Regulatory Alerts2017-12-06
Resolution of 5 December 2017 by the Directorate General of the Treasury updating Annex 1 to the Resolution of 4 July 2017 defining the financial prudence principle for borrowing and derivatives of autonomous communities and local entities
The Directorate General of the Treasury issued this resolution to update Annex 1 of the July 2017 financial prudence resolution, establishing the maximum fixed interest rates and Euribor differentials applicable to borrowing operations by Spanish autonomous communities and local entities. The update, based on market data from 4 December 2017, provides specific cost ceilings to ensure compliance with the requirement that total financing costs do not exceed the State's financing cost plus applicable differentials. The document includes a comprehensive table of rates for various maturities and specifies calculation methodologies, including linear interpolation for unlisted terms and basis adjustments.
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