Resolution of 7 December 2016 by the Directorate General of the Treasury updating Annex 1 to the Resolution of 16 September 2016 on financial prudence for autonomous communities and local entities

OFFICIAL STATE GAZETTE
No. 296 Thursday, 8 December 2016 Sec. I. Page 85790

I. GENERAL PROVISIONS
MINISTRY OF ECONOMY, INDUSTRY AND COMPETITIVENESS

11667 Resolution of 7 December 2016, of the Directorate General of the Treasury, updating Annex 1 included in the Resolution of 16 September 2016, by which the principle of financial prudence applicable to borrowing and derivative operations of autonomous communities and local entities is defined.

The Resolution of 16 September 2016, of the General Secretariat of the Treasury and Financial Policy, by which the principle of financial prudence applicable to borrowing and derivative operations of autonomous communities and local entities is defined, 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 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 rest of the 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, 7 December 2016.–The Director General of the Treasury, José María Fernández Rodríguez.

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 16 September 2016, of the General Secretariat of the Treasury and Financial Policy

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	-0.48	-9
2	-0.42	-2
3	-0.34	-3	6
4	-0.34	-2	6
5	-0.33	-1	7
6	-0.32	-10	-1	8
7	-0.30	-11	-1	7
8	-0.26	-7	2	10
9	-0.24	-4	5	14
10	-0.24	-5	4	12
11	-0.23	-4	5	13
12	-0.23	-15	-4	6	14
13	-0.20	-12	0	10	19
14	-0.15	-9	3	14	25
15	-0.13	-7	6	17	28
16	-0.12	-6	6	18	29
17	-0.10	-5	7	19	30
18	-0.08	-4	9	21	32
19	-0.05	-1	12	23	34
20	-0.02	2	14	26	37
21	-0.01	3	15	27	38
24	0.23	18	31	44	56
36	0.36	22	35	48	60
48	0.59	33	46	59	71
60	0.81	43	55	68	80
72	1.05	53	66	78	90
84	1.32	68	80	92	104
96	1.49	72	84	96	108
108	1.61	72	84	97	108
120	1.71	74	86	98	110
132	1.82	76	88	100	112
144	1.91	79	91	103	115
156	2.02	83	96	108	119
168	2.06	83	95	107	119
180	2.11	83	96	108	119
192	2.19	88	100	112	124
204	2.26	93	105	117	129
216	2.34	97	110	122	133
228	2.41	102	114	126	138
240	2.47	106	119	131	142
252	2.52	110	123	135	146
264	2.57	115	127	139	151
276	2.62	119	131	143	155
288	2.66	122	134	147	158
300	2.70	125	138	150	161
312	2.74	129	141	153	165
324	2.77	132	144	157	168
336	2.81	135	148	160	171
348	2.85	138	151	163	174
360	2.86	141	153	165	177

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 the Euribor, the maximum differentials contained in Annex 3 of the Resolution of 16 September 2016 of the General Secretariat of the Treasury and Financial Policy, by which the principle of financial prudence applicable to borrowing and derivative operations of autonomous communities and local entities is defined, may be applied.

cve: BOE-A-2016-11667
Verifiable at http://www.boe.es