Good morning, and welcome to the Bladex's Conference Call.My name is Melissa, and I'll be your conference operator. All lines have beenplaced on mute to prevent any background noise. After the speaker's remarksthere will be a question-and-answer period. At this time, it is my pleasure toturn the floor over to Ms. Melanie Carpenter of i-advize CorporateCommunications. Ms. Carpenter, you may begin.

Thank you. Good morning everyone, and welcome to theBladex's third quarter 2007 conference call. This is October 22 of 2007. Thiscall is for investors only and if you remember the media is invited tolisten-only, but remember, if you have any questions just follow-up withi-advize after the call. Joining us today from Panama City, is Mr. Jaime Rivera, the CEO of Bladex and Mr. CarlosYap, the CFO of Bladex. Their comments are based on the earnings release thatwe issued this morning. A copy of the long version is available on the website atblx.com in the investor relations section. But if you have any question todayplease call i-advize in New Yorkat 212-406-3692. Any comment that management makes today may includeforward-looking statements as defined by the Private Securities LitigationReform Act of 1995. It's based on information and data that's currentlyavailable. However, the actual performance may differ due to various factors,and they are cited in the Safe Harbor statement and thepress release, so please refer to that for guidance. And with that, I will turnit over to Mr. Jaime Rivera for the presentation. Please go ahead Jaime?

Thank you, Melanie. Good morning, ladies and gentlemen andwelcome once more to our quarterly conference call and thank you, once more forallocating your valuable time to listening about our company. In regards to the purpose of our call, we would like tochange it somewhat this time, particularly as it comes to the distribution orallocation of time. Well, it’s because of the events that have taken place orthe so-called turbulence that has taken place in the market recently, I wouldlike to spend some time concentrating or focusing a good portion of ourcomments on the conference on telling you about how the environment havebehaved in Latin America and how that so-called turbulence has impacted ourbusiness. And we would like to do that because I hope we will convince you thatthe impact of the turbulence, that is being experienced in another parts of theworld. Its quiet different and in fact, it's at the same level as for Bladex. As usual, following my comments, Mr. Carlos Yap will take usthrough some of the details behind the figures for the quarter and then we willfollow it up with your questions and answer whatever details you are interestedin about the quarter. So to the point then, let me start by stating the obviousand I would like to make it very clear because from what I understand and, infact, I know there were many questions about this. Bladex does not have, never had,and is never going to have any exposure to US mortgage or subprime type of risk.Whatever is going on in the market has no bearing on the activities of Bladex.This is not the type of risk we take. We have known, we never will have any ofthis risk on our books. So, having made that point clear, I thought I would stepback a bit and…

Thank you Jaime and good morning everyone. Let me brieflywalk you through the financial results that were contained in this morning'spress release, which reflected a strong performance from our business area. Interest income for the third quarter was $17.6 million, up5% from the previous quarter and have increased 32% year-over-year. This 5%quarterly increase was driven by higher volumes and increased lending marginsfrom the Commercial Division. The average loan portfolio grew 3% as a result of increasein trade demand and expanded client-based particularly in the corporate sector.This strategy of focusing on growing corporate lending has generated positiveresults in the last two years. The average loan portfolio grew 25% during thelast year. Lending margins increased 6 basis points as a result ofincrease in trade demand, coupled with macro-volatility and less competition.Also, this increase reflects the change in mix of the portfolio as corporatelending yields better spreads than lending to banks. On the other side of the balance sheet borrowings marginsdeclined 1 basis point, mostly due to the 5% increase in the profits, which isour chief resource of funding. The net interest margin declined 5 basis points to 1.65%have increased, mainly margins were offset by the current cost of higher cashbalances as part of our plan to strengthen liquidity at the time of marketturbulence. Going forward, there are several factors that should affectnet interest margins. Higher lending spreads or loan disbursement in the latterpart of the third quarter will have a positive effect on the following quartersas Jaime stated. How sustainable these current higher lending spreads levelsare will depend on market conditions. Liquidity levels which had an impact on the net interestmargin during this quarter would also depends on market conditions. Where wecan lower them then the net interest margin will benefit. On the other hand,factors that would have a negative effect on…

Thank you, Carlos. Ladies andgentlemen, we will be glad to take up any questions you might have.

Thank you. (OperatorInstructions). We will pause for just a moment to compile the Q&A roster.Thank you, your first question is coming from Juan Partida with JP Morgan.

Hi, good morning Jaime and Carlos. My question is related tothe composition of your loan portfolio on a geographical basis. We saw thatduring this quarter the exposure to Brazilincreased substantially well that of Peruand Mexico declined -- I amsorry -- yes, and Mexicodeclined. So, I wanted to see if this was a part of the strategy, or that'sjust the places where you saw that demand, you could elaborate a little bit onthat? Thank you.

Juan, good morning. No strategy at all. In fact, in both, Peru and Mexico our strategy to grow and Ithink you will see a significant growth in both markets in the coming quarters.The reason why the balance has decreased in both cases were the same and we hadclients, one large exposure in Peruwith a client where the pricing was very low, we are being strict, even morecareful about the way we price our assets. We did not agree on pricing and wesimply refused to renew the operation. We are replacing that asset with someother. And in Mexico,the exact same thing happened. We had a subsidiary of one of the major statecompanies who had a substantial maturity. We did not agree on pricing and wethought we have and in fact, we do better uses for those capital and we againrefused to renew it. In Brazil,on the other hand, most of the renewal of that payment for negotiations agreedto meet our higher pricing standards and that's why you saw Brazil grow in relative terms more than either Peru or Mexico. If that quarter is to go byanything, I don't think it represents a trend at all.

Okay, thank you very much. That's usual, just in the othercategory which increased a lot, can you give us an idea what countries areincluded there, it went from 5 to 104?

That represent -- it's actually other means the United Statesat the end of arguing the quarter and starting the quarter before we have beenusing insurance coverage to manage the portfolio and most of that insurancecoverage represents US. We have been doing some transactions where thestructure calls for litigation of risks and the cheapest things we have -- thecheapest way we have found to do that is through short-term insurance. Peopleknow us they give us very good rates and of course that will -- that shift isthe risk for U.S.

I see, thank you.

Thank you.

Thank you. Your next question is coming from [Titolo Barlow]with Deutsche Bank.

Hi good morning. Just two question under the last quarter'sconference call you mentioned your normalized level of trading gains of around$3 million and a little bit high this quarter, but just kind of want get usthrough that just still a normalized level that you expect going forward? Andthen the second question, even the decline in fee income is that also you knowwhat the current expectations are going forward on that? Thank you.

I will stick to the $3 million -- to the $3 million figure,this year of course we've been substantially above that. It's a volatilebusiness. Our own market is placed on $3 million, third quarter. If it turnsout that as time proceeds and we achieve -- become more confident in ourability to upgrade higher level say $5 million, we will let you know, but justto let to know we are using $3 million in our budget. We aim of course toconsistently -- consistently beat that figure, but for your projections if youwant to be conservative use $3 million. The fee income again we're currently taking steps toincrease our -- fair activity in some of the markets we drew from duringAugust. Christmas is coming demand is increasing, so with new products we arealready coming back to the levels of the second quarter, first and second quarterin the fourth quarter. Fees will improve next year and they will do so steadilyand markedly to the extent that we deploy the third party asset managementoperations successfully and we have a [variation] to believe that we'll be ableto so. It's certainly based upon the level of interest that has being generatedon solicited interest that has been generated from people in the market.

It was very helpful. Thank you.

Sure, Titolo.

(Operator Instructions). Your next question is coming from[Anurag Bhagwanji with Porto Orlin]. Please, go ahead.

Good morning, Jaime. Good morning, Carlos.

Hello.

Congratulations on the good numbers. My question was, youmentioned asset management side of the business. Can you talk about what arethe assets under management currently? And how do you see that growing?

Our net asset value is in the order of $120 million, that'sour proprietary book. We only see it growing to the profits. The major growthis going to come from again investments by third party institutions orindividuals, and I think that by the end of the fourth quarter we'll able togive you a better idea of how our large our book will grow. But clearly ourinvestment, our proprietary investments, the level of funds we placed with our New York operation, willremain where it is, $120 million plus accrued profit.

Okay. Thanks a lot Jaime and looking forward to meeting you inNew York on the12thof November.

Thank you Anurag and please give my regards to Alice please.

Will do.

Thank you. (Operator Instructions). There appear to be nofurther questions. I would like to turn the floor back over to management forany closing remarks.

Well, ladies and gentlemen again, I believe this quarter hasonce more proved of the soundness of our business model and our ability toupgrade on the strong, stable conditions which we did for a good year and ahalf and on the very unstable conditions which we did during last quarter, wehave continued and steadily improved along all indicators, financial indicatorsand upgrading indicators. We are moving in the direction that we promised you wewould. Nearly three years ago when we announced what we were going to do, mostof the activities that or business lines that we told you we're going todeploy. We have deployed. The numbers that we told you we are going to achieveare being sort of achieved. We have doubled ROE our levels in one year,basically from our low base. Apart from this standard we intent to continuewith this pace as this will turn out to be an even better investment than ithas turned out to be so far. I know a number of you have been with us for sometime andhave done well with return capital, with increased dividend and price haveimproved accordingly. So, I want to thank you for your confidence and let youknow that from my perspective, since I took this job the current environment atpresent itself is the one that most benefits the company, and again unlike evena year and a half ago, we now have many much sails out there with which tocatch the wind. So, hope to see you all on November, the 12th in New York. If you can'tmake it then we will be providing a web conference so you can listen to it. Weintend to go deeper into what we've done and our strategy from hereon as wecomplete the 2010 strategic plan and in the meantime, as usual again, I thankyou again and wish you all success within what is for all of us an excitingmarket. Thank you very much to all.

Thank you. This does conclude today's Bladex conferencecall. You may now disconnect.