Article 94 of Law 47/2003, of November 26, General Budget, states that the creation of State Debt shall be authorized by law. Article 49 of Law 51/2007, of December 26, of the General Budget of the State for the year 2008, authorizes the Minister of Economy and Finance to increase the State Debt in 2008 with the limitation that the outstanding balance of the at 31 December 2008 does not exceed the corresponding balance as at 1 January 2008 at more than 7,694,404,77 thousand euro. Article 98 of the General Budget Law attributes to the Minister of Economy and Finance the competence to authorize the issuance or contraction of the State Debt, giving it the necessary powers for the issuance, placement and management of the itself. In addition, Article 94.2 enables the Minister of Economy and Finance to arrange for the creation of State Debt during the month of January of the following year. In line with the pattern of stability in the State Debt instruments and techniques, it is appropriate to incorporate into this Order the fundamental content of Order EHA/19/2007, of 11 January, which provides for the creation of the State Debt during 2007 and January 2008, and certain powers are delegated to the Director General of the Treasury and Financial Policy, while the necessary modifications are introduced to adapt it to the Budget Law. State generals for 2008. The main novelty of this Order is in its Article 8 as regards the treasury management operations which the Directorate-General of the Treasury and Financial Policy can carry out. These operations are currently limited to the transfer of the balance of the Treasury in the Banco de España to credit institutions, through the so-called liquidity auctions. This Order extends the range of active operations that the Treasury may carry out in order to understand other operations provided for in Article 108 of the General Budget Law, keeping due caution in respect of the guarantees to be provided by the contracting entities, as well as to the control of counterparty risk, with no guarantee operations with public entities or with Treasury Letters Market Creators. By virtue of the above, and in order to implement State Debt financing during the year 2008 and January 2009, I have provided:

Article 1. Amount of Debt to be issued.

1.1 The Directorate General of the Treasury and Financial Policy will issue during the year 2008, on behalf of the State and by my delegation, Debt of the State according to what is available in the later articles of this Order, by the a nominal amount which is advisable in the light of the State's financing situation, the subscription requests received, the conditions of the subscription and the general market conditions, in such a way as to add to or The Commission will be required to provide the Commission with a view to the Commission's decision on the application of this Regulation. creation of State Debt during the year 2007 and January 2008, the Debt to be issued or contracted by the State during the whole year in progress in all the modalities of the State Debt does not exceed the limit of increase that for the living balance of the Debt establishes Article 49 of Law 51/2007, of December 26, of General State Budgets for the year 2008.

1.2 According to the provisions of Article 94.2 of Law 47/2003 of 26 November, General Budget, the authorisation to issue or contract Debt of the State contained in the previous paragraph shall be extended to January of 2009 to the limit of 15 percent of the authorized for the year 2008, computing the amounts thus issued within the limit that authorizes for the year 2008 the Law of State General Budgets for that year.

Article 2. Formalization of the Debt to Issue.

Without prejudice to the provisions of Article 7 of this Order, the Directorate-General of the Treasury and Financial Policy shall issue State debt in euro in the following manner: Treasury bills, State Bonds and Obligations 2.1 The Debt of the State shall be given the name of Letters of the Treasury when it is issued at the discount and not later than twenty-four months.

2.2 The State Debt will receive the denomination of State Bonds or State Obligations when its issuance period is between two and five years or higher than this period, respectively. The redemption value of the Bonds and Obligations of the State shall be the same, except that in the Resolution of the General Directorate of the Treasury and Financial Policy for which the issue is available, a different value is set or is treated as amortisation. advance by repurchase or exchange. The Director-General of the Treasury and Financial Policy is authorized to group the State Bonds and the State Obligations under the denomination of Treasury Bonds or another that is advisable to identify Debt of those characteristics, of agreement with the practice of national or international markets. 2.3 However, in order to facilitate the management of amortisation operations and the aggregation of releases of Treasury Letters, Bonds or Obligations of the State, the time limit for the issuance of these securities may differ from the exact years or months quoted in the preceding paragraphs in the days that are necessary, without necessarily changing their name.

Article 3. Representation of the Debt.

The debt of the State in securities denominated in euro that is put into circulation pursuant to Article 2 of this Order shall be represented exclusively by account.

Article 4. Other features.

4.1 Emission and amortization dates. 4.1.1 The Debt to be issued will have the dates of issuance and amortization determined by the Director General of the Treasury and Financial Policy in the Resolution for which the issue is available.

4.1.2 The Director may also establish, in the resolution at the disposal of the issue, one or more dates on which the State, the holders, or one and the other, may demand the repayment of the Debt before the fixed for definitive depreciation, in such a case as to fix the price at which the debt is to be valued for the purposes of depreciation on each of those dates, and the procedure and, where appropriate, the conditions for the exercise of that option in the the case of the same being attributed to the holders. 4.1.3 In securities debt, the exercise of the right to early repayment by the State shall be exercised, unless the issue has a special and own more favourable procedure for the holder, as set out below:

(a) The Resolution of the Directorate-General of the Treasury and Financial Policy providing for the early repayment of a State Debt issue shall be published at least two months in advance of the date on which the the reimbursement must take place. The submission of invoices for reimbursement will be made within the time limits and by the usual procedures.

(b) In the area of the corresponding agreement, the Banco de España will make public the identification data of the debt whose early repayment has been arranged, in a way analogous to the results of the debt repayment draws Public. (c) In accordance with Article 102 (5) of the General Budget Law, the procedure laid down in subparagraphs (a) and (b) above shall apply for the exercise of the option of early repayment of the debts. assumed by the State in securities, even if it is assumed to be only the financial burden, unless the mode of exercise of the option included in the original regulation of the issue is more favourable to the holder. Likewise, the conclusion and publication of the results of the redemption draws of the said Deures shall be in accordance with the debt issued by the State, without prejudice to the fact that, where appropriate and no rights of the holders, the procedure applied before the assumption by the State is maintained.

4.2 Issue procedure.

The issuance of State Debt shall be made by the Director-General of the Treasury and Financial Policy by one of the following procedures or a combination thereof: 4.2.1 By auction, which shall be developed in accordance with rules made public prior to the conclusion of the same, among the general public, between authorised colocers or between a restricted group of such persons who acquire special commitments in respect of the placing of the debt or the functioning of its markets.

4.2.2 By any other technique deemed appropriate according to the type of operation concerned. In particular, it may cede part or all of an issue at an agreed price to one or more financial institutions to ensure their placement. It may also carry out simple selling operations or a repurchase agreement for new issues or extensions of existing emissions or securities that the Treasury has on its securities account. To this end, the Director-General of the Treasury and Financial Policy may formalise with the entity or entities selected or awarded the relevant conventions and contracts. The procedures for the award shall be determined as soon as they are not applicable, as described in paragraphs 5.4.2 to 5.4.8, as well as the form and extent to which they apply to the placing of these emissions as provided for in the paragraphs 5.1 and 5.2 and how much is necessary to bring the issue to an end. Also, if it deems appropriate, it may select Entities Agents on the basis of financial criteria, commercial capacity or the strengthening of the debt markets, whose functions will end, pro rata included in their case, with the income of the amount of the issue in the Treasury account at the Banco de España on the date fixed.

4.3 Interest rate and coupon payment.

4.3.1 Treasury bills will be issued at the discount, with their issue price determined either by auction or by the Director General of the Treasury and Financial Policy.

4.3.2 State Bonds and State Obligations shall be issued with the nominal interest rate determined by the Director-General of the Treasury and Financial Policy. The Director-General shall establish the payment dates for each of the interest vouchers. In particular, the accrual period of the first post-payable coupon may be increased or reduced in the days necessary for the remaining coupon periods to be complete and the maturity of the last coupon periods to coincide with the date of redemption. final. The Director-General of the Treasury and Financial Policy may also provide that these securities take the form of zero coupon or single coupon or incorporate any special characteristics, such as lots or other occasionally used in these markets. The denomination of the securities may be modified to account for such special forms or characteristics.

Article 5. Procedure for the public subscription of the State Debt.

Without prejudice to the provisions of paragraph 4.2 above: 5.1 Under the relevant Convention, the Banco de España will act as a Public Treasury Agent in the subscription of the State Debt.

5.2 With the exceptions provided for in the Resolutions of the Directorate-General of the Treasury and Financial Policy for which the auctions are to be called, as well as the specific rules governing the activity of figures with a qualified participation in the Public Debt Market, such as the Public Debt Market Creators of the Kingdom of Spain, any natural or legal person may make requests for subscription of the Debt of the State whose issuance is has. The requests will be considered firm commitments of acquisition of the requested Debt, in accordance with the conditions of the issue, and their non-disbursement in the dates established to this effect in the regulations of the issue will give rise to the the requirement of the corresponding liability, or, where appropriate, the loss of the quantities required as security, in the form provided for in paragraph 5.4.8.4.e. Requests shall be submitted by participating in the auctions as referred to in paragraphs 5.3 and 5.4 below or by acquiring the securities in the periods and under conditions to be determined by the Director-General of the Treasury and the Financial Policy as provided for in paragraph 4.2 above, in any event, the rules laid down for that purpose shall be observed. 5.3 Calendar of auctions.

5.3.1 The Director-General of the Treasury and Financial Policy will draw up an annual auction calendar to be published in the Official State Gazette before 1 February of the current year.

The consideration of ordinary auctions shall be those held at the periodicity set out in the annual calendar. 5.3.2 Without prejudice to the provisions of paragraph 5.3.1 above, in the light of market conditions, the development of emissions during the year or the desirability of putting into circulation new forms of State debt or instruments at different time limits within the existing modalities, the Director-General may convene special auctions not included in the annual calendar or cancel any of the scheduled ordinary auctions.

5.4 Development of auctions.

5.4.1 Unless the Director-General of the Treasury and Financial Policy establishes a special procedure in the auction call, the procedure to be followed is the procedure set out in paragraphs 5.4.2 to 5.4.8 below.

5.4.2 The auctions will be called by Resolution of the Directorate General of the Treasury and Financial Policy, which will be published in the "Official State Gazette". 5.4.3 Both in the ordinary auctions and in the special auctions will be to put on offer extensions of previous emissions or new emissions. 5.4.4 Offer classes.

The following bidding classes may be formulated: 5.4.4.1 Competitive offerings. They are those in which the price is indicated, expressed as a percentage of the nominal value, which is willing to pay for the debt or the interest rate as the percentage that is requested.

In Treasury bills, the price or interest rate shall be expressed as a percentage of three decimal places, the last of which may be any number between zero and nine, both included. In the auction of Bonds and Obligations of the State the price shall be expressed as a percentage with two decimal places, the last of which may be any number between zero and nine, both included. In the case of competitive bids submitted to the auction of Bonds and Obligations of the State, the price to be paid for the debt requested shall be made out, that is, deducted, where appropriate, the amount of the coupon accrual, and the price to be paid for the debt requested shall be the result of adding to the price entered in the offer the amount of the run coupon expressed as a percentage and rounded to two decimal places. The Director-General of the Treasury and Financial Policy may vary the way in which the price or the interest rate is expressed in the auctions where appropriate due to the period of the asset or because another circumstance so advises. In addition, in the Resolutions for which the Treasury bills are convened, it will be determined whether competitive bids should be expressed in terms of price or interest rate. Competitive bids that do not specify the price or interest rate, as appropriate, shall be considered to be null and void for all purposes. The Director-General of the Treasury and Financial Policy may limit the number and maximum amount of competitive bids that each participant may present at the auction, as well as set a minimum price or a maximum interest rate to have them validly presented to the same. 5.4.4.2 Non-competitive offers: These are those in which no price or interest rate is indicated. As a general rule, the maximum nominal amount of the non-competitive claims submitted by each bidder shall not exceed EUR 1 million. The Salarial Guarantee Fund, the Deposit Insurance Fund in banking establishments, the Deposit Insurance Fund in savings banks, the Deposit Insurance Fund in credit unions, the Reserve Fund of the Social security, the Investment Guarantee Fund or any public entity or public holding company determined by the Director-General of the Treasury and Financial Policy, submitting non-competitive petitions for a maximum nominal value of 100 EUR million.

5.4.5 Minimum value of offers.

The minimum nominal amount of bids, competitive or non-competitive, will be EUR 1,000. Requests for higher amounts shall be multiples of the minimum amount quoted.

The Director-General of the Treasury and Financial Policy may modify the amounts referred to when appropriate for the period of the asset or when any other circumstances so advise.

5.4.6 Presentation and content of offers.

5.4.6.1 Any natural or legal person may submit tenders in the auctions with the exceptions provided for in the Resolutions of the Directorate-General of the Treasury and Financial Policy for which the auctions, as well as the specific regulations governing the activity of figures with a qualified participation in the Public Debt Market, such as the Public Debt Market Creators of the Kingdom of Spain.

5.4.6.2 With the exceptions provided for in the Resolutions of the Directorate-General of the Treasury and Financial Policy for which the auctions are called and the specific rules governing the activity of figures with a qualified participation in the Public Debt Market, such as the Public Debt Market Creators of the Kingdom of Spain, both competitive and non-competitive petitions will be presented at the Banco de España, directly or to through any of the following persons or entities operating in Spain: Banks, Savings Banks, Credit Unions, Companies and Securities and Notaries Agencies. In addition, the Management Companies of Collective Investment Institutions or of Pension Funds and the Management Societies of Carberas registered in the corresponding Official Records may submit requests for subscription of the Debt for the Collective Investment Institutions, Pension Funds or the portfolios they administer. Institutions that receive debt subscription orders will be responsible for carrying out all the necessary formalities at the Banco de España, and must act on the same at the date and time indicated in the Resolution for which the auction. No tenders submitted subsequently shall be admissible. The host of the requests shall observe the procedures established or established by the Bank of Spain. 5.4.6.3 In the tenders shall be the name or social name of the offeror, the number of his or her national identity card or Tax identification, as established, as well as your complete address. 5.4.6.4 The tenders shall specify the total nominal amount requested in subscription and, in the case of the competitive ones, the price to be paid for the debt or interest rate requested, as set out in paragraphs 5.4.4 and 5.4.5. 5.4.6.5 In the offers presented directly to the Banco de España by natural and legal persons resident in Spain, who are not authorized to operate in the Public Debt Market in Annotations, it will be mandatory as a deposit institution "Banco de Espana-Entidad Gestora de Debt del Estado" (Banco de Espana-Entidad Gestora de Debt del Estado). 5.4.6.6 The requests of the subscribers who are not entitled to account to be filed in the offices of the Banco de España for whom it is not Entity Gestora or Holder of Accounts in the Market of Public Debt in Annotations shall be accompanied by a proof that they have deposited at least 2% of the nominal amount requested. In any event, the 2 per 100 of the nominal total requested in all the petitions submitted directly shall be considered as collateral for the purposes of paragraph 5.4.8.4.e. The income must be made in cash, by order of debit in cash flow in the branch of the Banco de España receiving the offer or by cheque, either bank or against current account, extended in favor of the Treasury Public or the Bank of Spain. The income by cheque will be made in advance sufficient time for the Banco de España, with the compensation systems it has established, to be able to verify the good end of the same before the day of the auction resolution, and only when it is The offer shall be given for validly submitted. The deposits referred to shall be made available to the Director-General of the Treasury and Financial Policy and shall form part of the payment if the offer is accepted. If the auction is declared deserted or if the offer is not accepted, the previously constituted deposit will be returned to the petitioner. The refund shall be ordered by the Bank of Spain on the first working day following that of the auction resolution, and shall be effected by the entities concerned as soon as possible by crediting the current account or savings account.

5.4.7 Minimum content for auction calls.

5.4.7.1 The Resolutions of the General Directorate of the Treasury and Financial Policy for which auctions are to be held shall determine, at least: (a) the dates of issuance and amortization of the Debt of the State to be issued.

b) The date and time limit for filing petitions in the offices of the Banco de España. c) The date of resolution of the auctions. (d) The date and time limit for the payment of the State Debt awarded in the auctions. (e) The nominal amount of the debt offered at auction, when the market is wanted to communicate such information before the market, the quantity offered for an auction or for several auctions of the same or different instruments may be established. (f) The minimum nominal value of tenders, when the Director-General of the Treasury and Financial Policy makes use of the powers conferred on him in paragraph 5.4.5. g) The possibility or impossibility of filing non-competitive petitions. h) The special character of the auction, if any.

5.4.7.2 When auctions that are called State Bonds or State Obligations, the Resolutions will determine, if applicable, in addition:

a) Annual nominal interest rate and coupon payment dates.

b) Who and on which date they will have, where appropriate, early repayment option. (c) the amount of the coupon payable, where appropriate, to the date of disbursement and entry into circulation of the securities, expressed as a percentage and rounded to two decimal places.

5.4.7.3 In the case of Treasury Letters it must be specified whether competitive bids are formulated in terms of price or interest rate.

5.4.7.4 Resolutions may specify other additional conditions, subject even the validity of the offers to their compliance.

5.4.8 Resolution of the auctions and publicity of the results.

5.4.8.1 Competition. The auction resolution shall be carried out by the Director-General of the Treasury and Financial Policy, on the proposal of a Commission composed of two representatives of the Directorate-General of the Treasury and Financial Policy and two representatives of the Bank of Spain. Among the former will be a representative of the Delegation of the Directorate General cited.

5.4.8.2 Procedure, criteria, and subscription price.

(a) Applications received and the deadline for submission of requests for each auction, the Director-General of the Treasury and Financial Policy, on a proposal from the Commission referred to in paragraph 5.4.8.1. above, determine, once the competitive requests of the largest at least price offered, the nominal or effective volume that you want to issue in the auction and the minimum price accepted. For the auctions of Treasury Letters in which tenders are made in terms of interest rates, the classification of tenders shall be made from the lowest to the highest interest rate requested, determining the Director-General the nominal or cash to be issued and the maximum interest rate accepted.

All requests whose offered price is equal to or greater than the accepted minimum or, if they have been formulated in interest rates, those in which the requested interest rate is equal to or less than the accepted maximum, will remain automatically awarded, unless for that minimum price or maximum interest rate it was decided to limit the award. In the latter case, once the nominal amount free of the pro rata is fixed, a proportional distribution would be made to the nominal ones not exempt from each of these requests. (b) In the auction of petitions in terms of price, the weighted average price, expressed as a percentage of the nominal value rounded to three decimal places, shall be determined with the accepted competitive bids. If the requests have been formalised in terms of interest rate, the resulting weighted average interest rate shall be determined, expressed as a percentage rounded by default to three decimal places. (c) The price of the award of the securities shall be determined as follows:

1. Auctions in terms of price. For all requests for which the price offered is equal to or greater than the weighted average price, the award price shall be that average price plus the amount of the coupon referred to in paragraph 5.4.7.2 (c). of this Order. For all requests for which the price offered is less than the weighted average price and above or equal to the minimum price accepted, they shall be awarded at the price offered, plus the amount of the coupon.

2. Auctions of Treasury Letters made in terms of interest rate. In this case, all requests whose interest rate is less than or equal to the weighted average interest rate shall be awarded at the price equivalent to that average interest rate. Requests where the requested interest rate is greater than the weighted average interest rate and less than or equal to the accepted maximum shall be awarded at the price equivalent to the interest rate requested. For the calculation of the price to be paid for each of the requests awarded, the prices equivalent to the requested interest rates and the weighted average shall be applied to all decimal places, and only for the purposes of publication of the results of the the auctions shall be expressed with three decimal places. In both types of auctions, non-competitive requests will be accepted in full, provided that a competitive request has been accepted, and the price of the award of the securities corresponding to this class of petitions will be the price. a weighted average of the amount of the coupon or the price equivalent to the weighted average interest rate, as appropriate. Notwithstanding the foregoing, the Director-General of the Treasury and Financial Policy may establish in the Resolution calling for the auction, an alternative procedure to determine the price of the award of the securities. In particular, it may be used to award the securities to the price corresponding to each offer, increased by the amount of the coupon, or at the price equivalent to the interest rate requested. It may also determine that, for the calculation of the price and the weighted average interest rate, bids that are manifestly not representative of the market situation are not taken into account. Non-competitive requests, as in the usual tender procedure, will be accepted in full, provided that some competitive request has been accepted, and will be awarded to the weighted average price increased by the amount of the (a) a coupon, or a price equivalent to the weighted average interest rate.

5.4.8.3 Advertising of the results of the auction.

(a) The outcome of the auction resolution will be published by the Banco de España and the Directorate General of the Treasury and Financial Policy through the means that are timely determined. The immediate dissemination of results will be carried out in accordance with the procedures which guarantee greater equal access for the normal operators on the market.

(b) The publication of the results of the auction shall include at least the nominal amount requested, the nominal amount awarded, the minimum price accepted, the weighted average price of the accepted claims and the interest rate the equivalent cash and the domestic return corresponding to the weighted average and minimum prices accepted from the auctions of Treasury and State Bonds or State Obligations, respectively. The auctions of Treasury Letters in terms of interest rates shall be made public with the nominal amount requested, the nominal amount awarded, the maximum interest rate accepted, the weighted average interest rate of the accepted claims and the prices equivalent to those interest rates. The results of the auctions shall also be made public by means of a Resolution of the Directorate-General of the Treasury and Financial Policy published in the Official Gazette of the State. (c) In the auctions of Treasury Letters, the prices and rates of Equivalent annual cash interest shall be calculated using the formula:

An image appears in the original. See the PDF document for this disposition.

provided that the Letters were issued in a period of less than or equal to a calendar year.

When Treasury Letters are issued in excess of a calendar year, the formula shall apply:

An image appears in the original. See the PDF document for this disposition.

In both, P is the percentage price corresponding to the offer, the minimum accepted or the weighted average, as the cases, d is the number of days missing until the maturity of the Letters and i is the annual effective interest rate expressed by one. (d) The internal performance corresponding to the accepted minimum price and the weighted average price of the State Bond and Obligations auctions shall be determined using the following expressions:

An image appears in the original. See the PDF document for this disposition.

Where P is the minimum accepted price or weighted average price expressed as a percentage and excusable; R is the annual internal performance corresponding to the minimum accepted and weighted average prices expressed as a percentage; r is the type of performance corresponding to the accrual period of coupons (annual, semi-annual, quarterly, etc.) for such prices, expressed as per one; n is the number of postpayable coupons existing in one year (their value will be 1 in zero or issued coupon issues); Fi is the amount as much per cent of each due interest and/or amortisation; m is the number of interest and/or amortisation maturities up to the end of the amortisation date; qi is the number of full periods of coupon accrual between the date of disbursement and the date of the due date (if this is a zero coupon issue or issued at the discount will be considered annual periods); di is the number of days from the date of disbursement to the date resulting from the subtracting qi periods from coupon to the due date that is computed; the number of days between this date that results from subtracting the coupon periods and the one obtained from subtracting the same a coupon period and C is the run coupon expressed as a percentage and rounded to two decimal places, which shall be calculated according to the following formula:

An image appears in the original. See the PDF document for this disposition.

Where C is the amount of the coupon run, I is the gross amount of the coupon expressed as a hundred, dc are the days from the beginning of accrual of the coupon to the date of disbursement and dt are the days of the accrual period of the coupon. The maturity dates shall be the notional amounts shown in the terms of the issue, except for the interest and amortisation maturity corresponding to the final redemption date of the issue to be taken as the due date. actual date of payment.

5.4.8.4 Payment of nominal awarded at auction.

(a) If the presentation was made directly by the offeror at the Banco de España, the payment must be made by entering into the Treasury account in that Bank the difference between the subscription price and the amount entered into account. The income may be made, by the means indicated for the minimum income of 2 per 100, before the date and time fixed in the auction call.

(b) If the filing was made by or through the entities or persons referred to in paragraph 5.4.6.2, the effective amounts of the requests awarded shall be due on the date of disbursement in the current accounts of the cash designated as addresses or, in another case, the presenters will have to enter the Public Treasury both the amount of their own subscriptions and those of third parties who have channeled before the date and time indicated for this purpose in the auction call. (c) The presenters referred to in paragraph 5.4.6.2 shall deliver to those who have carried out by their mediation the submission of accepted tenders, at least the amount subscribed by their nominal value and the actual amount to enter the Public Treasury account. (d) The Bank of Spain shall be made by the Bank of Spain in respect of the subscribers who made the presentation directly and shall place the entries corresponding to the debt awarded in the third-party account of the Bank of Spain. (e) Any offer accepted which on the date referred to in (a) and (b) above has not been effectively made in its entirety shall be deemed to be cancelled, with a loss of 2 per 100 of the nominal amount entered as a guarantee of such offer. In addition, all bids made at the auction by the same bidder will be cancelled, with a loss of 2 per 100 for each of them. The amount of such guarantees shall be entered into the Treasury account.

Article 6. Other rules.

6.1 Prorateo. 6.1.1 When, once the minimum price accepted at the auction has been fixed, the total nominal amount of the tenders submitted at or above the price exceeds the amount fixed by the Director-General of the Treasury and Financial policy for the same, will be carried out pro-rata. This will only affect the offers made at the minimum price accepted. The same procedure will be followed for the offers made in terms of interest rate, affecting the pro rata in this case only to the offers formulated at the accepted maximum rate.

6.1.2 They shall be exempt from prorate, in all cases, except in the second round of the auctions, the subscription requests as soon as their nominal amount does not exceed 10,000 euros, which will be reduced, if any, in the amount necessary to ensure that the total amount issued does not exceed the amount fixed by the Director-General of the Treasury and Financial Policy in the resolution of the auction. 6.1.3 When applying the coefficient of pro rata to a request the resulting amount is not multiple integer of the minimum amounts set out in paragraph 5.4.5 of this Order, it shall be adjusted that rounding by default. 6.1.4 The Director-General of the Treasury and Financial Policy may amend the pro-rata system described in the preceding paragraphs where the characteristics of the emission procedure to which it is to be applied do not advise the use of such a system. 6.1.5 Where the proportion is required, without prejudice to the provisions of paragraph 4.2 of this Order, the Bank of Spain shall do so. If the procedure for the creation of the debt prevented the use of the system described in paragraphs 6.1.2 and 6.1.3 and the Director-General of the Treasury and Financial Policy has not yet established another effect, the Bank shall carry out the pro-rata applying as soon as possible the principle of proportionality between the nominal and the requested nominal value.

6.2 Following instructions from the Directorate General of the Treasury and Financial Policy, the Bank of Spain will disseminate the content of the Resolutions establishing the conditions for the new emissions from the Letters from the Treasury, State Bonds or State Obligations, as well as the result thereof, by means of advertisements in the media, or dissemination of information to the markets and in their own offices. The cost of the same will be charged as an issue cost, giving up your account in the form established and in conjunction with the remaining expenses. The Directorate-General may itself carry out the dissemination in the aforementioned media and in the Official Gazette of the State, in which case the Banco de España would limit the dissemination it will carry out to its own resources. In any case, the use of means will be sought which, within the necessary agility, will facilitate the equal access of operators to the information.

6.3 Payment of interest and repayments for amortization.

6.3.1 Payment for amortisation of Treasury Letters, including implied interest, shall be made in accordance with the first, second and third paragraphs of the Order of the Ministry of Economy and Finance of 19 of July 1985. The procedure laid down in general in Article 15 of the Order of the Ministry of Economic Affairs and Finance of 19 May 1987 shall therefore not apply.

6.3.2 The payment of interest and the repayment of the Bonds and Obligations to be issued shall be carried out in accordance with the procedure laid down in Article 15 of the Order of 19 May 1987.

6.4 Accounting for operations and expenses

6.4.1 The income and expenses incurred by the issuance and repayment of the State Debt to which this Order relates and other related items shall apply to the State Budget as provided for in Article 96 of the Law. General Budget. The expenditure shall apply to the programmes 951M and 951N of the budget in force.

6.4.2 The Banco de España will account for the operations and expenses incurred on behalf of the Public Treasury, as long as its Agent in the negotiation and management of the State Debt, duly justifying it to the Directorate General of the Treasury and Financial Policy.

Article 7. Delegation of powers.

It is delegated to the Director General of the Treasury and Financial Policy: 7.1 The power to agree, dispose and make all the expenses, including advertising and promotion, that origine the issuance of the Debt authorized by the present Order or that which may be issued or contracted under the powers delegated to it, and the relevant faculty of recruitment, whatever the amount, without prejudice to the powers referred to in Article 12 (4) of the Law of Public Administration contracts, recast text approved by Royal Legislative Decree 2/2000, of June 16, delegates to the Contracting Boards in all matters concerning the advertising and promotion of the debt.

7.2 The powers granted to the Minister for Economic Affairs and Finance by Articles 63.1 and 95 of the General Budget Law, as regards the appropriations of Section 06 "Public Debt". The Directorate-General for Budgets shall be given the credit modifications authorised in use by this delegation. 7.3 The powers granted to the Minister for Economic Affairs and Finance by Articles 94, 98, 99 and 102 of the General Budget Law as soon as they relate to State debt instruments in euro and foreign currency, both inside and outside, of the issue of securities, of the contracting of loans or other transactions, without prejudice to the provisions of Order EHA/2393/2006 of 14 July 2006 governing the procedures for the concertation of credit lines and other In the short term financing operations, as well as medium and long-term loans by the Directorate-General Treasury General and Financial Policy. In the case of operations on Treasury Letters and Bonds and State Obligations, this Order will be in line with the provisions of this Order. 7.4 The powers to authorize the concessionaires of national toll highways and the (a) the granting of loans granted by clauses 32 and 33 of the specification of general clauses for the granting, conservation and exploitation of motorways under concession, approved by Decree 215/1973 of 25 January 1973. 7.5 The powers granted to the Minister of Economy and Finance by Articles 51 and 52 of the State Budget Law for 2008, relating to the debt assumption of the Ente Público Radiotelevisión Española, RENFE Operadora and ADIF.

Article 8. Authorisations.

8.1 According to the provisions of Article 108.2 of Law 47/2003, of 26 November, General Budget, in order to facilitate the management of the treasury of the State, the General Directorate of the Treasury and Policy is authorized Financial to carry out double and double sales operations, also known as simultaneous.

These simultaneous transactions must be performed on securities entered in the accounting record managed by "Sociedad de Gestión de los Sistemas de Registro, Compensation y Liquidación de Valores, S.A. Unipersonal" and whose valuation it must be the same as that applied by the Banco de España in its intervention operations at an equivalent time. Such double-selling transactions shall be awarded through auctions which shall be regularly convened by the Directorate-General of the Treasury and Financial Policy by means of a Resolution in which at least the following shall be determined:

a) The requirements that the entities must meet in order to make requests at the auction.

(b) The debt securities of the State which may be the subject of simultaneous transactions at each auction. However, the other securities referred to in Article 108.2 of Law 47/2003 of 26 November of 26 November, General Budget, shall also be the subject of the other securities referred to in the Resolution by which the auction is convened, the Director-General of the Treasury and Financial Policy determine that the high balances foreseen in the Treasury account at the Banco de España, the shortage of State Debt available on the market and/or market circumstances will recommend it. (c) the time limit for the simultaneous operations. These simultaneous operations shall be formalised with the financial institutions which have been awarded in the auctions, without prejudice to the possibility of the provision of management services, in the framework of such operations, guarantees on behalf of the public treasury by central counterparties or the like.

8.2 According to the provisions of Article 108.2 of Law 47/2003 of 26 November, General Budget, in order to facilitate the management of the State's treasury, the Directorate-General of the Treasury is authorised and Financial policy to carry out other operations with repurchase agreements and, in general, for the temporary acquisition of assets, as well as operations supported by financial guarantee agreements, under the rules of other European Union States, which are subject to high credit quality securities traded on regulated markets.

These operations shall be awarded through auctions to be convened by the Treasury and Financial Policy Directorate-General by means of a Resolution in which at least the following shall be determined:

(a) The requirements that the entities must meet in order to make requests at the auction. Such entities shall in any event have the status of Treasury Letters Market Creators.

(b) The values on which such operations may be performed. The Directorate-General of the Treasury and Financial Policy may require conditions to ensure the solvency and liquidity of these securities, such as a minimum credit rating granted by the principal rating agencies and/or a balance in minimum circulation of the reference on regulated markets. The operations referred to in this paragraph shall be formalised with the market Creators of Treasury Letters which have been awarded at the auctions, without prejudice to the fact that the provision of the auction may be agreed upon. services for the management of guarantees on behalf of the public treasury by central counterparties or the like.

8.3 For the same purpose as the above paragraphs, the Directorate-General of the Treasury and Financial Policy is authorized to carry out active lending operations. These operations may be contracted with other States of the European Union or with entities that enjoy the express guarantee of those, or with the group of Treasury Letters Market Creators. In these operations, this Directorate-General shall take appropriate measures for the diversification and control of counterparty risk.

In their case, the operations will be awarded through auctions that will be convened by the General Directorate of the Treasury and Financial Policy by means of a Resolution in which the conditions and the operating conditions of the same will be realized. 8.4 According to Article 108.3 of Law 47/2003 of 26 November, General Budget, all the assets provided for in Article 108.2 of the same Law, which would have been the subject of a guarantee in favour of the Banco de España, as provided for in The additional provision, sixth of Law 13/1994, of 1 June, of the Autonomy of the Banco de España, may be temporarily applied by its holders in coverage of the treasury management operations of the Directorate General of the Treasury and State Financial Regulation in the previous paragraphs and implemented through the Banco de España. To this end, the conditions laid down in Article 108.3 of the General Budget Law must be met. 8.5 The Directorate-General of the Treasury and Financial Policy is authorised to negotiate and formalize the relevant contracts with the entities mentioned in the above paragraphs, being able to agree to submit to arbitration or to refer to a foreign law or courts, in accordance with the usual rules and clauses in the financial markets, provided that the Article 23 of Law 47/2003 of 26 November, General Budget. The expenditure relating to the State treasury management operations which are authorized shall be borne by the Section 06 "Public Debt" of the State Budget in force.

Single repeal provision. Regulatory repeal.

Order EHA/19/2007 of 11 January, which provides for the creation of State Debt during the year 2007 and January 2008 and delegated certain powers to the Director-General of the Treasury and Financial Policy, is hereby repealed. except as regards the issuance of State Debt during January 2008, as well as how many provisions of equal or lower rank are contrary to the provisions of this Order.

Final disposition first. Authorisations.

The Directorate-General of the Treasury and Financial Policy is hereby authorized to adopt the measures and resolutions required by the implementation of this Order.

Final disposition second. Entry into force.

The entry into force of this Order will take place on the day following its publication in the Official Gazette of the State.

Madrid, January 10, 2008. -Government Vice President and Minister of Economy and Finance, Pedro Solbes Mira.