RESTRICTED
WORLD TRADE S/FIN/W/12/Add.56
12December 1997
ORGANIZATION(97-5477)
Original: Spanish Committee onTrade inFinancial Services
COMMUNICATION FROM ELSALVADOR
Initial Offer onFinancial Services
Addendum
Thefollowing communication iscirculated attherequest ofElSalvador toMembers ofthe
Committee onTrade inFinancial Services.
_______________
ElSalvador reserves therighttomodify orwithdraw allorpartofthespecific commitments
onfinancialservicesandtoincludeMFNexemptions,aswellastherighttomaketechnicalmodifications
andcorrect possible errors oromissions.S/FIN/W/12/Add.56
Page2ELSALVADOR -SCHEDULE OFSPECIFIC COMMITMENTS
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
7. FINANCIAL SERVICES
B. Banking andother financial
services
(a) Acceptance ofdeposits and
other repayable funds from
thepublic.
Exclusively:
- Sight deposits inbanks and
branches offoreign banks
(81116);
- time deposits andsavings
accounts (81116, 81119).(1) Unbound
(2) Unbound
(3) Unbound, except withrespect tomeasures
ofthetypespecified inArticle XVI.2(f)
oftheGeneral Agreement onTrade in
Services anddescribed below:
Nonatural orlegal person may, either
directly orthrough anintermediary, own
shares inabank orfinance company
representing more than1percentofthe
capital oftheinstitution, without prior
authorization bytheSupervisory
Department. Thispercentage includes
shares owned byshareholding companies
belonging totherespective financial
institutions.(1) Unbound
(2) Unbound
(3) UnboundS/FIN/W/12/Add.56
Page 3Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(b) Loans ofalltypes,
including inter alia,
personal loans, mortgage
loans, factoring and
financing ofcommercial
transactions.
Exclusively:
- granting ofmortgage loans
(81131);
- personal instalment loans
(81132);
- issue andacceptance of
credit cards and
documentary credits
(81139).Atleast 75percent(75%) ofownership
ofshares inbanks orfinance companies
setupinElSalvador must bemaintained
forthefollowing persons:
(a) Salvadorian orCentral American
natural persons;
(b) Salvadorian legal persons whose
shareholders ormajority members
arethenatural persons referred to
inthepreceding subparagraph;
(c) Central American banks inwhose
country oforigin there is
supervision inaccordance with
relevant international practices and
which meet thelegal and
regulatory provisions inforce in
their country oforigin;S/FIN/W/12/Add.56
Page4Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
C. Other financial services that
maybeundertaken by
banks andfinance
companies:
Exclusively:
- wholesale deposit services
(financial institutions are
excluded from receiving
sitedeposits withdrawable
bycheque orother means)
(81115)
- security custody services
andfinancial reporting
services forclients (81319);
- issue andplacing of
securities, bonds and
mortgage bonds inlocal or
foreign currency (81321,
81322);
- operations withsecurities of
other companies, the
Central Reserve Bank or
theState Bank or
guaranteed bythelatter,
andoperations onthe
secondary mortgage market
(81321);(d) Foreign banks andother financial
institutions inwhose country of
origin there areprudential
regulations andsupervision in
accordance withrelevant
international practices andwhich
areclassified asfirstgrade
financial institutions by
internationally recognized risk
rating companies; aswellas
companies controlling firstgrade
foreign banks andother financial
institutions subject toconsolidated
supervision inaccordance with
relevant international practices.
Subject totheopinion ofthe
Central Bank, theSupervisory
Department issues guidelines for
determining theeligible
institutions.
(4) Unbound, except asmentioned inthe
horizontal commitments indocument
GATS/SC/29.(4) UnboundS/FIN/W/12/Add.56
Page 5Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
- financial intermediation for
theplacement ofresources
ofnational orforeign
institutions andenterprises
(81331);
- foreign exchange buying
andselling operations
(81333);
- transport ofcashand
securities (81334).
Note onthecodes utilized:
theclassification system used is
thatinMTN.GNS/W/120 ofthe
WTO andthe1991 CPC ofthe
United Nations.