Redemption of Pref.Shares

Banco Santander Central Hispano SA
7 March 2002


                                  MATERIAL FACT

Banco Santander Central Hispano, S.A. hereby notifies the resolution adopted on
February 13th 2002 by the Board of Directors of BCH International-Puerto Rico, 
Inc. (formerly, 'Central Hispano International, Inc.') to redeem in advance all
of the 'A' Series preference shares issued by such institution, amounting to 
69 million U.S. dollars.

BCH International-Puerto Rico, Inc. is a company incorporated under the laws of
Puerto Rico.

The redemption of the issuance will be carried out on March 28th 2002.

The Bank of Spain, within its sphere of competence regarding the supervision of
the solvency of credit institutions, has authorised the aforementioned 
redemption.


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