Resolution of 4 December 2018 by the Directorate General for Treasury and Financial Policy updating Annex 1 to the 4 July 2017 Resolution on financial prudence for autonomous communities and local entities

I. GENERAL PROVISIONS
MINISTRY OF ECONOMY AND ENTERPRISE
16794 Resolution of 4 December 2018, by the Directorate General for Treasury and Financial Policy, updating Annex 1 included in the Resolution of 4 July 2017, by the General Secretariat for Treasury and Financial Policy, which defines the principle of financial prudence applicable to debt and derivative operations of autonomous communities and local entities.

The Resolution of 4 July 2017, by the General Secretariat for Treasury and Financial Policy, which defines the principle of financial prudence applicable to debt and derivative operations of autonomous communities and local entities, establishes in its third section that "the maximum total cost of debt operations, including commissions and other expenses, except for those 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 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 Directorate General for Treasury and Financial Policy publishes monthly via Resolution. The published maximum costs will remain in force until new costs are published."

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

Madrid, 4 December 2018.–The Director General for Treasury and Financial Policy, Elena Aparici Vázquez de Parga.

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, by the General Secretariat for Treasury and Financial Policy

Prices taken on 3 December 2018 at market close

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	-0.49	-12
3	-0.49	-18	-12
4	-0.44	-13	-7
5	-0.42	-11	-5
6	-0.40	-15	-9	-3
7	-0.37	-13	-6	0
8	-0.35	-10	-4	2
9	-0.33	-9	-3	3
10	-0.33	-8	-2	4
16	-0.33	-21	-12	-6	1
17	-0.32	-20	-11	-5	2
18	-0.30	-19	-10	-3	3
19	-0.28	-17	-8	-2	4
20	-0.26	-16	-7	-1	5
21	-0.23	-14	-5	1	7
22	-0.20	-12	-4	3	9
23	-0.18	-11	-2	4	11
24	-0.15	-9	0	6	12
36	0.05	-2	7	13	20
48	0.23	1	10	17	24
60	0.54	17	26	33	40
72	0.76	26	35	41	49
84	0.99	36	45	52	59
96	1.19	44	53	59	67
108	1.36	50	59	65	73
120	1.48	51	61	67	74
132	1.62	56	65	71	78
144	1.74	60	69	75	82
156	1.79	59	68	74	81
168	1.89	63	72	77	84
180	2.03	72	80	86	92
192	2.07	72	81	86	93
204	2.10	72	81	86	93
216	2.14	73	81	86	93
228	2.19	75	84	89	95
240	2.24	79	87	92	98
252	2.29	82	90	94	101
264	2.34	85	93	98	104
276	2.39	89	96	101	107
288	2.43	92	100	104	110
300	2.47	96	103	107	113
312	2.51	99	106	111	117
324	2.56	104	111	115	121
336	2.60	108	115	119	125
348	2.64	112	119	123	128
360	2.67	115	122	126	131

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 different basis 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, by the General Secretariat for Treasury and Financial Policy, which defines the principle of financial prudence applicable to debt and derivative operations of autonomous communities and local entities, may be applied.