Grupo Nueva Banca, S.A., was set up by Public Deed No. 518, of October 8th, 1993, issued by the Special Notary’s Office of the Ministry of Justice of the Republic of Cuba. It is inscribed in the Central Register of Corporations, starting operations as a Financial Group on April 3rd, 1995.

Banco Central de Cuba granted a Specific Licence to Grupo Nueva Banca, S.A., authorising it to engage in financial intermediation operations for an indefinite time, in freely convertible currency by means of Resolution No. 48, of April 30, 2001.

Grupo Nueva Banca, S.A. is authorised to perform the following operations:

• To jointly participate with other corporate persons in business, by means of which the Group may finance a specific production and participate in the distribution of profits generated by these financings.
• To issue bonds of the group which may allow fund raising in order to increase its financing sources.
• To grant loans to shareholders of entities in which the Group has a corporate capital participation.
• To invest in the capital stock of other entities to become one of their shareholders, whether the institution is Cuban, foreign or a joint venture, under previous authorisation of Banco Central de Cuba.
• To manage other entities in which it participates as a shareholder and whose activities it finances.
• To carry on all those activities foreseen for non-banking financial institutions under Decree-Law No. 173 and which are compatible with the corporate purpose.

Its corporate purpose is to invest in companies and businesses in Cuba and abroad as well as to manage and control those entities.

Grupo Nueva Banca, S.A. is the principal shareholder of the following entities: Banco Internacional de Comercio, S.A., Financiera Nacional, S.A., Compañía Fiduciaria, S.A., InCreFin, S.A.

It also holds 50,0 percent in the joint venture Financiera Iberoamericana, S.A. and 40,0 percent in Caribbean Finance Investments Ltd. (CariFin).

Results attained by the Group has been satisfactory maintaining a sustained growth. Contracts of economic association has been signed to participate in profits together with the Cuban producing enterprises an to which the Group facilitates working and investment capital, accounting and financial advisory and of other kind, to make them more productively, economically and financially efficient. Up to now, association contracts have been signed with these entities: Grupo Empresarial de Montaña of MINAGRI; Ciclocentro of SIME; INPUD of SIME and Doña Delicias of MINAL.

Its fundamental objectives include to widen and improve its service network, consolidate the activity of the group with the Cuban market by means of the introduction and development of new financial products making use of the most advance technologies as well as to keep up a solid performance and profitability and to contribute to the country’s social and economic development.

Casas de Cambio, S.A. (CADECA), member of Grupo Nueva Banca, S.A. was created by Corporate Charter No. 1499, of June 14, 1994, issued by the Special Notary’s Office of the Ministry of Justice of the Republic of Cuba.

Availing itself of the powers conferred on it by Article 6 of Decree-Law No. 84, Banco Nacional de Cuba issued Casas de Cambio a License to effect its operations which was ratified by Banco Central

de Cuba and by means of Resolution No. 75/2001, it ratified the character of a Specific License.

Among its operations authorised to exercise are included:

• To purchase freely convertible currency.
• To sell convertible Cuban pesos.
• To advance cash against credit and debit cards.
• To cash traveller’s checks.
• To change convertible Cuban pesos into different denominations.
• To handle deposits to be credited to bank accounts.
• To effect social security payment.
• To effect payment of salaries in cash in national currency with debit cards.

In 2001, 70 new exchange offices were inaugurated. In the first quarter of 2002, 10 more were opened. By the end of March 2002, there were 291 offices offering services in the most important localities of the country.

The 97,0 percent of operations corresponds to the selling and buying operations of hard currency for national currency, surpassing by 37,0 percent those of the 2000.

During the year, payment was made to over 293,000 holders of Credit and Debit magnetic cards.

As of June, 2001, payment of social security beneficiaries was included to the services provided by the institution.

All the exchange offices are provided with the necessary means for the checking of the legitimacy of the currencies, data transmission, book-keeping and protection of operations.

Compañía Fiduciaria S.A., member of Grupo Nueva Banca, S.A. was created by Corporate Charter No. 1623, of August 30, 1996, modified by Public Deed No. 1821, of November 1st, 2001, issued by the Special Notary’s Office of the Ministry of Justice of the Republic of Cuba.

By means of Resolution No. 5, of 1997, Banco Central de Cuba issued Compañía

Fiduciaria, S.A a Specific License to engage in financial and fiduciary activities in the Republic of Cuba for an indefinite time.

Compañía Fiduciaria S.A. is authorised to exercise fiduciary activities recognised within international practice and to perform confidential tasks of all kind, so diverse such as:

• To seek for financial solutions in the sphere of investment, fund management for specific means, guarantee depository, custody of securities, real state development and accounting and statistics activities.
• To hold capital stock in other entities.
• To advise on processes and experts within technological innovation.
• To manage collection among enterprises and to control financing.
• To accept the posts of Fiscal Agent, Testamentary Executor and Administrator or Trustee.
• To perform all types of mandates and representations, among other trust operations.

In 2001, after 5 years of operations, work developed by Compañía Fiduciaria, S.A. in the implementations of its form in Cuba, has made the contracted activity to increase to over 1,457 million dollars, to meet specific ends, among which goods and services in trust are above 11 millions. Other assets in trust amounted up to 1,359 millions, while mandates, custodies and guarantees received accrued to 87 millions.

Compañía Fiduciaria S.A. has been undergoing a sustained growth in its financial dimensions, operations and organization, thus gaining recognition of the Comité Latinoamericano de Fideicomisos (COLAFI) (Latin American Fiduciary Committee), pertaining to the Federación Latinoamericana de Bancos (FELABAN) (Latin American Banking Federation), whose Technical Committee elected Cuba, represented by the Executive President of the Company, to take up the position of the Vice-presidency of COLAFI for three consecutive years, in the 1998-2000 period.

In August, 2001, the 11th Latin American Fiduciary Congress was held in our country. The event was successfully closed, determining recognition from the participants as well as from FELABAN and its Fiduciary Technical Committee.

RAFIN, S.A. was established by Corporate Charter No. 816, of April 14, 1997, issued by the Special Notary’s Office of the Ministry of Justice of the Republic of Cuba.

By means of Resolution No. 19, 1997, Banco Central de Cuba issued RAFIN, S.A. a Specific License to engage in financial activities in the Republic of Cuba for an indefinite time.

This entity went into operation on August 1st, 1997. Since then, its Financial Statements are audited and certified by the firm of independent auditors, INTERAUDIT, S.A. and as of 2000, the services of PRICEWATERHOUSE COOPERS are contracted.

RAFIN, S.A. is authorised to exercise the following operations:

• To finance export and import operations and investments.
• To engage in financial leasing.
• To discount commercial bills (forfeiting).
• To administrate monetary funds in freely convertible currency corresponding to reserves and centralised funds of Cuban enterprises and agencies.
• To provide services of financial engineering, management of specific problems and consultancy on economic and financial matters.
• To participate in debt refinancing operations.
• To represent shareholders within the management bodies of corporations, domestic or foreign.
• To offer coverage and guarantees for the financial backing of international trading operations of enterprises based in the Cuban territory.
• To carry out offshore operations in free trade zones and industrial parks.

The institution, at present, has more than 600 Cuban and foreign clients. Since its foundation up to the close of December, 2001, it has placed in the Cuban economy loans at short-, medium- and long terms, for more than an equivalent of USD 800,0 millions in the finance of important projects to develop the national economy.

Its financial services of factoring, and forfeiting –in their diverse methods- confirming, leasing, sureties, guarantees, has benefited branches and agents of foreign companies as well as state enterprises and Cuban companies with contracts amounting up for more than an equivalent of USD 220,0 millions.

FIMEL, S.A. was set up by Corporate Charter No. 804, of May 27, 1998, issued by the Special Notary’s Office of the Ministry of Justice of the Republic of Cuba.

Banco Central de Cuba issued a Specific License to FIMEL, S.A. to engage in financial activities in the Republic of Cuba for an indefinite time by means of its Resolution No. 53, of 1998.

FIMEL, S.A. is empowered to perform, among others, the following operations:

• To finance import and export operations.
• To provide financial engineering and business management services, advise on economic and financial matters and provide accounting and statistical services.
• To promote and exercise by itself factoring and support to Cuban enterprises on that matter.
• To finance investments.
• To offer interest rate coverage and exchange rate hedge.
• To participate in debt refinancing operations.
• To perform leasing operations.
• To open bank accounts of any kind and hold bank deposits in banks based in Cuba or abroad, following the procedures established to that purpose.
• To borrow funds to put them to use in the performance of authorised operations.

To perform its functions, it may associate, according to the legislation in force, with national and foreign related entities and participate as a shareholder in other joint-stock companies.

The stock capital authorised and paid-up with which FIMEL, S.A. was established was of USD 2,0 millions. Its fast development has enabled its authorised capital to amount up to USD 20, 0 millions, at present, while the paid-up has amounted up to USD 9,0 millions.

During the 2001 fiscal year, FIMEL, S.A. carried out active financing operations, equivalent to USD 40,1 millions, without including the leasing operations which accrued to 4,3 millions.

For all such operations, the stock capital of this institution was applied. Moreover, the prestige acquired by FIMEL, S.A. within the National Banking System allowed it to process and guarantee financings amounting up to USD 18,4 millions. On the other hand, the granting of foreign credit to national entities was achieved, amounting up to 97,3 million dollars.

For the 2002, it intends to grant financing over a minimum of USD 30,0 millions, and issue avals and guarantees to customer entities to secure national and foreign credits amounting up to USD 80,0 millions.

Corporación Financiera Azucarera, S.A. (ARCAZ) was set up by Corporate Charter No. 1506, of August 16, 2002, issued by the Special Notary’s Office of the Ministry of Justice of the Republic of Cuba.

By means of Resolution No. 43/2002 Banco Central de Cuba granted Corporación Financiera Azucarera, S.A. a Specific License which recognises and empowers it to carry out financial intermediation operations in hard currency in the national territory, related to the Cuban agricultural and industrial complex.

Among the operations it is authorised to exercise are the following:

• To finance operations for the import and export of products, equipment and services of Cuban entities linked to the agricultural and industrial sector activity, for its current operations and investments which are of interest of its objectives.
• To manage and negotiate debt of the Cuban agricultural and industrial sector linked to exports of sugar and its by-products.
• To borrow funds from Cuban and foreign financial institutions to carry out the authorised operations, under strict control of the regulations in force, including those dictated to prevent criminal operations.
• To manage investment funds in the Cuban agricultural and industrial sector as well as reserves of entities of the said sector, and carry on trust operations with the entities when appropriate.
• To carry out purchase and refinancing operations of debts linked to the Cuban agricultural and industrial sector.
• To make loans to Cuban entities whose trade operations are related to the Cuban agricultural and industrial sector.
• To furnish sureties and guarantees to secure financial flows into the Cuban agricultural and industrial sector under the legal provisions in force for financial operations abroad.
• To carry on discount operations on commercial paper drawn or accepted by entities linked to the Cuban agricultural and industrial sector.
• To put into practice and develop specific regime credit methods, such as financial leasing and factoring with entities of the Cuban agricultural and industrial sector.
• To provide with interest rate and exchange cover to entities of the Cuban agricultural and industrial sector.
• To offer consultancy services in financial matters to entities of the Cuban agricultural and industrial sector.

To proceed with its corporate purpose, Corporación Financiera Azucarera S.A. may set up branches and agencies, associate and participate as a shareholder with related national and foreign entities under previous authorisation of Banco Central de Cuba.

The establishment and operation of Corporación Financiera Azucarera, S.A. is timely integrating to the task of stirring into action and diversifying this important sector of the national economy, by renovating and updating methods and instruments of its financial management. Therefore, it keeps up direct business relations with production and service entities of the sector, introducing flexible and proper financial solutions to their demands, based on implementation of strict risk analysis and management principles as well as other regulations of Banco Central de Cuba.

Moreover, the Company is also a key link in the articulation of the Cuban agricultural industry to international financial sources, conveniently organizing its operations with first-class foreign financers.

FINAGRI S. A. was set up by Corporate Charter No. 670, of 1998, issued by the Special Notary’s Office of the Ministry of Justice of the Republic of Cuba.

Banco Central de Cuba issued FINAGRI S.A. a Specific License to operate as a non-banking financial institution, for an indefinite time, in the Republic of Cuba.

FINAGRI S.A. Among its authorised operations to exercise are the following:

• To finance, by means of loans and credit facilities, current operations of Cuban enterprises.
• To borrow funds from institutions of the national banking system and from foreign banks and financial institutions to carry out the authorised operations.
• To provide its clients with financial engineering and specific issues management, and advise on economic and financial matters.
• To carry out commercial paper discount, according to the regulations established by Banco Central de Cuba for these operations.
• To offer coverage and financial surety, backing trade operations of enterprises and companies with Cuban capital.
• To issue, accept, stand surety of, endorse and discount Bills of Exchange or other negotiable, drawn or accepted documents by corporate entities, provided that they are duly guaranteed.
• To put into practice and develop credit methods of specific regime, such as financial leasing, factoring, conforming and forfeiting.
• To finance investments which are of the interest of the sector concerned.

FINAGRI S.A. went into operations in September, 1998, and loans made up to the close of the 2001 amount up to USD 312 millions. These credits have been granted to entities, suppliers or consumers of merchandise and equipment, mainly linked to the agricultural sector. It has also participated in syndicated credits with other institutions of the banking system and has carried out operations inherent to its corporate purpose amounting up to USD 55 millions, to make up a total of 367 million dollars.

Corporación Financiera Habana, S.A. (CFH) was created by Joint Venture Deed No.1682, of October 9, 1998, and counts on a Specific License granted by Banco Central de Cuba for a term of 20 years, by means of its Resolution No. 93.

Corporación Financiera Habana, S.A., was created by Caja Madrid and Banco Popular de Ahorro. It is the first joint venture of the Cuban financial sector established in Cuba, and provides its clients with all types of financing and advising services on commercial and investment operations.

One of the objectives of CFH is to give support to enterprises which operate or want to establish its activity in Cuban territory, independently of its sector or nationality. A commitment translated into a comprehensive attention system, which extends from advisory of commercial and investment operations to financing through multiple methods.

Among financial services, CFH offers in Cuba a wide range of products covering all types of operations: credit, loans, sureties, guarantees, bill discount, leasing, forfeiting, financing of foreign trade operations, etc.

At the close of December 31, 2001, the basic dimensions of Corporación Financiera Habana, S.A. were the following:

Credit Investment ...........................................................33.121.363 USD
Number of operations granted in 2001 ...........................453
Amount of operations granted in 2001 ...........................58.869.821 USD
Profits before taxes.........................................................2.119.256 USD
Total of Assets ............................................................... 33.210.630 USD
Equities ...........................................................................7.960.305 USD
Efficiency .........................................................................8,71%
R.O.A. (BDI/ATM)..............................................................4,07%
R.O.E (BDI /Equities)........................................................18,01%

Financiera Cimex, S.A. (FINCIMEX), of Grupo CIMEX, was constituted on January 26, 1984 as a Cuban Corporation in the Republic of Panama, by means of Corporate Charter No. 172, of May 15, 1995.

Banco Central de Cuba issued Financiera Cimex, S.A. a Specific License by means of its Resolution No. 103, of 1998, derogated by Resolution

No. 109, of 1999 which in substitution granted the following licenses:

• Specific License to carry on financial intermediation operations:
• To manage family aid remittances to Cuba from abroad.
• To finance export operations.
• To finance purchasing operations at short-term in the national territory.
• To carry on financial leasing operations.
• To carry on bill discount and collection management.
• Type A License for the issuance and operation of any kind of plastic card.
• License to act as a plastic card purchaser institution.
• License to act as plastic card processing centre.

In 2001, 256,327 family remittances were received, representing a growth by 24,0 percent, mainly through the Western Union.

In the 2001, USD 80 millions were granted in loans, mainly by means of bill discount and purchasing and financial leasing.

In the 2001, 12 million operations were processed amounting up to USD 507 millions with the use of plastic cards, representing a growth of 51,0 percent and 23,0 percent respectively. A 90,0 percent of the value growth corresponded to Cuban cards, mainly those issued for payment of rights and Customs services or for the payment of wholesale purchasing.

FINCIMEX has issued 205, 316 cards as means of payment, 123,027 for the acquisition of fuel, and 82,289 to beneficiaries of family remittances.

The points of sale in which the system operates amount up to 5,943. Of that total, 5,400 count on terminals which allowed to process in an automated way 99,0 percent of operations in 2001.

Financiera para el Turismo S.A. (FINATUR S.A.) is a Corporation constituted on April 7th, 1992, in Havana City, Cuba, by Public Deed No. 361 of the Special Notary’s Office of the Ministry of Justice of the Republic of Cuba.

It was approved as a non-banking financial institution, by Resolution No. 30, of May 17, 1999, of Banco Central de Cuba and inscribed in the National

Register of Banks and Non-banking Financial Institutions with number 21, of June 2nd, 1999, to carry out financial intermediation operations in freely convertible currency, in the national territory for an indefinite time.

Among the financial intermediation operations with freely convertible currency it is authorised to exercise are the following:

• To grant loans, sureties or guarantees, to finance operations for the export and import of goods, equipment and services in which entities operating in the national territory intervene.
• To provide the following services: financial engineering, business management; factoring, implementation of measures for promotion and development of export projects; consultancy on economic, financial, accounting and statistical matter, automated systems, personnel training, and advisory on tariffs, fiscal issues and drawing up of budgets.
• To finance investments of interest to its goals and operate investment funds of entities and institutions requesting that service in the national territory.
• To discount means of payment.
• To open any kind of bank account and hold deposits in banks based in Cuba or abroad, under previous authorisation of Banco Central de Cuba.

FINATUR S.A. started to operate in April, 1992, and since that date until December 2001, it has backed by means of financing in hard currency, for USD 780,6 millions, the productive activity of a large group of entities of the agriculture and stock farm sectors; the food and drink, textile, article, plastic furniture, glass and paper industries as well as others whose destination is tourism and hard currency collection shops.

Likewise, it has participated in syndicated financing with other institutions of the banking system and issues sureties as well as guarantees to foreign providers backing purchasing operations of its clients.

By means of share dealing on December 29, 2000, the ownership relationship of the Company changed. Of previous shareholders, all belonging to the Ministry of Tourism, the condition was only maintained by FINTUR S.A., while Banco de Crédito y Comercio (BANDEC), from the Banking System, was incorporated as a new partner.

Financiera Iberoamericana, S. A. was approved by Agreement of the Executive Committee of the Council of Ministers on November 22, 1999, and established by Public Deed No. 201, of February 24, 2002, issued by the Special Notary’s Office of the Ministry of Justice of the Republic of Cuba.

It is a joint venture owned jointly by Banco Sabadell (50,0 percent) and Grupo Nueva Banca (50,0 percent).

Its corporate purpose is to grant financing at short-, medium- and long-term to corporations in the national territory as well as to financially intermediate in the terms and conditions disposed by the License issued by Banco Central de Cuba by means of Resolution No. 32, of May 31st, 1999.

Among its operations authorised to exercise are the following:

• To grant, manage, promote and participate in the granting of credits and other forms of financing to entities operating in the national territory.
• To carry out financing of productive and trade activities and real state projects and promotions.
• To put into practice and develop different types of credit and of specific system management, such as financial leasing, factoring, confirming, and forfeiting.
• To provide services, such as financial engineering, consultancy on economic, financial and commercial matters as well as services of accounting and statistics, automated systems, electronic means of payment and personnel training in these matters.
• To offer financial and management services, such as interest rate coverage and exchange rate hedge, avals, guarantees and trusts.
• To carry on all those legal non-banking financial intermediation with Cuban entities (including those with foreign capital) and foreign entities which have commercial relations and operations with Cuban ones.

The government and management of the Company corresponds, in the first place, to the General Meeting of Shareholders which is its main authority and, in the second place, to the Management Board as a management and executive body.

Concluded the second year of operations, Financiera Iberoamericana S.A. had attained very satisfactory results, achieving shortly in time a solid reputation in the national market.

Compañía Financiera S.A. was created by means of Deed No. 2192 of the Constitution of Joint-Stock Company, on July 13, 2000, at the Special Notary’s Office of the Ministry of Justice of the Republic of Cuba. It is inscribed in the General Register of Banks and Non-banking Financial Institutions with No. 30, Folios 57 and 58.

The Specific License for its establishment was issued by Banco Central de Cuba by means of Resolution 10/2000.

In April, 2002, and by means of Resolution 14/ 2002 it was granted a new Specific License which authorises it to the following operations:

• To manage funds in trust.
• To participate in the capital of other financial institutions.

The Specific License empowers Compañía Financiera S.A. to associate and participate as a shareholder with related entities, national or foreign, under previous approval of Banco Central de Cuba.

The General Meeting of Shareholders in the first instance and the Management Board are the bodies in charge of the government, management and representation of the Company.

Compañía Financiera S.A. keeps accounts in freely convertible currency in Banco Financiero Internacional S.A (BFI) and in Banco Internacional de Comercio S.A.

Gilmar Projects S.A.Banco Central de Cuba, through Resolution No. 64 of July 14, 2003, expanded the operations comprised in the Specific License granted to the non-banking financial institution GILMAR PROJECTS S.A. in the year 2002.

The license granted recognizes and empowers GILMAR PROJECTS S.A. to make operations of financial intermediation in freely convertible currency within the national territory.

Its missions include the following:

• To finance, through loans and credit facilities, operations between corporations and societies with Cuban capital in the national territory.
• To borrow funds from Cuban and foreign financial institutions in order to make authorized operations, in compliance with the strict observance of the regulations in force to avoid illegal operations.
• To render services of financial engineering, managing of specific problems, and economic and financial consultancy to its customers.
• To make operations of discount of commercial papers, in accordance to the regulations established by Banco Central de Cuba for these operations.
• To offer coverage and financial guarantee backing commercial operations of corporations and societies with Cuban capital.
• To issue, accept, guarantee, endorse and discount bills of exchange and other commercial papers, drafted or accepted by legal persons, provided they are duly guaranteed.
• To develop and execute credit modalities of a specific regime, such as: financial leasing, factoring, confirming and forfaiting.
• To finance import and export operations of goods, equipment and services in which entities domiciled within the national territory take part, as well as its current operations and investments of interest according to their purposes.
• To make debt collection, purchase, rescheduling and refinancing operations.
• To offer exchange risk coverage.