Real Decreto-Law 21/2012, of July 13, of measures of liquidity of public administrations and in the financial field creates the Fund of Autonomous Liquidity as a mechanism of support to the liquidity of the Autonomous Communities, of temporary and voluntary nature.

Voluntary adherence to the liquidity support mechanism by Autonomous Communities and Cities with Autonomy Statute provides for the subjection to certain conditions of a fiscal and financial nature.

In the financial sphere these conditions assume that the Autonomous Communities or Cities with Autonomy Statute will have to adjust the new operations of financial indebtedness to the conditions determined by the Secretariat General Treasury and Financial Policy by Resolution defining the principles of financial prudence. For the definition of these principles, this General Secretariat has taken into account the principle of sustainability of public finances as set out in Article 4 of the Organic Law 2/2012 of 27 April, of budgetary stability and Financial Sustainability, which ensures the ability of the Public Administrations to finance their present and future spending commitments within the limits of deficit and public debt.

For all of the above, this General Secretariat has resolved:

First. Scope and principle of financial prudence.

The Autonomous Communities and Cities with Autonomy Statute that adhere to the Autonomous Liquidity Fund according to the Royal Decree-Law 21/2012 of July 13, of liquidity measures of the Public Administrations and in the financial scope, including public bodies and bodies which are classified within the general government sector with the definition and delimitation of the European System of Accounts, may only conclude debt transactions in terms of which are set out in the following paragraphs.

Second. Instruments.

1. The Autonomous Communities and Cities with Autonomy Statute within the scope of this Resolution may carry out borrowing operations through the following instruments:

a) Certificates of Debt under German law (Schuldschein).

(b) Securities or non-marketable securities issued by public or private issuance on wholesale or retail markets.

c) Short-term financing instruments.

d) Long-term loans.

(e) Other instruments expressly authorised by the General Secretariat of the Treasury and Financial Policy provided that they comply with the conditions of this Resolution.

2. In any event, the Autonomous Communities attached to the Autonomous Liquidity Fund shall apply to them Article 4 of the Royal Decree-Law 21/2012, according to which they will not be able to carry out transactions in securities or credit operations in the except subject to the express authorization of the General Secretariat of the Treasury and Financial Policy without prejudice to the mandatory authorization of the Council of Ministers, in accordance with Article 14 of the Organic Law 8/1980 of 22 September, Financing of the Autonomous Communities.

Operations to be formalized by the Autonomous Communities with multilateral institutions from which Spain is a member must be communicated in advance to the General Secretariat of the Treasury and Financial Policy. authorised unless within five working days the General Secretariat of the Treasury and Financial Policy has stated otherwise.

Third. Financial conditions for borrowing operations.

1. The maximum total cost of borrowing operations, including fees and other charges, other than the fees referred to in the following paragraph, shall not exceed the fixed rates or the applicable maximum differentials that it publishes monthly by Resolution of the General Secretariat of the Treasury and Financial Policy. The maximum published costs will remain in force until new costs are published. Compliance with the maximum cost condition shall be considered at the time of signature of the documents that oblige the parties and provided that the provision of the funds by the borrower can be made without any restriction.

The published maximum rates will reflect the cost of State funding at similar time limits increased by a 75 basis point spread.

2. For the maximum rates described in the previous paragraph, only the following commissions may be added:

i. The commission of non-availability in credit policies, limited to a maximum of 0.8% per year.

ii. The agency commission for syndicated operations, with a maximum of 50,000 € per year.

3. Interest on late payment may not exceed the interest rate of the operation plus a surcharge of 2% per year.

Fourth. Transactions in financial derivatives.

1. Permutas, options and interest rate futures may be contracted according to the standard market conditions.

2. In the event of a currency issue other than the euro, the currency risk shall be covered by a financial swap contract. The cost of such financial swap shall be incorporated in the calculation of the total cost of the issue which may not exceed the limit set in the third paragraph.

3. The use of more complex financial derivatives by an Autonomous Community or City with Autonomy Statute shall be authorized by the General Secretariat of the Treasury and Financial Policy.

4. In no case can they be hired:

(a) Financial derivatives without a maximum cost whatever the scenario, except in the case of financial swaps of interest rates or interest rate options at risk of assuming a variable rate without differential penalizer.

(b) Financial derivatives where the risk of any price index is assumed except where the purpose of the derivative is the elimination of the said risk.

c) Financial derivatives involving a deferral in the financial burden or an increase in funding.

d) Financial derivatives contracted out of reasonable market prices. The Autonomous Community to be able to contract a derivative must have its own valuation tools or independent external financial advice to enable it to know the range of reasonable market prices.

5. The formalisation of financial derivatives will require the signing of a standard contract to collect the rights and obligations associated with these transactions. Similarly, in order to minimise the risk of compensation, the Autonomous Communities may subscribe, for the new derivative transactions they contract, a standard collateralisation contract on the market. The early termination clauses of any of the contracts referred to in this Article are prohibited as a result of a downgrade of the credit rating.

6. Derivatives contracted prior to the entry into force of this Resolution and which would not have expired, shall remain subject to the corresponding ISDA, CMOF or similar standard contracts that were in force at the time of the procurement. Any migration of these derivatives to the new framework contracts specified in the previous paragraph shall require authorization from the General Secretariat of the Treasury and Financial Policy, and shall not in any case be expected to be disbursed by the Community. Autonomous. Only variations on the valuation at the time of migration will be subject to collateralisation.

Fifth. Bans:

Those borrowing operations will be prohibited with the following characteristics:

(a) Those that include derivatives implied in the contracts, including early repayment options at the request of the financial creditor. Fixed interest rate financing operations constructed on the basis of variable interest rate financing and an implicit variable interest rate swap shall be permitted if they respect the other conditions laid down in the Resolution.

(b) Those arising from the subrogation of the General Administration of the Autonomous Community in financial contracts of their bodies and public entities which assume the assumption of debts previously guaranteed by the latter Autonomous Community provided that the subrogation assumes an increase in the cost of the pre-existing operation.

(c) Those arising from the subrogation of the General Administration of the Autonomous Community or one of its entities in other debts which are not financial in nature or which lack the explicit endorsement of the Autonomous Community; and the cost of which is above the cost of the equivalent term debt held by the Autonomous Community on the date on which the original transaction was closed. The establishment of assumption or subrogation commissions in these operations will also be prohibited.

(d) Those arising from the transformation of debts of a non-financial nature in the Autonomous Community, in other financial liabilities whose cost is higher than the cost of the equivalent term debt held by the Autonomous Community the Autonomous Community on the date the original operation was closed.

(e) Any modification of a prior contract of the Autonomous Community itself or its public entities in which the cost of the operation exceeds the cost of the pre-existing operation. In any event, the maximum financial cost shall be that set out in the third point of this Resolution.

(f) Those involving additional costs for voluntary early repayment by the debtor on the dates of interest rate review. On dates other than those for the review of the interest rate, break costs shall be allowed provided that the calculation of these costs is carried out on the basis of market practice.

g) Those that do not provide for the possibility of early repayment by the debtor. Financing operations at the variable rate of interest may not include breakdown costs. Financing operations at a fixed interest rate may include break costs in favour of one or any of the parties. Such break-up costs shall reflect exclusively the economic injury of the cancellation of the transaction due to the change in the conditions of interest rate swaps from the time of the formalisation or disbursement of the transaction. loan until the time of repayment of the loan, without incorporating the risk premium for the transaction for the period from the date of the early repayment to the date of the amortisation provided for in the contract initially.

(h) Debt transactions at the variable rate of interest where the reference Euribor used does not coincide with the interest settlement period, unless the market adjustment of the margin is included in the contract the reference used and the appropriate reference to the interest settlement period.

Sixth. Exceptional assumptions.

By way of exception, the Secretary-General of the Treasury and Financial Policy may authorise debt and derivative transactions that do not comply with the terms of this Resolution. To this end, the Autonomous Community or the City with Autonomy Statute must present a memory detailing the extraordinary market circumstances and it is justified that the operation does not put its financial solvency at risk.

Seventh. Reporting obligations.

1. The Autonomous Communities and Cities with Autonomy Statute have the obligation to communicate monthly the final terms of all debt and derivative transactions made to the General Secretariat of the Treasury and Financial.

2. This communication shall be accompanied by a certificate from the General Controller of the Autonomous Community or from the high office responsible for indebtedness, certifying and justifying compliance with the financial conditionality set out in this communication. Resolution.

3. The communication on the operations of contracted derivatives shall be accompanied by an explanatory memorandum on the operation of the derivative and the purpose pursued. Financial derivatives shall not be authorised for which the knowledge of their functioning or their suitability for the purpose pursued is not sufficiently justified.

Eighth. Concerted operations with the Official Credit Institute.

The operations that the Institute of Official Credit formalizes with the Autonomous Communities at the instruction of the Government of Economic Affairs Delegation will not be subject to this Resolution.

Ninth. Repeal clause.

The Resolution of 12 February 2014, of the General Secretariat of the Treasury and Financial Policy, defining the principle of financial prudence applicable to the borrowing operations of the Communities is repealed. Autonomous Common Regime and Cities with Autonomy Statute that are coupled to the direct funding line ICO-CCAA 2012 and the Autonomous Liquidity Fund.

10th. Entry into force.

This Resolution shall enter into force on the day following its publication in the "Official State Gazette".

Madrid, 5 September 2014. -Secretary General of the Treasury and Financial Policy, Rosa María Sánchez-Yebra Alonso.

ANNEX

Fixed interest rates and maximum spreads applicable for the purposes of compliance with the third paragraph of the Resolution of 5 September 2014, of the General Secretariat of the Treasury and Financial Policy

396

468

540

552

564

≥ 576

operation life (months)	Maximum fixed rate	Maximum different over euribor 12 months	Maximum number of Euribor 6 months	Maximum amount over euribor 3 months	Differential maximum over euribor 1 month
1
2	0.76				71
3	0.77			63	72
		0.76			62
5
0.77			63	72
	6			55	66	75
7	0.81		58	69	78
0.82			62	73	82
	9				74	74	74
10	0.83			74	83
11	0.84		63	74	83
	46		63	74
13	48	48	64	75	84
14	0.84	49	65	76
15	0.84	50	65	76
16	0.84	49	64	76	85
	17	0.84	49	64	75
18	0.84	49	64	75	85
19	0.84	48	64	75	85
	20	0.84	48	64	75	75
21	0.85	49	64	76	85
22	0.87	51	66	78	87
23	53		68	79
24	0.90	54	70	81	91
36	1.13	72	87	100	110
48	1.30	81	96	108
	1.53	92	107	120	132
		1.78	104	119	131	144
84	2.03	115	130	143	156
96	2.33	130	145	158	171
108	2.58	141	156	168	181
120	2.88	151	166	178
132	159	159	174	186
	3.17	167	181	194	207
	156	3.31	173	187	200	213
168	3.45	179	193	206	219
180	3.50	178	193	205	218
192	3.55	179	193	206	219
	3.61	179	193	206
216	3.66	179	194	206
228	3.72	182	197	209	223
	240	3.78	186	200	213	226
252	3.84	189	203	216	229
264	3.90	192	207	219	232
276	3.94	194	209	221
	3.96	196	210	223
300	3.99	197	212	224
	4.06	200	215	227	240
	324	206		220	233	246
336	4.16	208	222	235	248
348	4.19	210	224	237	250
360	4.22	212	226	239
	4.24	213	228	240
	4.25	214	229	241
4.27	215	230	242	255
	408	4.28	216	231	243	256
420	4.30	217	232	244	257
432	4.32	218	233	245	259
444	4.33	220	234	246	260
	4.35	221	235	248
4.36	222	236	249
	4.38	223	237	250	263
	224	224	238	251	264
504	4.41	225	240	252	265
516	4.42	226	241	266
266
528	4.44	227	242	254
4.45	228	243	255
4.47	229	244	256
4.48	230	245	257	270

Fixed interest rates and maximum applicable differential rates for operations whose exact average life is not published in this table shall be subject to linear interpolation between the two most different types or spreads. close to the average time of the operation.