ACSDA Leadership Forum

New York, October 9, 2007.

PANEL DISCUSSION :

CENTRAL DEPOSITARY SERVICES

Byron Martinez, Project Manager

CEDEVAL‘s profile 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.

Register Securities’ Accounts

Register Issues

Exercising Economic and Social Rights

Allocation of ISIN Codes

Servicing Participants

Local and International Custody of Securities

Clearing and Settlement of Stock Market Operations

Deposit, Withdrawal and Transfer of securities

Cross-border Operations

OperationsProject Development

Improved International Practices

Strategic Projects

New Business Opportunities.

Unit for the Registration of ShareholdersElectronic Registration of Shareholders

Processing Equity Actions:Stock Splits, Increase/Decrease of Equity.

Processing the payment of Dividends, Coordination of the JGA, etc.

Law for the Electronic Bookkeeping of Securities

Debt Securities

MANDATORY

Equities

ISSUER’S DECISIONS

Legal Framework

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.

CEDEVAL: Evolution of Securities on deposit

Total Securities on Deposit: USD 4,270 million (Face Value)

USD 5,265 million (Market Value)

VALUE OF SECURITIES ON DEPOSIT

722.1

1,237.0

1,695.0

2,130.0

2,583.0

3,342.0

3,991.84,270.0 4,385.1

517.7

-

1,000.0

2,000.0

3,000.0

4,000.0

5,000.0

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Millions USD $

SALDO DE VALORES EN DEPOSITO

722.1

1,237.0

1,695.0

2,130.0

2,583.0

3,342.0

3,991.84,270.0 4,385.1

517.7

-

1,000.0

2,000.0

3,000.0

4,000.0

5,000.0

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Millones de $

CEDEVAL: Evolución de los Valores en Depósito

Total Valores en Depósito: US$ 4,270 millones 28% El Salvador GDP

Overall the Securities consist of:

70% Local Issues

30% International Issues

Type of issue:

82% Dematerialized

18%Physical

Desmaterialización de Valores en El Salvador

- 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

Ye

ars

Millones de US$

PHYSICAL DEMATERIALIZED

DESMATERIALIZED 22 249 550 1,061 1,796 2,172 2,863 3,315 3,500

PHYSICAL 518 700 988 1,145 1,069 787 1,170 1,225 677 767

1998 1999 2000 2001 2002 2003 2004 2005 2006 Sep-07

EVOLUTION OF SECURITIES ON DEPOSIT BY TYPE OF ISSUE(Millions of USD at face value)

Note: The majority of the physical securities are equities and other individual instruments.

CUSTODIA LOCAL VRS INTERNACIONAL

70%

30%

CUSTODIA LOCAL

CUSTODIA INTERNACIONAL

Securities on Deposit: $4,270 million

CEDEVAL holds as a part of its inventory international securities:International Shares,Participation in Funds (ETF’s), Government (Public) Debt andCorporate Debt

LOCAL CUSTODY

INTERNACIONAL CUSTODY

LOCAL VS INTERNACIONAL CUSTODY

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

Event: Debt Securities issued in El Salvador

Process for the Payment of Principal and Interest

CEDEVAL requests payment from the issuer

CEDEVAL

ISSUER

The issuer deposits in CEDEVAL’s account

COMMERCIALBANKCEDEVAL authorizes the Commercial Bank to debit

its account and sends detailed information regarding the beneficial owners whose accounts must be credited.

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.

International Custody Agreements:

International Custody

Sub-Custody of Securities

Transfers: Buying /Selling

Payment of Interest and Dividends

Corporate Actions

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)

International Custody (Equities and ETF´s)

Government (Public) and Corporate debt securities of:

Mexico

Chile

Colombia

Brazil

Venezuela

Guatemala

Costa Rica

Panama

Uruguay

United States of America

Turkey

among others.

International Custody (Debt)

Principal and Interest Payment Processing

Event: International securities

Issuer Foreign LocalInterest or principal of foreign securities

Delivers the

Payment

Paying BankCredits Account In Luxembourg

Luxembourg Credits Custodian’s

Accounts

CEDEVALCredits accounts

CCB

CCBDebits

Its clients

InvestorsReceive Payment

Global CustodianCredits depositors

Accounts

CEDEVAL’s role in the Process of Transforming the Salvadorian Financial System.

Event: EL SALVADOR.

Landscape Prior to the Transformation of the Industry.

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.

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.

CITIGROUP, completes the acquisition of the regional groups Cuscatlán and Grupo Financiero Uno.

(Value of the transaction : USD 1,510 million)

The New Salvadorian Financial Landscape.

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.

Registry of Shareholders Unit

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.

THANK YOU VERY MUCH !