JOHN CARLOS I

KING OF SPAIN

To all who present it and understand, Know: That the General Courts have approved and I come to sanction the following Law.

EXPLANATORY STATEMENT

Spain joined the International Bank for Reconstruction and Development-BIRD by Decree-Law of 4 July 1958.

On June 22, 1998, the Board of Governors of the International Bank for Reconstruction and Development-BIRD approved resolution number 518, authorizing a selective extension of capital to be subscribed by governments. of Brazil, Denmark, Spain, the Republic of Korea and Turkey.

This agreement of the Board of Governors is the result of more than two years of arduous negotiations, which have allowed the transfer of their subscription rights, in this extension, by the other governments of member countries of the BIRD, to Five Member States, including Spain, whose share of the share of the IBRD does not correspond to its economic importance, as measured in terms of its GNP, as well as its share of the contribution to the Fund. International Monetary Fund.

The cession of your subscription rights, by the other member countries of the BIRD, is particularly difficult, because it implies a reduction in relative shareholding, and is interpreted as a loss of weight in the presence of The international economic situation.

As a result, the targeted capital increases of the BIRD are exceptional, and are happening in very deferred time lapses. The Board of Governors of the BIRD, at the meeting which adopted resolution number 518, also adopted the agreement not to carry out a further revision of the capital until at least five years have elapsed.

The approved capital increase implies the issuance of 23,246 new shares, with a nominal value per share of 120,635 US dollars, of which 4,311 shares may be subscribed by Spain. This means that the nominal value of the subscription fee amounts to $520,057,485.

In the event that Spain, or the other four countries also invited to participate in this selective enlargement, do not ratify their intention to subscribe, enlargement will be limited to the amount of the shares effectively. subscribed by these five countries.

In accordance with the practice established in previous IBRD capital increases, each country must disburse 6 per 100 of the value of the subscribed capital, with the remainder remaining in a capital position payable [Article II, Section 7 (i) the BIRD Constitutive Convention].

This means that the capital to be disbursed by Spain would amount to $31,203,449.

In accordance with resolution number 518, the deadline for the effective subscription of this extension is until 31 December 1999, which may be extended only until 31 December 2000 by decision of the The Executive Director of the BIRD at the request of the country concerned, subject to the presentation of a schedule for the completion of the internal procedures pending and for the ratification of the subscription [Article 3 (b) of resolution number 518].

In addition, pursuant to Article II, Section 7 (i) of the Convention establishing the BIRD, and Article 3 (c) of resolution number 518, the paid-up capital, 6 per 100, for each subscriber country, shall be disbursed:

a 10 per 100 in cash and in US dollars or in gold and 90 per 100 by issuing a nominee in its national currency, and with the same issue date as that of the processing of the effective payment.

The redemption of this promissory note will be carried out at the request of the Department of Treasury of the BIRD, in partial effective payments and according to the objective needs of the said Department of Treasury, during the fiscal year of the year 2000.

Given the difference in the accounting value of the shares in the IBRD, with respect to its nominal value, Spain and the other countries subscribing to this selective capital increase, they must bear an additional cost, equivalent to this the difference in the book value with respect to the nominal value of the shares in the IBRD.

The Board of Governors of the BIRD agreed that the largest shareholder power in this group of countries should also be reflected in further future engagement with the concessionary lending window for the poorest countries. of the IBRD, the beneficiary countries of the International Development Agency-AID.

As a result, Spain will have to pay 31.2 million US dollars for 6 per 100 of the nominal value of the shares, and, in addition, 46.4 million US dollars corresponding to the highest book value, This last amount must be disbursed as a special contribution to the 12.a replenishment of resources of the International Development Agency-AID.

The result for Spain, of this important financial effort, would result in a significant expansion of the shareholding in the BIRD, where it would be ranked 15 to 18.

In addition, Spain would increase its share of participation in the new replenishment of resources to the window for the poorest countries members of the BIRD, the 12.a replenishment of resources of the AID, occupying the post number 13 as a country taxpayer.

These results would correspond both to Spain's goal of increasing its presence in multilateral financial institutions, where its participation still does not reflect its weight in the global economy, as well as with the objective of It is desirable to strengthen the Spanish contribution to international financial cooperation with the world's poorest countries.

This Law is dictated by the jurisdiction of the Constitution attributed to the State in its article 149.1.3.a and 13.a, referring to the international relations and the bases and coordination of the planning General economic activity.

Article 1. Participation.

The government is authorised to take the necessary measures to enable Spain to participate in the selective expansion of capital of the International Bank for Reconstruction and Development, in the terms of resolution number 518 of the Board of Governors, the text of which is published as an annex to this Law.

Article 2. Subscription.

In accordance with resolution 518 of the Board of Governors of 22 June 1998, cited in the previous article, the subscription by Spain of 4,311 new shares to be issued by the International Bank of Reconstruction and development-BIRD, in the framework of the selective expansion of capital, with a nominal value of USD 520,057,485.

Article 3. Special contribution to the replenishment of resources of the International Agency for Development-AID.

In accordance with the agreement of the Board of Governors of the BIRD, the difference in the value of the books of the IBRD's shares to be subscribed by Spain, in respect of its nominal value, will be provided as a special contribution to the 12.a replenishment of AID resources.

Article 4. Payment of the subscription.

One. The payment by Spain of the amount of capital to be paid in the capital increase shall be made in accordance with the conditions laid down in resolution number 518, under which the subscriber country shall pay the BIRD a 0,6 per 100 of the price of the capital. shares to be subscribed in gold or in US dollars and a 5.4 per 100 of that price in its own currency.

Two. This disbursement therefore corresponds to 6 per 100 of the total nominal value of the shares subscribed by Spain, and amounts to USD 31,203,449, which will be paid at the time of the subscription, by 10 per 100, equivalent to the 0,60 per 100 of the total nominal value of the shares subscribed, in cash, and in the remaining 90 per 100, equivalent to 5,4 per 100 of the total nominal value of the shares subscribed, by means of a single payment, to be deposited in the The Department of Treasury of the BIRD, and payable to your application. The said promissory note shall not be negotiable or interest.

Three. The cash payment will be made from the budget allocation of the Development Assistance Fund, budget implementation 15.23.762B.871, for the fiscal year 2000.

Four. The settlement of the promissory note will be carried out under budget implementation 15.23.762B.871, "FAD Endowment ", from the Ministry of Economy, for the year 2000.

Final disposition first. Authorization to the Ministers for Foreign Affairs and Economic Affairs.

The Minister for Economic Affairs and the Minister of Foreign Affairs are hereby authorised to adopt, within the framework of their respective powers, how many measures are necessary for the implementation of this Law.

Final disposition second. Entry into force.

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

Therefore, I command all Spaniards, individuals and authorities, to keep and keep this Law.

Madrid, December 28, 2000.

JOHN CARLOS R.

The President of the Government,

JOSÉ MARÍA AZNAR LÓPEZ

INTERNATIONAL RECONSTRUCTION AND DEVELOPMENT BANK. RESOLUTION NUMBER 518. INCREASE IN THE AUTHORISED CAPITAL AND SUBSCRIPTION OF SOME MEMBER COUNTRIES

Whereas the governments of Brazil, Denmark, Spain, the Republic of Korea and Turkey have expressed an interest in concluding additional shares in the Bank's capital and that the Executive Directors recommend that they be (i) to do so; whereas it is appropriate to increase the Bank's authorized capital for that purpose, and whereas the Board of Governors provides that the Member States will not have to exercise their priority rights under the circumstances; provided for in Section 3.c) of Article II of the Constitutional Convention of the Bank; of Governors resolves the following:

1. The authorized capital of the Bank will be increased by 23,246 shares of capital of a nominal value of 100,000 US dollars each in terms of the United States dollars of the peso and the law in force to July 1, 1944; However, in the event that Brazil, Denmark, Spain, the Republic of Korea and Turkey do not subscribe to all the shares which they are authorised to subscribe in accordance with the provisions of the following paragraph 2 up to the date laid down in subparagraph (b) of the Paragraph 3 below, at the close of operations of that date, the authorised capital shall be reduced by the the number of shares which each Member State is authorised to subscribe under this resolution and which has not subscribed to that date.

2. The Bank is authorised to accept the subscription of up to the number of shares in its capital specified below by Brazil, Denmark, Spain, the Republic of Korea and Turkey, in accordance with the conditions set out in paragraph 3 above. forward:

Number of actions

Brazil. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ........... ... 8.341

Denmark. ... .. .. .. .. .. .. .. .. .................

Spain. ... .. .. .. .. .. .. ... .. .. ... ..............

...

Republic of Korea .. .. .. .. .. .. .. .. .. .. .. 6.445

Turkey. .. .. .. .. .. .. .. .. .. ... .. 949

Total .. ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. 23.246

3. The subscriptions authorised in paragraph 2 above shall be subject to the following deadlines and conditions:

a) The subscription price will be the nominal value.

(b) The Member State may subscribe to shares of when before 31 December 1999 or the later date to be determined by the Executive Directors after considering an application for extension of the period of (a) a subscription to be submitted, including a timetable for the measures which the Member State intends to take in order to subscribe to the shares; however, the subscription period may not be increased beyond 31 December of the year 2000.

c) In accordance with Section 7.i) of Article II of the Bank's Constitutive Convention, the subscriber member country shall pay the Bank: (i) in gold or US dollars, an amount equal to 0,6 per 100 (six we say one percent) of the subscription price of the subscribed shares, and ii) in its own currency, an amount equivalent to 5.4 per 100 (five and four tenths of one percent) of the price of such subscription.

(d) The Bank shall only require the amount of the subscriptions payable under the provisions of Section 7.i) of Article II of the Bank's Constitutive Convention, which is not to be paid in accordance with paragraph 3.c.) (a) to the extent that the Bank is required to meet the obligations of the Bank or of loans guaranteed by the Institution, and not for its use in the Bank's lending activities or for the purposes of the Bank's lending activities; (e) For the Bank to accept the subscription, the Bank shall have to adopt the (i) the Member State must have taken the necessary measures to authorize such a subscription and must provide the Bank with the information requested by it; and (ii) the Member State must have made the payments stipulated in paragraph 3.c) above.

4. Without prejudice to the right of the Member State to grant the approvals provided for in Article IV (a) and (b) of the Constitutive Convention, each Member State is expected to take action in accordance with the provisions of this resolution. make available to the Bank, in order for it to grant loans, the share of the subscription price of the shares paid in its currency within the period of up to three years after the subscription of those shares in accordance with the calendar agreed with the Bank.

5. If, until 29 May 1998, the Member States do not notify the Bank of their intention to exercise the right to subscribe to their proportional share of the capital increase provided for in this resolution in accordance with the provisions of Section 3.c) of the Article II of the Constitutional Convention of the Bank shall be deemed to have been waived by the Member States.

6. This resolution will only enter into force if all the Member States have renounced the right to subscribe to their proportional share of the increase in the Bank's authorised capital provided for in this resolution.

(Adopted June 22, 1998.)

ANNEX I

ALLOCATION OF BIRD ACTIONS

Table of eligible countries on the basis of economic criteria (if there is at least 15 per 100 of discrepancy with what should be your share in the IBRD, depending on your relative GNP and your share of the IMF)

Note about abbreviations used:

-To designate the share of participation in the IMF, we will use the name CC, which means calculated quota.

-To designate the share of participation in the BIRD that would correspond according to the GNP or according to CC, we will use the denomination "Cota CC or GNP".

(VIEW IMAGES PAGES 46504 TO 46505)

Actions in the BIRD CC or PNB -Percentage (3)

85% of CC or PNB quota -Percentage (4)

Increase in quota to reach 85% of CC or GNP share -Percentage (5)

Number (1) Percentage (2) Country

Republic of Korea ... .. .. .. .. ... 9,372 0,60 1,66 1,00 0,40 Denmark .. ... .. .. .. .. .. ................ 10,251 0.66 1.00 0.85 0.19 Spain. .. .. .. .. .. .. .. .. .. .. ... 23,686 1.52 2.08 1.77 0.25 Turkey .. .. .. .. .. .. .. .. ... 7.379 0.57 0,62 0,53 0.06 Brazil. .. .. .. .. .. .. .. .. .. .. ... ......... 24,946 1.60 2,48 2.10 0.50

Additional Capital totalitshares to reach 85% of the Cota CC or PNB (6) Value (M $USA) (7) (a) Capital payable (M. $USA) (8) Capital payable (M. $USA) (a) (b)

Country

Republic of Korea .. .. .. .. .. .. .. .. .. .. .. 6.445 777.5 730.8 46.6 Denmark .. .. .. .. .. .. .. .. .. .. ... ............................... ... .. .. .. .. .. .. .. .. .. .. ... 4,311 520,1 488,9 31.2 Turkey. ... .. .. .. .. .. .. .. .. .. .. ... 949 114.5 107.6 6.9 Brazil.

.. ... .. .. .............................

Total ... .. .. .. .. .. .. .. .. .. .. .. .. ... 23.246 2.804.3 2.636.0 168.3

Special contribution to AID (d) Total value in books (millions of%) (10) (c) M. $USA (11) M. of DEG (12)% (13) New AID% (14)

Country

Republic of Korea ... .. .. .. .. ... 116,00 69,4 50,7 0,63 0,91 Denmark .. ... .. .. .. .. .. ................. 57.6 34.5 25.2 0.31 1.58 Spain. ... .. .. .. .. 77.6 46.4 33.9 0.42 1,39 Turkey .. .. .. .. .. .. .. ... ... ......... 17.1 10.2 7.5 0.09 0.18 Brazil. ... .. .. .. .. .. .. ... .............. 150.2 89.8 65,6 0,82 0,95

Total .. ... .. .. .. .. .. .. .. .. ... 418.6 250.3 182.9--Notes:

a) The value of each stock is 120,635 US dollars. The column (7) is the product of the column (6) for $120,635.

b) The current disbursement per share of the BIRD is 7,238 US dollars, of which a 10 per 100 (i.e., 724 $) would be payable in US dollars, and a 90 per 100 (i.e., 6,514 $) would be payable in the currency of the member country. The column (a) is the product of the column (6) by 7,238 $USA.

c) Value in books per share is defined as the total assets minus total liabilities, divided by shares issued at June 30, 1997 ($161.945 million-$134,717 million/1,512,211) or what is the same, 18,005 $per share. The column (10) is the product of the column (6) for $18,005.

d) The column (11) is the difference between the total book value of the column (10) and the capital of the column (9).

The column (12) is the DEG equivalent of the column (11), using a $USA/DEG exchange rate of 1 DEG=1,37$.

The column (13) is the percentage of supplementary contribution in the column (12) divided by the total contribution to IDA-11 (8.05 trillion DEG).

The column (14) represents the special contribution of a member to IDA-11 plus its special contribution from the column (12), divided by the total contribution to IDA-11 plus the total special contribution (8.23 trillion DEG).