13 Jul - Plantaze a.d. Podgorica

Annual / Quarterly Financial Statement • Jul 26, 2004

Financial Statements Year ended December 31, 2003 with Report of Independent Auditors

L I

E ERNST & YOUNG

Ernst & Young

P.O. Box 510GT One Capital Place, 4th Floor Shedden Road Grand Cayman Cayman Islands British West Indies

Phone: (345) 949-8444 (345) 949-8529 tax: (345) 949-8004 Fax:

Report of Independent Auditors

The Board of Directors Bancaja Eurocapital Finance

We have audited the accompanying balance sheet of Bancaja Eurocapital Finance, as of December 31, 2003, and the related statements of income and retained earnings, and cash flows for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with International Standards on Auditing. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Bancaja Eurocapital Finance at December 31, 2003, and the results of its operations, its cash flows for the year then ended in accordance with International Financial Reporting Standards.

March 31, 2004

A Member Practice of Lrnst & Young Global

EQUITY	2003	2002
	તે જેવી તેમને જોડી તેમ જ દૂધની ડેરી જેવી સવલતો પ્રાપ્ય થયેલી છે. આ ગામના લોકોનો મુખ્ય વ્યવસાય ખેતી, ખેતમજૂરી તેમ જ પશુપાલન છે. આ ગામના લોકોનો મુખ્ય વ્યવસાય ખેતી, ખેતમજૂરી તે	2.432
	2,016,801	2,289,603
	3,893 1	80,750
	.000	1.000
	5.167 378,900,000 378,900,000	0.000 314,610,000 4.61 L t
	757,806,167	629,221,000
al	759,846,130 -	631,593.785

मा

S. dollars) (Currency - U.
S ASSET	2003	2002	S SHAREHOLDER' S AND IABILITIE 1
CASH EQUIVALENTS CASH AND	5,436 I	3,432	ACCOUNTS PAYABLE LIABILITIES-
E ACCRUED INTEREST RECEIVABL	I 6,80 l 0 ార	2,289,603	ACCRUED DIVIDENDS PAYABLE
CHARGES DEFERRED	13,893	80,750	DEFERRED INCOME
(દ (Note DEPOSITS TERM LONG	757.800.000	629,220,000	4)- IAREHOLDER'S EQUITY (Note Shares Shares Preference Series B Preference etained earnings Preference stock: Common stock, Series A િર SI
Total	1 t 9 t 8 0 S ﻟﺴﺎ	785 રતે રેતે ર 631	To
	accompany1 The	are 6 l to Notes ng	an integral part of these balance sheets.

l

CASH Balan BAN (Curr ACCR DEFE ASSE

1

1

에 올해 이해 올해 위해 있다. 이 대한 대학 원비 원 대표 문

Statements of income and retained earnings, for the years ended as of December 31, 2003 and 2002 (Notes 1 and 2) (Currency - U.S. Dollars)

	2003	2002
INED EARNINGS, beginning of year		638

RETAINED EARNINGS, beginning of year

INTEREST AND OTHER INCOME.

INTEREST AND VITED INCOMES Other operating income	91,972	10,000
Interest income (Note 3)	27,540,710	27,056,936
	27,632,682	27,066,936
INTEREST AND OTHER EXPENSES:
Other operating expenses	(86,805)	(10,513)
Interest expense	(66,857)	(45,276)
	(153,662)	(55,789)
FOREIGN EXCHANGE (LOSS) INCOME:
Exchange gains	128,580,000	100,439,730
Exchange losses	(128,580,000)	(100,439,854)
		(124)
NET INCOME	27,479,020	27,011,023

INTERIM DIVIDENDS	(27,473,853)	(27,011,661
RETAINED EARNINGS, end of year	5.167

The accompanying Notes 1 to 6 are an integral part of these statements of income and retained earnings.

Statements of cash flows for the years ended as of December 31, 2003 and 2002 (Notes 1 and 2) (Currency - U.S. dollars)

2003 2002

Cash flows from operating activities

Net income for the year

Adjustments to reconcile net income to net cash provided by in operating activities

Changes in operating assets and liabilities Decrease in accrued interest receivable Decrease in deferred charges Increase / (Decrease) in accounts payable Decrease in deferred income

Net cash provided by operating activities

Cash flows from financing activities

Dividends paid

Net cash provided by financing activities

Net increase in cash and cash equivalents

272,802	(294,093)
66,857	45,276
6,837	(1,668)
(66,857)	(45,276)
27,758,659	26,715,262
(27,746,655)	(26,717,567)
(27,746,655)	(26,717,567)
17 ሰጠለ	17 2051

16.2021

12, VV4

Cash and cash equivalents, beginning of the year	3,432	5,737
Cash and cash equivalents, end of year	15,436	3,432

The accompanying Notes 1 to 6 are an integral part of these statements of cash flows.

Statements of changes in shareholder's equity for the years ended December 31, 2003 and 2002 (Notes 1 and 2) (Currency -U.S. Dollars)

Number of authorized and issued common shares-1,000 Balance at the end of the year 1,000 Number of authorized and issued Preference Shares-Balance at the end of the year 1,000,000 1,000,000

Par value per share- Common Shares (U.S. \$) Series A Preference Shares (Euro 600) Series B Preference Shares (Euro 600)	1 757.80 757.80	629.22 629.22
Common stock-
Balance at the end of the year	1,000	1,000
Preference stock-
Balance at the beginning of the year	629,220,000	528,780,271
Adjustments to closing exchange rate	128,580,000	100,439,729
Balance at the end of the year	757,800,000	629,220,000
Retained earnings-
Balance at beginning of year		638

(27,473,853) (27,011,661) 5,167

27,011,023

27,479,020

2003

2002

Balance at end of year

Net income for the period

The accompanying Notes 1 to 6 are an integral part of these statements.

Notes to financial statements for the year ended December 31, 2003

COMPANY DESCRIPTION NOTE 1.

Bancaja Eurocapital Finance (the "Company"), was incorporated on December 11, 1998 under the laws of the Cayman Islands, in order to perform investments, financing and trade operations.

The Company is a wholly-owned subsidiary of Caja de Valencia, Castellón y Alicante, Bancaja (the "Parent") (see Note 4), and was created to issue preference shares and place the funds as deposits in the Parent. All the administrative services are performed by Maples Finance (formerly Queensgate SPV Services Ltd). The Company has no employee.

The Company invest substantially all of its assets in Long Term Deposits with its Parent. Accordingly, there is a concentration of credit risk with the Parent.

The Registered Office of the Company is located at P.O. Box 309 in the Cayman Islands.

These Financial Statements were authorized for issue by the Directors on March 30, 2004.

BASIS OF PRESENTATION AND ACCOUNTING PRINCIPLES NOTE 2.

Basis of presentation

The accompanying financial statements have been prepared based on the Company's accounting records as of December 31, 2003 and 2002. The financial statements have been prepared in accordance with the International Financial Reporting Standards issued by the International Accounting Standards Committee.

Notes to financial statements for the year ended December 31, 2003

Accounting policies

The significant accounting policies are:

a)

International Accounting Standard nº 32, "Financial Instruments: Disclosure and Presentation", requires the disclosure of fair value information about financial instruments, whether or not recognized in the financial statements, for which it is practicable to estimate the value. The carrying amount of cash approximates fair value due to demand maturity of the balance. The carrying amount of Long Term Deposits and Preference Shares approximates fair value of US\$ 776 million as of December 31, 2003.

b) Deferred charges

Deferred charges are due to the issue of preference shares. Deferred charges are amortized over the period until the date the corresponding preference shares may be redeemed (five years from issue date). Amortization of approximately US\$ 67 thousand is expensed in 2003. This amount is included under the "Interest expense" caption in the accompanying statements of income.

c) Cash and Cash Equivalents

Cash and Cash Equivalents includes balances in bank accounts.

d) Long Term Deposits

Deposits are recorded at the principal amount. The discount on issue of the deposits representing the difference between the principal amount and net proceeds has been recorded as deferred income in the liabilities.

Accretion of discounts corresponding to these deposits are calculated using the interest method on a yearly basis. The Company recorded accretion of US\$ 67 thousand as of December 31, 2003. This balance is recorded in the "Interest income" caption of the statement of income.

Notes to financial statements for the year ended December 31, 2003

Accounting policies (continued)

d) Long Term Deposits

Interest rate and credit risk have been effectively offset due to the guarantee granted by the Parent and the linkage of the interest rates on assets and dividend rate on Preference Shares. Maturity/redemption dates are also matched to hedge interest rate and credit risk.

The Company invests substantially all of its assets in Long Term Deposits with its Parent. Accordingly, there is a concentration of credit risk with the Parent.

e) Recognition of income and expenses

Income and expenses are calculated using the accrual method of accounting.

The caption "Interest income" of the statement of income include the interests of the long term Deposits accrued during the years ended 2003 and 2002, respectively.

f) Foreign currency transactions

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction.

Assets, liabilities and shareholders' equity denominated in foreign currencies are translated into U.S. dollars at the year end exchange rates. Translation adjustments are recorded in the income statement.

Exchange differences as a result of translation of foreign currency assets and liabilities are charged or credited, as appropriate to income statement for the year.

Notes to financial statements for the year ended December 31, 2003

LONG TERM DEPOSITS NOTE 3.

The detail of the balances of this caption in the accompanying balance sheet is as follows:

	Interest rate		Thousands of Principal		Thousands of US\$
	12-31-03	12-31-02		amount & currency	12-31-03	12-31-02
Deposit at the Parent relating to Series A Preference
Shares (Note 4) Deposit at the Parent relating to Series B Preference	4.430%	4.430%	EURO	300,000	378,900	314,610
Shares (Note 4)	2.477%	4.909%	EURO	300,000	378,900	314,610

The Company and Parent have agreed an interest rate for both subordinated deposits which shall be at least equal to the dividends to be paid on the corresponding Preference Shares on each dividend payment date. The related income is recorded under the "Interest income" caption in the statements of income as of December 31, 2003 and 2002.

The maturity of these Deposits is tied to the redemption date of the Series A and B Preference Shares, respectively, as the Deposits have no fixed maturity dates.

Common and preference stock

As of December 31, 2003 and 2002, the Company's authorized capital stock consisted of 10,000 shares, of US\$ 1.00 par value each and 2,000,000 redeemable preference shares of Euro 600 par value each. All the shares were owned by Caja de Ahorros de Valencia, Castellón y Alicante, Bancaja (see Note 1) at this date.

Notes to financial statements for the year ended December 31, 2003

NOTE 4. SHAREHOLDER'S EQUITY (CONTINUED)

Euro Series A Preference Shares

The Series A Preference Shares Issue is divided into 500,000 shares, which have been fully paid, of a nominal or par value of Euro 600 each. These shares entitle holders to receive noncumulative preferential cash dividends, at a rate of the twelve month Euribor plus 0.2%, payable quarterly on March 3, June 3, September 3 and December 3 beginning on June 3, 1999. The minimum dividend rate of the Series A Preference Shares is 4.43% per annum during the first five years from the date of the issue.

The Series A Preference Shares were issued on March 3, 1999 (US\$ 321,256 thousand proceeds at issue), and they can be redeemed by the Company, subject to the prior approval of the Bank of Spain, in whole but not in part, at the nominal value per share on any dividend date falling on or after March 3, 2004.

The aggregate amount of the Series A Preference Shares dividends accrued during 2003 was US\$ 15,312 thousands (US\$ 12,887 thousands during 2002), and is recorded under the "Interim dividends" caption of the statement of income and retained earnings as of December 31, 2003. An amount of US\$ 1,260 thousands (US\$ 1,046 thousands during 2002) has been included under this caption, as unpaid dividends as of December 31, 2003.

Series A Preference Shares are listed on the A.I.A.F. Market in Madrid, Spain. As of December 31, 2003 their market value per share was 100%.

Series A Preference Shares do not allow voting rights (i.e.: attendance to Shareholders' meetings), except for:

• No payment of four consecutive scheduled dividends,
• Changes in bylaws of the Company that affect Series B Preference Shares' rights,
• -- Agreements for dissolution of the Company.

Notes to financial statements for the year ended December 31, 2003

NOTE 4. SHAREHOLDER'S EQUITY (CONTINUED)

Euro Series B Preference Shares

The Series B Preference Shares Issue is divided into 500,000 shares, which have been fully paid, of a nominal or par value of Euro 600 each. These shares entitle holders to receive noncumulative preferential cash dividends, at a rate of twelve month Euribor plus 0.2%, payable quarterly on March 1, June 1, September 1 and December 1 in each year. The holders begun to receive dividends on September 1, 2000. The minimum dividend rate of the Series B Preference Shares is 4.909% per annum during the first three years from the date of the issue. The dividend rate of the Series B Preference Shares is 2.477% at December 31, 2003.

The Series B Preference Shares were issued in June 1*, 2000, and they can be redeemed by the Company, subject to the prior approval of the Bank of Spain, in whole but not in part, at the nominal value per share on any dividend date falling on or after June 1, 2005.

The aggregate amount of the Series B Preference Shares dividends accrued during 2003 was US\$ 12,162 thousands (US\$ 14,124 thousands during 2002), and is recorded under the "Interim dividends' caption of the statement of income and retained earnings as of December 31, 2003. An amount of US\$ 757 thousands (US\$ 1,243 thousands during 2002) has been included under this caption, as unpaid dividends as of December 31, 2003.

Series B Preference Shares are listed on the A.I.A.F. Market in Madrid, Spain. As of December 31, 2003 their market value per share was 100%.

Series B Preference Shares do not allow voting rights (i.e.: attendance to Shareholders' meetings), except for:

• • No payment of four consecutive scheduled dividends,
• Changes in bylaws of the Company that affect Series B Preference Shares' rights,
• Agreements for dissolution of the Company.

Notes to financial statements for the year ended December 31, 2003

NOTE 5. TAX MATTERS

At the present, no income, profit, capital or capital gain taxes are levied in the Cayman Islands and, accordingly, no provision for such taxes has been recorded in the accompanying financial statements. In the event that such taxes were levied, the Company has received an undertaking from the Cayman Islands Government exempting it from all of this kind of taxes until February 15, 2014.

NOTE 6. SUBSEQUENT EVENTS

No events have taken place to date since December 31, 2003 which significantly affect or change the contents of these financial statements.

】【

Financial Statements Year ended December 31, 2003 with Report of Independent Auditors

1 D

E ERNST & YOUNG

Ernst & Young

P.O. Box 510GT One Capital Place, 4th Floor Shedden Road Grand Cayman Cayman Islands British West Indies

■ Phone: (345) 949-8444 (345) 949-8529 lax: (345) 949-8004 lax:

Report of Independent Auditors

The Board of Directors Bancaja Eurocapital Finance

We have audited the accompanying balance sheet of Bancaja Eurocapital Finance, as of December 31, 2003, and the related statements of income and retained earnings, and cash flows for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with International Standards on Auditing. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Bancaja Eurocapital Finance at December 31, 2003, and the results of its operations, its cash flows for the year then ended in accordance with International Financial Reporting Standards.

MAST

March 31, 2004

A Member Practice of Frist & Young Global

and 2003 t I ్ర ce Sheets as of December ency - U.S. dollars)	and I (Notes 2002	2)
IS	2003	2002	EQUITY LIABILITIES AND SHAREHOLDER'S	2003	2002
AND CASH EQUIVALENTS	5,436 -	3,432	ACCOUNTS PAYABLE LIABILITIES.	ਰੇ 269	2,432
LE UED INTEREST RECEIVAB	1 2,016,80	,289,603 చ	YABLE A ACCRUED DIVIDENDS P	6.801 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ 2.0	2,289,603
RRED CHARGES	13.893	80,750	DEFERRED INCOME	3,893 l	80.750
(દ (Note S TERM DEPOSIT	7,800,000 75	629,220,000	4 )- (Note Shares Series B Preference Shares SHAREHOLDER'S EQUITY Series A Preference Retained earnings Preference stock: Common stock,	1,000 5,167 378,900,000 378,900,000	1.000 14,610,000 314,610,000 3
l otal	30 l 846 759	S 78 રતેડે 1 63	Total	757,806,167 0 t l 846 759.	.000 785 રતેરે I 629,22 ﺎ ર્ભ રે
	accompanying Notes The	an are 9 to	integral part of these balance sheets.

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1

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Statements of income and retained earnings, for the years ended as of December 31, 2003 and 2002 (Notes 1 and 2) (Currency - U.S. Dollars)

A A P A

l

638

RETAINED EARNINGS, beginning of year

INTEREST AND OTHER INCOME.

11 1 1 2010 1 11 17 0 1 11 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Other operating income	91,972	10,000
Interest income (Note 3)	27,540,710	27,056,936
	27,632,682	27,066,936
INTEREST AND OTHER EXPENSES:
Other operating expenses	(86,805)	(10,513)
Interest expense	(66,857)	(45,276)
	(153,662)	(55,789)
FOREIGN EXCHANGE (LOSS) INCOME:
Exchange gains	128,580,000	100,439,730
Exchange losses	(128,580,000)	(100,439,854)
		(124)
NET INCOME	27,479,020	27,011,023

INTERIM DIVIDENDS	(27.473.853)	(27,011, החלק למעונה במשפעות המועד המועד המועד המועד המועד המועד המועד המועד המועד המועד המועד המועד המועד המועד המועד המועד המועד המועד המועד המועד המוזיקה המועד המועד המועד המוזיקה
RETAINED EARNINGS, end of year	5.167

The accompanying Notes 1 to 6 are an integral part of these statements of income and retained earnings.

Statements of cash flows for the years ended as of December 31, 2003 and 2002 (Notes 1 and 2) (Currency - U.S. dollars)

Cash flows from operating activities

Net income for the year

Adjustments to reconcile net income to net cash provided by in operating activities

Changes in operating assets and liabilities Decrease in accrued interest receivable Decrease in deferred charges Increase / (Decrease) in accounts payable Decrease in deferred income

Net cash provided by operating activities

Cash flows from financing activities

Dividends paid

Net cash provided by financing activities

Net increase in cash and cash equivalents

272,802 (294,093) 66,857 45,276 6,837 (1,668) (66,857) (45,276) 27,758,659 26,715,262 (27,746,655) (26,717,567) (26,717,567) (27,746,655) 12,004 (2,305)

Cash and cash equivalents, beginning of the year	3,432	5,737
Cash and cash equivalents, end of year	15,436	3,432

The accompanying Notes 1 to 6 are an integral part of these statements of cash flows.

Status and States

1000

Statements of changes in shareholder's equity for the years ended December 31, 2003 and 2002 (Notes 1 and 2) (Currency -U.S. Dollars)

Number of authorized and issued common shares-Balance at the end of the year Number of authorized and issued Preference Shares-Balance at the end of the year

2003	2002
1,000	1,000
1,000,000	1,000.000

Par value per share-
Common Shares (U.S. \$)
Series A Preference Shares (Euro 600)	757.80	629.22
Series B Preference Shares (Euro 600)	757.80	629.22
Common stock-
Balance at the end of the year	1,000	1,000
Preference stock-
Balance at the beginning of the year	629,220,000	528,780,271
Adjustments to closing exchange rate	128,580,000	100,439,729
Balance at the end of the year	757,800,000	629,220,000
Retained earnings-
Balance at beginning of year		638
Net income for the period	27 479 020	27 011 023

27.479.020 27.011 023

Dividends	and the control control of the state of the states of the states of the states of (27,473,853)	and to be a comments of the comments of (27,011,661)
Balance at end of year	5.167

The accompanying Notes 1 to 6 are an integral part of these statements.

Notes to financial statements for the year ended December 31, 2003

NOTE 1. COMPANY DESCRIPTION

Bancaja Eurocapital Finance (the "Company"), was incorporated on December 11, 1998 under the laws of the Cayman Islands, in order to perform investments, financing and trade operations.

The Company is a wholly-owned subsidiary of Caja de Ahorros de Valencia, Castellón y Alicante, Bancaja (the "Parent") (see Note 4), and was created to issue preference shares and place the funds as deposits in the Parent. All the administrative services are performed by Maples Finance (formerly Queensgate SPV Services Ltd). The Company has no employee.

The Company invest substantially all of its assets in Long Term Deposits with its Parent. Accordingly, there is a concentration of credit risk with the Parent.

The Registered Office of the Company is located at P.O. Box 309 in the Cayman Islands.

These Financial Statements were authorized for issue by the Directors on March 30, 2004.

BASIS OF PRESENTATION AND ACCOUNTING PRINCIPLES NOTE 2.

Basis of presentation

The accompanying financial statements have been prepared based on the Company's accounting records as of December 31, 2003 and 2002. The financial statements have been prepared in accordance with the International Financial Reporting Standards issued by the International Accounting Standards Committee.

Notes to financial statements for the year ended December 31, 2003

Accounting policies

The significant accounting policies are:

Disclosure about Fair Value of Financial Instruments a)

International Accounting Standard nº 32, "Financial Instruments: Disclosure and Presentation", requires the disclosure of fair value information about financial instruments, whether or not recognized in the financial statements, for which it is practicable to estimate the value. The carrying amount of cash approximates fair value due to demand maturity of the balance. The carrying amount of Long Term Deposits and Preference Shares approximates fair value of US\$ 776 million as of December 31, 2003.

b) Deferred charges

Deferred charges are due to the issue of preference shares. Deferred charges are amortized over the period until the date the corresponding preference shares may be redeemed (five years from issue date). Amortization of approximately US\$ 67 thousand is expensed in 2003. This amount is included under the "Interest expense" caption in the accompanying statements of income.

Cash and Cash Equivalents c)

Cash and Cash Equivalents includes balances in bank accounts.

d) Long Term Deposits

Deposits are recorded at the principal amount. The discount on issue of the deposits representing the difference between the principal amount and net proceeds has been recorded as deferred income in the liabilities.

Accretion of discounts corresponding to these deposits are calculated using the interest method on a yearly basis. The Company recorded accretion of US\$ 67 thousand as of December 31, 2003. This balance is recorded in the "Interest income" caption of the statement of income.

Notes to financial statements for the year ended December 31, 2003

Accounting policies (continued)

d) Long Term Deposits

Interest rate and credit risk have been effectively offset due to the guarantee granted by the Parent and the linkage of the interest rates on assets and dividend rate on Preference Shares. Maturity/redemption dates are also matched to hedge interest rate and credit risk.

The Company invests substantially all of its assets in Long Term Deposits with its Parent. Accordingly, there is a concentration of credit risk with the Parent.

e) Recognition of income and expenses

Income and expenses are calculated using the accrual method of accounting.

The caption "Interest income" of the statement of income include the interests of the long term Deposits accrued during the years ended 2003 and 2002, respectively.

f) Foreign currency transactions

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction.

Assets, liabilities and shareholders' equity denominated in foreign currencies are translated into U.S. dollars at the year end exchange rates. Translation adjustments are recorded in the income statement.

Exchange differences as a result of translation of foreign currency assets and liabilities are charged or credited, as appropriate to income statement for the year.

Notes to financial statements for the year ended December 31, 2003

NOTE 3. LONG TERM DEPOSITS

The detail of the balances of this caption in the accompanying balance sheet is as follows:

	Interest rate		Thousands of Principal		Thousands of US\$
	12-31-03	12-31-02		amount & currency	12-31-03	12-31-02
Deposit at the Parent relating to Series A Preference Shares (Note 4) Deposit at the Parent relating to	4.430%	4.430%	EURO	300,000	378,900	314,610
Series B Preference Shares (Note 4)	2.477%	4.909%	EURO	300,000	378,900	314.610

The Company and Parent have agreed an interest rate for both subordinated deposits which shall be at least equal to the dividends to be paid on the corresponding Preference Shares on each dividend payment date. The related income is recorded under the "Interest income" caption in the statements of income as of December 31, 2003 and 2002.

The maturity of these Deposits is tied to the redemption date of the Series A and B Preference Shares, respectively, as the Deposits have no fixed maturity dates.

NOTE 4. SHAREHOLDER'S EQUITY

Common and preference stock

As of December 31, 2003 and 2002, the Company's authorized capital stock consisted of 10,000 shares, of US\$ 1.00 par value each and 2,000,000 redeemable preference shares of Euros 600 par value each. All the shares were owned by Caja de Ahorros de Valencia, Castellón y Alicante, Bancaja (see Note 1) at this date.

Notes to financial statements for the year ended December 31, 2003

NOTE 4.

Euro Series A Preference Shares

The Series A Preference Shares Issue is divided into 500,000 shares, which have been fully paid, of a nominal or par value of Euro 600 each. These shares entitle holders to receive noncumulative preferential cash dividends, at a rate of the twelve month Euribor plus 0.2%, payable quarterly on March 3, June 3, September 3 and December 3 beginning on June 3, 1999. The minimum dividend rate of the Series A Preference Shares is 4.43% per annum during the first five years from the date of the issue.

The Series A Preference Shares were issued on March 3, 1999 (US\$ 321,256 thousand proceeds at issue), and they can be redeemed by the Company, subject to the prior approval of the Bank of Spain, in whole but not in part, at the nominal value per share on any dividend date falling on or after March 3, 2004.

The aggregate amount of the Series A Preference Shares dividends accrued during 2003 was US\$ 15,312 thousands (US\$ 12,887 thousands during 2002), and is recorded under the "Interim dividends" caption of the statement of income and retained earnings as of December 31, 2003. An amount of US\$ 1,260 thousands (US\$ 1,046 thousands during 2002) has been invluded under this caption, as unpaid dividends as of December 31, 2003.

Series A Preference Shares are listed on the A.I.A.F. Market in Madrid, Spain. As of December 31, 2003 their market value per share was 100%.

Series A Preference Shares do not allow voting rights (i.e.: attendance to Shareholders' meetings), except for:

• • No payment of four consecutive scheduled dividends,
• Changes in bylaws of the Company that affect Series B Preference Shares' rights,
• • Agreements for dissolution of the Company.

Notes to financial statements for the year ended December 31, 2003

NOTE 4. SHAREHOLDER'S EQUITY (CONTINUED)

Euro Series B Preference Shares

The Series B Preference Shares Issue is divided into 500,000 shares, which have been fully paid, of a nominal or par value of Euro 600 each. These shares entitle holders to receive noncumulative preferential cash dividends, at a rate of twelve month Euribor plus 0.2%, payable quarterly on March 1, June 1, September 1 and December 1 in each year. The holders begun to receive dividends on September 1, 2000. The minimum dividend rate of the Series B Preference Shares is 4.909% per annum during the first three years from the date of the issue. The dividend rate of the Series B Preference Shares is 2.477% at December 31, 2003.

The Series B Preference Shares were issued in June 1*, 2000, and they can be redeemed by the Company, subject to the prior approval of the Bank of Spain, in whole but not in part, at the nominal value per share on any dividend date falling on or after June 1, 2005.

The aggregate amount of the Series B Preference Shares dividends accrued during 2003 was US\$ 12,162 thousands (US\$ 14,124 thousands during 2002), and is recorded under the "Interim dividends'' caption of the statement of income and retained earnings as of December 31, 2003. An amount of US\$ 757 thousands (US\$ 1,243 thousands during 2002) has been included under this caption, as unpaid dividends as of December 31, 2003.

Series B Preference Shares are listed on the A.I.A.F. Market in Madrid, Spain. As of December 31, 2003 their market value per share was 100%.

Series B Preference Shares do not allow voting rights (i.e.: attendance to Shareholders' meetings), except for:

• • No payment of four consecutive scheduled dividends,
• • Changes in bylaws of the Company that affect Series B Preference Shares' rights,
• • Agreements for dissolution of the Company.

Notes to financial statements for the year ended December 31, 2003

NOTE 5. TAX MATTERS

At the present, no income, profit, capital or capital gain taxes are levied in the Cayman Islands and, accordingly, no provision for such taxes has been recorded in the accompanying financial statements. In the event that such taxes were levied, the Company has received an undertaking from the Cayman Islands Government exempting it from all of this kind of taxes until February 15, 2014.

NOTE 6. SUBSEQUENT EVENTS

No events have taken place to date since December 31, 2003 which significantly affect or change the contents of these financial statements.

BANCAJA

Caja de Ahorros de Valencia, Castellón y Alicante

COMISION NACIONAL DEL
MERCADO DE VALORES
	1 2 AGO. 2004
REGISTRO DE ENTRADA
Nº 2004 . 0. 3. 9.92

Valencia, 11 de agosto 2004

Atn Sr. Carlos Lázaro

Muy Sr nuestro,

Tal y como solicitaron, les adjuntamos las Cuentas Anuales, el Informe de Gestión y el Informe de Auditoría correspondientes al ejercicio 2003 de la entidad Bancaja Eurocapital Finance traducida a castellano. Para cualquier consulta pueden ponerse en contacto con el departamento de Financiación Estructural, en el teléfono 96/3982021.

Atentamente,

Eva Rodrigo

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Estados Financieros 31 de diciembre de 2003 junto con Informe de Auditores Independientes.

Ernst & Young Tel.: (345) 949-8444 P.O. Box 510GT Fax: (345) 949-8529 One Capital Place, 4th Floor Fax: (345) 949-8004 Shedden Road Gran Caimán Tslas Caimán Antillas Británicas

INFORME DE AUDITORES INDEPENDIENTES

Al Consejo de Administración Bancaja Eurocapital Finance

Hemos auditado el Balance de Situación adjunto de Bancaja Eurocapital Finance a 31 de diciembre de 2003, y la Cuenta de Resultados y Beneficios retenidos así como los Flujos de Fondos para el año que finaliza en tal fecha. Estos Estados Financieros son responsabilidad de la Dirección de la Sociedad. Nuestra responsabilidad es expresar una opinión sobre estos estados financieros basada en nuestra auditoria.

Hemos realizado nuestra auditoria con arreglo a Normas Internacionales de Auditoria. Tales normas exigen que se planifique y se lleve a cabo la auditoria de modo que estemos razonablemente seguros de que los estados financieros carecen de informaciones falsas importantes. Una auditoria incluye el examen, con arreglo a pruebas, de las evidencias que respaldan las cantidades y notas aclaratorias de los estados financieros. Una auditoria incluye también la comprobación de los principios contables aplicados y de las estimaciones significativas realizadas por la Dirección, así como la evaluación de la presentación global de los estados financieros. Creemos que nuestra auditoria proporciona una base suficientemente razonable para nuestra opinión.

En nuestra opinión, los estados financieros antes aludidos presentan una imagen fiel, en todos los aspectos significativos, de la situación financiera de Bancaja Eurocapital Finance a 31 de diciembre de 2003, y de los resultados de sus operaciones y sus flujos de fondos para el año finalizado en tal fecha con arreglo a Normas Internacionales Auditoria.

Firmado. 31 de marzo de 2004.

BALANCE DE SITUACIÓN - 31 DE DICIEMBRE, 2003 y 2002 (notas 1 y 2)

ACTIVO	2003	2002
TESORERIA Y CIRCULANTE	15.436	3.432
INTERES DEVENGADOS A COBRAR	2.016.801	2.289.603
GASTOS DIFERIDOS	13.893	80.750
DEPOSITOS A LARGO PLAZO (Nota 3)	757.800.000	629.220.000
Total Activo	759.846.130	631.593.785
PASIVO Y FONDOS PROPIOS	2002	2002
EXIGIBLE - CUENTAS A PAGAR	9.269	2.432
DIVIDENDOS DEVENGADOS A PAGAR	2.016.801	2.289.603
INGRESOS DIFERIDOS	13.893	80.750
FÓNDOS PROPIOS (Nota 4): Acciones ordinarias, US\$1 valor nominal, 1.000 acciones autorizadas, emitidas y en circulación	1 000	1.000
Participaciones Preferentes: Participaciones Preferentes Serie A,	378.900.000	314.610.000
Participaciones Preferentes Serie B.	378.900.000	314.610.000
Beneficios Retenidos	5.167
	757.806.167	629 221 000
Total Pasivo	759.846.130	631.593.785

Las notas 1 a 6 adjuntas son parte integrante de este Balance de Situación.

CUENTA DE RESULTADOS Y BENEFICIOS RETENIDOS

PARA LOS AÑOS FINALIZADOS A 31 DE DICIEMBRE DE 2003 Y 2002 (notas 1 y 2)

(divisa US\$)

	2003	2002
Benclicios retenidos, principio de año		638
INTERESES Y OTROS INGRESOS
Otros ingresos de las operaciones	91.972	10.000
Ingresos financieros (Nota 3)	27.540.710	27.056.936
	27.632.682	27.066.936
INTERESES Y OTROS GASTOS
Otros gastos de las operaciones	(86.805)	(10.513)
Gastos financieros	(66.857)	(45.276)
	(153.662)	(55.789)
(PERDIDA) BENEFICIO POR CONVERSION DE DIVISAS
Diferencias positivas de cambio	128.580.000	100.439.730
Diferencias negativas de cambio	(128.580.000)	(100.439.854)
		(124)
BENEFICIOS NETOS	27.479.020	27.011.023
DIVIDENDOS A CUENTA	(27.473.853)	(27.011.661)
BENEFICIOS RETENIDOS, final de año	5.617

Las notas 1 a 6 adjuntas son parte integrante de esta Cuenta de Resultados y Rescrvas

ESTADOS DE FLUJO DE FONDOS

PARA LOS AÑOS TERMINADOS A 31 DE DICIEMBRE DE 2003 y 2002 (Notas 1 y 2)

(divisa US\$)

	2003	2002
FLUJOS DE FONDOS DE LAS ACTIVIDADES DE EXPLOTACION: Beneficios netos del año	27.479.020	27.011.023
Ajustes para reconciliar los ingresos netos con el flujo neto producido por operaciones: Cambios en activo y pasivo
Reducción en intereses devengados a cobrar	272.802	(294.093)
Reducción en gastos diferidos	66.857	45.276
Aumento/Reducción en cuentas a pagar	(6.837)	(1.668)
Reducción en ingresos diferidos	(66.857)	(45.276)
Flujo neto producido por operaciones	27.758.659	26.715.262
FLUJOS DE FONDOS DE ACTIVIDADES DE FINANCIACION: Dividendos abonados	(27.746.655)	(26.717.567)
Flujo neto producido por actividades de financiación	(27.746.655)	(26.717.567)
Aumento neto en tesorería y circulante	12.004	(2.305)
Tesorería y Circulante, a principio de año	3 432	5.737
Tesorcria y Circulante, a final de año	15 436	3.432

Las notas 1 a 6 adjuntas son parte integrante de este Estado de Flujos de Fondos

ESTADO DE CAMBIOS EN LOS RECURSOS PROPIOS

PARA LOS AÑOS TERMINADOS A 31 DE DICIEMBRE DE 2002 y 2001 (Notas 1 y 2) (Dólares US.)

	2003	2002
Número de acciones ordinarias autorizadas y emitidas Saldo al final del año	1.000	1.000
Número de Participaciones Preferentes autorizadas y emitidas
Saldo al final del año	1.000-000	1.000.000
Valor nominal por acción / participación
Acciones ordinarias (US\$)	1	1
Participaciones Preferentes Serie A (Euro 600)	757,80	629,22
Participaciones Preferentes Serie B (Euro 600)	757,80	629,22
Acciones Ordinarias
Saldo al final del año	1.000	1.000
Participaciones Preferentes
Saldo a principio de año	629.220.000	528.780.271
Ajustes al tipo de cambio de cierre	128,580,000	100.439.729
Saldo al final del año	757.800.000	629.220.000
Beneficios Retenidos
Saldo a principio de año		638
Beneficio neto del periodo	27.479.020	27.011.023
Dividendos		(27.473.853) (27.011.661)
Saldo a final de año	5 167

Las notas 1 a 6 adjuntas son parte integrante de este Estado de cambios en Recursos Propios

BANACAJA EUROCAPITAL FINANCE NOTAS ACLARATORIAS A LOS ESTADOS FINANCIEROS AÑO FINALIZADO A DICIEMBRE 31, 2003

DESCRIPCIÓN DE LA SOCIEDAD: NOTA 1

Bancaja Eurocapital Finance (la "Sociedad" ) fue constituida el 11 de diciembre de 1998 en virtud de la legislación de las Islas Caimán, para llevar a cabo operaciones de inversión, financiación y comercio.

La Sociedad es una filial al cien por cien de Caja de Ahorros de Valencia, Alicante y Castellón, Bancaja (la "Matriz") (véase Nota 4) creada para emitir participaciones preferentes y colocar los fondos como depósitos en la Matriz. Todos los servicios administrativos son llevados a a cabo por Maples Finance (anteriormente denominada Queensgate SPV Services Ltd.). La Sociedad no tiene empleados.

La Sociedad invierte sustancialmente todos sus activos en Depósitos a Largo Plazo con su Matriz. En consecuencia, hay una concentración de riesgo crediticio con la Matriz.

El Domicilio Social de la Sociedad está ubicado en P.O. Box 309 en las Islas Caimán.

La emisión de estos Estados Financieros fue autorizada por los Consejerosn el 30 de marzo de 2004.

NOTA 2 BASE DE PRESENTACIÓN Y PRINCIPIOS CONTABLES

Base de Presentación

Los estados financieros adjuntos han sido preparados sobre la base de los registros contables de la Sociedad a fecha de 31 de diciembre de 2003 y 2002. Los estados financieros han sido preparados de acuerdo con normas internacionales de declaraciones financieras emitidas por el Comité Internacional de Normas Contables -

Políticas Contables

Las políticas contables más significativas son:

a) Declaración del Valor Justo de los Instrumentos Financieros

La Norma Internacional Contable nº 32 "Instrumentos Financieros: Declaración y Presentación", exige la declaración de la información del valor justo sobre los instrumentos financieros, ya esté o no reconocido en los estados financieros, para lo cual es viable estimar el valor. El valor neto en libros de efectivo se aproxima al valor neto en libros como consecuencia del vencimiento exigible del saldo. El valor justo de los Depósitos a Largo Plazo y Participaciones Preferentes se aproxima a US\$ 776 millones a 31 de diciembre de 2003.

b) Gastos Diferidos

Los gastos diferidos se deben al coste de la emisión de las participaciones preferentes. Los gastos diferidos se amortizan durante el periodo y hasta la fecha en que las participaciones preferentes correspondientes pueden rescatarse (cinco años a partir de la fecha de emisión). En 2003 se han amortizado aproximadamente US\$67 mil. Este importe se incluye en el epigrafe "gastos financieros" de la cuenta de resultados adjunta.

c) Tesorería y Circulante

El Efectivo y equivalentes incluyen los saldos en cuentas bancarias.

d) Depósitos a Largo Plazo.

Los depósitos se contabilizan por el importe del principal. El descuento en la emisión de los depósitos, que representa la diferencia entre el importe de principal y los fondos netos, ha sido contabilizado como ingreso diferido en el pasivo.

La plusvalía de descuentos que corresponden a estos depósitos se calculan utilizando el método de intereses con carácter anual. La Sociedad contabilizó una plusvalía de US\$67 mil a fecha de 31 de diciembre de 2003. Este saldo se contabiliza en el epígrafe "ingresos financieros" de la cuenta de resultados.

Políticas Contables (cont.)

d) Depósitos a largo plazo

El tipo de interés y el riesgo crediticio han sido perfectamente cubiertos debido a la garantía concedida por la Matriz y a la vinculación entre los tipos de interés sobre los activos y los tipos de dividendo sobre las Participaciones Preferentes. Las fechas de vencimiento/rescate están también en concordancia para

cubrir el tipo de interés y riesgo de crédito.

La Sociedad invierte sustancialmente todos sus activos en Depósitos a Largo Plazo con su Matriz. En consecuencia, hay una concentración de riesgo crediticio con la Matriz.

e) Reconocimiento de ingresos y gastos

Los ingresos y gastos son calculados utilizando el principio de de devengo contable

El epígrafe "ingresos financieros" de la cuenta de resultados incluye los intereses de los Depósitos a Largo Plazo devengados durante los años 2003 y 2002 respectivamente.

f) Transacciones en divisas

Las transacciones en moneda extranjera se contabilizan al tipo en vigor en la fecha de la transacción.

Los activos, pasivos y recursos propios denominados en moneda extranjera se convierten en dólares US a los tipos de cambio de final de año. Los ajustes de conversión de moneda se contabilizan en la cuenta de resultados.

Las diferencias de cambio a consecuencia de la conversión de divisas de activos y pasivos son abonadas o cargadas, según proceda, a la cuenta de resultados del año.

ПОГА З DEPÓSITOS A LARGO PLAZO

El detalle de los saldos de este epígrafe en el balance de situación adjunto es el siguiente:

Tipo de Interés 31-12-03 31-12-02		Miles de Principal Miles de US\$ importe y divisa 31-12-03 31-12-02
Depósito en la Matriz relativo a Participaciones Preferentes Serie A (Nota 4)4,430% EURO 300.000 378.900 314.610
Depósito en la Matriz relativo a Participaciones
Preferentes Serie B (Nota 4)2,477% 4,909%		EURO 300.000 378.900 314.610

La Sociedad y la Matriz han acordado un tipo de interés para ambos depósitos subordinados que será al menos igual a los dividendos a pagar sobre las Participaciones Preferentes correspondientes en cada fecha de pago de dividendos. El ingreso relacionado se contabiliza en el epígrafe "Ingresos financieros" de la cuenta de resultados a 31 de diciembre de 2003 y 2002.

EL vencimiento de estos Depósitos está asociado a la fecha de rescate de las Participaciones Preferentes Series A y B, respectivamente, dado que los Depósitos no tienen fechas de vencimiento fijas.

NOTA 4 RECURSOS PROPIOS

Acciones Ordinarias y Participaciones Preferentes

A 31 de diciembre de 2003 y 2002, el capital social de la sociedad comprendía 10.000 acciones de 1US\$ de valor nominal cada una y 2.000.000 de participaciones preferentes rescatables de Euro 600 de valor nominal cada una. Todas las acciones eran propiedad de Caja de Ahorros de Valencia, Castellón y Alicante, Bancaja (véase Nota 1) en esta fecha.

NOTA 4 RECURSOS PROPIOS (CONT.)

Participaciones Preferentes Euro de la Serie A

La emisión de participaciones preferentes Euro de la Serie A se divide en 500.000 participaciones, que han sido totalmente desembolsadas, por un valor nominal de Euro 600 cada una. Estas participaciones legitiman a los titulares a recibir dividendos en efectivo preferentes y no-acumulables, al tipo del Euribor a doce meses más el 0,2% pagaderos trimestralmente el 3 de marzo, 3 de junio, 3 de septiembre y 3 de diciembre comenzando el 3 de junio de 1999. El tipo de dividendo mínimo de las Participaciones Preferentes Euro de la Serie A es 4,43% anual durante los primeros cinco años siguientes a la fecha de emisión.

Las Participaciones Preferentes de la Serie A se emitieron el 3 de marzo de 1999 (US\$ 321.256 miles en fondos en la emisión) y pueden ser rescatadas por la Sociedad, con sujeción a la aprobación previa del Banco de España, en su totalidad pero no en parte, al valor nominal por participación en cualquier fecha de dividendo coincidente o posterior al 3 de marzo de 2004.

El importe total de los dividendos devengados durante el 2003 correspondientes a las Participaciones Preferentes de la Serie A fue de US\$ 15.312 miles (US\$ 12.887 miles durante 2002), y se contabiliza en el epígrafe "Dividendos a cuenta" de la cuenta de resultados y beneficios retenidos a fecha de 31 de diciembre de 2003. Un importe de US\$ 1.260 miles (US\$ 1.046 miles durante 2002) ha sido incluido en este epígrafe, como dividendos no pagados a 31 de diciembre de 2003.

Las Participaciones Preferentes de la Serie A cotizan en el Mercado A.I.A.F. en Madrid, España. A 31 de diciembre de 2003, su valor de mercado por participación era del 100%.

La Participaciones Preferentes de la Serie A no conceden derechos políticos (esto es, asistencia a las juntas de accionistas), salvo para:

• impago de cuatro dividendos consecutivos
• cambios en los estatutos de la Sociedad que afecten a los derechos de las Participaciones Preferentes de la Serie B,
• acuerdos para la disolución de la Sociedad.

NOTA 4 RECURSOS PROPIOS (CONT.)

Participaciones Preferentes Euro de la Serie B

La emisión de Participaciones Preferentes de la Serie B se divide en 500.000 participaciones, que han sido totalmente desembolsadas, por un valor nominal de Euro 600 cada una. Estas participaciones dan derecho a los titulares a recibir dividendos en efectivo preferentes y no-acumulables, al tipo del Euribor a doce meses más el 0,2%, pagaderos trimestralmente el 1 de marzo, l de junio, 1 de septiembre y 1 de diciembre de cada año. Los titulares comenzaron a percibir dividendos el 1 de septiembre de 2000. El tipo de dividendo mínimo de las Participaciones Preferentes Serie B es de 4,909% anual durante los tres primeros años siguientes a la fecha de emisión. El tipo de dividendo de las Participaciones Preferentes es de 2,47% a fecha de 31 de diciembre de 2003.

Las Participaciones Preferentes de la Serie B fueron emitidas el 1 de junio de 2000 y pueden ser rescatadas por la Sociedad, con sujeción a la aprobación previa del Banco de España, en su totalidad pero no en parte, al valor nominal por participación en cualquier fecha de dividendo coincidente o posterior al 1 de junio de 2005.

El importe total de los dividendos devenqados durante el 2003 correspondientes a las de Participaciones Preferentes de la Serie B fue de US\$ 12.162 miles (US\$ 14.124 miles durante 2002), y se contabiliza en el epígrafe "Dividendos a cuenta" de la cuenta de resultados y beneficios retenidos a fecha de 31 de diciembre de 2003. Un importe de US\$ 757 miles (US\$ 1.243 miles durante 2002) ha sido incluido en este epígrafe, como dividendos no pagados a 31 de diciembre de 2003.

Las Participaciones Preferentes de la Serie B cotizan en el Mercado A.I.A.F. en Madrid, España. A 31 de diciembre de 2003, su valor de mercado por participación era del 100%.

La Participaciones Preferentes de la Serie B no conceden derechos políticos (esto es, asistencia a las juntas de accionistas), salvo para:

• impago de cuatro dividendos consecutivos
• cambios en los estatutos de la Sociedad que afecten a los derechos de las Participaciones Preferentes de la Serie B,
• acuerdos para la disolución de la Sociedad.

NOTA 5 ASUNTOS FISCALES

En la actualidad, no se recauda en las Islas Caimán ningún impuesto sobre la renta, beneficios, capital o patrimonio y, en consecuencia, no se ha contabilizado ninguna provisión para dichos impuestos en los estados financieros adjuntos. En el caso de que lleguen a recaudarse dichos impuestos, la Sociedad tiene el compromiso por parte del Gobierno de las Islas Caimán que le exime de todos estos tipos impositivos hasta el 15 de febrero de 2014.

NOTA 6 ACONTECIMIENTOS POSTERIORES

No se ha producido ningún acontecimiento hasta la fecha desde el 31 de diciembre de 2003, que afecte o cambie de manera significativa el contenido de estos estados financieros.