The recast text of the General Budget Law (TRLGP) empowers the Ministry of Economy and Finance in Article 104 (5) to agree or arrange for the conduct of "financial exchange" operations, including 'financial swap' means changes to any conditions of the operations which make up the State's debt.

Currently, the Treasury is carrying out contracts for the financial exchange of foreign currency and is authorized by the Order of the Ministry of Economy and Finance of 9 May 1995 to carry out financial interests in the interest of State debt issues in the form of mushrooms.

The content of Article 104 (5) of the TRLGP (Article 104 (5) of the TRLGP) shows that the TRLGP itself is entitled to carry out financial swap operations involving changes to any conditions of the transactions that make up the State's Debt and therefore do not enable them to carry out speculative transactions, which are understood as those that are not made to modify the conditions of existing debts, but to the margin of the same.

With regard to the financial interests of interest, the Order of the Ministry of Economy and Finance of 9 May 1995, which authorizes its implementation, clearly determines that the swap must be made on securities issued by the State.

Therefore, the scope of application of the rules contained in this Resolution only applies to the transactions of financial swaps carried out in order to modify any of the conditions of the transactions that State debt, that is to say, made on State debts already existing or created simultaneously with the operation of a financial swap.

Specifically, the transactions of financial swap of foreign currency, of interest-bearing financial swaps, whether on notional amounts in foreign currency or in pesetas, and the financial swaps that are assumed by the State together with the corresponding principal debt to which they transform or cover.

The Foreign Public Debt Accounting Instruction, approved by the Order of the Ministry of Economy and Finance of 17 May 1989, regulated the operations of foreign exchange, interest, and financial exchanges. optional financial exchange, in matters relating to the accounting record, budgetary allocation, operation to be followed, and information to be provided.

With the approval of the new General Public Accounting Plan (PGCP) by Order of the Ministry of Economy and Finance of 6 May 1994, some of the criteria that were established in the aforementioned Accounting Instruction In the case of the new PGCP criteria, in particular those affecting the valuation of the "borrowing loan" of the transaction, the foreign public debt to account for the foreign exchange transactions entered into contradiction with the criteria of the new PGCP. imputation to the results of the differences of change, and to the recognition of the interests accrued and not due in the end of the "debtor loan" and the "creditor loan" exercise.

According to the former Instruction the "creditor loan" was valued at the exchange rate in force at the end of the year and the exchange differences produced in this valuation were attributed to the "borrowing loan"; this way The Court of State held that the Court held that the Court held that the Court of State held that the Court of State held that the Court of

However, according to the criteria of the new PGCP the 'borrowing loan' was also to be assessed at the exchange rate in force at the end of the year and the difference between the two loans should be imputed to the results of each financial year. As regards the recognition of the accrued and unexpired interest on both loans, which until then were not accounted for, the new PGCP required its registration at the end of the financial year.

criteria for adjusting these operations to the criteria of the 1995 financial year were laid down by the General Intervention of the State Administration of 1 April 1996. new PGCP, and the application thereof from that moment. For the other aspects of these operations, such as the allocation of the budget, the operation to follow, and information to be provided, the provisions of the aforementioned Instruction for Accounting for Foreign Public Debt remained in place.

This instruction was expressly repealed by the Order of the Ministry of Economy and Finance of 1 February 1996, which approved the Instruction for Accounting for the General Administration of the State, need to establish a new regulation for these operations.

In this sense, the Instruction of Accounting Operative to follow in the execution of the State Expenditure, also approved by Order of the Ministry of Economy and Finance of 1 February 1996, in its third provision, authorized the General Intervention of the State Administration to make the necessary provisions for the accounting of financial exchange operations. Furthermore, the Order of the Ministry of Economy and Finance of 1 February 1996 which approves the documents to be used by the General Administration of the State, in its additional provision, provides that the models and standards of the completion of the documents relating to the accounting of financial exchange operations shall be approved by the General Intervention of the State Administration.

In the meantime the new regulation was being developed, it has been necessary to establish, by Resolution of the General Intervention of the State Administration of 31 March 1997, the information to be given on the operations of financial exchange of foreign exchange, adapting the states that were coming in to the new criteria of accounting of the PGCP and the structure established for the information to yield on the indebtedness in the mentioned Instruction Accounting for the General Administration of the State.

The new accounting record criterion of these operations, which is regulated in this Resolution, is a consequence of the existing doctrinal approaches. Thus, the present accounting doctrine considers that the transactions of foreign exchange swaps do not, from the legal point of view, involve the initial granting of reciprocal loans, since the initial exchange of principal is merely fictitious and is established as the basis of calculation to determine future financial flows. The contract of financial swap does not produce at the moment of its perfection any alteration, simply create future expectations of financial flows.

It is therefore a matter of future commitments and not of rights or obligations, and should not be recorded in accounting for their full amounts, but for differences arising from the updating at the end of the year of the value in pesetas future commitments in foreign currency, irrespective of whether they are settled by integration or by differences, and with the same criteria as those applied to the main operation to which they are transformed or covered.

In this sense, the Accounting and Audit Institute of Accounts, although it has not expressly stated about the operations of financial permuse, considers that for any operation of hedging through instruments derivatives, the criterion to be used must be ' to impute to the profit account the differences arising from these transactions with the same criterion as the performance of the assets or liabilities covered and in the recording of all transactions with a uniform criteria (accounting for differences) irrespective of what the movements are financial resources that are derived from them ".

However, taking the generally accepted registration criterion (registering them for the difference between the debtor and the creditor) implied that, in the case of settlement by integration, it would not be adequately reflected in the the Situation Balance Sheet the credit risk existing for the State, i.e. the risk that at the maturity of the operation the State will pay the creditor current but does not charge the debit current.

The solution adopted is to give all financial swap transactions a uniform accounting treatment (they are accounted for by difference between the creditor and debtor current), irrespective of the financial flows and to include in the accounts of the account of the General Administration of the State and in the partial account of the Directorate-General of the Treasury and Financial Policy the information on the credit risk existing for the transactions that are cancelled by integration, rather than reflecting that risk in the Balance Sheet.

Accordingly, this Resolution establishes the creation of new accounts and specific sub-accounts to record in the General Administration of the State the operations of financial exchange and the definition of accounting for the same. Also, the accounting officer is regulated to continue in the execution of such operations; the models of accounting documents specific to them are established; and the information for the purpose of the exercise is determined to be included in the Balance of Situation, in the Account of the Economic-Patronial Result, in the Memory of the account of the General Administration of the State, and in the partial account of the General Directorate of the Treasury and Financial Policy.

Regarding the presentation of these transactions in the Balance Sheet and the Economic Result Account-Heritage has been considered to be made by the creation of specific items within the corresponding headings of the PGCP.

Regarding the information to be given on these operations in the Memory of the General Administration of the State and in the partial account of the Directorate General of the Treasury and Financial Policy, currently regulated in the Resolution of 31 March 1997 of the General Intervention of the State Administration, a new regulation is established which extends the previous one by introducing detailed information on the description and characteristics of the operations The main and the financial permuse operations, as a result of the need for the permutas Financial instruments are carried out in respect of operations that integrate the State Debt; on the credit risk in transactions that are cancelled by integration and on the accumulated result until the end of each transaction; It is appropriate to group information on the creditor and debtor flows of each transaction for which separate states have been established in the previous regulation.

Accounting documents have been designed in line with those established for the State Debt in the Order of 1 February 1996, which approved the documents to be used by the General Administration of the State, including information necessary for the accounting of operations and for obtaining the information to be provided. They are accompanied by an explanation of the contents of each of the fields of each document.

Finally, in addition to the creation of specific accounts and sub-accounts for foreign exchange and interest exchange transactions, other changes are made to the adaptation of the PGCP to the General Administration of the State, approved by Resolution of the General Intervention of the State Administration of 17 February 1995. Thus, the previously existing accounts and sub-accounts have been removed or renamed to record the financial exchange transactions and have been grouped, in some case, with the object of leaving the digits free. required for the new sub-accounts that are created. In addition, the accounts 697 "Endowment for the provision of long-term credit insolvencies", 797 "Provision for long-term credit insolvencies", 633 "Foreign taxation", and sub-account 2547 "Fund of Provision R.D.L." are also created. 12/95 " to reflect in the General Administration of the State the creation in the I.C.O. of the Fund of Provision referred to in the fourth paragraph of the additional provision sixth of Royal Decree-Law 12/1995, of December 28, on urgent measures in budgetary, tax and financial matters.

By virtue of the powers conferred on the General Intervention of the State Administration in Article 125 (c) of the recast text of the General Budget Law, to approve the partial or partial plans (a) special public accounting to be drawn up in accordance with the general plan; in rules 87.3 and 96.5 of the Accounting Instruction for the General Administration of the State, in order to extend the content of the Account of the Administration General of the State and of the partial accounts of the accounting sub-entities, respectively; Additional provision third of the Order of the Ministry of Economy and Finance of 1 February 1996, approving the Instruction of the Accounting Office to continue in the execution of State expenditure, to make the necessary provisions for the accounting of financial exchange operations; and in the additional provision of the Order of the Ministry of Economy and Finance of 1 February 1996 approving the documents to be used by the administration General of the State, in order to establish the models and the rules for the completion of the documents relating to the accounting of financial exchange transactions; this General Intervention provides:

First. -The rules that are approved by this Resolution will apply exclusively to the following operations:

1. Financial exchange operations arranged by the General Directorate of the Treasury and Financial Policy with the aim of modifying any of the conditions of the operations that integrate the State Debt and that are implemented in some of the following modes:

Foreign currency swap contracts. Understanding as such contracts by which two parties agree to exchange each other, on predetermined dates, debts denominated in different currencies, of equivalent amounts at the time of the improvement of the contract, as well as the the periodic interest flows generated by the debt swap.

Financial Permuse Contracts of Interest. Understanding as such those contracts by which two parties agree to exchange each other, on predetermined dates, periodic flows of interest calculated on equivalent notional amounts at the time of the improvement of the contract.

2. Operations for the exchange of foreign exchange or interest payments undertaken by the State with the corresponding main operation, provided that the financial swap contracts assumed are implemented in one of the two modalities of the item previous.

Second. -The following modifications are approved in the adaptation of the General Plan of Public Accounting to the General Administration of the State, approved by Resolution of the General Intervention of the State Administration of February 17, 1995:

1. For the purposes of recording transactions in the exchange of foreign exchange and interest transactions, the accounts and sub-accounts set out in Annex I to this Standard are established, with the accounting definitions and relationships and the balance sheet items of the Situation and The Account of the Economic Result-Heritage that are established in it.

2. The accounts are removed:

2551. " Long-term loans. Cancellation by integrations ".

2552. " Long-term loans. Cancellation by differences ".

5419. "International bodies".

5429. "International bodies".

5459. "International bodies".

5469. "International bodies".

5479. "International bodies".

7691. "Differences by financial exchange operations".

7693. "Interest in financial exchange operations".

3. Sub-accounts 5418, 5428, 5458, 5468 and 5478 shall be renamed 'Foreign and International Bodies'.

4. The accounts are created:

697. "Endowment to the provision for long-term credit insolvencies";

797. "Excess provision for long-term credit insolvencies";

633. "External taxes";

2547. "Provision Fund R.D.L. 12/95";

which shall have the definitions and accounting relationships set out in Annex V to this standard.

5. The new account 633 "Tax from the outside" will also be used by public agencies of the State that have this category of expenditure.

Third. -Paragraphs 8) of Rule 87 and 10) of Rule 96 of the Accounting Instruction of the General Administration of the State, which were established by Resolution of the General Intervention of the State Administration of March 31, 1997, to incorporate into the account of the General Administration of the State and in the partial account of the Directorate General of the Treasury and Financial Policy, respectively, information on exchange transactions Foreign exchange finance, to be denominated " Information on exchange transactions In both cases, they will have the content set out in Annex II to this standard.

Fourth. -The accounting operative is approved to continue in the operations derived from the contracts of financial exchange, which is listed as Annex III of this standard.

Fifth.-The accounting documents to be used for the recording of the financial exchange transactions, as set out in Annex IV of this Standard, are approved.

Sixth. The accounting office of the Directorate-General of the Treasury and Financial Policy will proceed with the entry into force of this standard, as set out in Annex VI of this standard.

Madrid, March 20, 1998. -Interventor General, Rafael Muñoz López-Carmona.

ANNEX I

Amendments to the Resolution of 17 February 1995, approving the adaptation of the PGCP to the General Administration of the State, to collect financial exchange operations

ACCOUNT BOX

GROUP 1

Basic Financing

17. Long-term debts for loans received and other concepts.

174. Financial exchange operations.

1740. Creditor differences in foreign currency exchange transactions.

GROUP 2

Quiesced

25. Permanent financial investments.

255. Financial exchange operations.

2550. Debt differences in foreign currency exchange transactions.

GROUP 5

Financial Accounts

50. Borrowings and other similar short term issues.

504. Financial exchange operations in the short term.

5046. Short-term creditor interests of financial exchange of interest transactions.

52. Short term debts for loans received and other concepts.

524. Financial exchange operations in the short term.

5240. Short-term lending differences in foreign currency exchange transactions.

5245. Short-term creditor interests of foreign currency exchange transactions.

54. Temporary financial investments.

542. Short-term loans.

5429. Short-term debt differences in foreign currency exchange transactions.

546. Short-term interest on fixed income securities.

5469. Short-term borrowing interests of financial exchange of interest transactions.

547. Short term interest on loans.

5479. Short-term borrowing interests of foreign currency exchange transactions.

GROUP 6

Purchases and expenses by nature

66. Financial expenses.

664. Expenditure on financial exchange operations.

6640. Interest in foreign exchange trading operations

6641. Negative differences in exchange of foreign exchange transactions.

6645. Interest on financial exchange of interest transactions.

6648. Formalisation costs.

6649. Losses on cancellation.

GROUP 7

Sales and revenue by nature

76. Financial income.

764. Revenue from financial exchange operations.

7640. Interest in foreign exchange trading operations.

7641. Positive differences in exchange of foreign exchange transactions.

7645. Interest on financial exchange of interest transactions.

7649. Benefits in cancellation.

ACCOUNTING DEFINITIONS AND RELATIONSHIPS

GROUP 1

Basic Financing

17. Long-term debts for loans received and other concepts.

174. Financial exchange operations.

1740. Creditor differences in foreign currency exchange transactions.

174. Financial exchange operations. -In this account, the creditor situation of the financial exchange contracts is collected through the respective sub-accounts.

The liability of the balance sheet, under item C. II.5, shall be included in the 'Long-term creditors' group.

The portion of the creditor difference that has a short-term maturity must be included in the corresponding divisionary of the account 524 "Short-term Financial Exchange Operations".

1740. Credit differences in foreign currency exchange transactions. -In this sub-account, the creditor difference, with long-term maturity, is collected between the debtor and creditor currents of each foreign currency swap contract.

Your move is as follows:

(a) Account 656 "Capital Grants" shall be paid for the amount of the creditor difference existing at the time of the assumption by the State of foreign currency swap transactions between the current debtor and creditor of the same.

(b) The accounts 6641 "Negative exchange of foreign exchange exchange transactions" or 7641 "Positive differences in exchange of transactions for the exchange of financial transactions" shall be paid or debited 'foreign currency', respectively, as a consequence of the adjustment of the value of the lending and debt flows of each transaction at the exchange rate prevailing on the date of the end of the financial year, or on the date of its early cancellation, in such a way that its balance reflects the resulting difference, if the difference is accretive.

(c) In the early cancellation of the transaction, the account shall be paid out of the account 430 " Debtors for recognized rights. Current income budget " for the amount of the debit current, in the event of cancellation by integra of an operation with a creditor difference.

(d) It will be charged, in the early cancellation of the transaction, with credit to the account 4000 " Creditors for recognized obligations. Current expense budget " for the following amounts:

By the creditor difference, in case of cancellation by difference between the debit and creditor current.

For the amount of the creditor current, in the event of cancellation by integra of an operation with a creditor difference.

At the same time the account will be charged 6649 "Lost in cancellation" or the account 7649 "Benefits in cancellation" will be paid, for the results derived from the advance cancellation.

GROUP 2

Quiesced

25. Permanent financial investments.

255. Financial exchange operations.

2550. Debt differences in foreign currency exchange transactions.

255. Financial exchange operations.-In this account, the debt situation of the financial exchange contracts is collected through the respective sub-accounts.

To be included in the balance sheet asset, in item A.V. 5 for the pool of "Fixed assets".

The portion of the debt difference that has a short-term maturity must be included in the corresponding divisional of the account 542 "Short-term credits".

2550. Debt differences in foreign currency exchange transactions. -In this sub-account, the debt difference, with long-term maturity, is collected between the debtor and creditor currents of each foreign currency swap contract.

Your move is as follows:

(a) Account 656 "Capital Grants" shall be debited for the amount of the debt difference existing at the time of the assumption by the State of financial swap transactions between the debtor and accretive thereof.

(b) Credit or credit shall be paid or paid to the accounts 7641 "Positive differences in exchange of foreign currency exchange transactions" or 6641 " Negative differences in exchange of financial exchange transactions 'foreign currency', respectively, as a consequence of the adjustment of the value of the lending and debt flows of each transaction at the exchange rate prevailing on the date of the end of the financial year, or on the date of its early cancellation, in such a way that its balance reflects the resulting difference, if this is a debtor.

(c) It will be charged, in the early cancellation of the transaction, with credit to the account 4000 " Creditors for recognized obligations. Current expenditure budget ' for the amount of the creditor current, in the event of cancellation of an operation with a debtor difference.

(d) In the early cancellation of the transaction, the account shall be paid out of the account 430 " Debtors for recognized rights. Current revenue budget " for the following amounts:

By the debtor difference, in case of cancellation, by difference between the debit and creditor current.

For the amount of the debit current, in the event of cancellation, for the integration of an operation with a debtor difference.

At the same time the account will be charged 6649 "Lost in cancellation" or the account 7649 "Benefits in cancellation" will be paid, for the results derived from the advance cancellation.

GROUP 5

Financial Accounts

50. Borrowings and other similar short term issues.

504. Financial exchange operations in the short term.

5046. Short-term creditor interests of financial exchange of interest transactions.

504. Financial exchange operations in the short term. -Account is taken of the lending situation of financial swaps on bonds and bonds with short-term maturity.

The liability of the balance sheet shall be included in item D.I. 5 for the pool of "Short-Term Creditors".

5046. Short-term creditor interests of interest-bearing financial exchange transactions.-The creditor difference, with a maturity of not more than one year, of interest-bearing swaps on national currency bonds and bonds.

Your move is as follows:

(a) Account 6645 "Interest rate exchange transactions interest" shall be paid for the amount of the creditor difference accrued during the financial year for each transaction, with maturity in the financial year next.

(b) It shall be charged, where the interest is due, to the account, generally, to the account 4000 " Creditors for recognised obligations. Current expense budget ".

52. Short term debts for loans received and other concepts.

524. Financial exchange operations in the short term.

5240. Short-term lending differences in foreign currency exchange transactions.

5245. Short-term creditor interests of foreign currency exchange transactions.

524. Financial exchange operations in the short term. -In this account, the creditor situation of financial exchange contracts is collected through the respective sub-accounts.

The liability of the balance sheet, under item D. II.3 for the pool of 'Short-term creditors', shall be included in the balance sheet.

5240. Short-term lending differences in foreign currency exchange transactions. -This sub-account includes the creditor difference, with short-term maturity, between the debtor and the creditor current of the financial swap contracts. currency.

Your move is as follows:

(a) Account 656 "Capital Grants" shall be paid for the amount of the creditor difference existing at the time of the assumption by the State of foreign currency swap transactions between the current debtor and creditor of the same, with short-term maturity.

(b) The accounts 6641 "Negative exchange of foreign exchange exchange transactions" or 7641 "Positive differences in exchange of transactions for the exchange of financial transactions" shall be paid or debited 'currency', respectively, as a result of the adjustment of its value at the exchange rate in force on the date of its cancellation or, where applicable, at the end of the financial year, so that its balance reflects the resulting difference, if it is a creditor.

(c) The account shall be paid, at the maturity of the transaction, to the account 430 " Debtors for recognised rights. Current income budget " for the amount of the debit current, in the event of cancellation by integra of an operation with a creditor difference.

(d) The maturity of the transaction shall be debited with credit to the account 4000 " Creditors for recognised obligations. Current expense budget " for the following amounts:

By the creditor difference, in case of cancellation by difference between the debit and creditor current.

For the amount of the creditor current, in the event of cancellation by integra of an operation with a creditor difference.

At the same time the account 6649 "Lost in cancellation" will be charged or the account 7649 "Benefits in cancellation" will be paid, for the possible results obtained in the cancellation.

5245. Short-term creditor interests of foreign currency exchange transactions.-The balance of the accounts represents, at the end of the financial year, the credit differences between the interest of the debtor and the creditor of foreign currency swaps. accrued up to that date and due in the following financial year.

Your move is as follows:

(a) Account 656 "Capital Grants" shall be paid out of the amount of the creditor difference existing at the time of the assumption by the State of foreign currency swap or transactions (a) financial interest on notional amounts in foreign currency, between the creditors and the accrued and unexpired debtors of the transaction.

(b) account shall be paid to the account 6640 "Interest of foreign exchange transactions" for the amount of the difference between the interest earned during the financial year by the debtor and the the creditor of each transaction, due in the following financial year.

(c) The account shall be paid out of account 6640 "Interest in foreign exchange transactions" for the amount of the creditor difference due from the end of the preceding financial year to the maturity of the interest, in Case of settlement by integra.

(d) A charge or a credit shall be paid or paid to the accounts 7641 "Positive differences in exchange of foreign currency exchange transactions" or 6641 " Negative differences in exchange of financial exchange transactions "foreign exchange", respectively, as a consequence of the adjustment of its value at the exchange rate prevailing on the due date of interest.

(e) To be paid, at the maturity of the transaction, under the account 430 " Debtors for recognised rights. Current income budget " for the amount of interest on the debit current, in the event of settlement of an operation with a creditor difference.

(f) It shall be charged, where the interest is due, to the account, generally, to the account 4000 " Creditors for recognised obligations. Current expense budget " for the following amounts:

By the amount of the creditor difference, in the event of settlement by difference between the interest of the debtor and the creditor.

For the amount of interest in the creditor current, in the event of settlement of an operation with a credit difference.

54. Temporary financial investments.

542. Short-term loans.

5429. Short-term debt differences in foreign currency exchange transactions.

546. Short-term interest on fixed income securities.

5469. Short-term borrowing interests of financial exchange of interest transactions.

547. Short term interest on loans.

5479. Short-term borrowing interests of foreign currency exchange transactions.

542. Short-term loans.

5429. Short-term debt differences in foreign currency exchange transactions. -This sub-account includes the debt difference, with a short-term maturity, between the debtor and the creditor of the financial swap contracts of the currency.

The asset in the balance sheet shall be included in item C. III.5 for the pool of "working assets".

Your move is as follows:

(a) Account 656 "Capital Grants" shall be debited for the amount of the debt difference existing at the time of the assumption by the State of foreign currency swap transactions between the current debtor and creditor, with short-term maturity.

(b) Credit or credit shall be paid or paid to the accounts 7641 "Positive differences in exchange of foreign currency exchange transactions" or 6641 " Negative differences in exchange of financial exchange transactions 'foreign currency', respectively, as a consequence of the adjustment of its value at the exchange rate in force on the date of its cancellation or, where applicable, at the end of the financial year, in such a way that its balance reflects the resulting difference, if it is a debtor.

(c) The maturity of the transaction shall be debited with credit to the account 4000 " Creditors for recognised obligations. Current expenditure budget ' for the amount of the creditor current, in the event of cancellation of an operation with a debtor difference.

(d) The account shall be paid, at the end of the transaction, to the account 430 " Debtors for recognised rights. Current revenue budget " for the following amounts:

By the debtor difference, in case of cancellation, by difference between the debit and creditor current.

For the amount of the debit current, in the event of cancellation, for the integration of an operation with a debtor difference.

At the same time the account 6649 "Lost in cancellation" will be charged or the account 7649 "Benefits in cancellation" will be paid, for the possible results obtained in the cancellation.

546. Short-term interest on fixed income securities.

5469. Short-term borrowing interests of interest-bearing financial exchange transactions.-The debt difference, with a maturity of not more than one year, of interest-bearing swaps on national currency bonds and bonds.

The asset in the balance sheet shall be included in item C. III.5 for the pool of "working assets".

Your move is as follows:

(a) Account 7645 "Interest rate exchange transactions" shall be debited for the amount of the debtor differences accrued during the financial year for each transaction, with maturity in the financial year next.

(b) When the maturity of the interest is paid, it shall be paid, in general, to the account 430 " Debtors for recognized rights. Current revenue budget ".

547. Short term interest on loans.

5479. Short-term borrowing interests of foreign currency exchange transactions.-The balance of payments between the interest of the debtor and the creditor of foreign currency swaps represents, at the end of the year accrued up to that date and due in the following financial year.

The asset in the balance sheet shall be included in item C. III.5 for the pool of "working assets".

Your move is as follows:

(a) Account 656 "Capital Grants" shall be debited for the amount of the debt difference existing at the time of the assumption by the State of financial swap or swap transactions interest on notional amounts in foreign currency, between the creditors and the debtors accrued and not due to the transaction.

(b) The account shall be debited from account 7640 "Interest in foreign exchange transactions" for the amount of the debt difference due during the financial year for each transaction, with maturity in the financial year next.

(c) Account 7640 "Interest in foreign exchange transactions" shall be debited for the amount of the debtor difference due from the end of the preceding financial year to the maturity of the interest, in case of settlement by integra.

(d) A charge or a credit shall be paid or paid to the accounts 7641 "Positive differences in exchange of foreign currency exchange transactions" or 6641 " Negative differences in exchange of financial exchange transactions "foreign exchange", respectively, as a consequence of the adjustment of its value at the exchange rate prevailing on the due date of interest.

e) A charge shall be made, when the interest is due, to the account 4000 " Creditors for recognised obligations. Current expenditure budget ' for the amount of the interest on the creditor current, in the event of the settlement of an operation with a debtor difference.

(f) When the maturity of the interest is due, it shall be paid out of the account 430 " Debtors for recognized rights. Current revenue budget " for the following amounts:

For the amount of the debt difference, in the event of cancellation by difference between the interest of the debtor and the creditor.

For the amount of interest in the debit current, in the event of cancellation by integra of an operation with a difference of debt.

GROUP 6

Purchases and expenses by nature

66. Financial expenses.

664. Expenditure on financial exchange operations.

6640. Interest in foreign exchange trading operations.

6641. Negative differences in exchange of foreign exchange transactions.

6645. Interest on financial exchange of interest transactions.

6648. Formalisation costs.

6649. Losses on cancellation.

664. Expenditure on financial exchange operations. -It covers, distributed by sub-accounts, expenditure incurred during the financial year by financial swaps. It shall be included in the Account of the Economic-Employers ' Outcome, under heading A. 1.i) "Expenditure on financial exchange operations ".

6640. Interest in foreign currency exchange transactions. -Interest expense corresponding to the creditor difference between the interest of the debtor and the creditor of each currency swap operation.

Your move is as follows:

a) It will be loaded with credit to:

a.1) Account 4000 " Creditors for recognised obligations. Current expenditure budget ', for the amount of the interest accrued and due in the financial year.

a.2) Account 5245 "Short-term creditors of foreign currency exchange transactions", for the amount of the differences in interest accrued and not due at the end of the financial year.

(b) The balance shall be paid at the end of the financial year to the account 129 "Results of the financial year".

6641. Negative differences in exchange of foreign currency exchange transactions. -Losses produced by changes in the exchange rate in financial exchange transactions.

Your move is as follows:

(a) The accounts of the financial exchange transactions shall be debited by the amount of the negative differences calculated at the end of the financial year or at the end of the financial year.

(b) The balance shall be paid at the end of the financial year to the account 129 "Results of the financial year".

6645. Interest on financial exchange operations of interest. -Interest expense corresponding to the credit differences between the interest earned by the debtor and the creditor of each interest-bearing swap operation.

Your move is as follows:

a) It will be loaded with credit to:

a.1) Account 4000 " Creditors for recognised obligations. Current expenditure budget ', for the amount of the interest accrued and due in the financial year.

a.2) Account 5046 "Short-term interest-bearing interest-exchange transactions" account for the amount of the creditor differences accrued and not due at the end of the financial year.

(b) The balance shall be paid at the end of the financial year to the account 129 "Results of the financial year".

6648. Expenditure on formalisation. -Commissions and other expenditure of a financial nature produced in the formalisation of financial swaps.

Your move is as follows:

(a) Account 4000 " Creditors for recognised obligations shall be debited from the account. Current expenditure budget ', for the amount of expenditure incurred.

(b) The balance shall be paid at the end of the financial year to the account 129 "Results of the financial year".

6649. Losses in the cancellation. -Losses produced, if any, in the early cancellation of the financial swap operations.

Your move is as follows:

(a) The account 4000 " Creditors for recognised obligations shall be charged on a general basis. Budget of current expenditure ', for its amount.

(b) The balance shall be paid at the end of the financial year to the account 129 "Results of the financial year".

GROUP 7

Sales and revenue by nature

76. Financial income.

764. Revenue from financial exchange operations.

7640. Interest in foreign exchange trading operations.

7641. Positive differences in exchange of foreign exchange transactions.

7645. Interest on financial exchange of interest transactions.

7649. Benefits in cancellation.

764. Revenue from financial exchange operations. -It covers, distributed by sub-accounts, the income earned during the financial year by the financial swaps.

It will appear in the Haber of the Account of the Economic-Patternial Result, in item B. 2.h) "Revenue from financial exchange operations ".

7640. Interest in foreign exchange transactions. -Interest income corresponding to the difference between the interest earned by the debtor and the creditor of each currency swap transaction.

Your move is as follows:

a) It will be paid out of:

a.1) Account 430 " Debtors for recognised rights. Current income budget ", for the amount of the interest owed and due in the financial year.

a.2) Account 5479 "Short-term debtors of foreign currency exchange transactions", for the amount of debt differences accrued and not due at the end of the financial year.

(b) Account 129 "Results of the financial year" shall be debited from the account at the end of the financial year.

7641. Positive differences in exchange of foreign currency exchange transactions. -Benefits produced by changes in the exchange rate in financial exchange transactions.

Your move is as follows:

(a) The amount of positive differences calculated at the end of the financial year or the maturity of the financial exchange transactions shall be credited to the representative accounts of the financial exchange transactions.

(b) The balance of the financial year shall be charged at the end of the financial year with a credit to the account 129 "Results of the financial year".

7645. Interest on transactions for the exchange of interest. -Interest income corresponding to the difference between the interest earned by the debtor and the creditor of each operation of the financial swap of interest. interests.

Your move is as follows:

a) It will be paid out of:

a.1) Account 430 " Debtors for recognised rights. Current income budget ", for the amount of the interest owed and due in the financial year.

a.2) Account 5469 "Short-term debtors of interest-bearing financial exchange transactions", for the amount of debtor differences accrued and not due at the end of the financial year.

(b) The balance of the financial year shall be charged at the end of the financial year with a credit to the account 129 "Results of the financial year".

7649. Benefits in cancellation. -Benefits produced, if any, in the early cancellation of financial swap operations.

Your move is as follows:

(a) Account 430 " Debtors for recognised rights shall be credited generally to the account. Current revenue budget ", for the amount of revenue accrued.

(b) The balance of the financial year shall be charged at the end of the financial year with a credit to the account 129 "Results of the financial year".

ANNUAL ACCOUNTS

2

Annual Account Models

Balance: The following items are created in the asset and liability.

Active:

A. V. 5 Financial Exchange Operations (255).

C. III.5 Financial Exchange Operations (5429, 5469, 5479).

Liabilities:

C. II.5 Financial exchange operations (174).

D. I. 5 Financial Exchange Operations (504).

D. II.3 Financial exchange operations (524).

Account of the economic income: In the Revenue is created item B. 2.h) "Income from financial exchange operations ", in which the account 764 is collected.

Expenses are created under heading A. 1.i) "Expenses of financial exchange transactions ", in which account 664 is collected.

ANNEX II

Information about financial exchange operations to include in the memory of the account of the General Administration of the State and in the partial account of the Directorate General of the Treasury and Financial Policy

Paragraphs 8 (8) of Rule 87 and 10) of the General Administration of the State's Accounting Instruction 96 shall have the following content:

1. Foreign exchange trading operations.

This information will be structured in the following states:

A) Description and features.

The information in this state will be divided into two parts:

Part One:

The main operation or set of core operations on which foreign exchange finance transactions have been conducted shall be reported, detailing for each foreign exchange transaction transaction. the following data from the main operation or main operations set:

Naming and code of the dation subsystem.

lender entity.

Date of creation.

Expected amortization date.

Initial amount (splitter/pesetas).

Type of interest.

If assumed or created by the State.

In the event that a financial exchange transaction is carried out for the purpose of cancelling another financial exchange transaction, it shall be reported in both transactions.

Part Two:

The following data from the foreign currency exchange operation will be reported:

Denomination and code.

Contracting Entity.

Form of settlement (either by integration or by differences).

Date of creation.

Expected due date.

Initial amount (splitter/pesetas) of the debtor and creditor streams.

The interest rate of the debtor and creditor currents. The maturity date of the interest.

Formalization and Cancellation Commissions.

If assumed or created by the State.

B) Situation of foreign exchange transactions.

For each operation that has been in effect during the exercise, the following amounts are reported:

Main pending as of 1 January: debtor current, creditor current and resulting difference.

Creations of the exercise, breaking down the debtor and creditor streams.

Decreases in the financial year, breaking down the debit and lending streams.

Change differences due to the financial year, broken down by the debtor and creditor currents and the resulting difference.

Principal outstanding at December 31 of the debit and lending streams, and resulting debtor or creditor difference.

The amounts shall be in foreign currency/pesetas, except in the column of exchange differences that shall be in pesetas.

The indicated information will be presented in the following pools:

Operations directly contracted by the State.

Operations assumed.

C) Interest in foreign currency exchange transactions.

For each operation that has been in effect during the exercise, the following amounts are reported:

Interest debtors and creditors accrued and not due on 1 January and resulting difference.

accrued interest in the year, broken down into debtors and creditors, and the resulting difference.

Interest due in the financial year, broken down into debtors and creditors.

Differences of interest change.

Rectiations or transfers.

Accrued and unexpired debtors and creditors on December 31 and resulting debtor or creditor difference.

The amounts will be in foreign currency/pesetas, except in the Exchange Differences column and in the Rectification and Transfer column that will appear in pesetas.

The indicated information will be presented in the following pools:

Operations directly contracted by the State.

Operations assumed.

D) Result of foreign currency exchange transactions.

For each transaction, the cumulative result shall be reported from its formalization or its assumption until the end of the financial year, or until the maturity produced therein, detailing the following amounts:

Formalization expenses.

Accrued interest.

The changed exchange differences.

Results obtained in the early cancellation.

The cumulative result.

The amounts will be in pesetas.

The indicated information will be presented in the following pools:

Operations directly contracted by the State.

Operations assumed.

E) Risk of credit for foreign currency exchange transactions.

In this state, the credit risk existing at the end of the financial year will be reported in those transactions of financial exchange, whose cancellation is established by integration, that is, paying the other party the creditor current and charging from it the debit current.

The status will contain for each operation that the following information is cancelled by:

Denomination and code.

Contracting Entity.

Amount at 31 December of the debit current of the operation expressed in foreign exchange/pesetas.

2. Financial exchange of interest transactions.

This information will be structured in the following states:

A) Description and features.

The information in this state will be divided into two parts:

Part One.

The main operation, or set of core operations, on which the interest-bearing financial exchange operations have been conducted, shall be reported, detailing for each financial exchange transaction of interest the following data from the main operation, or set of operations:

Denomination and code of the debt subsystem.

lender entity.

Date of creation.

Expected amortization date.

Initial amount (splitter/pesetas, if any).

Type of interest.

If assumed or created by the State.

In the event that a financial exchange transaction is carried out for the purpose of cancelling another financial exchange transaction, it shall be reported in both transactions.

Part II.

The following data from the interest finance exchange operation will be reported:

Denomination and code.

Contracting Entity.

Form of settlement (either by integration or by differences).

Date of creation.

Expected due date.

Notional Amounts of principal (in foreign currency/pesetas, if any).

Interest rates applicable to notional amounts.

Interest due date.

Formalization and Cancellation Commissions.

If assumed or created by the State.

B) The status of financial exchange of interest transactions.

For each operation that has been in effect during the exercise, the following amounts are reported:

Interest debtors and creditors accrued and not due on 1 January and resulting difference.

accrued interest in the year, broken down into debtors and creditors, and the resulting difference.

Interest due in the financial year, broken down into debtors and creditors.

Differences of interest change, if any.

Rectiations or transfers.

Accrued and unexpired debtors and creditors on December 31 and resulting debtor or creditor difference.

The amounts will be in foreign currency/pesetas when applicable.

The indicated information will be presented in the following pools:

Operations directly contracted by the State.

Operations assumed.

C) Result of interest-bearing financial exchange operations.

For each transaction, the cumulative result shall be reported from its formalization or its assumption until the end of the financial year, or until the maturity produced therein, detailing the following amounts:

Formalization expenses.

The results obtained in the early cancellation.

Accrued interest.

The differences in change accrued, if any.

The cumulative result.

The amounts will be in pesetas.

The indicated information will be presented in the following pools:

Operations directly contracted by the State.

Operations assumed.

ANNEX III

Accounting operative to follow in operations

derived from financial exchange contracts

Operative in financial exchange contracts

Rule 1. Contracts for financial exchange.

This annex regulates the operation to be followed in the processing of the transactions to which the contracts for the financial exchange of foreign currency and the contracts of financial exchange of interest, both the formalized directly by the State as the ones assumed by him.

Rule 2. Operations regarding financial exchange contracts.

In the procedure to be followed in the processing of transactions relating to financial exchange contracts, the following types of transactions can be distinguished:

a) Creating the financial exchange

b) Cancellation of financial exchange and maturity of explicit interests.

c) End-of-exercise regulations

d) Forforming expenses.

Rule 3. Creation of the financial exchange.

1. At the time when the financial exchange contract is completed or at the time the rule establishing the assumption by the State of the financial exchange transaction enters into force, the corresponding Management Service in the Directorate-General of the Treasury and Financial Policy shall issue a document on the creation of foreign exchange operations or the creation of financial exchange of interest transactions, depending on the type of operation treat, which shall be forwarded to the accounting office in the said Centre accompanied by the document or documents in which the terms of the contract are collected. Once the contract has been completed, it must be attached to the first budget document relating to the contract to be sent to the accounting office, as well as a copy of it in Spanish, if any.

2. At the same time, the Management Service shall issue and transmit to the accounting office the following documents:

(a) Current Budget AD Documents for the amount of commitments that are acquired at the time of the creation of the financial exchange transaction for the cancellation of the contract and for the maturity of the returns explicit in the current exercise.

(b) AD documents of future budgets for the amounts of the commitments acquired, where appropriate, at the time of the creation of the financial exchange transaction for the cancellation of the contract and for the maturity of the explicit returns in future years.

In those operations that are cancelled due to differences, these AD documents will not be issued.

If sufficient credit is not available, the above documents will be issued and forwarded once the corresponding credit extension has been approved.

3. In the creation of foreign exchange of foreign currency, the exchange rate used for the perfection of the contract or, where appropriate, the rate at the date of entry into force of the assumption rule, shall be applied for the purposes of calculating the amounts which must be included in the accounting documents of the preceding points of this rule.

4. Based on the document "Creation of foreign exchange financial transactions", the accounting office will carry out the following actions: (a) In foreign currency exchange transactions created directly by the State, take action in economic and heritage accounting.

(b) In the case of transactions assumed, the difference assumed between the debtor and the creditor of the transaction and between the accrued and unexpired interest rates on the accounts shall be recorded in economic accounts. terms that are detailed in the accounting relationships of the accounts concerned.

5. For the financial exchange operations assumed, after the accounting entry for the difference assumed, the same accounting treatment shall be applied to them as to transactions directly created by the State.

Rule 4. Cancellation of financial exchange of foreign exchange and maturity of explicit interests. Settlement by integration.

1. Where the cancellation of a foreign currency exchange transaction or the maturity of the explicit interest of place to a foreign exchange payment will follow the following procedure:

(a) The Management Service in the Directorate-General of the Treasury and Financial Policy shall issue, at least 15 days in advance, and forward to the accounting office in the said Centre: a document O, accompanied by the dossier for the recognition of the obligation and the early cancellation agreement, where applicable, and the specific documents of the debt subsystem: 'Interest in financial exchange transactions', for the maturity of the explicit interests, and "Regularization of foreign exchange financial transactions" and "Cancellation of foreign exchange transactions", in the event of cancellation of the swap.

(b) Once the document is entered, O will be sent to the Payment Service on the outside of the Directorate General of the Treasury and Financial Policy accompanied by the file of recognition of the obligation to be processed before the Bank of Spain the payment of foreign currency.

(c) On the basis of the supporting evidence sent by the Banco de España for payment made in foreign currency, the managing department shall issue and transmit to the accounting office the following documents:

c.1) In case of interest due:

A K document, for the amount of the payment made, accompanied by the payment proposal file.

A positive or negative document, charged to the concept of the Expenditure Budget that corresponds, by the difference between the amount of the payment proposal and the amount of the recognised obligation.

The specific document of the debt subsystem "Financial Exchange Operations Interest" complementary to the issued at the time of recognition of the obligation.

c.2) In case of cancellation of the operation:

Where the amount paid is higher than the recognised obligation, a K document shall be issued for the amount equal to that of the recognised obligation and imputed to the same concept, and an OK document for the difference between the amount paid and the recognised obligation attributed to the concept of the Expenditure Budget concerned, accompanied by the relevant payment proposal file and the specific document of the debt subsystem ' Cancellation of exchange transactions " complementary to the issued at the time of recognition of the obligation.

When the amount paid is less than the recognized obligation, a K document shall be issued for a full amount equal to that of the recognized obligation, with a discount on the concept of the Income Budget corresponding to the amount equal to the difference between the payment made and the recognised obligation, and with a liquid amount equal to the payment made, accompanied by the payment proposal file and the debt subsystem specific document ' Cancellation of transactions financial exchange of foreign currency " complementary to the issued at the time of recognition of obligation.

2. Where the cancellation of a foreign exchange transaction or the maturity of the explicit interest results in a payment in pesetas, the Managing Service in the Directorate-General of the Treasury and Financial Policy shall issue, with a a minimum of 15 days 'notice in respect of the expiry date, and shall send to the accounting office in the said Centre an OK document, together with a list of payments against the' Debt Financial Service ' account, and the specific documents of the debt subsystem 'Interest in financial exchange transactions', for maturity of explicit interest, and "Cancellation of foreign exchange transactions", in the event of cancellation of the swap.

3. Foreign currency collections produced in the cancellation of a foreign exchange transaction or in the maturity of the explicit interest shall be applied to the Revenue Budget on the basis of the corresponding Income Mandation in the Banco de España. At the same time, the Management Service shall issue and transmit to the accounting office the specific document of the debt subsystem 'Cancellation of foreign exchange transactions' or the document ' Interest in exchange transactions ", as the case may be.

When there are negative differences of change, the total of the income received to the corresponding concept of the Revenue Budget will be applied. For the budgetary allocation of the negative differences of exchange the managing service shall issue, for the amount of the difference, an OK document in formalisation applied to the concept of the Expenditure Budget to which such differences are to be attributed. This is the same as the entire income tax that was applied to the Bank of Spain.

When there are positive differences of change, the income received at the Banco de España will be broken down into the amount corresponding to the positive exchange differences, which will apply to the concept of the Income Budget. (a) to be charged for such differences, and for the remainder of the income, to be applied to the corresponding concept of the Revenue Budget.

However, if the maturity of the operation does not occur in favour of the State, the Management Service shall notify the Accounting Office of the amount of the debt, the application or budgetary applications and the the identification of the debtor, in order to be recognised by the Office of the debtor in the subsystem of the Precontracted Budget debtor; the notification shall be accompanied by the specific document of the corresponding debt subsystem. The exchange differences produced up to the time of maturity shall be applied as determined in the preceding paragraphs, i.e. the positive figures shall be broken down into the notification in order to be applied to their corresponding concept and for the negative, the OK document in formalisation shall be issued to the Accounting Office together with the notification to recognise the debtor and the specific document of the debt subsystem concerned.

4. Where in any of the cases referred to in the preceding points the amount of the obligation to recognise does not coincide with the previously entered commitment, the managing service shall accompany, together with the document by which it incorporates the recognition of the obligation, an AD document, positive or negative, for the amount of the difference between the recognised obligation and the commitment entered into.

Rule 5. Cancellation of financial exchange of foreign exchange and maturity of explicit interests. Settlement for differences.

When the cancellation of a foreign currency exchange transaction or the settlement of explicit interest is to be effected by difference between the debtor and creditor position and liquidable in a currency, the following procedure:

1. When it comes to pay:

(a) On the basis of the provisional settlement, the Management Service in the Directorate-General of the Treasury and Financial Policy shall issue, at least 15 days in advance, and forward to the Office of Accounting in the abovementioned Centre: an ADO document, accompanied by the obligation recognition file, and the specific documents relating to the debt subsystem: 'Interest in financial exchange transactions', for the maturity of interest explicit, and "Regularization of foreign currency exchange operations" and "Cancellation of foreign exchange transactions", in the event of cancellation of the swap.

b) Once the ADO document has been entered, it will be sent to the Payment Service on the outside of the Directorate General of the Treasury and Financial Policy, accompanied by the case of recognition of the obligation, to be dealt with the Banco de España the payment of the foreign currency.

(c) Based on the supporting evidence submitted by the Banco de España on the payment made in foreign currency and on the final settlement of the transaction, a K document shall be issued for the equivalent in pesetas, at the exchange rate of the payment, currency payable on the basis of the final settlement, an ADO, positive or negative document, by the difference between the amount of the payment proposal and the amount of the recognised obligation, and a document "Proposal for a payment order" (b) the value of the amount of the amount of the sum of the amounts paid out in excess of the final settlement. The document, which is complementary to that issued in recognition of the obligation, "Cancellation of foreign exchange transactions" or the document "Interest in financial exchange transactions", shall be issued.

d) When the repayment by the creditor Bank of the foreign currency that has been overpaid, the income will be applied, based on the corresponding income Mandation, to the non-budgetary concept in which it appears debt accounted for. However, if there are positive differences between the exchange rate of the income and that of the non-budgetary debtor's recognition, the part of the amount entered for those differences shall apply to the corresponding amount. Revenue Budget concept.

If there are negative exchange differences, an OK document applied to the corresponding concept of the discounted expense budget equal to the full amount applied to the non-budgetary concept in which it appears is issued. debt accounted for.

2. When it is a charge, the application to the Revenue Budget of the amounts entered into the current account of the Public Treasury will be made on the basis of the corresponding entry Mandate in the Banco de España.

At the same time, the Management Service shall issue and transmit to the Accounting Office the specific document of the debt subsystem "Cancellation of foreign exchange transactions" or the " Interest of operations for financial exchange, as the case may be.

However, if the maturity of the transaction is not due to the State, the Management Service shall notify the Accounting Office of the amount of the debt, the application or budgetary applications, and the the identification of the debtor, in order to be recognised by the Office of the debtor in the subsystem of the Precontracted Budget debtor; the notification shall be accompanied by the specific document of the corresponding debt subsystem of the preceding paragraph.

3. Where a provisional settlement to be paid becomes final settlement to be charged, due to changes in exchange rates between the two, the managing department of the Treasury and Financial Policy will issue, together with the documents from the previous point, a negative ADO document to cancel the issued with the provisional settlement.

Rule 6. Maturity of explicit interests of financial exchange of interest transactions.

1. Transactions in the interest of interest on notional amounts in foreign currency shall be applied to the operations of the explicit interest of foreign exchange transactions that are governed by the above rules.

2. Operations for the financial exchange of interest on notional amounts in pesetas shall be applied to the following operation:

a) When you pay to pay, the following procedure will follow:

a.1) When the exact amount of the settlement is known at the time of issue of the accounting documents, the Management Service in the Directorate-General of the Treasury and Financial Policy shall issue an ADOK document accompanied by the the obligation to recognise the obligation; a payment relationship against the 'Financial Debt Service' account, and the 'Interest in financial exchange transactions' document.

a.2) When the exact amount of the settlement is not known at the time of issue of the accounting documents, the Managing Service in the Directorate-General of the Treasury and Financial Policy shall issue an ADO document, amount of the transaction at that time, accompanied by the obligation recognition file; a payment relationship against the 'Debt Financial Service' account and the 'Financial Exchange Operations Interest' document.

Upon receipt of the Bank of Spain's final settlement, the Management Service shall issue an ADO, supplementary to the previously issued, a K document for the amount actually paid, and the document " Interest of transactions financial exchange " supplementary to the issue at the time of recognition of the obligation.

The referral of the documents to the accounting office must be made in advance so that, considering the formalities for which the documents must pass, the payment can be made on the scheduled date.

b) When it is the amount to be charged, the application to the Revenue Budget of the amounts entered into the current account of the Public Treasury in the Banco de España will be carried out on the basis of the corresponding Income Mandate at the Banco de España.

At the same time, the Management Service shall issue and transmit to the Accounting Office the specific document of the debt subsystem "Financial Exchange Operations Interest".

However, if the maturity of the transaction is not due to the State, the Management Service shall notify the Accounting Office of the amount of the debt, the application or budgetary applications and the identification of the debtor, in order to be recognised by the Office in the subsystem of the Contractor Prior to the budgetary debtor; the notification shall be accompanied by the specific document of the debt subsystem ' Interest in exchange transactions financial ".

Rule 7. End-of-year regularisations.

At the end of the year the following operations must be performed, which will not affect the State Budget:

(a) In the case of foreign currency swaps, the difference between the debtor and the creditor of each transaction shall be assessed according to the exchange rate in force at the end of the year and the corresponding differences of Change to the results of the exercise.

(b) The imputation to the results of the exercise of the explicit and unexpired interest of each transaction.

(c) The accounting reclassification of foreign currency swaps recorded in long-term headings as in the short term, for the part of the same as that which expires in the following financial year.

To this end, the Management Service shall issue in cases (a) and (b) above the specific documents "Regularization of foreign currency exchange transactions" and " Regularization of interest on exchange transactions ", respectively.

Rule 8. Formalisation costs.

The applicable procedure for these expenses will be the one provided for in Rule 102 of the Instruction of the Accounting Office to follow in the execution of the State Expenditure, approved by Order of the Ministry of Economy and Finance of 1 of February 1996.

ANNEX IV

Accounting documents for financial exchange operations, which complements Annex II of the Order of the Ministry of Economy and Finance of 1 February 1996, approving the accounting documents to be used by the General Administration of the State

1. The accounting documents that serve as a support for the recording of the financial exchange operations in the auxiliary system of State Debt accounting are as follows:

"Creating foreign currency exchange operations". It will be used for the creation of foreign exchange swap operations contracted or assumed by the State.

"Creating Financial Exchange of Interest Operations". It will be used for the creation of financial swap operations of interest contracted or assumed by the State.

"Financial Exchange Trading Interests". It shall be used for the maturity of the interest of foreign exchange or interest swap transactions.

"Cancellation of foreign currency exchange operations". It will be used for the cancellation of currency swap transactions contracted or assumed by the State.

"Financial Exchange Operations Interest Regularization". It shall be used for foreign exchange or interest swap transactions for the registration of accrued and non-due interest at the end of the financial year or for the cancellation of the transaction.

"Regularization of Foreign Exchange Financial Exchange Operations." It shall be used in currency swap operations to regularise each transaction according to the exchange rate existing at the end of the financial year or the cancellation of the transaction.

2. The documents referred to in the preceding paragraph shall be authorised by the person responsible for the managing body of each type of operation in the Directorate-General of the Treasury and Financial Policy.

3. These documents shall conform to the models set out in this Annex and shall be completed in accordance with the rules set out below.

RULES FOR THE COMPLETION OF ACCOUNTING DOCUMENTS FOR FINANCIAL EXCHANGE TRANSACTIONS

To complete the documents listed in this Annex, the following clarifying rules must be taken into account:

(1) Number: The reference that identifies the document.

(2) Operation code: Key that identifies the type of operation in the debt subsystem and by which the update of the records for that subsystem occurs.

(3) Main debt: Denomination of the pre-existing debt on which the financial exchange transaction is performed.

(4) Code: Main debt code.

(5) Type of operation: If it is an operation assumed by the State or contracted directly by the State.

(6) Denomination operation: Denomination of the financial exchange operation.

(7) Code: Code assigned in the debt subsystem to the financial exchange operation.

(8) Form of settlement: If the charges or payments arising out of the contract are settled by the full amounts, or by difference between the creditor current and the debtor.

(9) Date of recruitment or assumption: Date in which the contract is considered to be perfected or in which the rule establishing the assumption of the permuse by the State enters into force.

(10) Cancellation Date: Expected End of Contract Date.

(11) Contracting (s) Entity (s): Entity or entities with which the transaction is contracted. In the event of an assumption, the entity with which the rights or obligations arising out of the operation assumed shall be settled.

(12) Currency: Amount in foreign currency, expressing currency.

(13) Exchange rate: List of pesetas-foreign currency used in the operation.

(14) Pesetas: Amount of pesetas that result from applying to foreign exchange the exchange rate.

(15) Nominal amount debtor: Amount of foreign currency, valued at the exchange rate of the date of hiring or assumption, which the State has the right to receive from the other contracting party, irrespective of whether the settlement is make a difference between the nominal amount of the debtor and the creditor.

(16) Nominal amount creditor: Amount of the foreign currency, valued at the exchange rate of the date of hiring or assumption, or of the pesetas that the State is obliged to pay to the other contracting party, irrespective of the fact that the settlement is effected by difference between the nominal amount debtor and the creditor.

(17) Assumed difference: In case of assumption, the difference between the nominal debtor and the creditor valued at the date of assumption.

(18) Debtor: Data referring to the debit current of the transaction, that is, the right of the State to receive from the other contracting party the amounts stipulated by principal and interest on the dates determined in the contract.

(19) Creditor: Data referring to the operating current of the operation, i.e. the obligation of the State to pay the other contracting party the amounts stipulated by principal and interest on the dates determined in the contract.

(20) Interest rate: Type to be applied on the nominal amount of the transaction to determine the collection or payment of the explicit interest.

(21) First due date interest: Date on which each party undertakes the first settlement of explicit interest.

(22) Year-to-date number: Number of explicit interest settlements that the operation becomes in one year.

(23) Interests assumed: Amount of interest accrued and not due to the date of assumption of the transaction.

(24) Assumed difference: Difference, creditor or debtor, between the creditor and debtor interests assumed.

(25) Formalization Expenses: Expenses caused to the State by the formalization of the operation.

(26) Notional amount: Fictitious amounts, which are not exchanged, which serve as the basis for the calculation of the interest that is lost through the application of the interest rate.

(27) Interest rate: Type to be applied on the notional of the transaction to determine the permuted interest.

(28) Contract class: Whether it is a foreign currency exchange transaction or is an interest swap operation.

(29) Previous due date: The maturity date of the last interest settlement.

(30) Current Due Date: The date on which the interest settlement accrual occurs.

(31) Number of Days: Difference in days between the previous due date and the current due date.

(32) Main amount: Amount, expressed in foreign currency/pesetas, on which the interest rate is applied to obtain the amount of interest.

(33) Total amount due date: Amount, expressed in foreign currency/pesetas, of interest due on the date of recognition of the obligation or, in case of liquidation to be charged, on the due date.

(34) Amount accrued prior year: Part of interest due, prior to its regularisation, which was accrued in previous years.

(35) Amount accrued previous year regularised: Part of the interest due which was accrued in previous years valued at the exchange rate of the date of recognition of the obligation, in case of liquidation pay, or the exchange rate of the due date, if the settlement is to be paid.

(36) Exchange Differences: Those produced in the interest accrued in previous years as a result of their regularization. They shall be shown by their net amount in the column concerned; if they are negative in the 'Debtor' column and if they are positive in the 'Creditor' column.

(37) Amount accrued in the financial year: Part of the due interest that has become established in the current year, specifying the corresponding to the debit current and the creditor.

(38) Amount to be charged: Amount of interest receivable, if any, by the State

(39) Amount to be paid: Amount of interest payable, if any, by the State.

(40) Main amount to date of recognition: Importes, expressed in foreign currency/pesetas, for which the debit and creditor currents of the swap are accounted for according to the exchange rate of the date of recognition of the obligation or, in the case of liquidation to be paid, on the due date.

(41) Total amount to maturity: Amounts, expressed in currency/pesetas, of the debit and creditor currents of the swap, valued at the exchange rate of payment or collection, or of the maturity of the transaction, in case of delay.

(42) Change to Rectify Differences: Those produced between the total principal amount and the principal amount accounted for. The net amount of the same shall appear in the column 'Debtor' if they are negative and 'Creditor' if they are positive.

(43) Difference accrued in the year: Difference, debtor or creditor, among the interest accrued in the financial year by the debtor and creditor currents.

(44) (+ /-) Penalisations and bonuses: Amounts which for early cancellation or other causes are stipulated in the contract in favour of one of the parties.

(45) Accrued Interest: Interest accrued by the debtor and creditor currents since the last settlement.

(46) Accrual difference: Difference, debtor or creditor, among the interest accrued by the debtor and creditor currents. That is to say, the difference that follows from the amounts shown in the field (45).

(47) Difference (+ or-) in cancellation: Benefit or loss that occurs in the early cancellation.

(48) Amount to be paid: Amount payable, if any, by the State.

(49) Amount to be charged: Amount to be charged, if any, by the State.

(50) Date of regularisation: Date of the regularisation operation.

(51) Next due date: Due date of the next settlement.

(52) Number of days accrued: Difference in days between the previous due date and the date of regularisation.

(53) Main amount: Amount, expressed in foreign currency/pesetas in case of foreign exchange exchange, on which the interest rate is applied to obtain the interest earned on the date of regularization.

(54) accrued interest: Interest accrued to the date of regularization by the debtor and creditor currents, expressed in foreign currency/pesetas in case of foreign exchange of foreign currency.

(55) Accrued difference: Difference, debtor or creditor, between the creditor and debtor interest accrued for each transaction. That is, the difference between the debtor's interest and the accrued creditors of the field (54).

(56) Previous date regularisation: Date of the previous regularisation of the transaction.

(57) Regularized value of the debt: Amount of the foreign currency of the debtor current valued at the exchange rate of the date of this regularization.

(58) Regularized value accretive current: Amount of the currencies of the creditor current valued at the exchange rate of the date of this regularization.

(59) Account difference: Difference between the debtor and creditor currents valued at the exchange rate of the previous regularization.

(60) Regularized difference: Difference between the debtor and creditor currents valued at the exchange rate of this regularization. That is, the difference between the regularized value of the debit current (57) and that of the creditor (58).

(61) Total amount to maturity: Interest amount on the due date.

(62) Difference to rectify: Net difference between interest on maturity and interest on the date of recognition.

(63) Exchange Differences: Net differences, positive or negative, that occur due to the variation in the exchange rate of the date of regularization with respect to the exchange rate of the previous regularization. That is, between the regularized difference (60) and the difference accounted for (59). If they are negative, they will appear in the "Debtor" column and if they are positive in the "Creditor" column.

(OMITTED MODELS)

ANNEX V

Other modifications in the adaptation of the General Public Accounting Plan to the General Administration of the State

697. Provision for the provision of long-term credit insolvencies.

Valuation correction for reversible character depreciation in credits accounted for in subgroup 25 "Permanent Financial Investments".

To be included in item A. 1.g) "Variation of financial investment provisions " within the account of the economic and financial result.

Your move will be as follows:

a) It will be charged, for the amount of the estimated depreciation, with credit to the account 298 "Provision for long-term credit insolvencies".

(b) The balance shall be paid at the end of the financial year to the account 129 "Results of the financial year".

797. Excess provision for long-term credit insolvencies.

Value correction for the recovery of value in sub-group 25 "Permanent financial investments", up to the limit of previously provided provisions.

To be included in item A. 1.g) "Variation of financial investment provisions " within the account of the economic and financial result.

Your move will be as follows:

(a) It shall be paid, for the amount of the value correction, to the account 298 "Provision for long-term credit insolvencies".

(b) The balance of the financial year shall be charged at the end of the financial year with a credit to the account 129 "Results of the financial year".

633. Tributes from outside.

The definitions and accounting relationships of this account are the same as in the current General Plan of Public Accounting are collected under the title of 630/632 "Tax of Character ...", which will be renamed 630/633 " Tributes of ... "

2547. Fund of Provision R.D.L. 12/95.

Your debtor balance represents, at the end of the year, the ICO's debt to the State for the provisions of funds made by the State to the ICO, which have not been used for the purposes laid down in the rules of creation of the " Fund of Provision R.D.L. 12/95 '.

Your move will be as follows:

a) It will be paid out of:

a.1) Account 656 "Capital Grants", or to the account of expenditure corresponding to the nature of the charge of the ICO, for the amounts charged to the Fund from the budget.

a.2) Account 579 "Formalization", for amounts that are charged to the Fund in the budget.

In the case of recoveries of amounts previously charged to the Fund in a budgetary manner, the seat to be made shall be the same but with a negative sign.

b) It will be loaded with credit to:

a.1) Account 2542 "Ordinary Loan to ICO", by the allocations to the Fund to be established under the ordinary loan of the State to the ICO.

a.2) Account 4000 " Creditors for recognised obligations. Budget for current expenditure ", for allocations to be established in the budget.

a.3) Account 762 "Long Term Credit Income", for the income earned in the management of the resources allocated to the Fund.

a.4) The expense account to which the ICO charge was charged, for the recoveries that are obtained in the amounts that were previously imputed to the Fund in a non-budgetary way.

ANNEX VI

Adjustments to be made by the Accounting Office of the Directorate General of the Treasury and Financial Policy

Adjustments affecting the debtor and lending streams of foreign currency swaps

For each currency exchange transaction with long-term maturity, the difference between the creditor and the debtor current shall be calculated.

(a) If the resulting difference is accretive, the following entry shall be made for each transaction: account 1780 "Long term debt for loans received and other concepts in foreign currency" shall be due for the amount of the Loan current, with credit to account 2551 " Long-term loans. Cancellation by Integros "or 2552" Long-term loans. Cancellation by differences ", in the form of its liquidation, by the amount of the debit current, and with credit to the account 1740" Credit differences in foreign exchange transactions ", for the resulting difference.

(b) If the resulting difference is debtor, the following entry shall be made for each transaction: account 1780 "Long term debt for loans received and other foreign currency concepts" shall be due for the amount of the (a) the amount of the difference resulting from the amount of the difference resulting from the amount of the difference resulting from the amount of the difference; Cancellation by Integros "or 2552" Long-term loans. Cancellation by differences ".

For each foreign currency exchange transaction with short-term maturity, the difference between the creditor and the debtor current shall be calculated.

(a) If the resulting difference is accretive, the following entry shall be made for each transaction: account 5280 "Short term debt for loans received and other foreign currency concepts" shall be due for the amount of the Credit current, with credit to account 5428 " Short term credits. External ", for the amount of the debit current, and with credit to the account 5240" Short-term creditor differences in foreign exchange transactions ", for the resulting difference.

(b) If the resulting difference is debit, the following entry shall be made for each transaction: account 5280 "Short term debt for loans received and other foreign currency concepts" shall be due for the amount of the The amount of the difference shall be due to the amount of the difference resulting from the account 5429 'Short-term debit differences in foreign currency exchange transactions', with credit to account 5428 ' Short-term credits. Exterior ".

Adjustments affecting accrued and unexpired interest on foreign currency swap operations

For each currency exchange transaction whose interest is settled by integra, the difference between the accrued and unexpired creditors and debtors interest shall be calculated.

(a) If the resulting difference is creditor, the following entry shall be made for each operation: account shall be owed for the account 5290 "Short-term interest in foreign currency debts", for the amount of the creditor interest accrued and not due, with credit to account 5478 " Short term interest on loans. External ", for the amount of accrued and unexpired debtor interest, and with credit to the account 5245" Short-term creditors of foreign currency exchange transactions ", for the resulting difference.

(b) If the resulting difference is debtor, the following entry shall be made for each transaction: account shall be owed for the account 5290 "Short-term interest in foreign currency debts", for the amount of the creditor interest accrued and not due, account 5479 "Short-term debtors of foreign currency exchange transactions" shall be due, for the resulting debt difference, with credit to account 5478 " Short term interest on loans. External ", for the amount of the accrued and non-expired interest.

For each currency exchange transaction whose interest is settled by difference, the difference shall be transferred and not due between the interest of the creditor and the debtor to the new accounts. intended.

(a) For each transaction with a resulting difference, the following entry shall be made: Account 5290 "Short-term interest in foreign currency debts" shall be due, for the amount of the resulting difference, with credit to Account 5245 "Short-term interest-rate creditors of foreign currency exchange transactions".

(b) For each transaction with a resulting difference, the following entry shall be made: account shall be debited for the account 5479 "Short-term debtors of foreign currency exchange transactions", for the difference in debt as a result, with credit to account 5478 " Short term interest on loans. Exterior ".