Resolution of 3 February 2022 by the General Secretariat for Treasury and International Financing updating Annex 1 to the Resolution of 4 July 2017 on financial prudence principles for autonomous communities and local entities

I. GENERAL PROVISIONS
MINISTRY OF ECONOMIC AFFAIRS
AND DIGITAL TRANSFORMATION
1780 Resolution of 3 February 2022, of the General Secretariat for Treasury and International Financing, updating Annex 1 included in the Resolution of 4 July 2017 of the General Secretariat for 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 for 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 paragraph that "The maximum total cost of borrowing operations, including commissions and other expenses, except for the commissions cited in Annex 3, shall not exceed the State's financing cost at the average term of the operation, increased by the differential corresponding 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 to each reference that the General Directorate for 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 monthly the State's financing cost at each term, 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 paragraph of the Resolution of 4 July 2017 of the General Secretariat for Treasury and Financial Policy were negative, loans may be formalized at a rate of 0%.

Madrid, 3 February 2022.–The General Secretary for Treasury and International Financing, Carlos Cuerpo Caballero.

ANNEX 1
Fixed interest rates and differentials of the State's financing cost for the purposes of compliance with the third paragraph of the Resolution of 4 July 2017 of the General Secretariat for Treasury and Financial Policy Data collected on 2 February 2022

Average life of the operation (months)	Maximum annual fixed rate (percentage points)	Maximum differential over EURIBOR 12 months (basis points)	Maximum differential over EURIBOR 6 months (basis points)	Maximum differential over EURIBOR 3 months (basis points)	Maximum differential over EURIBOR 1 month (basis points)
1	-0.57	-1
2	-0.59	-3
3	-0.58	-5	-2
4	-0.58	-4	-2
5	-0.56	-1	1
6	-0.55	-4	-1	1
7	-0.53	-4	-2	0
8	-0.54	-6	-4	-1
9	-0.52	-7	-5	-2
10	-0.52	-9	-6	-4
11	-0.53	-9	-7	-5
12	-0.53	-9	-13	-11	-8
13	-0.52	-10	-14	-11	-9
14	-0.50	-11	-15	-12	-10
15	-0.48	-12	-15	-13	-10
16	-0.46	-13	-16	-13	-10
17	-0.43	-13	-16	-13	-10
18	-0.41	-14	-16	-13	-10
19	-0.40	-15	-17	-14	-11
20	-0.39	-16	-18	-15	-12
21	-0.38	-18	-19	-16	-13
22	-0.36	-18	-20	-17	-13
23	-0.34	-19	-20	-17	-13
24	-0.32	-20	-21	-17	-14
36	-0.15	-22	-21	-17	-13
48	0.03	-15	-14	-9	-4
60	0.21	-6	-4	1	6
72	0.32	1	4	9	14
84	0.20	-5	-2	3	8
96	0.38	7	10	15	20
108	0.59	17	21	25	30
120	0.79	29	33	37	41
132	0.67	21	25	29	33
144	0.78	29	33	36	40
156	0.86	33	38	40	45
168	0.90	35	39	42	46
180	0.91	33	38	40	43
192	1.14	51	56	57	61
204	1.10	48	52	54	57
216	1.05	44	49	50	53
228	1.19	56	61	61	64
240	1.25	58	63	64	66
252	1.28	63	68	68	71
264	1.28	64	69	69	71
276	1.30	66	71	71	73
288	1.36	72	77	76	79
300	1.41	77	82	82	84
312	1.44	81	86	85	87
324	1.46	85	90	89	91
336	1.50	90	95	94	96
348	1.53	95	100	99	100
360	1.55	98	103	102	103

The basis used for the calculation of the maximum annual fixed rate contained in the table above is the Actual/Actual basis. In the event that a basis 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.

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 over EURIBOR, the maximum differentials contained in Annex 3 of the Resolution of 4 July 2017 of the General Secretariat for 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 paragraph of the aforementioned Resolution were negative, loans may be formalized at a rate of 0%.