEST--Call today for free descriptive information on the
closed-end funds listed below at 1-800-293-1232 or visit our website on the
Internet: http://www.csam.com/us.
CLOSED-END FUNDS
SINGLE COUNTRY
The Brazilian Equity Fund, Inc. (BZL)
The Chile Fund, Inc. (CH)
The First Israel Fund, Inc. (ISL)
The Indonesia Fund, Inc. (IF)
MULTIPLE COUNTRY
The Emerging Markets Telecommunications Fund, Inc. (ETF)
FIXED INCOME
Credit Suisse Asset Management Income Fund, Inc. (CIK)
Credit Suisse High Yield Bond Fund (DHY)
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that The Latin America Equity Fund, Inc. may
from time to time purchase shares of its capital stock in the open
market.
- --------------------------------------------------------------------------------
<Page>
DIRECTORS AND CORPORATE OFFICERS
Enrique R. Arzac Lead Director
James J. Cattano Director
George W. Landau Director
William W. Priest, Jr. Director
Martin M. Torino Director
Michael E. Kenneally Chairman of the Fund,
Chief Executive Officer
and President
Emily Alejos Co-Chief Investment Officer
Matthew J.K. Hickman Co-Chief Investment Officer
Hal Liebes Senior Vice President
Michael A. Pignataro Chief Financial Officer and
Secretary
Robert M. Rizza Treasurer
INVESTMENT ADVISER
Credit Suisse Asset Management, LLC
466 Lexington Avenue
New York, NY 10017
ADMINISTRATOR
Bear Stearns Funds Management Inc.
383 Madison Avenue
New York, NY 10179
CUSTODIAN
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109
SHAREHOLDER SERVICING AGENT
Fleet National Bank
(c/o EquiServe, L.P.)
P.O. Box 43010
Providence, RI 02940
INDEPENDENT AUDITORS
PricewaterhouseCoopers LLP
Two Commerce Square
Philadelphia, PA 19103
LEGAL COUNSEL
Willkie Farr & Gallagher LLP
787 Seventh Avenue
New York, NY 10019
This report, including the financial statements herein, is sent to the
shareholders of the Fund for their information. The financial information
included herein is taken from the records of the Fund without examination by
independent accountants who do not express an opinion thereon. It is not a
prospectus, circular or representation intended for use in the purchase or sale
of shares of the Fund or of any securities mentioned in this report.
[LAQ LISTED NYSE(R) LOGO]
- --------------------------------------------------------------------------------
3019-SA-04
<Page>
ITEM 2. CODE OF ETHICS.
This item is inapplicable to a semi-annual report on Form N-CSR.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
This item is inapplicable to a semi-annual report on Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
This item is inapplicable to a semi-annual report on Form N-CSR.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
This item is inapplicable to a semi-annual report on Form N-CSR.
ITEM 6. SCHEDULE OF INVESTMENTS.
Form N-CSR disclosure requirement not yet effective with respect to the
registrant.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
This item is inapplicable to a semi-annual report on Form N-CSR.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Form N-CSR disclosure requirement not yet effective with respect to the
registrant.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's board of directors since the registrant
last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(g)
of Schedule 14A in its definitive proxy statement dated March 1, 2004.
ITEM 10. CONTROLS AND PROCEDURES.
(a) As of a date within 90 days from the filing date of this report, the
principal executive officer and principal financial officer concluded that the
registrant's disclosure controls and procedures (as defined in Rule 30a-3(c)
under the Investment Company Act of 1940 (the "Act")) were effective based on
their evaluation of the disclosure controls and procedures required by Rule
30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934.
(b) There were no changes in registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the
registrant's second fiscal half-year that have materially affected, or are
reasonably likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 11. EXHIBITS.
(a)(1) Not applicable.
(a)(2) The certifications of the registrant as required by Rule 30a-2(a) under
the Act are exhibits to this report.
<Page>
(a)(3) Not applicable.
(b) The certifications of the registrant as required by Rule 30a-2(b) under
the Act are an exhibit to this report.
<Page>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934 and the Investment Company Act of 1940, the registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.
THE LATIN AMERICA EQUITY FUND, INC.
/s/ Michael E. Kenneally
-----------------------------------
Name: Michael E. Kenneally
Title: Chief Executive Officer
Date: September 1, 2004
Pursuant to the requirements of the Securities Exchange Act of
1934 and the Investment Company Act of 1940, this report has been signed below
by the following persons on behalf of the registrant and in the capacities and
on the dates indicated.
/s/ Michael E. Kenneally
-----------------------------------
Name: Michael E. Kenneally
Title: Chief Executive Officer
Date: September 1, 2004
/s/ Michael A. Pignataro
-----------------------------------
Name: Michael A. Pignataro
Title: Chief Financial Officer
Date: September 1, 2004