Regulatory Alerts2021-12-04
Resolution of 2 December 2021 updating Annex 1 to the 4 July 2017 Resolution on financial prudence for autonomous communities and local entities
The Secretary General of the Treasury and International Financing issued a resolution on 2 December 2021 to update Annex 1 of the 4 July 2017 Resolution defining financial prudence principles for borrowing and derivatives of Spanish autonomous communities and local entities. This update publishes new maximum fixed interest rates and Euribor differentials for various loan maturities, effective as of 1 December 2021, to ensure compliance with the requirement that total borrowing costs do not exceed state financing costs plus applicable differentials. The resolution also clarifies calculation methodologies, including linear interpolation for unlisted maturities and the allowance for 0% interest rates if maximum calculated costs are negative.
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