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ACSDA Leadership Forum New York, October 9, 2007.

PANEL DISCUSSION : CENTRAL DEPOSITARY SERVICES. Byron Martinez, Project Manager. ACSDA Leadership Forum New York, October 9, 2007. Began Operations : November 3, 1998. Common equity : USD 1.02 million . Shares are listed in the Stock Market .

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ACSDA Leadership Forum New York, October 9, 2007.

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  1. PANEL DISCUSSION : CENTRAL DEPOSITARY SERVICES Byron Martinez, Project Manager ACSDA Leadership Forum New York, October 9, 2007.

  2. Began Operations : November 3, 1998. Common equity : USD 1.02 million. Shares are listed in the Stock Market. Rating: AA+ (stable), granted by: Fitch Ratings. Areas of Operation. Operations Servicing Participants Unit for the Registration of Shareholders Project Development Local and International Custody of Securities Clearing and Settlement of Stock Market Operations Deposit, Withdrawal and Transfer of securities Cross-border Operations Register Securities’ Accounts Register Issues Exercising Economic and Social Rights Allocation of ISIN Codes Electronic Registration of Shareholders Processing Equity Actions:Stock Splits, Increase/Decrease of Equity. Processing the payment of Dividends, Coordination of the JGA, etc. Improved International Practices Strategic Projects New Business Opportunities. CEDEVAL‘s profile

  3. Legal Framework Law for the Electronic Bookkeeping of Securities Debt Securities Equities MANDATORY ISSUER’S DECISIONS • The Law empowers CEDEVAL to provide registration and custody services of securities electronically: • Local and International Issues. • Whether listed or not in the local stock market.

  4. Total Securities on Deposit: USD 4,270 million (Face Value) USD 5,265 million (Market Value) VALUE OF SECURITIES ON DEPOSIT Millions USD $ 5,000.0 4,385.1 4,270.0 3,991.8 4,000.0 3,342.0 3,000.0 2,583.0 2,130.0 2,000.0 1,695.0 1,237.0 722.1 1,000.0 517.7 - 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 CEDEVAL: Evolution of Securities on deposit

  5. Total Valores en Depósito: US$ 4,270 millones CEDEVAL: Evolución de los Valores en Depósito • 28% El Salvador GDP • Type of issue: 82% Dematerialized 18%Physical • Overall the Securities consist of: 70% Local Issues 30% International Issues

  6. Desmaterialización de Valores en El Salvador EVOLUTION OF SECURITIES ON DEPOSIT BY TYPE OF ISSUE (Millions of USD at face value) PHYSICAL DEMATERIALIZED Sep-07 2006 2005 2004 2003 Years 2002 2001 2000 Note: The majority of the physical securities are equities and other individual instruments. 1999 Millones de US$ 1998 - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 1998 1999 2000 2001 2002 2003 2004 2005 2006 Sep-07 22 249 550 1,061 1,796 2,172 2,863 3,315 3,500 DESMATERIALIZED 518 700 988 1,145 1,069 787 1,170 1,225 677 767 PHYSICAL

  7. Securities on Deposit: $4,270 million LOCAL VS INTERNACIONAL CUSTODY LOCAL CUSTODY INTERNACIONAL CUSTODY CEDEVAL holds as a part of its inventory international securities: International Shares, Participation in Funds (ETF’s), Government (Public) Debt and Corporate Debt

  8. Local Custody (Local and Private Sector Securities) • Registration of dematerialized securities, issued by the Ministry of Finance and the Banco Central de Reserva de El Salvador. 100% Local Government Debt • Registration and Administration of Debt Securities that are traded in the Stock Market, which are issued by the Salvadorian Private sector. 100% of Private Debt Issues • Shares are kept in physical form, and a small percentage of them is in custody with CEDEVAL.(Immobilized) CEDEVAL assigns an ISIN Code to all local security issues

  9. ISSUER CEDEVAL requests payment from the issuer CEDEVAL CCB X CCB Y CCB Z CEDEVAL pays the respective banking accounts of each direct participant who then pays each investor. Inver. Inver. Inver. Inver. Process for the Payment of Principal and Interest Event: Debt Securities issued in El Salvador The issuer deposits in CEDEVAL’s account COMMERCIAL BANK CEDEVAL authorizes the Commercial Bank to debit its account and sends detailed information regarding the beneficial owners whose accounts must be credited.

  10. International Custody International Custody Agreements: Sub-Custody of Securities Transfers: Buying /Selling Payment of Interest and Dividends Corporate Actions

  11. International Custody (Equities and ETF´s) International Equities : • Citigroup Inc. • Pfizer Inc. • Starbucks • Caterpillar • Chevron Corp. • Pepsi Co. • Office Depot, Inc • McDonald´s Corp • Microsoft Corporation • Procter & Gamble Inc. • Exxon Mobil Corp. • Bank of America Participation in Funds: Exchange Traded Funds (ETF´s) • SPY (S&P 500). • QQQQ (Nasdaq) • DIA (Dow Jones)

  12. International Custody (Debt) Government (Public) and Corporate debt securities of: • Mexico • Chile • Colombia • Brazil • Venezuela • Guatemala • Costa Rica • Panama • Uruguay • United States of America • Turkey among others.

  13. Principal and Interest Payment Processing Event: International securities Interest or principal of foreign securities Issuer Foreign Local Paying Bank CEDEVAL Delivers the Payment Credits Account In Luxembourg Credits accounts CCB Luxembourg Credits Custodian’s Accounts CCB Debits Its clients Investors Global Custodian Credits depositors Accounts Receive Payment

  14. CEDEVAL’s role in the Process of Transforming the Salvadorian Financial System. Event: EL SALVADOR.

  15. Totally dollarized economy. Specialized supervision - Superintendence: Finance, Securities and Pensions. Developing Securities Market. Excellent position of the banking institutions within the rating of banks at the Central American level. Financial corporations expanding within the region. Landscape Prior to the Transformation of the Industry.

  16. CITIGROUP, completes the acquisition of the regional groups Cuscatlán and Grupo Financiero Uno. (Value of the transaction : USD 1,510 million) 2006-2007:Financial Transformation. • The Bank of Nova Scotia, makes an offer to purchase the Banco de Comercio. • The Colombian Bank of the Grupo Antioqueño, makes an offer for the acquisition of the Banco Agrícola. • HSBC completes the purchase of the Panamanian Banistmo, who on its own initiative had made an offer for the Banco Salvadoreño. Number of Shares * 6.38 million 8.1 million 114.7 million Traded Value US$ 177.3 million US$ 381 million US$ 262.3 million Percentage/Total 98.5% 42.9% 92.6% * Shares traded in the stock market of El Salvador and settled through CEDEVAL.

  17. A greater business and financial transactions potential at the regional level. New challenges and opportunities for the Securities Market. A more competitive Financial System. Improved expertise by the supporting institutions. Improved Business Practices: Risk Management and Dematerialization of Securities. ELECTRONIC REGISTRY OF SHAREHOLDERS. The new and modern service that CEDEVAL provided for the Market Implemented: August 2007. The New Salvadorian Financial Landscape.

  18. Dematerialization of Shares of Salvadorian Companies. Electronic Handling of the Registry of Shareholders (vis-`a-vis Physical book) Management of Corporate Actions. Costumer Services Unit. Market Security. Efficient Processes for the Settlement and Transfer of Property. Benefits for the Issuer, Shareholder and the Capital Market. Registry of Shareholders Unit

  19. THANK YOU VERY MUCH !

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