JOHN CARLOS I

KING OF SPAIN

To all who present it and understand it.

Sabed: That the General Courts have approved and I come to sanction the following Law.

EXPLANATORY STATEMENT

I

The Council of the European Union, in its composition of Heads of State or Government, by decision adopted on 2 May 1998, agreed that 11 countries, including Spain, should meet the necessary conditions for the adoption of the single currency on 1 January 1999.

II

The adoption of the single currency does not, in principle, require any other legal framework than that provided by the two Community Regulations; Regulation (EC) No 1103/97 of the Council of 17 June 1997 on certain provisions on the introduction of the euro, and Regulation (EC) No 974/98 of the Council of 3 May on the introduction of the euro.

These two rules of secondary legislation represent the basic acquis communautaire as far as the introduction of the euro is concerned.

The first Regulation cited as basic purposes: on the one hand, to determine the replacement of the ecu by the euro, as from 1 January 1999; on the other, to determine one of the basic principles in the process, which is the continuity of all legal instruments, as well as the fixing of the corresponding rounding rules for the monetary amounts resulting from conversions during the transitional period.

Greater interest is the second Regulation on the introduction of the euro, which is made up of the following basic aspects:

In the first place, the replacement of the currencies of the participating Member States in the third stage is available for the euro.

In the second instance, a set of rules are understood to sort the transient period. This includes the following aspects:

1. th Pervivencia of national currency units, while in so much subdivisions of the euro.

2. The equal validity of the national monetary unit to serve as a reference to a legal instrument.

3. Unalterability of legal instruments as a result of currency substitution.

4. º Recognition of the principle of "non-compulsion", regarding the use of the euro during the transitional period.

5. The survival of the coins and banknotes referred to in the national currency unit, as legal tender instruments.

Third, the system of putting into circulation, as from 1 January 2002, the banknotes and coins denominated in the euro, as well as the procedure for the exchange of coins and banknotes in units, is fixed. National currency.

III

The direct application of the two provisions would, in principle, exempt other rules than that which would, in certain cases, establish an optional regime for the use of the euro in the period transitional, in accordance with the above principle of non-prohibition, no obligation on the use of the euro during the transitional period.

However, the majority of the Member States participating in the monetary union have proceeded to adjust their internal rules, in accordance with their peculiar characteristics, in order to make the introduction mechanisms effective. of the euro as a single currency in each of its monetary systems and to harmonise such mechanisms with the set of rules that may be affected as a result of such an event.

This normative production work has, in all cases, the unquestionable need to prepare the various legal systems for the introduction of the euro, as a homogenising element of all systems Monetary union regime does not produce any unwanted effect.

The intended purpose does not exhaust, however, the opportunity of the norm. It is also a question of making it easier for the population to use the new currency, the knowledge of the mechanisms of coexistence with the old currency unit during the transitional period and, in general, to seek the most imperceptible and calm transit. towards the new currency.

This legislative activity can be carried out from two different approaches that, in advance, have to be pointed out, lead to the same result. The first would be to adapt singularly each and every one of the rules which could be affected by the modification of the monetary system. The second, part of a conceptualist position in which the neutrality of the amendment is reaffirmed, general rules are offered that complete, in what the affected monetary system itself refers to, the introduction of the euro as a currency. only.

This second system has been chosen by the Spanish legislator. On the basis of the regulatory statement that during the transitional period the monetary law of the participating Member States will continue to apply, with the exception of the provisions of the second of the Regulations referred to above, This rule does not alter any provision of monetary law but, when collecting the replacement of the peseta by the euro as a national currency, it explicitly states the principles that govern such a change in our monetary system, organising the corresponding procedural rules of internal order to make them effective, and coordinating the co-existence of the peseta with the euro during the transitional period.

On occasion, and in a conscious way, to avoid the loss of its necessary pedagogical sense, the wording of the norm collects, singling it for our surroundings, expressions contained in the Community Regulations. This resource must be understood within the purpose and purpose of the rule, which is not to develop the legal status of the euro, which corresponds to Community law, but to prepare and complete our legal system for the most soft reception of the single currency.

This Law is therefore an instrument that facilitates the introduction of the euro into our legal system and avoids the flowering of interpretative elements that could be considered as a mere mere change in the monetary system, since the euro becomes, from the perspective of our system, our new national currency, a mere change in the name of the currency, whose equivalence with the peseta is irrevocably rested on the fixed rate conversion.

IV

In addition to the stated purpose, the rule does not renounce the development of matters of domestic law. This is due to the definition of the concept of "redenomination" and the consideration that it does not constitute a taxable fact as a corollary of the principle of neutrality that governs the modification of our monetary system. This is also why it defines the centesimal subdivision of the euro with the term "cent" more in line with the most recent Spanish monetary tradition, as it is possible to use variants of the term in the Community provisions themselves. cited in the day-to-day use of each Member State.

Special mention deserves the treatment that the equivalence of amounts has in the orbit of the sanctioning right. Article 5 of the Law and Article 2 of the Complementary Act provides for any interpretative doubts that may be provided by those who apply the rule from the rigorous perspective of the principle of criminalization of the right of sanctioning.

In the regulation of rounding rules, a prevention standard is established in the treatment of intermediate operations. It is a question of establishing an unchangeable rule that respects the integrity of the sums payable, liquidable or accounted for, when they pass through intermediate calculation systems. This rule will have its fundamental application as long as conversions occur in both directions, that is, during the transition period.

With regard to the use of the euro and the peseta as units of account and means of payment during the transitional period, Articles 13 and 14 organise this coexistence; to this end, the possibility contained in the Article 8 (3) of Regulation 974/98 of the Council of 3 May concerning payment by credit. In turn, the condition of the peseta as a subdivision of the euro justifies the gratuitousness of the conversions.

The Law regulates a number of measures necessary to ensure the duality of account units and means of payment during the coexistence period. It also lays down the principle of gratuitousness, the system of redenomination of bank accounts, as well as in the scriptural plan of the exchange of notes and coins.

Regulates, likewise, the change of unit of account in the securities markets, in the operating procedures of securities clearing and settlement systems and payment systems, and in the reporting obligations collective investment institutions, pension funds and insurance institutions.

Within these measures, the State Debt redenomination procedure and the change of unit of account of its market are accommodated. The particularities of the operation of the Annotations Central operate a system of redenomination of all the outstanding debt which allows it to be carried out between the closing of the market on the last working day of 1998 and the first working day of the market of 1999, from a general rule of redenomination by the individual balances of each code value. The necessary regulatory clearance to establish technical procedures and to accommodate the fungibility regime of this debt redenominated with the new debt to be issued directly in euros, closes the framework of this regulation, which is complete with the redenomination regime of other public debt instruments that are not traded within the said market, such as the Debt represented in a different way to account or simply the Debt referred to in transactions external financing.

The redenomination regime of fixed income securities other than those mentioned above is also regulated, taking into account the principle of redenomination of the nominal value. The Law also allows in certain cases the use of a redenomination by balances, when there are conditions close to those that allow the use of this procedure in the State Debt.

The Law closes this chapter by regulating the redenomination of the social capital figure without forgetting the substantive character that this figure has in our order.

In this particular, the rule opts for the criterion of re-naming taking as the first reference the capital figure. The result of the chosen criterion is the admission of a reduction in the number of decimal places of the nominal amount resulting from the actions for practical reasons, bearing in mind that this reduction is legally and legally harmless given that it will always express a an aliquot of social capital.

V

Chapter IV essentially establishes the exchange rules from the moment of entry into circulation of euro banknotes and coins.

From that moment on, the peseta loses the consideration of the unit of account of the monetary system and six months later also its consideration of means of payment of legal tender, preserving, that if, a mere value of exchange before the Bank of Spain, except that this time is anticipated due to the provisions of the Community Regulation. With effect from 30 June 2002, the euro will be the only unit of account and the only means of payment of legal tender, not only in the national territory, but also in that of the other participating Member States. The introduction process therefore finds its culmination at that time.

VI

Chapter V, and last, completes the regulatory landscape with the exposure of a number of measures, some of which are not closely connected to the idea of the introduction of the euro, but whose regulation is in favour of the euro. the reception of the single currency, and to generate certain consequences that it brings with it.

Thus, in relation to accounting obligations, an optional asymmetric regime is established, declaring the use of the unit of account irreversible when it has been chosen to carry the accounting books or to express the accounts Annual in euro.

In relation to company law, and in close connection with the forecasts on the redenomination of the social capital figure, a simple formula is allowed to adjust the nominal value of the shares which, as a result of the redenomination, have yielded a figure with more than two decimal places. The adjustment is up to the nearest cent, as a regular euro subdivision.

The public administration, in the acts, contracts and general provisions, is required to indicate the equivalent amount in euros as long as the use of the peseta unit of account is maintained, and the same prevention extends to the official professions, notaries, collegiate trade corridors and registrars, with the double objective of proceeding to a physical redenomination of the instruments and Registers and to go used to the agents involved in the assimilation of the new standards. In the administrative acts this provision is conditional on the regulatory development and the material possibilities of action.

The Law empowers the Minister of Economy and Finance, when circumstances require, to establish a new calculation formula or a new reference rate that will replace the so-called mortgage MIBOR, according to the requirements in force in the field. Such a power, which reveals a forecast exercise, should be without prejudice to the possibility that the parties may have to amend their respective contracts by seeking formulas for determining the interest rate to be provided for the foreseeable future. new developments in the markets.

Identical purpose should be preferred over references to other MIBOR types that the Act, in another class of financial operations, also regulates.

In the section relating to tax rules, the Law provides the necessary legal protection for the Minister of Economy and Finance, or other competent bodies, to approve, in an optional manner, the deadlines, procedures and conditions for the presentation of the declarations and self-accounts in euro, combining the flexibility of the system with the irreversibility of the process, in the way that occurs in the case of the regulation of accounting obligations. With this enablement, the tax regime announced, with respect to the Tax on Societies and Value Added Tax, can be carried out by the National Plan of Transition to the Euro. Identical prevention is contained in relation to the rules on social security contributions.

Finally, the Law provides the necessary foundation for, if necessary in the course of events, to establish a specific regime of consumer protection in the treatment of double price exposure during the course of events. the transition period.

VII

One of the consequences of Economic and Monetary Union is the integration of the Banco de España into the European System of Central Banks, led by the European Central Bank.

The Spanish State is obliged to approve those general provisions necessary to ensure the Bank of Spain's compliance with its obligations as an integral part of the The European System of Central Banks, as set out in Article 1.3 of Law 13/1994, of 1 June, of Autonomy of the Banco de España, introduced by the recent Law 12/1998 of 28 April, and which will enter into force on 1 January 1999.

As an integral part of the European System of Central Banks, the Banco de España will be obliged to carry out a series of homogeneous operational processes with which other Central Banks of Member States will have to carry out of the European Monetary Union, and at times, different from the usual ones, which coincide with those of the European Monetary Union and in accordance with the operating requirements of the European Central Bank and the aforementioned System.

These new requirements, ranging from the implementation of the common monetary policy, to the operation of the Spanish Payments System, which will shortly be an integral part of the general system TARGET Trans-European Automated Real-Time Gross Settlement Express Transfer, going through the processes of opening and closing of markets and related activities, will integrate part of the activity of the Banco de España in an area of common European action subject to the homogeneous rules above, which translates into the need to bring these standards into line with these standards work of those employees assigned to these tasks. The imminent implementation of the said system makes it necessary to introduce an additional provision, the second of this Law, in order to ensure that the Bank of Spain complies with the obligations imposed on it by its condition of an integral part of the European System of Central Banks.

Finally, it should be noted that the final provision first establishes a system of organizational coordination, which is indispensable because of the speed with which events are presumably going to take place in the transitional period, by completing this coordination regime with the possibility that the Government may, in the light of the circumstances and assessing the various implementing rules, adjust the expressive amounts of monetary amounts in the legal provisions in effect.

VIII

This preamble would not be complete without a praise and farewell to the peseta. It is worth remembering here the probable Catalan etymology of the peseta and the liberal origin of its elevation to national currency unit. In fact, the peseta lived together with real, double, escudos and other currencies, until the Revolution of 1868 made it the official unit of the Spanish monetary system, a position it has maintained since then, through various vitisitudes and different coin mints and notes issues of the Banco de España. It is fair to recognize, on the other hand, that the peseta has shared the role of unit of account in everyday practice with its multiple the hard one.

it is clear that the Kingdom of Spain and the citizens who give the primary impetus to their institutions have an accredited pro-European vocation and that they have promoted and welcomed both the monetary union and the the other developments in the construction of Europe. However, the greeting of welcome to the euro does not prevent the affectionate evocation of a currency, the peseta, which has dominated the Spanish economic life for one hundred and thirty years, has been introduced in the literature and in the popular sayings and has served for To encrypt the work, the business, the taxes and the illusions of many generations of Spaniards.

CHAPTER I

Object of Law

Article 1. Object.

This Law is intended to supplement the legal regime for the introduction of the euro as a single currency, within the national monetary system, in accordance with Council Regulations (EC) No 1103/97, on 17 June, on certain provisions relating to the introduction of the euro and Council Regulation (EC) No 974/98 of 3 May on the introduction of the euro.

Article 2. Defining the concepts used.

One. For the purposes set out in this Law, legal and regulatory provisions, administrative acts, judgments, contracts, unilateral legal acts, registered seats, legal instruments, legal and regulatory instruments are understood by legal instruments. payment instruments other than banknotes and coins and other instruments with legal effects.

Two. For the purposes laid down in this Law, the conversion rate shall be taken irrevocably by the Council of the European Community in accordance with the first sentence of Article 109l (4) of the Treaty on European Union. European to replace the peseta with the euro.

Three. For the purposes set out in this Law, the redenomination of the irreversible change in the peseta unit of account to the euro account unit, as long as it expresses a monetary amount, is understood in any legal instrument, in accordance with the conversion rate, and once practiced the corresponding rounding. The redenomination does not have the consideration of tax tax.

During the transitional period, as referred to in Article 12 of this Law, the redenomination of a legal instrument will necessarily lead to the material alteration of the expression of the unit of account. After the end of the transitional period, the redenomination shall be automatically understood to be carried out on the basis of, where applicable, the specific rules set out in this Law, even if the expression of the unit of account is not materially altered.

The procedure for the redenomination of the social capital figure, of the securities belonging to an issue, of the accounts opened in credit institutions and of the Public Debt will be carried out exclusively in the prescribed form in this Law and, in any case, will be free to the investor or client of the entity.

CHAPTER II

Modification of the national monetary system

Section 1. The National Currency

Article 3. Replacement of the peseta by the euro.

One. Since 1 January 1999, including the currency of the national monetary system, the euro as this currency is defined in Council Regulation (EC) 974/98 of 3 May 1999.

Two. The euro is not a solution of continuity and is integrated into the peseta as a currency of the national monetary system. The monetary and account unit of the system is a euro. One euro is divided into a hundred cents or cents. Banknotes and coins denominated in euro shall be the only legal tender in the national territory.

Article 4. Transient survival of the peseta as a unit of account and means of payment of the system.

One. By way of derogation from Article 3 of this Law, the peseta may continue to be used as a unit of account for the monetary system in any legal instrument, as a subdivision of the euro, according to the conversion rate, until 31 December. December 2001.

From that moment on, the use of the peseta as a unit of account will not enjoy the protection of the monetary system. Any employee or public official who is aware by reason of his profession, officio or charge of a new legal instrument in which the amounts payable are to be referred to as pesetas, with the exception of those in which the content of the

instrument relates precisely to banknotes or coins denominated in pesetas as the direct object of the instrument.

Two. By way of derogation from Article 3 of this Law, banknotes and coins denominated in pesetas shall remain valid as a means of payment of a legal tender with full discharge, as a subdivision of the euro at the conversion rate, to the 30 June 2002, unless a shorter period is legally available, in accordance with the provisions of Article 24 of this Law. From that moment on, such notes and coins will only retain a mere exchange value in the terms provided for in this Law and its development provisions.

Article 5. Sanctioning right.

One. By way of derogation from the foregoing Articles, the references contained in the rules of penalties to the national currency shall be construed as references to the euro and to the peseta until the end of the exchange period referred to in the Article 24 of this Act.

Two. During the transitional period, the references contained in the rules of penalties to monetary amounts expressed in pesetas shall also be construed as references to the corresponding monetary amount in euro resulting from the application of the conversion and, where appropriate, the rounding off in accordance with the provisions of Article 11 of this Law.

The references contained in the sanctioning rules to the ECU unit of account shall also be construed as being made to the euro unit at the rate of one euro for an ecu.

Three. The same equivalence as in the previous paragraph shall be understood as subsisting, where appropriate, for the application of the sanctioning provisions for acts performed before the end of the transitional period, after the end of the transitional period.

Section 2. First Principles and Effects Governing the Modification of the Monetary System

Article 6. Principle of neutrality.

The replacement of the peseta by the euro, in the terms provided for in this Law, does not result in any alteration of the value of the credits or debts, whatever their nature, remaining their value identical to the one they had at the time of the replacement, with no continuity solution.

Article 7. Principle of fungibility.

The references contained in any legal instrument to monetary amounts shall have the same validity and effectiveness, whether expressed as pesetas or in euro, provided that these amounts have been obtained according to the type of conversion and rounding rules provided for in Article 11 of this Law.

Article 8. Principle of nominal equivalence.

The monetary amount expressed in euro resulting from the application of the conversion rate and the rounding-up where applicable is equivalent to the monetary amount expressed in pesetas that was the subject of the conversion.

Article 9. Principle of gratuitousness.

The replacement of the peseta by the euro, as well as the performance of the operations provided for in this Law or any other necessary for the application of the provisions of Article 3, shall be free of charge for the consumers, without being able to assume the collection of expenses, charges, commissions, prices or similar concepts, without prejudice to the provisions of Article 11, in relation to rounding. Any clause, covenant or agreement that contravene the provisions of this article, which shall be considered, in respect of credit institutions, regulations of ordination and discipline, shall be deemed null and void.

Article 10. Continuity effect.

The replacement of the peseta by the euro may not, in any case, be considered as a legal fact with modifying, extinguishing, revoking, rescisory or resolutional effects in the performance of the obligations.

The replacement of the peseta by the euro does not exempt or excuse the fulfilment of the obligations that exist at the time of the substitution, nor does it authorize the unilateral alteration of its content, unless the parties have agreed expressly the opposite. In particular, in the case of contracts with consumers and users, the rights recognised in the laws of defence of consumers and users must be respected.

The Law does not grant action to claim before the Courts of Justice the modification, extinction, revocation, termination or resolution of the content of an obligation alleging the modification of any element of the legal business or the alteration of the value of the benefits due, as a result of the replacement of the peseta by the euro.

Section 3. Rounding

Article 11. Rounding.

One. In the case of monetary amounts to be paid or accounted for, when a rounding operation is carried out after a conversion to the euro unit, they shall be rounded up by excess or default to the nearest cent. The monetary amounts to be paid or accounted for and converted to the peseta monetary unit shall be rounded up either by excess or by default to the nearest peseta. In the case where the conversion rate is applied for an amount whose last figure is exactly half of a cent or a peseta, the rounding shall be made at the higher figure.

Two. In no case may the amount to be paid, liquidated or accounted for as final balance be modified as a result of roundings carried out in intermediate operations. For the purposes of this paragraph, an intermediate transaction shall mean that the immediate object of the transaction is not the payment, settlement or accounting as the final balance of the corresponding monetary amount.

CHAPTER III

Transitional Period

Section 1. Delimitation

Article 12. Delimitation of the transitional period.

The transitional period is defined as the average between 1 January 1999 and 31 December 2001, both inclusive. During this period, the euro and the peseta are co-existing as units of account and means of payment, in accordance with the provisions of the Community Regulations of the Council (EC) 1103/97 and (EC) 974/98, in accordance with the provisions of this Chapter, and without prejudice of the provisions of Articles 4 and 24 of this Law.

Section 2. First Principles governing the co-existence of the euro and the peseta as a unit of account and means of payment during the transitional period

Article 13. Principle of duality in the use of account units.

During the transitional period, new legal instruments that express monetary amounts, in accordance with the national monetary system, may be expressed in both the peseta unit and the unit of account. If, in the latter case, in the private law relations there is agreement of the parties, or, in relations with the public administrations, there is the possibility of using the unit of account euro and the interested party chooses to use it. The provisions of this Article are without prejudice to the special rules contained in this Law on the redenomination of legal instruments in the transitional period.

Article 14. Principle of execution according to the unit of account used.

One. The monetary amounts expressed in the peseta unit of account shall be executed in pesetas. Those expressed in the euro account unit shall be executed in euro. The provisions of this number shall be without prejudice to what the parties have agreed.

Two. By way of derogation from the preceding number, any amount denominated in the euro account unit or in the peseta unit of account, payable within the national territory by crediting the creditor, may be paid by the debtor in the Equi-valent amount in both the euro unit and the peseta unit.

The amount will be credited to the creditor's account in the name of the creditor.

The debtor of a certain amount in pesetas which, in application of the rule contained in the previous paragraph, would like to pay in euros, must contribute an amount in euros such that, applying the type of conversion and once rounded in accordance with Article 11 of this Law, shed the amount due in pesetas.

Reciprocally, the debtor of a certain amount in euros that in application of the rule referred to in the previous paragraph, would like to pay in pesetas, must contribute an amount in pesetas such that, applying the type of conversion, and a the amount due in euros is thrown into the round, as provided for in Article 11 of this Law.

Three. The conversions performed by the credit institutions, in accordance with the provisions of the previous paragraph of this Article, shall be free of charge.

Four. Cash conversions to be made by investment firms to execute client orders will also be free of charge.

Five. Fees and charges for financial services in euro, whatever the financial institution that makes them, shall be equal to those applied to identical services in pesetas.

Six. The provisions of the three preceding paragraphs shall constitute, in respect of financial institutions, rules of organisation and discipline in accordance with their specific legislation.

Section 3. Necessary Measures to ensure the duality of account units and means of payment during the transitional period

Article 15. Redenomination of bank accounts.

One. During the transitional period, after agreement between the parties, the credit institutions shall redenomination in euro the cash accounts in pesetas that the private individuals and the public administrations keep open in the respective entity.

Two. The redenomination shall be made for the balance that the account presents on the day of the redenomination, applying the conversion rate, as well as the rounding regime established in Article 11 of this Law. This redenomination will be free. The recovery of any type of expenditure, supply, commission, price or similar concept in relation to this redenomination shall be prohibited.

The provisions of this article will be considered, with respect to credit institutions, regulations of ordination and discipline.

Three. The redenomination of the account shall reach the means of disposal of the account, without prejudice to the availability of the account by means of checks encrypted in pesetas.

Article 16. State Debt Scheme.

One. As from 1 January 1999, the debt securities issued by the State or its autonomous bodies in the unit of account of the national monetary system shall be made in euro. For such purposes, the emission limit provided for in the General Budget Law of the State for the years 1999, 2000 and 2001 shall be automatically converted into euro from the same day 1 January 1999, in accordance with the conversion, and so on until the year 2001, unless those laws have been used to use the euro account unit.

Two. From 1 January 1999, the unit of account of the Public Debt Market in Annotations will be the euro unit. As a result, both the registration of the securities included in the Annotation Central and its trading, clearing and settlement will be performed exclusively on that unit of account.

Three. The Debt of the State denominated in pesetas, represented by notes that, having been issued prior to 1 January 1999, are in circulation on the same day, and whose accounting record is carried in the Central of Annotations, will be renamed to euros between the date of entry into force of this Law and the first business day for the Market of Public Debt in Annotations of the year 1999. The redenomination shall be carried out, in general, by applying the conversion rate to the nominal balance of each of the debt securities of the State of each holder, as indicated in the market close of the immediate business day previous. The resulting figure shall be rounded down, where appropriate, to the nearest cent, in accordance with the provisions of Article 11 of this Law. Notwithstanding the foregoing, if the nominal balance by code value of a holder is constituted by several records, the redenomination and its corresponding rounding shall be carried out for each of them, the sum of which shall give the nominal balance in euro.

The sum of the nominal balances thus obtained shall constitute the total nominal balance of each value code.

The nominal debt balances of the State may be expressed in euro cents. However, in order to homogenise the debt issues of the State denominated with the new debt issues of the State in euro, the Minister for Economic Affairs and Finance may establish minimum nominal trading amounts, as well as the procedures for the consolidation of securities to achieve the minimum marketable amounts and the technical procedures that allow the maintenance, without any continuity solution, of the securities codes.

Four. The Debt of the State in circulation, denominated in pesetas, issued or contracted before 1 January 1999, other than that referred to in the preceding number, shall be renamed in accordance with the following rules:

(a) Represented by means of account and whose accounting records are carried out through the Securities Clearing and Settlement Service shall be renamed in accordance with the procedure laid down in Article 17 of this Law for the issuance of securities other than the State Debt.

(b) The formalised by singular loans shall be renamed by applying the conversion rate to the principal of the loan, rounding off the resulting figure in accordance with Article 11 of this Act.

(c) Represented by physical titles, either bearer securities or nominative registration certificates shall be renamed by applying the conversion rate to the nominal of each title by rounding up the resulting figure of compliance with the provisions of Article 11 of this Law.

The remaining debt instruments of the State will be renamed on the basis of the legal nature of the instrument in question.

Five. The Minister for Economic Affairs and Finance is empowered to rename the State Debt which, issued before 1 January 1999, is in circulation on that date and is denominated in the currency of one of the Member States which it adopts the euro in substitution of its national currency, provided that the issuing State of that currency has taken the necessary measures, in accordance with Article 8.4 of Council Regulation (EC) No 974/1998 of 3 May 1998, on the introduction of the euro.

Six. Emissions other than the State Debt, the accounting record of which is carried out by the Annotation Central, shall be renamed to the euro unit, subject to the agreement of the issuer, in accordance with the provisions of paragraph 3 of this Article.

Seven. The operations provided for in this Article shall be free of charge.

Article 17. Redenomination of the issues of fixed income securities other than the State Debt.

One. As from 1 January 1999 inclusive, the issuance of fixed-income securities, other than those covered by the previous Article, and expressed in the unit of account, issued prior to that date, may be renamed on the basis of the to the provisions of this article.

Two. The power to rename referred to in this Article shall be subject, where appropriate, to the fact that the market where the issue is negotiated has adopted the euro as the unit of account for trading.

Three. The redenomination shall be carried out by applying the conversion rate to each individual value, rounding off the resulting figure in the form provided for in Article 11 of this Law. The amount of the issue, expressed in the euro account unit, shall be calculated by the sum of all securities thus renamed.

Four. The redenomination of the issue may be carried out from 1 January 1999 by simple agreement of the issuer, without the need for agreement of the bond union, unless the contract of issue expressly excludes the power of redenomination until 31 December 2001 and during that period. The presentation of the certification of the agreement adopted by the administrative or governing body, if any, of the issuing entity, with the signatures entitled, in which it is established, shall be sufficient for its accreditation in the accounting records. accredit him having adjusted to the method of redenomination indicated in the previous number and the fulfilment of the other requirements laid down in this article. Where appropriate, the accreditation before the Commercial Registry, and, if appropriate, before the National Securities Market Commission, will be made for the same document, causing in the Mercantile Register, after its timely qualification, a marginal note in the seat corresponding to the issue. Such operations, of simple arithmetic, shall not be subject to a notarial or registration fee, and shall be exempt from publication in the "Official Gazette of the Commercial Register".

Advertising on the redenomination of securities referred to in this article, in the event that they are traded on a secondary market, shall be in accordance with the securities market legislation.

Five. Exclusively during the transitional period, the redenomination of fixed income securities referred to in this Article negotiated in an organised secondary market may also be carried out by redenomination of balances of the same reference, by the holder, under the conditions which, where appropriate, are to be regulated, provided that the technical or market circumstances permit the aggregation of the final nominal balance of the issue.

Six. Similarly, the nominal balances of the securities referred to in this Article may be expressed in euro cents. However, minimum nominal trading amounts may be established under the technical rules of each secondary market.

Seven. The operations provided for in this Article shall be free of charge.

Article 18. Changing the unit of account in the stock markets.

One. As from 1 January 1999, securities markets, other than the Public Debt Market in Annotations, are authorised to change the unit of account of their operating procedures from the peseta unit to the euro unit, so that concerns the negotiation, clearing and settlement of securities and other financial instruments.

This operation will be performed free of charge for investors in all secondary stock markets.

Two. During the transitional period, the information to be provided by the decision-making bodies on the securities markets referred to in the preceding paragraph, on the transactions carried out on them, shall be offered in euro in accordance with the rules laid down in the which, if any, is established by the Minister for Economic Affairs and Finance. The Minister for Economic Affairs and Finance will also be able to establish the obligation to provide information in euros and pesetas, in the means of dissemination of information provided by official secondary markets, in order to promote the investor protection in those markets.

Article 19. Changing the unit of account in the operating procedures of securities clearing and settlement systems and payment systems.

From 1 January 1999, the exchange of the peseta unit of account to the euro account unit is authorised in the operating procedures of the Spanish securities clearing and settlement systems and financial products derivatives, Spanish payment systems and means of payment systems.

Article 20. Unit of account in the reporting obligations of collective investment institutions, pension funds and insurance institutions.

One. During the transitional period, the collective investment institutions which by themselves or by decision, where appropriate, of their management company have adopted the euro as a unit of account shall provide the information required by the current legislation in euro. The Minister of Economy and Finance, after a report of the National Securities Market Commission, may establish the assumptions and conditions in which the information prepared by the collective investment institutions and management companies should be be carried out in euro and in pesetas.

Two. During the transitional period, the managing bodies of those pension funds which have adopted the euro as a unit of account shall provide the control committees with the information required by the legislation in force in euro. The Minister for Economic Affairs and Finance may lay down the assumptions and conditions under which information to be provided to members and beneficiaries of pension schemes should be carried out in both euro and pesetas.

Three. During the transitional period, insurance institutions and social security mutual societies which have adopted the euro as a unit of account shall provide the information required by the legislation in force in euro. The Minister for Economic Affairs and Finance may lay down the assumptions and the conditions under which information to be provided to policy holders, policyholders and beneficiaries should be carried out in both euro and pesetas.

The provisions of this Article are without prejudice to the competence of the Autonomous Communities in terms of information and protection of consumers and users.

Four. The duty to provide the information referred to in the preceding three paragraphs shall not prejudice the provisions of Article 27 of this Law in respect of the expression of annual accounts and books of accounts.

Article 21. Redenomination of the social capital figure.

One. The redenomination of the share capital figure of commercial companies shall be made exclusively by applying to that conversion rate, subsequently rounding up the amount in accordance with the provisions of Article 11. of this Law.

Performed this transaction, the nominal value of the shares/units shall be multiplied by multiplying the resulting figure in euro by a number expressing the share of the share capital that the nominal value of such share or Participation shall represent the original figure expressed in pesetas. The resulting nominal value in euro of the shares/units shall not be rounded, but the number of decimal places may be reduced for practical reasons up to a number not exceeding six. This last operation shall not alter in any way the proportion of the share or share in respect of the share capital to all statutory and statutory effects.

Two. The redenomination of the share capital and the nominal value of the shares or shares may be carried out from 1 January 1999 and shall not require but certify the agreement adopted by the administrative body, with the signatures legitimized, where it is evident that the redenomination has been carried out in accordance with the provisions of this article. The record shall be recorded by means of a marginal note in the last registration relating to the share capital figure and the nominal value of the shares or units. Such operations, of simple arithmetic, shall not be subject to tariff, notarial or registration duties, even if they are formalised by public deed. In any event, they will be exempted from publication in the "Official Gazette of the Commercial Register" and will not pay any tribute.

Three. The provisions of this Article shall apply to the redenomination of the capital figure and contributions of cooperative societies and to assumptions that present an analogy with those regulated here.

Article 22. Advertising using euro coins and commemorative coins or medallions without legal tender.

One. The advertising control scheme provided for in Article 15 (4) of Law 13/1994 of 1 June 1994, by the Bank of Spain, will also be applied to the conduct of advertising on euro coins intended to be carried out in the case of euro coins. the competence to authorise and sanction shall be the responsibility of the Directorate-General of the Treasury and Financial Policy.

Two. The approval of the Directorate-General of the Treasury and Financial Policy shall be subject to the manufacture, marketing and distribution of commemorative coins or medallions in euro which are not legal tender.

The Directorate-General of the Treasury and Financial Policy, subject to the sanctioning procedure applicable to subjects acting on financial markets, may impose fines of up to 100 million pesetas on individuals. natural and legal persons, and their administrators, who are in breach of the provisions of the preceding paragraph.

CHAPTER IV

End of transition period

Article 23. Unique use of the euro account unit.

As of 1 January 2002, the monetary system will exclusively use the euro as a unit of account. All new legal instruments that express monetary amounts in the unit of account of the monetary system shall employ the euro account unit in accordance with Article 3 of this Act.

Article 24. The exchange until 30 June 2002.

One. From 1 January to 30 June 2002, or until an earlier date if this period is legally reduced, the exchange of banknotes and coins in euro banknotes and coins shall be carried out in accordance with the type of conversion and application, where appropriate, the rounding rules contained in Article 11 of this Law. The reduction of the period referred to in this paragraph shall determine the loss of the legal course of the peseta to the moment of completion of the peseta.

Two. The exchange will be carried out by the Banco de España, banks, savings banks and credit unions.

Three. Only banknotes and coins denominated in euro against the delivery of banknotes and coins denominated in pesetas may be delivered without the possibility of reverse swaps.

Four. The exchange is free. The recovery of any type of expenditure, supply, commission, price or similar concept in relation to this exchange shall be prohibited.

Five. The exchange activity referred to in this article shall be understood as including among those reserved for credit institutions by Article 28.2 of Law 26/1988 of 29 July, of Discipline and Intervention of Credit Entities, the application of Article 29 of the Treaty to those who offer or carry out exchange operations in breach of that legal reserve.

Article 25. The exchange from 1 July 2002.

As from 1 July 2002 or, where appropriate, from the date of the end of the period referred to in paragraph 1 of the previous Article, banknotes and coins denominated in pesetas shall retain only one value, which shall be for exchange, for banknotes and coins denominated in euro, in accordance with the conversion rate and in the form and manner determined by the Minister for Economic Affairs and Finance. This exchange will be carried out exclusively by the Banco de España, prior to the corresponding rounding made in accordance with the provisions of Article 11 of this Law.

Article 26. Instruments not renamed during the transitional period.

As of 1 January 2002, legal instruments which have not been re-denominated during the transitional period shall be automatically understood as expressed in the euro account unit, by application of the amount the corresponding monetary amount of the conversion rate, and, where applicable, the rounding scheme provided for in Article 11 of this Law. In any event, the redenomination rules as set out in Articles 15, 17 and 21 of this Law shall be observed.

Regulations will be established by which administrative public records will progressively change the expression of the peseta unit of account by the euro account unit.

CHAPTER V

Measures to promote the full introduction of the euro

Article 27. Measures in relation to accounting obligations.

One. For the financial years to be closed during the transitional period, annual accounts, including consolidated accounts, may be made, deposited and published by expressing their values in pesetas or in euro. As a general rule, the option of expressing the euro accounts may be agreed by the institution's administrative body. However, in the case of pension funds, the option of expressing the values in euro will require the prior and express agreement of the Fund Control Committee.

Two. During the period referred to in the preceding paragraph, the accounting officers may make their entries in the books of accounts, expressing their values in pesetas or in euro.

Three. If the option of expressing in euro the annual, individual or consolidated accounts or, where applicable, the notes in the books of accounts is exercised, the unit of account shall not be used again except in exceptional cases, duly justified in the manner that is regulated.

Four. The annual accounts expressed in euro shall in any case incorporate the figures for the preceding financial year expressed in euro, applying the conversion rate and, where appropriate, the rounding-off in accordance with Article 11 of this Law, with the inclusion in the "basis for submission of annual accounts" of an explanation on the adjustment of the amounts of the preceding financial years, as well as the process of the introduction of the euro into the institution.

Five. The accounting aspects arising from the introduction of the euro shall be regulated, including those which should be included in the annual accounts for the financial year 1998.

Six. The provisions of the above paragraphs are without prejudice to the provisions of the rules of the financial institutions subject to the supervision of the Banco de España, the National Securities and Exchange Commission and the Directorate-General Insurance on the publication of status and information to the aforementioned supervisory authorities.

Article 28. Adjustment, to the nearest cent, of the nominal value of shares, shares and social shares, as a result of the redenomination of the share capital.

One. If, as a result of the redenomination in question in Article 21 of this Law, the nominal value of the resulting share or share is more than two decimal places, and any other than the conditions required by the statutes the administrative body may agree, for its implementation within a period not later than 31 December 2001, of the increase or reduction in capital whose sole objective is to round off, in the manner provided for in Article 11 of this Law, the nominal values of the shares or units to the alzaalabaja at the nearest cent. The increase will be made from available reserves. The reduction will be made by creating an unavailable reservation. The resulting social capital figure shall be the sum of the nominal values of the shares once adjusted in the form indicated in this number.

The adjustment for reduction of nominal value cannot be performed when the resulting figure of social capital is lower than the legally established minimum capital, in which case it will be rounded up.

Two. Adopted the agreement referred to in the preceding paragraph shall be submitted to public writing and shall be entered in the Register. Such operations shall be exempt from publication in newspapers and in the "Official Gazette of the Trade Register".

There will be no right of opposition from creditors in the event of a reduction in the capital provided for in Articles 166 of the Royal Decree 1564/1989 of 22 December 1989 approving the recast of the Law of Companies Anonymous, and 81 of Law 2/1995, of March 23, of Limited Liability Societies.

Furthermore, the audit by auditors of the balance sheet to serve as a basis for the corresponding increase in capital from reserves, which will be necessary, if any, shall not be required. as a result of the adjustment provided for in this Article, provided for in Article 157 of Royal Decree 1564/1989 of 22 December 1989 approving the recast of the Law on Limited Companies.

Three. The adjustment operation provided for in this Article shall not pay any tribute. No notarial or registrant tariff duties shall be payable.

Four. The benefits provided for in this Article and the special arrangements for the adoption of agreements provided for in this Article shall not apply to companies which are established as from 1 January 1999 and before 31 December 2001, or which within the that period has increased or reduced its share capital figure without having previously renamed it.

Five. The provisions of this Article shall apply to the adjustment of the shares and the share capital of the cooperatives and to assumptions which make an analogy with those regulated here.

Article 29. Measures in relation to public payments.

The Director-General of the Treasury and Financial Policy, as the authorising officer of the State, is empowered to arrange for the General Intervention of the Administration of the State and the Departments concerned to be informed. during the period from 1 January 1999 to 31 December 2001, payments and non-tax revenue which may be made in euro, taking into account the unit of account in which the legal instrument is expressed as a cause of payment or income. To this end, the Director-General of the Treasury and Financial Policy is authorized to carry out the necessary actions to coordinate the operation of the payment order of the State with the Banco de España as regards the provision of the Treasury and payments derived from the State Debt.

Article 30. Acts, administrative contracts and rules.

From 1 January 1999 to 31 December 2001, the prices of new contracts concluded by public administrations, when using the peseta as a unit of account, and the monetary amounts used as final expressions in the rules which, from that date, will be issued, they must then record the equivalent amount in the euro account unit at the rate of conversion and may in this case express a final figure in euro with a number of decimals not greater than six.

During the same period, and in the form that is regulated, it will be sought, when the volume of the administrative acts that are issued permits, that the monetary amounts that, as final balances, express the administrative acts, record the equivalent amount in euro by applying the conversion rate and, where applicable, the rounding rule of Article 11 of this Law.

The indications referred to in this Article shall not alter the unit of account in which such acts, contracts or provisions are understood.

Article 31. Actions of official professionals.

One. As from 1 January 1999, notaries, ex officio, shall record in the documents which they authorize and which are expressed in the unit of account, the equivalent amount in the euro account unit, by the application of the type of conversion and, where appropriate, the corresponding rounding-off provided for in Article 11 of this Law. The same obligation shall be imposed on the registered trade corridors in respect of the documents involved. The expression of the equivalent amount in the euro account unit shall be made following that expressed in pesetas and shall not thereby alter the unit of account in which the document is understood to be authorised or intervened.

In the event that the parties have voluntarily entered into the document the equivalent amount in euros, the notary or trade broker will be limited to checking the correct application of the conversion rate and the rules of rounding as provided for in Article 11.

From 1 January 2002, no document may be authorised or entered in the way of the monetary amounts expressed in the unit of account when the unit of account of the national monetary system is used prejudice to the provisions of the second subparagraph of Article 4 (1) of this Law.

Two. As from 1 January 1999, the registrars of the property and the market will admit the expression of the unit of account euro in the documents of all kinds, which are presented in the Register. Similarly, they shall record their trade in the registered seats which they practise from that date, in respect of documents containing references to the peseta unit of account, in addition to that figure, the corresponding in euro per application of the conversion rate and, where appropriate, the corresponding rounding applied in accordance with the provisions of Article 11 of this Law. The same obligation shall apply in respect of the notes and certificates issued in respect of which expressions are contained in the peseta unit of account.

If a document to be filed in the Register contains discordance between the unit of account expressed in pesetas and the one presented as equivalent in euro, without enforcement of the conversion rate and the rules of Previously referred to, they will suspend the practice of the corresponding seat until the sub-healing of this discordance.

Three. By way of derogation from the first subparagraph of paragraph 1 and the first subparagraph of paragraph 2, no such action shall be taken where the amount to be shown in the document or in the register, expressed in the unit of account, is the result of adding individual monetary amounts. In particular, the amount of the bond issue shall not be renamed unless the aggregate sum of the securities or, where applicable, balances, redenominated in euro is recorded in accordance with the provisions of this Act in respect of the redenomination of the securities. private fixed income securities, in which case it shall be this figure that is recorded as equivalent in euro to that expressed in pesetas.

The nominal value of the shares, units or shares shall not be renamed unless it is determined in accordance with the rules laid down in this Law for the redenomination of the share capital.

Article 32. MIBOR.

One. The interest rate on the inter-bank market for one year (MIBOR) referred to in Circular 8/1990 of the Banco de España, in order to apply to mortgage loans in force on 1 January 1999, will continue to be calculated and published while the technical requirements for their preparation. It shall be presumed, unless otherwise proved, that the simple references contained in the mortgage loan contracts to the MIBOR as a reference interest rate are referred to in the initial paragraph of this number.

Two. If it is not possible for technical or market difficulties to be drawn up, the Minister for Economic Affairs and Finance shall have the right to determine his calculation formula or to establish a new equivalent rate or index of will replace the one with the Ministry of Law. If it is not possible to establish a new equivalent type or index of reference, it shall be ensured that it has the greatest possible analogy with that type or index.

It will also be empowered to establish rules on advertising for the aforementioned indexes. As provided for in this number, the Law will not grant any action to claim the application of any substitute, subsidiary or conventionally applicable in default of the initially agreed upon by the parties, or the unilateral modification or alteration of the loan or its extinction as a result of the application of the provisions of this Article.

Three. In financial transactions of any kind other than those provided for in paragraphs 1 and 2 above, using as a reference a MIBOR type whose calculation could not be carried out as a result of losing financial significance, and provided that the parties do not have established a substitute, subsidiary or conventionally applicable type of default of the initially agreed upon, which is effective, or have not provided any rules for the case of disappearance or lack of representativeness of the said The type of interest shall be applied, in its place, to the rate of interest bearing the greatest analogy with that type.

For the purposes of the above paragraph, the Minister for Economic and Financial Affairs, when the technical or market circumstances advise him, is empowered to determine a new calculation formula or to establish a replacement rate to be applied by law ministry. In the event that the provisions of this number are applicable, the Law does not give action to any of the parties to unilaterally claim the modification, termination or termination of the contract as a result of the application of the provided in this section.

Article 33. Provisions of Tax Law.

One. The Minister for Economic Affairs and Finance, or the body to which the competition corresponds in accordance with the rules governing each tax, may approve the models of declarations and self-approval in euro, as well as the conditions and circumstances of the their use, in respect of taxes payable as from 1 January 1999, except for those whose tax period has begun before that date.

Two. In accordance with the above paragraph, the taxpayer may choose to declare or self-abolish in euro in respect of each tribute in which it is obliged. In order to exercise the option, when it is obliged to carry out commercial accounts in accordance with the Trade Code or the specific legislation applicable to it, it shall be required to express in euro the entries in its books of accounts, Article 27 of this Law is based on the provisions of Article 27. Once the option is exercised, the option will be irrevocable.

Three. Since the beginning of the transitional period, the exercise of the option to express in euro the entries in the books of accounts, as provided for in Article 27 of this Law, shall entail the duty to use the same unit of account in the books and records required by the tax rules. Taxpayers who are not required to carry out commercial accounts may use the euro in the books and tax records in accordance with the provisions to be laid down.

Article 34. Provisions on social security contributions.

The time, procedure and conditions for the use of the euro account unit in relations with the Social Security and in the payments resulting from the contributions to the same shall be determined.

Article 35. Double exposure of prices in pesetas and euros. Consumer and user rights.

One. Any dual pricing exposure shall be made by obtaining the price in euro by applying the conversion rate and rounding rule provided for in Article 11 of this Law.

Two. Public administrations may, in the exercise of their respective powers, establish a system for the protection of the rights of consumers and users of specific application to the transitional period up to the full use of the euro. In particular, such a scheme may provide for the need for a double price exposure in the euro and peseta unit of account to indicate the unit that serves as the basis for the calculation of the conversion and rounding.

Article 36. Official listing.

For the purposes of the legislation in force, from 1 January 1999, the European Central Bank shall have the official consideration of the official currency exchange vis-à-vis other currencies for the European Central Bank. through the Banco de España. The Banco de España may also publish euro quotes in respect of currencies other than those considered by the European Central Bank. During the transitional period, the Banco de España shall publish for information the equivalence of the official change in the peseta unit of account.

Additional disposition first.

This Law is issued under the cover of the two 11. or, first indent, and 13. or of Article 149, 1. or of the Spanish Constitution, and without prejudice to the provisions of Article 35 of this Law.

Additional provision second.

One. The integration of the Banco de España into the European System of Central Banks determines the reorganization of its services and dependencies.

Two. This provision shall enter into force on the date of its publication in the Official Gazette of the State.

Additional provision third. Guarantees in operations with the Banco de España, with the European Central Bank and others.

One. The condition of non-mortgage loans as collateral in favour of the Banco de España, the European Central Bank, or the national central banks of the Member States of the European Union, to ensure compliance with the obligations present or future persons who contract with them the credit institutions shall be governed by the following provisions:

(a) Loans shall be subject to any formal or material requirements that the parties have agreed upon with respect to their assignment or lien.

(b) This condition may be formalized in an official model approved for this purpose by the Banco de España, which will produce all its effects against third parties since it is registered in the register to be established by the Banco de España. The document must also be entered in the Register of Sale to Plazos of Goods Regulated in article 15 of Law 28/1998, of July 13, of Sale to Plazos of Furniture. The documents thus entered shall be sufficient for their execution. If the original document of the loan concerned is not delivered to the collateral beneficiary, the reference to that registration shall be entered in the guarantee.

(c) The fruits of the loans affected shall correspond, unless otherwise agreed, to the credit institution that provides the guarantee.

(d) In the event of non-compliance with the guaranteed obligations, the collateral holder shall acquire the full entitlement of the loans affected, subrogating to the contractual position of the lender. Once the obligations under the loans have been met, the beneficiary shall repay the excess, if any, to the defaulting entity. However, the guarantee may also be executed by means of an auction organised by the Banco de España, in accordance with the procedure laid down by the Banco de España, which shall also be restored, if any, to the defaulting entity.

e) For the determination of the amounts due, liquid and payable of the guaranteed obligations that have been breached, it shall be the certification that the beneficiary of the guarantee will issue to that effect. This amount shall, where appropriate, be deducted from the amounts which have been paid from other guarantees which may be subject to the same obligations.

(f) In the event of bankruptcy or suspension of payments by the institution which has affected the loans, in addition to the effect provided for in paragraph (d) above, the beneficiary of the same shall have the absolute right to separation in relation to the credit claims arising from such loans. The lodging of the guarantees referred to in this standard and the obligation guaranteed by them shall not be contested in the case of retroactive measures linked to the said procedures.

Two. The scheme provided for in the securities markets legislation for garments and double transactions and with repurchase agreements, made in the form of a guarantee of obligations against the Banco de España in the exercise of its policy operations (a) monetary union shall also apply to operations of a similar nature, carried out in Spain as a guarantee of obligations against the European Central Bank and the other Central Banks of the Member States of the European Union in the exercise of its monetary policy operations.

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

First disposition first.

The government is empowered to regulate the provisions of this Law. The Government may also issue the necessary measures to ensure that the implementation of the provisions of this Law is performed harmoniously. To this end, it is enabled to adjust the monetary amounts to whole euro figures, as well as to introduce, for the purposes of Article 11. two, those specifications that are necessary for insurance.

The coordination of the measures set out in this Law will be carried out through the Inter-Ministerial Commission for the Coordination of Activities for the Introduction of the Euro in Public Administrations, created by the Royal Decree 363/1997 of 14 March 1997, who must inform the Commission of any regulatory provision that is made under this final provision.

Final disposition second.

One. The Minister for Economic Affairs and Finance, within the framework of the introduction of the euro, is empowered to:

(a) On a proposal from the General Intervention of the State Administration, determine which states or accounts among which the State Administration, its autonomous organizations and other entities are to render to the Court of Auditors (b) To provide rules in relation to the budgets of the Local Government, to the extent that they are appropriate to the local authorities, to the extent that they are subject to public accounting. the provisions of this Law.

Two. The General Intervention of the State Administration is also empowered to determine the information that is expressed in euro within the intermediate and year-end accounting information that is not given to the Court of Auditors, and to determine the accounting rules for the application of the conversion scheme for entities subject to public accounting.

Third end disposition.

This Law shall enter into force on 1 January 1999, except for its second and final first provisions which shall enter into force on the day 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 17, 1998.

JOHN CARLOS R.

The President of the Government,

JOSÉ MARÍA AZNAR LÓPEZ