Resolution of 2 December 2021 updating Annex 1 to the 4 July 2017 Resolution on financial prudence for autonomous communities and local entities

I. GENERAL PROVISIONS
MINISTRY OF ECONOMIC AFFAIRS
AND DIGITAL TRANSFORMATION
20077 Resolution of 2 December 2021, from the Secretary General of the Treasury and International Financing, updating Annex 1 included in the Resolution of 4 July 2017, from the Secretary General 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 Secretary General 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 the commissions cited in Annex 3, may 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 rest of the Administrations, to know the state's financing cost at each average term, will use the fixed rate table or the maximum differentials applicable on each reference that the General Directorate of the Treasury and Financial Policy publishes monthly, by Resolution. The published maximum costs will remain in force until new costs are published."

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

Considering the current state financing costs, in the case of loan operations, if the maximum total cost referred to in the third section of the Resolution of 4 July 2017 of the Secretary General of the Treasury and Financial Policy were negative, loans may be formalized at a rate of 0%.

Madrid, 2 December 2021.–The Secretary General of the Treasury and International Financing, Carlos Cuerpo Caballero.
OFFICIAL STATE GAZETTE
No. 290 Saturday, 4 December 2021 Sec. I. Page 149930 cve: BOE-A-2021-20077 Verifiable at https://www.boe.es

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 Secretary General of the Treasury and Financial Policy Data collected on 1-12-2021 at 18:00

Average life of the operation (months)	Maximum annual fixed rate (percentage points)	Maximum differential on euribor 12 months (basis points)	Maximum differential on euribor 6 months (basis points)	Maximum differential on euribor 3 months (basis points)	Maximum differential on euribor 1 month (basis points)
1	–	0.81	–	–	-23
2	–	0.83	–	–	-25
3	–	0.81	–	25	–	-23
4	–	0.73	–	18	–	-16
5	–	0.72	–	16	–	-14
6	–	0.70	–	16	–	-14	-12
7	–	0.68	–	15	–	-13	-11
8	–	0.66	–	14	–	-12	-10
9	–	0.66	–	15	–	-12	-11
10	–	0.66	–	16	–	-14	-12
11	–	0.65	–	16	–	-14	-12
12	–	0.63	–	12	–	-14	-12	-10
13	–	0.60	–	11	–	-13	-10	-9
14	–	0.58	–	11	–	-12	-10	-8
15	–	0.59	–	12	–	-13	-11	-9
16	–	0.60	–	14	–	-15	-13	-11
17	–	0.60	–	16	–	-17	-14	-12
18	–	0.59	–	16	–	-17	-14	-12
19	–	0.58	–	16	–	-17	-14	-12
20	–	0.57	–	17	–	-17	-15	-12
21	–	0.59	–	20	–	-20	-17	-15
22	–	0.61	–	23	–	-23	-20	-18
23	–	0.62	–	26	–	-26	-23	-21
24	–	0.62	–	27	–	-26	-24	-21
36	–	0.48	–	25	–	-24	-21	-17
48	–	0.32	–	18	–	-16	-12	-9
60	–	0.19	–	11	–	-9	-5	-1
72	–	0.03	0	3	6	10
84	0.04	3	5	9	12
96	0.17	10	13	16	20

OFFICIAL STATE GAZETTE
No. 290 Saturday, 4 December 2021 Sec. I. Page 149931 cve: BOE-A-2021-20077 Verifiable at https://www.boe.es

Average life of the operation (months)	Maximum annual fixed rate (percentage points)	Maximum differential on euribor 12 months (basis points)	Maximum differential on euribor 6 months (basis points)	Maximum differential on euribor 3 months (basis points)	Maximum differential on euribor 1 month (basis points)
108	0.30	18	21	24	27
120	0.42	26	29	31	34
132	0.45	23	27	29	31
144	0.57	32	36	37	39
156	0.65	37	41	42	44
168	0.70	39	43	44	45
180	0.70	36	40	41	42
192	0.85	51	55	55	56
204	0.84	49	54	54	55
216	0.83	48	52	52	53
228	0.95	59	64	63	64
240	0.92	55	60	59	60
252	0.98	62	66	–	–
264	0.98	62	67	66	66
276	0.98	63	68	67	67
288	1.03	68	73	72	72
300	1.07	74	79	77	77
312	1.10	77	82	81	81
324	1.12	81	86	84	84
336	1.16	86	91	89	89
348	1.19	90	95	94	93
360	1.22	94	99	97	97

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

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

Regarding these fixed interest rates or differentials on Euribor, the maximum differentials contained in Annex 3 of the Resolution of 4 July 2017 of the Secretary General 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.

Given the current levels of state financing cost, in the case of loan operations, if the maximum total cost referred to in the third section of the aforementioned Resolution were negative, loans may be formalized at a rate of 0%.

OFFICIAL STATE GAZETTE
No. 290 Saturday, 4 December 2021 Sec. I. Page 149932 cve: BOE-A-2021-20077 Verifiable at https://www.boe.es https://www.boe.es OFFICIAL STATE GAZETTE D. L.: M-1/1958 - ISSN: 0212-033X