Resolution of 18 September 2015 by the Secretary of State for Treasury and Financial Policy amending Annex 3 of the Resolution of 31 July 2015 on financial prudence principles for autonomous communities and local entities

OFFICIAL STATE GAZETTE No. 225 Saturday, 19 September 2015 Sec. I. Page 82908 I. GENERAL PROVISIONS MINISTRY OF ECONOMY AND COMPETITIVENESS 10085 Resolution of 18 September 2015, of the Secretary General of the Treasury and Financial Policy, amending Annex 3 of the Resolution of 31 July 2015, which defines the principle of financial prudence applicable to borrowing and derivative operations of the autonomous communities and local entities.

The Resolution of 31 July 2015, of the Secretary General of the Treasury and Financial Policy, which defines the principle of financial prudence applicable to borrowing and derivative operations of the Autonomous Communities and Local Entities, states in point 4 of Annex 3 that, "in the case of operations instrumented via securities, the maximum permitted spread shall be set in each operation through a report by the Secretary General of the Treasury and Financial Policy, taking into account the market situation and the particularities of the operation. When it concerns securities issuances by the Autonomous Communities, said report shall be incorporated into the mandatory report that, according to the Agreement of the Fiscal and Financial Policy Council of 6 March 2003, must be issued by the Secretary General of the Treasury and Financial Policy for all those operations requiring borrowing authorization from the State, pursuant to Article 14 of Organic Law 8/1980, of 22 September, on financing of the Communities."

Notwithstanding the foregoing, it has been noted that in some cases, the mandatory borrowing authorization from the State referred to in the preceding paragraph, which is materialized through the corresponding Council of Ministers Agreement, in turn refers to the "Resolution of 5 September 2014, of the Secretary General of the Treasury and Financial Policy, which defines the principle of financial prudence applicable to the borrowing operations of the Autonomous Communities of common regime and Cities with Statute of Autonomy that adhere to the direct financing line ICO-CCAA 2012 and the Autonomous Liquidity Fund and the regulations that, where applicable, replace it."

Since the aforementioned Resolution of 5 September 2014 has been replaced by a new Resolution dated 31 July 2015, it is necessary to modify the latter in order to specify the maximum permitted spread for short-term borrowing operations instrumented via securities.

For all the above reasons, this Secretary General has resolved:

Sole Article. Amendment of the Resolution of 31 July 2015, of the Secretary General of the Treasury and Financial Policy, which defines the principle of financial prudence applicable to borrowing and derivative operations of the autonomous communities and local entities.

Annex 3 of the Resolution of 31 July 2015, of the Secretary General of the Treasury and Financial Policy, which defines the principle of financial prudence applicable to borrowing and derivative operations of the autonomous communities and local entities, is amended, and shall read as follows:

cve: BOE-A-2015-10085 Verifiable at http://www.boe.es

OFFICIAL STATE GAZETTE No. 225 Saturday, 19 September 2015 Sec. I. Page 82909

"ANNEX 3 Maximum spreads over the State's financing cost and other financial conditions applicable to borrowing operations of Autonomous Communities and Local Entities

1. For the Autonomous Communities, the maximum spreads over the State's financing cost shall be: a. For Autonomous Communities adhering to the Financing Fund for Autonomous Communities: i. Operations not instrumented via securities whose maturities are covered by the Financing Fund for Autonomous Communities: 20 basis points. ii. Operations whose maturities are not covered by the Financing Fund for Autonomous Communities: 30 basis points. b. For Autonomous Communities not adhering to the Financing Fund for Autonomous Communities: i. Long-term operations not instrumented via securities: 40 basis points. ii. Short-term operations: 30 basis points.

2. For Local Entities, the maximum spreads over the State's financing cost shall be: i. Operations not instrumented via securities whose maturities are covered by the Financing Fund for Local Entities: 20 basis points. ii. Operations not instrumented via securities whose maturities are not covered by the Financing Fund for Local Entities: a. Operations contracted by Local Entities that meet the eligibility conditions for the Economic Impulse Fund: 40 basis points. b. Operations contracted by Local Entities that do not meet the eligibility conditions for the Economic Impulse Fund: 75 basis points.

3. For Autonomous Communities and Local Entities, in the case of borrowing operations with a weighted average life exceeding 10 years, the maximum spreads established in points 1 and 2 above may be increased by one basis point per additional year, up to a maximum of 15 additional basis points.

4. In the case of long-term operations instrumented via securities, the maximum permitted spread shall be set in each operation through a report by the Secretary General of the Treasury and Financial Policy, taking into account the market situation and the particularities of the operation. When it concerns securities issuances by the Autonomous Communities, said report shall be incorporated into the mandatory report that, according to the Agreement of the Fiscal and Financial Policy Council of 6 March 2003, must be issued by the Secretary General of the Treasury and Financial Policy for all those operations requiring borrowing authorization from the State, pursuant to Article 14 of Organic Law 8/1980, of 22 September, on financing of the Communities.

5. Operations with a weighted average life of 12 months or less shall be considered short-term operations.

6. To the maximum rates described in points 1, 2, and 3 above, only the following commissions may be added: a. Non-availability commission on credit lines, limited to a maximum of 0.10% per annum.

cve: BOE-A-2015-10085 Verifiable at http://www.boe.es

OFFICIAL STATE GAZETTE No. 225 Saturday, 19 September 2015 Sec. I. Page 82910

b. Agency commission for syndicated operations, with a maximum of €50,000 per annum.

7. Late interest shall not exceed the interest rate of the operation plus a surcharge of 2% per annum."

Sole Final Provision. Effectiveness. This resolution shall take effect from the day of its publication in the "Official State Gazette". Madrid, 18 September 2015.–The Secretary General of the Treasury and Financial Policy, Rosa María Sánchez-Yebra Alonso.

cve: BOE-A-2015-10085 Verifiable at http://www.boe.es http://www.boe.es OFFICIAL STATE GAZETTE D. L.: M-1/1958 - ISSN: 0212-033X