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

OFFICIAL STATE BULLETIN No. 296 Wednesday, 6 December 2017 Sec. I. Page 119451

I. GENERAL PROVISIONS MINISTRY OF ECONOMY, INDUSTRY AND COMPETITIVENESS

14333 Resolution of 5 December 2017, of the Directorate General of the Treasury, updating Annex 1 included in the Resolution of 4 July 2017 of the General Secretariat of the Treasury and Financial Policy, which defines the principle of financial prudence applicable to borrowing and derivative operations of autonomous communities and local entities.

The Resolution of 4 July 2017 of the General Secretariat of the Treasury and Financial Policy, which defines the principle of financial prudence applicable to borrowing and derivative operations of autonomous communities and local entities, establishes in its third section that "the maximum total cost of borrowing operations, including commissions and other expenses, except for those commissions cited in Annex 3, shall not exceed the State's financing cost at the average term of the operation, increased by the corresponding differential as established in Annex 3 of this Resolution.

Autonomous Communities and Local Entities that have their own valuation tools or independent external advice may determine the Treasury's financing cost at the time of the operation based on the methodology contained in Annex 2 of this Resolution.

The remaining Administrations, to know the State's financing cost at each average term, will use the fixed rates table or the maximum differentials applicable on each reference that the Directorate General of the Treasury publishes monthly by Resolution. The published maximum costs will remain in force until new costs are published."

In accordance with this obligation to update monthly the State's financing cost at each term, a new Annex 1 is published.

Madrid, 5 December 2017.–The Director General of the Treasury, Carlos San Basilio Pardo.

ANNEX 1

Fixed interest rates and differentials of the State's financing cost for the purposes of compliance with the third section of the Resolution of 4 July 2017 of the General Secretariat of the Treasury and Financial Policy

Prices taken on 4 December 2017 at market close

Average life of the operation (months)	Maximum annual fixed rate (percentage points)	Maximum differential over 12-month euribor (basis points)	Maximum differential over 6-month euribor (basis points)	Maximum differential over 3-month euribor (basis points)	Maximum differential over 1-month euribor (basis points)
1	-0.73	-36
2	-0.64	-27
3	-0.47	-15	-10
4	-0.43	-10	-6
5	-0.42	-9	-5
6	-0.40	-13	-8	-3
7	-0.40	-13	-7	-3
8	-0.40	-13	-7	-3

cve: BOE-A-2017-14333 Verifiable at http://www.boe.es

OFFICIAL STATE BULLETIN No. 296 Wednesday, 6 December 2017 Sec. I. Page 119452

Average life of the operation (months)	Maximum annual fixed rate (percentage points)	Maximum differential over 12-month euribor (basis points)	Maximum differential over 6-month euribor (basis points)	Maximum differential over 3-month euribor (basis points)	Maximum differential over 1-month euribor (basis points)
9	-0.40	-13	-8	-3
10	-0.40	-13	-8	-3
11	-0.39	-12	-7	-2
12	-0.38	-19	-12	-6	-2
13	-0.37	-18	-12	-6	-1
14	-0.37	-18	-11	-6	-1
15	-0.37	-19	-12	-6	-2
16	-0.37	-20	-13	-7	-3
18	-0.37	-21	-14	-8	-4
19	-0.37	-21	-14	-8	-4
20	-0.36	-22	-15	-9	-4
21	-0.36	-22	-15	-9	-4
22	-0.36	-22	-16	-9	-4
23	-0.35	-23	-16	-9	-4
24	-0.32	-21	-14	-7	-2
36	-0.12	-13	-6	2	7
48	0.05	-10	-3	5	12
60	0.33	4	13	21	28
72	0.55	13	22	31	37
84	0.78	23	31	41	48
96	1.03	36	45	54	61
108	1.22	43	52	61	68
120	1.42	53	61	70	77
132	1.53	54	63	72	78
144	1.65	59	67	76	82
156	1.76	63	71	79	86
168	1.81	62	69	77	84
180	1.92	66	74	81	88
192	2.06	77	84	91	98
204	2.10	77	84	91	97
216	2.14	78	85	91	97
228	2.18	78	85	91	97
240	2.23	82	88	94	100
252	2.29	85	92	98	103
264	2.34	89	95	101	107
276	2.39	93	98	104	109
288	2.43	95	101	107	112
300	2.48	100	105	111	116
312	2.53	104	110	115	120
324	2.58	108	114	119	124
336	2.62	112	117	122	126
348	2.66	115	120	125	129
360	2.68	117	122	126	131

The base used for the calculation of the maximum annual fixed rate contained in the table above is the Actual/Actual base. In the event that a base other than the aforementioned is used, the appropriate adjustment must be made.

In those fixed-rate operations with an interest accrual period different from one year, the maximum fixed rate must be calculated as the rate equivalent to the annual fixed rate for the considered accrual period.

cve: BOE-A-2017-14333 Verifiable at http://www.boe.es

OFFICIAL STATE BULLETIN No. 296 Wednesday, 6 December 2017 Sec. I. Page 119453

The maximum fixed interest rates and differentials applicable for operations whose exact average life is not published in the present table shall be found by linear interpolation between the two rates or differentials closest to the average term of the operation.

Regarding these fixed interest rates or differentials over euribor, the maximum differentials contained in Annex 3 of the Resolution of 4 July 2017 of the General Secretariat of the Treasury and Financial Policy, which defines the principle of financial prudence applicable to borrowing and derivative operations of autonomous communities and local entities, may be applied.

cve: BOE-A-2017-14333 Verifiable at http://www.boe.es http://www.boe.es OFFICIAL STATE BULLETIN D. L.: M-1/1958 - ISSN: 0212-033X