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									                               TRANSLATION



GLOSSARY                                                                   D
DAMAGES AND LOSSES
Damages means a damage sustained by a person or thing, and as losses, the profits
that has not occurred as a result of the damage.

DATA PROCESSOR
Another name for computer. As the words computer comes from the English term
computer, data processor comes from the French version ordinateur.

DAYS OF GRACE
The additional time after the due date given to the debtor to comply with his
obligations to the bank.

DEBT
Liability, debt. Amount to be paid arising from any obligation.

DEBT INSTRUMENT
It is the document representing an obligation by which an issuer must repay capital
and interest at a stated maturity.

DEBT INVESTMENT COMPANY
Legal company who exclusively operates with documents and fixed income
securities and net profit or loss is allocated daily to shareholders.

DEBIT
Item that is recorded on the “debt” of a debit account.

In accounting it means any amount when settled or registered increases the balance
of an asset or decreases the balance of a liability.

DEBIT CARD
Means of payment and cash withdrawal, represented by a plastic, signed by the
depositor, which is awarded based on a checking or savings account in the issuer
bank. The debit card is used to purchase consumer goods or pay for services in the
businesses affiliated to the system implemented by the issuer bank. The difference
between the debit and credit card is that the credit card is provided by an awarded
credit and the debit card is provided by own deposits.

Coded card which allows access, through a computer system, to a bank account
from which you want to withdraw funds.

No. Ref: SG-TRAD-2010156
Prepared by: S.L. de Sánchez
Date: 22/06/2010
                               TRANSLATION

Payment card, which mainly serves to obtain money, either at ATMs or bank
branches. The operation is similar to a reimbursement account, as if a check will be
charged against the account itself.

DEBITS
Result of an account when debits are higher than credits.

In banking, situation in which a person has an overdraft in a checking account, so
owes money to the institution where the account is domiciled.

DEDUCTIBLE
It is the amount expressly agreed to be paid in case of accident; this shall be paid
by the insured and will be deducted from the due compensation.

DEDUCTION
Lend money to, or purchase, a payment instrument, such as a promissory note, a
draft or bill of exchange, deducting the interest agreed upon beforehand.

The amount advanced on a deducted note will always be less than the one stated in
the document, as the interest from the date of the discount until the maturity date,
have been charged in advance.

For the debtor, a discount rate is always more expensive than the same interest
rate paid on maturity of the transaction, or at fixed intervals until maturity.

When the higher the interest rate, the greater is the cost between a discount and a
loan on which interest is paid at the end of the transaction.

DE FACTO
Something that actually exists (and is generally recognized) although it had not
been formally or explicitly stated or confirmed.

It means, for example, an ipso war between two countries, when both are openly
dedicated to military activities without being between them any formal declaration
of war.

When the most senior executive of a bank dies (in some countries, the general
manager, in others, the president) and his successor is known but not yet been
confirmed, it is considered as the general manager (or president) de facto.

This phrase in Latin, like many others, is commonly used in Spanish even though
there is an equivalent: in fact or actual.

DEFLATION
A persistent decrease in the level of prices, caused by an imbalance between the
amount of money in circulation and the amount of goods produced.
No. Ref: SG-TRAD-2010156
Prepared by: S.L. de Sánchez
Date: 22/06/2010
                               TRANSLATION


Increase of purchase of a currency within the country that issues it.

The same phenomenon, in foreign countries, is called reevaluation.

Among the causes for deflation may be some sound economic factors, such as
reducing production costs of consumer goods. But it also can be caused by imposed
factors, the decline in consumption caused by the fear of recession, or an
overvalued currency, which carries with cheaper imports.

It seems however, that consumer goods lose value with less frequency and speed
than currencies, probably because they are more difficult to produce.

DEFAULT
Any firm commitment or contract whose terms are not met.

As a financial term, usually refers to loans whose repayments or the interest agreed
upon are not paid when due.

DELINQUENCY
It is said that an unpaid debt at maturity is in default and the related debtor is
delinquent.

In connection with a bank loan, you can be in arrears with respect to capital,
interests or both. Indeed, a loan could be to the long-term but have provided a
quarterly or half-yearly payment of interest. In other words, the loan may have not
been expired, but the payment of a part of it did.

In the United States, a loan on which interest accrued have not been paid within a
period of more than 90 days, is considered a non-performing loan, or an inactive
loan, and banks must make a reserve for the same amount of interest accounted
for, but not yet received.

Interest on overdue debts in called interest in arrears and sometimes takes a long
collection. Interest in arrears is generally higher than regular interests. That is why
they are also called penalty interest.

DEMONETIZE
Abolish use of a metal for coinage. Removing a currency movement.

DEPOSIT
Contract under which a person trusts another person to safekeeping something, on
condition of returning such at the moment it is asked for. It is the delivery of a sum
of money to a bank to start or increase capital or to maintain a credit balance in the
checking or savings account, to be withdrawn in accordance with the agreed
contract.
No. Ref: SG-TRAD-2010156
Prepared by: S.L. de Sánchez
Date: 22/06/2010
                               TRANSLATION


DEPOSIT OF SECURITIES
Are those that the client makes in financial institutions, either in custody or as a
security for various transactions. The depositary of bonds, securities, bills or
interest-bearing documents are responsible for collecting charges on their maturities
dates.

DEPOSIT OPERATION
Each transaction by which credit entities get both their own and external resources.

DEPOSIT SUBJECT TO COLLECTION
Deposit in checks paid by a customer for an established account, which amount is
accredited once the documents are collected; the latter are called checks subject to
collection or checks receivable.

DEPOSITARY
An entity that is responsible for the safekeeping and administration of property or
securities, whether fixed or variable, and that, in exchange for a fee, is responsible
for operations that affect them, such as collecting stamps, the sale of preferential
subscription rights, etc.

DEPOSITOR
A person who makes a deposit of funds or securities in a bank or credit institution.
A natural or juridical person that trusted his money or securities to a bank or other
financial entity.

DEPRECIATED VALUE
It is the original price of a property less the applicable depreciation.

DEPRECIATION
It is the decline of the value of fixed assets due to normal wear and tear. Two
methods are generally used for provisioning: straight-line and reductions.

The depreciation itself consists on the gradual loss of the value of a fixed asset
(such as a building, machinery, office equipment, vehicles, etc.) in a given period of
time for reasons of wear, deterioration and/or obsolescence.

DEPRECIATION or AMORTIZATION
Gradual extinction of any debt during a period of time; for example: the redemption
of a debt by the creditor consecutive payments, the gradual periodical extinction in
books of an insurance premium or premium on bonds. A reduction of book values
of fixed assets; a generic term for depreciation, depletion, discharge, or gradual
extinction in books of an item or group of items of limited time assets; either
through direct credit or through an account of valuation; therefore, the amount of
this reduction is generally a depreciation.
No. Ref: SG-TRAD-2010156
Prepared by: S.L. de Sánchez
Date: 22/06/2010
                               TRANSLATION


It is the expense that is intended to pay or terminate a burden or debt owed by the
entity.

It is the cancellation process of a loan. The extinction of long and short term
commitments.

Discharge some or all the cost of an asset; depreciating or depleting.

DERIVATIVES
Financial instruments whose value depends on other underlying bonds or securities
whose purpose is to transfer risk of the latter. When speaking of derivatives we
always refer to options and futures.

The term was coined to refer derivatives generally and relate to a series of financial
operations.

There is tendency to belief that it just refer to new operations, when, actually, the
term includes old and new transactions alike. The only thing new is the term
derivatives.

Among the derivatives operations are included the future operations, options and
swaps, whether of foreign currencies as shares, bonds, interest rates or
commodities.

The futures and swap exchanges are derived from the spot currency transactions.
For this reason, the foreign currency quotations are determined by reference to the
spot prices of the same currencies.

Swaps of interests, both fixed to adjustable interests as interests based on U.S.
prime rate (PIME) against LIBOR-based interests, are derivatives.

Derivatives are primarily used to hedge or limit risks involved in volatile markets.

Given the volatility of both exchange rates, as interest rates worldwide, in recent
years the use of derivatives has increased steeply.

DEVALUATE
Decrease the value of a currency.

DEVALUATION
The loss of purchasing power of a currency outside the issuing country. The same
process within the issuing country is known as inflation.

Reduction of the official value of a currency against other currencies for the purpose
of economic and social policy; this means, from a time will be necessary to pay

No. Ref: SG-TRAD-2010156
Prepared by: S.L. de Sánchez
Date: 22/06/2010
                               TRANSLATION

more national currency to buy a foreign currency./Depreciation in the value of a
currency./Loss of purchasing power of a currency abroad, following a unilateral
decision of the governing authority.

DEVELOPMENT BANKING
Entities engaged in banking services and long-term credits subject to the priorities
of the National Development Plan and in particular the National Program for
Financing Development, to promote and finance sectors which are mandated in the
organic laws of such institutions. For example, Agricultural Development Bank (BDA,
for its acronym in Spanish)

DISCHARGE OF DEBT
A debt that is totally or partially redeemed or condoned.

DISCLAIMER
In English, this concept is contained in one word disclaimer. This is a document (or
a clause) that denies or refuses any responsibility for or who subscribes it, for a
possible accident related to a task or mission as assigned.

Disclaimer is a preventive measure.

Generally refers to aspects of a transaction in which the issuer of the disclaimer has
no direct control. Nobody wants to take responsibilities for others. Thus, banks are
not liable for any delays in mail shipments or collections that were entrusted by
their customers. They also tend to take responsibility for mistakes made by their
foreign correspondents, and in some cases, even take responsibility for their own
mistakes.

DISCOUNT
It is difference between the actual and nominal value of a due document. The
operation of acquiring, before maturity, values generally endorsable deducting a
percentage.

Generically, the one set up on consumables and specific things about money in
which the depositary is obliged to return as much of the same kind and quality.

Amount deducted from a payment made or to be made (see deduction). The word is
also used in relation to foreign exchange transactions to term.

In other cases, the discount may correspond rather (or mainly) to the fact that it is
anticipated a devaluation of the currency bought.

DISCOUNT RATE
Performance index used to discount future cash flows to present value.


No. Ref: SG-TRAD-2010156
Prepared by: S.L. de Sánchez
Date: 22/06/2010
                               TRANSLATION

DISCOUNTED NOTES
Represents the amount of credits owned by the entity, which are transferred to a
financial institution, to anticipate its amount and make the maturity collection or
return the documents, if necessary.

DISCOUNTED NOTES RECEIVABLE
Are the outstanding documents that have been transferred or sold, through
endorsement, and the amount of which, the endorser is responsible for the
contingent liability.

DISPUTE PORTFOLIO
Asset derived from credit operations consisting of debtors who have been notified of
a lawsuit against them for breach of contract.

DIVIDEND
The amount of profit of a company that is agreed to distribute among its
shareholders at the end of an accounting period. It is usually in cash, but it could
be made in kind by allocating the assets of the company.

DOLLAR, FORWARDS of
Obligation to buy or sell dollars for pesos at a predetermined price and date to
guarantee the price on that date and reduce trading risk.

DOLLAR-INSTRUMENT EXCHANGE RATE
Type of exchange applied in transactions with money or money orders in United
States dollars at the counter. This rate includes the brokerage fee of the bank
branch, foreign exchange bureau or exchange center.

DOMINO EFFECT
Term used to describe some chain reactions. In the financial field, for example, is
often feared that the bankruptcy of a financial intermediary may cause the fall of
another, and the latter the fall of another, and so on, in a kind of domino effect that
would end up causing a general crisis in the system.

DOUBTFUL RECEIVABLES
Assets which are considered difficult to recover or by prolonged delinquencies,
impairment of securities or activity carried out by the accredited, either by affecting
him for suspension of payment or any other alleged reasons for a difficult
recovery./Assets whose owners are in bankruptcy or insolvency proceedings.

DOW JONES
It is the average value at close of the Stock Exchange of New York, of a group of
stocks, primarily industrial, public services, and transportation.


No. Ref: SG-TRAD-2010156
Prepared by: S.L. de Sánchez
Date: 22/06/2010
                                      TRANSLATION

DRAFT
To transfer funds from the account of one person to another.

A set of operations which are the main activities of a business, bank or industry.

DRAW
To issue a bill of exchange or check.

DRAWEE
Bank that keeps track of the drawer’s account.

DRAWER
Person that issues a bill of exchange or check

DRAWER’S SIGNATURE
Signature of the natural or juridical person that issues a check that must be the
same as the signature the bank has on its records. The drawer is responsible for
the payment of the check and any stipulation on the contrary shall be null and void.

DRAWING
Procedures to obtain a random or accidental result, by which it determines the
sequential order which will identify available turns to award groups and, where
applicable, to clarify ties.

DUMPLINGS
English word without an equivalent in Spanish, and has been adopted as is in our
commercial and financial language.

It is generally used to appoint sales of different merchandises, goods or equipment,
at lower prices than their production cost, with the only purpose of eliminating
competitors and winning a spot in the market.

DURABLE CONSUMER GOODS
Are the goods that have a useful life longer than a year and that are needed by the
economic agents: households, companies, and government, for their proper
functioning and/or maintenance, such as: household, cars, and household goods,
among others.
    ---------------
Sources:

     Decree Law No. 9 of 26 February 1998 and its by-laws
     Commercial Code
     Encyclopedic Dictionary, Guillermo Cabanellas
     Dictionary of Financial and Banking Terms, Robert Marcuse
     Banking and Securities Dictionary, Armando Ibarra Hernández, Ed. Porrúa.
     Dictionary of Business and Economics, Arthur Andersen, Ed. Espasa Calpe



No. Ref: SG-TRAD-2010156
Prepared by: S.L. de Sánchez
Date: 22/06/2010

								
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