Article 4 of Royal Decree 2345/1996 of 8 November 1996 concerning the rules of administrative authorisation and the solvency requirements of mutual guarantee companies provides that they shall adjust their accounting information the principles contained in the General Accounting Plan, with the adjustments to be established by the Order of the Ministry of Economy and Finance, which will require prior reporting by the Accounting and Audit Institute of Accounts and the Bank of Spain.

Adds such article as mutual guarantee societies:

(a) They shall adjust their accounting rules specific to the criteria and terminology applicable to credit institutions in this field.

(b) They shall raise the assessment and coverage of the specific credit risk from their operations to the accounting provisions applicable to credit institutions.

(c) These same provisions shall also apply to the valuation of assets awarded in the payment of debtors.

The purpose of this Order is to establish the accounting adaptations to which reference has been made.

These adaptations are primarily focused on the accounting treatment of collateral and other collateral and the Technical Provisions Fund.

The granting of guarantees and guarantees constitutes the basic activity of these companies. For this reason, it has been considered essential to include in the Balance Sheet information about the risk that these societies have assumed by this concept, not limiting themselves to providing data in the Memory as the General Plan of Accounting does.

Consequently, in the balance sheet of these companies, outside the estate accounts, a number of order accounts are included in which the risk incurred by this concept is detailed.

Also, criteria for valuation and registration of endorsements and other guarantees are also included in this standard, since these types of operations are not dealt with in the General Accounting Plan. The criteria applied are a development of the rules laid down for the contingent liabilities of credit institutions.

The main risk to which the mutual guarantee companies are exposed as a result of their activity is that of insolvency.

In order to address this risk, the applicable rules provide, as a unique characteristic of these companies, that they must constitute a fund of technical provisions which can be nurtured both with allocations made with the profit and loss account, without quantitative limitations, as with non-reintegrable contributions made by third parties. In the latter case, the amounts of the non-reintegrable contributions received that can be applied without restrictions for the credit risk coverage of the set of operations shall be included in that fund. This fund will also include the part of those non-reintegrable contributions that have been provided for the coverage, first of all, of certain endorsements that have been applied for their purpose. As long as they have not been applied to their purpose or are available for the credit risk coverage of the set of transactions, the amounts of the contributions received, even if they are not to be returned in any case, shall be recorded among the Bonds and deposits received. In addition, it is established that the amount of that fund should be higher than the funds required for the coverage of the specific credit risk of the operations in force.

The ways in which the fund of technical provisions can be constituted, as well as the amount that it can achieve, given that any endowment, including that for specific credit risk coverage, will be made through the same, causes:

The balance of the fund is higher than the fund of insolvencies necessary, constituting such excess resources of the companies.

The allocations made by institutions in the financial year to the fund of technical provisions from their profit and loss account, net of uses and recoveries, do not have to coincide with the net endowments. it would be necessary to carry out in the exercise for credit risk coverage.

Consequently, the accounting result that the companies declare will depend on how the fund of technical provisions has been constituted and used.

In order to ensure that the balance sheet of the mutual guarantee companies shows the true image of their assets, the accounting rules that develop the technical provisions fund establish that the part of their balance is corresponds to provisions for coverage of the specific credit risk or of fixed assets acquired in payment of debts that item must be mined and reflected in the balance sheet as follows:

In the item "provisions" that undermines the balance of the "debtors" of the asset, where the amount of the fund applied for the coverage of the insolvency situations related to the specific credit risk is included.

In the items of "provisions" that account for the balances of "financial fixed assets" and "temporary financial investments" of the assets of the Balance Sheet, where, in addition to the funds to cover the depreciation of securities, records the part of the amount of the fund applied for the coverage of insolvency situations related to the specific credit risk that corresponds to the assets included in those items.

In the item "provisions" that undermines the balance of "material assets", where the amount of the fund applied to provide, where applicable, the fixed assets acquired in payment of debts is included.

In the liability item "provisions for collateral coverage and doubtful guarantees", which records the amount applied for the coverage of the securities and doubtful guarantees not paid by the company.

Also, in order for the profit and loss account to provide sufficient information to ascertain the origin of the results of the financial year, the movements of the technical provisions fund are thoroughly regulated, as well as of the funds required for the credit risk coverage. The treatment established by this standard provides, in summary, that:

The allocations to the technical provisions fund from the profit and loss account, as well as the uses and recoveries to be made from that fund in the financial year for credit risk coverage, including Those arising from contributions made by third parties have to be fully recorded as extraordinary results of the companies, without the necessary funds for the coverage of the credit risk. The contributions made by third parties to the technical provisions fund are recorded directly as such funds without a reflection on the profit and loss account.

All changes taking place in the financial year in the balance of the provision of insolvencies necessary for the coverage of the specific credit risk have to be fully recorded as results of the exercise of the ordinary activities, irrespective of whether the fund of technical provisions used for the coverage of that risk has been provided by the company or provided by third parties.

With the accounting standard described, which follows a similar scheme for third party contributions as set out in the plan for capital grants, the profit and loss account is managed to reflect, by a In the heading 'variations in the provision of insolvencies', the impact on the outcome of the financial year of the management of the credit risk developed by the directors of the companies without taking into account the contributions of third parties and the allocations made in previous years to the technical provisions fund which is use for insolvency coverage, and, on the other hand, the net impact on the results of the exercise of such contributions and allocations (principle of separation). This reflects, on the one hand, ordinary operations (due to management), and on the other hand, the extraordinary (due to third-party contributions), avoiding any ordinary positive results that do not bring about the first. In addition, it is possible to eliminate from the accounting computation of the own resources of the company any element of the fund that has the nature of simple value correction for being affected to the specific coverage of a credit risk.

In its virtue, prior to the report of the Institute of Accounts and Audit of Accounts and the Bank of Spain, according to the opinion of the State Council, I have:

First. Sources.

1. Mutual guarantee companies (companies) shall develop, document and supply the accounting information required in accordance with:

(a) The rules laid down in this Order and in its Annexes.

b) The rules laid down in the Code of Commerce, in the recast text of the Law of Companies Anonymous and in the General Plan of Accounting, approved by Royal Decree 1643/1990, of December 20.

2. The rules laid down in this Order and in the Annexes thereto shall be applied as a matter of priority and shall constitute the development and adaptation to the sector of mutual guarantee companies of the accounting rules laid down in the texts referred to in the point (b) of the preceding number. In an additional manner, the rules established in the Commercial Code will apply, in the recused text of the Law of Companies Anonymous and in the General Plan of Accounting, approved by Royal Decree 1643/1990, of December 20.

Second. Documents to reflect accounting information. -Companies shall reflect accounting information in the following documents:

1. The annual accounts, which will comprise the Balance Sheet, the Loss and Earnings Account and the Memory. These documents form a unit, they will have the same content as those that these companies must deposit in the Mercantile Register and will be written according to the sources established in this Order.

2. The reserved character states, which will comprise:

a) The Reserved Balance.

b) The Lost and Reserved Earnings Account.

c) Credit risk coverage.

d) The classification of the guarantees and guarantees provided.

Third. Models of the documents.

1. Companies shall use to provide the accounting information for the models of documents set out in Annexes II and III to this Order, including the use of the second end of the financial year and the preceding one, and without deleting in III any of its headings and headings which must always appear, even if there is no quantification in any of them.

2. In the case of reserved States, the amounts in millions of rounded pesetas shall be expressed in the accounts. The rounding will be done to the nearest unit, with the distance up. In each and every account of the reserved financial statements, rounding will be carried out independently, even if the sums of the rounded ones do not match the totals.

3. Where the quantities of two consecutive years are not comparable, the amount of the preceding financial year shall be adjusted with due clarification in the Report.

Fourth. Documents to be sent to the Banco de España.

1. The companies shall send to the Bank of Spain the annual accounts, the reserved statements and the closing statements of the financial year.

2. The annual accounts shall be sent within a maximum of 15 working days from the date of their approval by the General Meeting, and shall be accompanied by the corresponding audit report and the other supporting documents. deposit in the Mercantile Register.

3. The reserved states shall be sent quarterly within the month following the date to which they correspond.

4. The closing statements for the financial year shall be sent within the month following the corresponding closing date. Those closing statements for the financial year are the Balance Sheet and the Profit and Loss Account that are included in the annual accounts.

These states will be provisional until their approval by the General Board. If they are not approved on the same terms as they were sent to the Banco de España, the sending company shall be obliged to send the rectified states within 15 days after the General Meeting has been held. approve highlighting and explaining the changes made.

5. Irrespective of the foregoing, the Banco de España, in order to fulfil the tasks entrusted to it, may require the companies, in general or in particular, to take account of the information required. to clarify or extend the data for the documents required.

Fifth. Additional rules concerning the reserved and closing statements for the financial year.

1. The presentation of the reserved and closing statements of the financial year, as well as the way in which the amounts referred to in the third paragraph of this Order will be expressed, will be made with the criteria that the Banco de España determines by communication to the entities.

2. States of a reserved nature shall be subject to the provisions of Article 6 of Royal Decree-Law 1298/1986 of 28 June 1986 adapting the current law on credit institutions to that of the European Communities.

3. The Banco de España shall fix the reserved states which the mutual guarantee companies shall have to submit in relation to the ratio of own resources, compulsory investments and limit to the fixed assets and shares and participations, as well as the criteria for their preparation.

Single repeal provision.

The seventh paragraph of the Order of 31 March 1989 entitled the Bank of Spain to establish and amend the accounting rules of credit institutions is hereby repealed.

Single end disposition. Entry into force.

This Order will enter into force on 1 March 1998 and will be applied for the first time to the States to submit to the Bank of Spain for the same month. However, the mutual guarantee companies shall send to the Banco de España, for statistical purposes, together with the statements of March 1998, an estimate of the balances and accounts of losses and profits, public and reserved, corresponding to 31 December 1997, drawn up in accordance with the models and criteria of this Order.

Madrid, 12 February 1998.

HANGING OUT AND FIGAREDO

Excmo. Mr. Governor of the Bank of Spain and illustrious Mr. Director General of the Treasury and Financial Policy.

ANNEX I

Rules of assessment, presentation of states, public and reserved, and content of the Supplementary Memory of the General Accounting Plan to be applied by mutual guarantee societies

I. ACCOUNTING CRITERIA, VALUATION

AND STATE LAYOUT

1. Collateral and other collateral provided

1.1 General criteria.-The guarantees and other guarantees provided by the mutual guarantee companies shall be entered in the balance sheet as an order account in a specific item for the maximum amount of which the company is responsible for to the date referred to in the Balance Sheet, regardless of the instrument or cause thereof. In financial guarantees and in those where the risk is increased as a result of interest accruals, the maximum guaranteed amount shall include, in addition to the principal guaranteed, interest due for recovery.

The amounts secured by the companies may only be reduced or reduced if the guaranteed risks have been reduced or cancelled or when they become effective against third parties.

Foreign currency guarantees and guarantees shall be converted into pesetas at the average exchange rate of the spot foreign exchange market on the date referred to in the Balance Sheet or, failing that, on the last working day of the preceding market that date.

For accounting purposes, financial guarantees are defined as those in which cash risks are directly or indirectly guaranteed (loans, loans, leasing transactions, payment deferrals of all kinds). type of debt, etc.), whichever is the beneficiary of the guarantee.

1.2 Avales and doubtful guarantees. -All guarantees and other guarantees, whatever their nature and instrumentation, the payment of which is considered probable and their recovery in doubt, will be included in the Balance sheet. a separate item, as doubtful. In particular, they shall be classified as doubtful:

(a) For the purpose of the late payment: In the non-financial guarantees, the amount claimed by the beneficiary of the guarantee and pending payment, and in the financial guarantees, at least the same amount to be classified as (a) in the case of a client, including the processing of a client's operations, including the processing of a client's operations as a whole, in accordance with the accounting criteria. The determining date for counting the time limit for the classification of endorsements as doubtful is that of the maturity of the first instalment or the time limit of the money risk paid by the guarantee to its lenders that remains, in whole or in part, pending payment to the date of the Balance Sheet.

(b) For reasons other than the late payment: the amounts of the endorsements whose avalanos are declared bankrupt or suffer a noticeable and irrecoverable deterioration of their solvency, present negative or lost assets continue, be in suspension of payments, manifest a general delay in payments or are in similar circumstances, even if the beneficiary of the guarantee has not claimed their payment.

2. Risks revalidated

The living amount of the guarantees and other guarantees actually granted by reaffientate companies, public administrations and bodies dependent on them will be included in the balance sheet between the order accounts. in a specific item which, in the reserved states, shall be broken down into a normal and doubtful situation. The balance of the 'doubtful partners' item which is also reendorsed shall also be recorded in order accounts under the heading 'reendorsed risks', by breaking down their amount in the reserved states according to which they are disbursed, claimed pending recovery or unclaimed from the reavalists.

3. Dubious and highly dubious assets

3.1 Indoubt assets. -Amounts paid by endorsements and outstanding amounts receivable to the partners by commissions or services income that are of doubtful collection will be accounted for in the item "doubtful partners". The remaining assets which, in accordance with the rules applicable to Spanish credit institutions, are to be classified as doubtful shall be recorded in the public accounts in their accounts of origin and in the accounts shall be transferred to the item ' other doubtful assets ".

The "doubtful partners" item will not be minted in the perceived amounts of third parties for the coverage of the indoubt operations as long as the obligation on the part of the guarantor society to return the same to those who In case of recovery of the doubtful balances.

3.2 Assets of very doubtful recovery. -Assets which, in accordance with the rules applicable to credit institutions, are to be classified as highly doubtful shall be discharged from the balance sheet; however, the amounts on which they are the companies continue to be entitled to their recovery and have not renounced it, they shall continue to register in the states reserved under the heading 'regulated suspended assets', with a breakdown of the amount covered by contributions from third parties which, in Case of recovery, where appropriate, to be returned to the contributors.

The total amount of suspended assets to be recovered that corresponds to the company shall be recorded in the profit and loss account reserved under the item "recoveries from the insolvencies and assets in suspense fund" and the liability to third parties in the corresponding item of creditors until their payment to them.

3.3 Interest on late payment. -Late interest charged on doubtful or suspended assets shall be accounted for in the profit and loss account as "extraordinary income", and interest due on outstanding claims In the balance sheet, the balance sheet shall be recorded in the balance sheet in the item of order accounts "products that are due and not charged with dubious assets".

3.4 Payments to third parties for recovery of doubtful or suspended balances. -Payments made to third parties on the basis of the formalities to recover dubious assets and of very doubtful recovery (latrines, provisions of funds to Procurators, appraisals and other technical studies, etc.) should be directly accounted for in the profit and loss account as expenditure for the financial year. However, payments made to recover doubtful assets which are liable may be taken into account in the asset under the same heading as the cash risk of the obligation to pay, which is classified as a doubtful balance with a the need for specific credit risk coverage equal to the entire amount.

4. Technical provisions fund

4.1 Composition. The technical provisions fund consists of the amount of funds provided by the company and the non-reintegrable contributions received by the company in accordance with the following details:

(a) Fund provided by the company: The "company-funded fund" is the amount of the envelopes to provisions of insolvencies that the companies make from their profit and loss account that has not been used for to lower the assets of assets classified as highly doubtful.

The institutions shall internally break down the amount of the fund they have provided for credit risk coverage of the set of operations they have provided for specific credit risk coverage.

b) Non-reintegrable and similar contributions received: "Non-reintegrable and similar contributions received" shall include all amounts received from third parties, whatever their instrumentation, which, not being returnable to its contributors can be applied for the credit risk coverage of the set of operations without any restriction. That part of the non-reintegrable contributions which have been received for the coverage, first, of the credit risk of certain endorsements, whether or not formalised at the time of the contribution, which has been applied to their own funds, shall also be included. purpose. For this purpose, the amounts of the contributions which are necessary for the coverage of the specific credit risk of the endorsements which meet the requirements laid down, as well as for the purpose of carrying out the the corresponding contribution to be made by these endorsements to the credit risk coverage of the set of operations provided for in paragraph 4.3 below.

Non-reintegrable and similar contributions received by the company can only be applied to give the balance sheet the assets of very doubtful recovery when all the insolvency funds provided by the company have been used. society.

The amounts of contributions to the fund for technical provisions to be recovered by the companies found in the approved budgets of the protective partners and public administrations shall be recorded in the reserved for the item of order accounts "contributions to the technical provisions fund to be disbursed".

4.2 Applied technical provisions fund.-The technical provisions fund may be applied exclusively to regularise all insolvency situations related to credit risk, including those relating to securities of fixed income and any other outstanding amounts, as well as to cover or cover the fixed assets acquired in payment of debts.

The impore of the technical provisions fund that has been applied for the specific credit risk coverage of the indoubt transactions shall be included in the item "technical provisions fund applied", which shall be in the balance sheet the balance of the technical provisions fund.

The institutions, in their internal accounts, shall break down the amount of the technical provisions fund applied by the company to cover the specific credit risk, fund provided by the company for credit risk coverage of the set of non-reintegrable and similar transactions and contributions, taking into account that non-reintegrable contributions received by the company can only be applied to credit risk coverage specified when all funds provided by the company have been used.

In the reserved states the amount of the insolvency provisions that are recovered, in addition to the loss account item and the "recoveries from the insolvencies and assets in suspense fund", is also accounts for the item 'recovered technical provisions fund', using the concept of the corresponding 'applied technical provisions fund' as a counterpart, by means of regularisation of the amounts applied in accordance with the following Order of precedence: "Non-reintegrable and similar contributions", " fund provided by the company for the coverage of the credit risk of the set of transactions "and" fund provided by the company for specific credit risk coverage ".

4.3 Technical provisions fund (net)-The technical provisions fund (net) is the technical provisions fund that has not been applied to the coverage of the specific credit risk of the operations.

Its amount shall be at least equal to the amount of the provisions necessary for the credit risk coverage of the set of operations to be equal to or exceed 1 per 100 of the total of the live risk assumed by the society.

For these purposes, the calculation of the total live risk shall include the amounts corresponding to guarantees and guarantees granted to the partners, fixed income securities and any other amounts outstanding, except:

(a) The amount of the risks for which specific provisions have been made. In partially dubious transactions, only the indoubt part that has specific coverage shall be excluded.

(b) The amount of the risks arising from securities issued by the general government of the countries of the European Union, including those arising from temporary acquisitions of public debt, self-employed bodies and other public-law entities which are dependent on them, the amount of the risks secured by such public authorities, directly or indirectly through bodies with unlimited guarantees of the same; the risks secured or reapproved by public bodies or undertakings of countries of the European Union whose main activity is the insurance, guarantee or credit guarantee on the part of the cover, as well as the guarantees with cash deposits.

(c) 50 per 100 of the amount of risks secured sufficiently with mortgages on home, office and local multi-purpose completed and rural estates.

d) Deposits in credit institutions.

4.4 Fund for technical provisions in abeyance. -To give the balance sheet of assets classified as highly doubtful, the amounts applied from the technical provisions fund will be regularised, as well as the initially provided or contributed to it, in accordance with the following order of priority: 'Fund provided by the company for specific credit risk coverage', ' a fund provided by the company for the credit risk coverage of the whole of operations "and" non-reintegrable and similar contributions ".

The amount of the technical provisions fund that is applied to give the assets classified as low in the balance sheet as a very doubtful collection will be recorded in the reserved states, as long as it does not recover in the "fund" item. of technical provisions in abeyance ', the balance of which shall be broken down into reintegrable and similar contributions received and in the form of a company, distinguishing in internal accounts whether it was for specific credit risk coverage or not.

The amount of suspended assets that is recovered that corresponds to the company, in addition to the loss account item and reserved earnings "recoveries from the insolvencies and assets in suspense fund," shall account for the item 'recovered technical provisions fund', using as a counterpart, in the first place, as long as all the contributions that were discharged from the Balance sheet have not been recovered, the item ' non-reintegrable contributions and similar received ", and, once all the contributions have been recovered, the item" fund provided by society. "

4.5 Movements of the technical provisions fund.-Contributions to the fund of technical provisions made by third parties shall be recorded directly in the assets liability using the corresponding asset counterparty.

The remaining movements of the technical provisions fund will be recorded in the Lost and Reserved Income Account as follows:

(a) The allocations made in the financial year by the company to the fund for insolvencies shall be charged under the heading "endowments to the fund for technical provisions", broken down in the internal accounts according to the concept of the fund which is has provided.

(b) The use of the fund for specific credit risk coverage to be provided for the financial year shall be recorded under the heading "use of the technical provisions fund", broken down in the internal accounts according to the the concept of the fund that has been applied.

(c) Recoveries of funds used in previous financial years for the coverage of specific credit risk, including those from recovered assets, shall be recorded under the item "provisions fund". recovered techniques, broken down into the internal accounts according to the concept of the fund which has been recovered.

The control of the balances of the items corresponding to the concepts "fund provided by the company for specific credit risk coverage", " fund provided by the company for the coverage of the credit risk of the "all transactions" and "non-reintegrable and similar" contributions may be made in a comprehensive manner, without the need to maintain the details of the operations that have originated them.

5. Insolvencies fund required for coverage

specific credit risk

5.1 General Criterion.-The fund of insolvencies for the coverage of the specific credit risk should be equal to the amount that, with criteria of maximum prudent value, is estimated to be non-recoverable from the assets, guarantees and guarantees doubtful.

In the calculation of the specific insolvencies fund, companies shall apply the same criteria as set out at each time by the accounting rules of credit institutions for the coverage of the risk of insolvency with the details to be made in the following paragraphs.

5.2 Coverage of doubtful assets that do not have their origin in guarantees or guarantees. -Minimum provisions necessary for the coverage of doubtful assets that do not have their origin in guarantees or guarantees shall be calculated by applying directly the rules on insolvency risk coverage that are applicable at any time to credit institutions.

5.3 Coverage of securities, guarantees and doubtful partners.-The provisions necessary for the coverage of doubtful guarantees and guarantees and the money risks arising from them shall be at least equal to the sum of the amounts to be obtained from applying to the "adjusted risk-adjusted risks" the coverage rates established at each time for similar risks in the accounting rules of credit institutions, which are, where appropriate, at the same time, for hedges not required by reafirench contracts, calculated on the basis of with the terms of the reendorsement contracts entered into with those companies.

For these purposes, it is called the "adjusted doubtful risk of an operation" to the total doubtful risk assumed by the company mined by the amounts corresponding to the commissions received by the company not charged to the account Losses and gains (with this optional minoron in the case of annual fees or lower periods), the capital paid out by the partner did not affect another guarantee-if this is expressly stated in the contract of the company's statutes or statutes-and the cash contributions received specifically for the purposes of the their coverage. The amounts reassessed by reafian debt recovery companies shall not be deducted for the purpose of calculating the adjusted doubtful risk.

In the setting of minimum coverage percentages to be applied to the adjusted doubtful risk, the following shall be taken into account:

a) Coverage for late payment.

1. In financial guarantees classified as doubtful by reason of the late payment of the risks they guarantee, as well as in the cash risks arising from such guarantees, they shall apply, depending on the guarantees with which they are percentages of cover for late payment that correspond to the money risks of credit institutions, taking as the determining date for the time limit for the fixing of the minimum percentage of coverage, that of the maturity of the the first instalment of the money risk paid by the guarantee to its creditors which remains, in whole or in partially, pending payment to the date of the Balance Sheet.

2. In the case of non-financial guarantees and in the currency risks arising therefrom, the date to be taken for the purpose of fixing the minimum percentage of coverage shall be the oldest of which the value has been required for payment by the beneficiary of the guarantee between which, at the date of the Balance, any amount remains unpaid, except where the claim was made directly to the guarantor company, in which case the date of this requirement will be taken.

3. The amount of the risks covered by the guarantees referred to in point (b) of paragraph 4.3 above, with the exception of that relating to the reassurances of reaffientation companies, is exempted from the foregoing sub-paragraphs.

b) Coverage for reasons other than late payment.

1. The financial guarantees shall be provided in full if the securities are declared bankrupt or suffer a noticeable and irrecoverable deterioration of their solvency, even if the collateral beneficiary has not claimed payment.

2. Financial guarantees in which the value of this negative equity or continued loss is in suspension of payments, or a general delay in payments, or similar circumstances, shall be provided, without prejudice to the in the previous paragraph 5.1, at least 25 per 100 of its total amount, even if the beneficiary of the guarantee has not claimed payment.

3. In other endorsements and guarantees classified as doubtful for reasons other than late payment, the amounts not claimed by the beneficiary of the guarantee shall be provided, at least, by 10% and the amounts claimed shall be provided with the percentages which, depending on the status of the endorsement, is applicable in accordance with the criteria set out in sub-paragraphs 1 and 2 above.

4. The amount of the risks to which the guarantees referred to in point (b) of paragraph 4.3 above, other than that relating to the reassurances of reincorporation or mortgage companies, are exempted from the foregoing sub-paragraphs. on the goods referred to in point (c) of that paragraph, provided that, in the latter case, there is no doubt that the money risk which could be derived from the guarantee would have the right of separation in an insolvency proceedings. Also, a minimum of 10 per 100 may be reduced to cover the risks of an accredited suspension of payments when, after one year from the registration in the Commercial Register of the order of approval of the suspension agreement with the Creditors are being faithfully complied with, and the evolution of the company's financial and financial situation will eliminate doubts about its ability to meet its obligations. The risks following the suspension declaration shall not be required to be provided until the Convention is complied with.

In the risks in which circumstances are present for classification as doubtful due to late payment and for other reasons, the coverage will be realized by the concept that implies greater demand.

5.4 Insolvencies Fund Movements. -Insolvencies fund movements will be charged in the Loss and Earnings Account, reserved as follows:

(a) The appropriations required in the financial year for the coverage of the specific credit risk shall be recorded in the item "insolvencies" for their full amount.

(b) The availabilities of allocations made in previous financial years shall be recorded in the item "recoveries of the insolvencies and assets in suspense fund" for their full amount.

6. Assets acquired in payment of debts

Securities and buildings awarded or acquired in payment of debts shall be recorded at the time of their acquisition and shall be provided, where appropriate, over time, with the accounting and valuation criteria applicable in each time to the Spanish credit institutions.

The amount of assets acquired in payment of debts by mutual guarantee companies which, where appropriate, corresponds to reincorporation companies shall be recorded in the asset in accordance with the criteria laid down in the contracts subscribed to those companies, using as a counterpart, up to the date of their payment, the liability account "reafireniing, creditor companies".

In the balance sheets, the amount corresponding to items that have not been incorporated in the company's own use shall be included in the item "fixed assets acquired in payment of debts".

7. Social capital

7.1 Capital subscribed. The amount of subscribed capital shall be broken down into the balance sheets between the corresponding protective partners and the members. The outstanding amount of disbursement, in the reserved balance sheet, will also present the same breakdown.

7.2 Social capital claimed.-The amount of the social capital claimed by the members to be reimbursed shall be included in the capital stock as long as the company is not required to pay, including that date on the departure of creditors.

The amount claimed to remain registered as a share capital will be included in the Balance Sheet in the item of order accounts "claimed social capital, pending repayment."

7.3 Social capital of doubtful supported partners.-The amount of the share capital of doubtful approved partners shall not be reduced from the Balance sheet, except that, in accordance with the company's statutes or the signed contract with the partner, it has been applied to reduce its dubious risks.

The amount of the capital of doubtful partners that remains registered as a share capital shall be included in the Balance Sheet set out in the item of "equity capital of doubtful partners" order accounts.

7.4 Social capital reimbursed.-The amount of social capital reimbursed to the unit-holders, while continuing to respond to the activity of the company, will be recorded in the Balance Sheet in the item of order accounts "social capital reimbursed".

8. Funds received for coverage

specific operations

Funds received as collateral for transactions that are reintegrable to the persons and entities that have contributed them if they are not necessary for the coverage of those transactions shall be accounted for, if the contributor is a company of reaffientations, under the heading 'reafireniding, creditor companies', and, in other cases, in 'bonds and deposits received'.

The amounts received will not be discharged from the assets liabilities until they are returned to their contributors, they renounce their recovery to the guarantor company or apply to give the risk to the asset that they cover. by his rating as highly dubious.

The amounts of the liability for its application in the coverage of assets of very doubtful recovery will be recorded in the Balance Sheet, if the contributor does not waive its recovery, in the item of order accounts. "funds received from third parties".

They shall also be recorded in "securities and deposits received", as long as they are not available without restrictions for the coverage of the credit risk of the set of operations or have been applied to their purpose, the amounts of the contributions received which, even if they are not reintegrable, can only be applied to cover the credit risk of the set of transactions where they are no longer necessary to cover the guarantees for which they have been covered These contributions are made.

9. Accrual of commissions for benefit

of warranties and services

The fees received and those paid for the risk of insolvency shall be accrued and charged linearly in the Profit and Loss Account over the period to which the commission corresponds. However, when fees for various financial years are charged or paid in advance, the amount charged or paid shall be charged to the Loss and Profit Account financially during the period to which they correspond. The accrual of fees to be charged shall be interrupted if the collateral is to be classified as doubtful.

The fees for the study of guarantees may be recorded immediately in the profit and loss account, unless by their nature or amount they are equivalent to those for the risk of insolvency, in which case they are apply the criteria for the period described in the preceding paragraph.

In application of the accrual principle, commissions received or satisfied by services that develop over a period of time should also be made.

10. Presentation on public and reserved balance sheets

10.1 Special Funds.-Special funds in the public balance sheet covering assets shall be presented separately in the asset by minoring the corresponding item. The remaining liabilities shall be included in the liability item 'provisions for risks and expenses', broken down according to the contingency they cover. In the reserved balance sheet shall be included in the liability under the heading 'special funds'.

10.2 Accrued Interest not due. -Unexpired accrued interest shall be filed in the public balance sheets in accordance with the criteria set out in the General Accounting Plan. However, the unexpired explicit interest shall be included in the balance sheets, according to their nature, in the headings: 'Devengos of unexpired products' and 'unexpired cost accruals'.

II. CONTENT OF THE MEMORY

The Memory must contain, in addition to the General Accounting Plan, the information listed in the following sections:

1. Valuation rules

In the Memory, in addition to the criteria of valuation that are detailed in the model of the Memory of the General Plan of Accounting, the specific ones in the operative of these societies must be indicated.

2. Guarantees and guarantees provided

The guarantees and guarantees provided will be broken down, on the one hand, between financial guarantees and other guarantees and guarantees, and, on the other hand, between guarantees and guarantees provided to credit institutions, public administrations and others. beneficiaries. For each of these categories, the initial balance, the high and the lower of the financial year, and the final balance shall be detailed; the amounts that are reestablished, those deemed to be doubtful and the provisions covering them shall also be indicated.

3. Dubious and highly dubious assets

The amount of the doubtful assets and the regulated suspended assets shall be broken down between the amount fully assumed by the institution and the amount that is reendorsed. In addition, for each of the above concepts, it shall be indicated: Initial, high and low balance of the financial year, and final balance.

4. Social capital

In relation to the share capital, the following information must be included in the Report:

The minimum amount of capital laid down in the statutes.

The relationship of all the protective partners together with the amount of the capital they have subscribed to and the amount that is outstanding.

The number of members involved and the amount of the total registered capital and the outstanding amount of the capital, broken down between doubtful partners, other supported partners and non-endorsed partners.

The amount of social capital claimed by the partners to be reimbursed, indicating whether it is registered as a share capital or as creditors.

The total amount of the social capital reimbursed that continues to respond to the activity of the company, distributed for the years in which the reimbursement was made.

5. Technical provisions fund

The existing technical provisions fund shall be broken down into the minimum fund required for the credit risk coverage of the set of operations and the excess over that amount.

In addition, for each of the items that it integrates-"company-funded fund", "non-reintegrable contributions" and "fund applied to provisions"-as well as for the technical provisions fund applied to assets in The following data shall be indicated: Initial, high and low balance of the financial year and final balance.

Also, the outstanding amounts of disbursement by protective partners and Public Administrations will be related to their approved budgets.

In addition, if non-reintegrable contributions have been received for the coverage, first of all, of guarantees that meet certain requirements, they shall be detailed, for each type of contribution, all of its characteristics and broken down individually their balances and the movements they have experienced in the financial year, distinguishing between the amounts that have been applied for the coverage of specific risks, those that are still available for the coverage of a particular type of the collateral and those that can already be applied to the credit risk coverage of the operations. In addition, it will necessarily be indicated which conditions need to be met in order for such contributions to be used for the credit risk coverage of the set of operations.

6. Insolvencies funds

For hedge funds for the specific credit risk of assets and for hedge funds and doubtful guarantees, the following information shall be included: Initial, high and low balance of the financial year and final balance.

7. Re-strengthening contracts

In the Report, the main characteristics of the reafirencito contracts in force will be described (reafirencientas company, guaranteed maximum total amount and form of its calculation, maximum guaranteed amount by guarantee, date of the maturity of the contract ...). In addition, for each of the contracts, the following shall be indicated: the total amount re-established, the balance in doubt, the insolvencies not provided by the company for being covered by the collateral contract and the amount charged by the guarantee company (a) on the basis of the mutual guarantee company's rights, distinguishing between the total amount charged and the amount charged in the financial year by the mutual guarantee company, indicating for each of them the amounts which are recorded in the assets liabilities and those that have been discharged from the Balance Sheet.

ANNEX II

PUBLIC STATES

Balance

ACTIVE

A)/Partners for unrequired disbursements.

B)/Quiesced.

I. /Establishment expenses.

II. /Intangible assets.

1. Intangible assets.

2. Redemptions.

3. Provisions.

III. /Material assets.

1. Land and buildings.

2. Furniture, vehicles and installations.

3. Fixed assets acquired in payment of debts.

4. Provisions.

5. Redemptions.

IV. /Financial mobilizations.

1. Shares in companies of the group.

2. Shares in associated companies.

3. Other shares and shares.

4. Portfolio of long-term fixed income securities.

5. Deposits and bonds constituted in the long term.

6. Other financial assets.

7. Provisions.

C)/Expenses to be distributed in various exercises.

D)/Working assets.

I. /Partners for required disbursements.

II. /Debtors.

1. Dubious partners.

2. Several debtors.

3. Public Administrations.

4. Provisions.

III. /Temporary financial investments.

1. Shares in companies of the group.

2. Shares in associated companies.

3. Shares and units.

4. Portfolio of short-term fixed income securities.

5. Deposits and bonds made up in the short term.

6. Other temporary financial investments.

7. Provisions. IV. /Treasury.

V. /Adjustments for the time-to-year.

Overall (A + B + C + D)

ORDER ACCOUNTS

A)/Risk in force by guarantees and guarantees granted.

Of which: Avals and doubtful guarantees.

B)/Resupported risk.

From What: Indoubt Risk.

STEP

A)

I. /subscribed capital.

1. Protective partners.

2. Partners involved.

II. /Revaluation reserves.

III. /Reservations.

1. Legal reservation.

2. Statutory reserves.

3. Other reservations.

IV. /Results of previous exercises.

1. Remnant.

2. Negative results from previous years.

3. Contributions from partners for loss compensation.

V. /Losses and gains (profit or loss).

B)/Technical provisions fund (net).

I. /Fund for technical provisions.

II. /Less: Fund of technical provisions applied.

C)/Revenue to be distributed in various exercises.

D)/Provisions for risks and expenses.

I. /Provisions for pensions and similar obligations.

II. /Provisions for taxes.

III. /Provisions for collateral coverage and doubtful guarantees.

IV. /Other provisions.

e)/Long-term creditors.

I. /Emissions from obligations.

II. /Debts to credit institutions.

III. /Reafirending companies, accretive.

IV. /Deposits and deposits received in the long term.

V. /Other creditors.

VI. /Pending disbursements on non-required shares.

F)/Short-term creditors.

I. /Emissions from obligations.

II. /Debts to credit institutions.

1. Loans and other debts.

2. Interest debt.

III. /Reafirending companies, accretive.

IV. /Deposits and deposits received in the short term.

V. /Other debts.

1. Public Administrations.

2. Other creditors.

VI. /Adjustments for the time-to-year.

Overall Total (A + B + C + D + E + F)

PROFIT AND LOSS ACCOUNT

MUST

A)/Expenses.

1. /Staff expenses.

(a) Salaries, salaries and assimilated.

b) Social loads.

2. /Allocations for depreciation of fixed assets.

3. /Change of provisions.

a) Variation of the provision of insolvencies.

(b) Change in the provision for coverage of fixed assets acquired in payment of debts.

4. /Other operating expenses.

a) Commissions by reaval.

b) External services.

c) Tributes.

d) Other current management expenses.

I. /Operating benefits (B1 + B2-A1-A2-A3A4)

5. /Financial expenses and expenses assimilated.

a) By obligations.

b) By debt to credit institutions.

c) For other debts with third parties and similar expenses.

d) Losses of financial investments.

6. /Change in the provisions of financial investments.

7. /Negative differences of change.

II. /Positive financial results (B3 + B4 + B5 + B6-A5-A6-A7)

III. /Benefits of ordinary activities (AI + AII-BI-BII)

8. /Endowment and recovery of the Technical Provisions Fund.

a) Endowment to the Technical Provisions Fund.

b) Recovery of the Technical Provisions Fund.

9. /Variation of the provisions of intangible fixed assets, material and control portfolio.

10. /losses arising from intangible fixed assets, material and control portfolio.

11. /Losses by transactions with own obligations.

12. /Extraordinary expenses.

13. /Expenses and losses of other exercises.

IV. /Extraordinary positive results (B7 + + B8 + B9 + B10 + B11-A8-A9-A10-A11-A12-A13)

V. /Profit before tax (AIII + AIV-BIII-BIV)

14. /Corporation tax.

VI. /Exercise result (benefits) (AV-A14)

PROFIT AND LOSS ACCOUNT

HABER

B)/Revenue.

1. /Net amount of the turnover.

(a) Commissions for the provision of guarantees.

(b) Income for the provision of services.

2. /Other operating income.

a) Grants.

b) Other income.

c) Event of risk and expense provisions.

I. /Operating losses (A1 + A2 + A3 + A4-B1-B2)

3. /Income from equity participations.

a) In companies in the group.

b) In associated companies.

c) In other holdings.

4. /Revenue of other marketable securities.

5. /Other interest and income assimilated.

(a) Interest in deposits with credit institutions.

b) Other interests.

c) Benefits of financial investments.

6. /Positive differences of change.

II. /Negative financial results (A5 + A6 + A7-B3-B4-B5-B6)

III. /Loss of ordinary activities (BI + BII-AI-AII)

7. /Use of the Technical Provisions Fund.

8. /Benefits in the disposal of intangible fixed assets, material and control portfolio.

9. /Profit from transactions with own obligations.

10. /Extraordinary income.

11. /Revenue and benefits of other exercises.

IV. /Negative extraordinary results (A8 + + A9 + A10 + A11 + A12 + A13-B7-B8-B9-B10-B11)

V. /Loss before tax (BIII + BIV-AIII-AIV)

VI. /Result of the year (loss) (BV + A14)

ANNEX III

RESERVED STATES

Status T. 1. Reserved balance

ACTIVE

1. /Box.

2. /Credit institutions.

2.1 Accounts in view.

2.2 Term accounts.

3. /Debtors.

3.1 Debtors, commissions and services.

3.2 Other debtors.

3.3 Public Administrations.

3.4 Deposits and bonds constituted.

4. /Fixed income portfolio.

4.1/Spanish public administrations.

4.1.1 Status.

4.1.2 Territorial administrations.

4.1.3 Other Administrations.

4.2/Credit Entities.

4.3/Other resident sectors.

4.3.1 Listed securities.

4.3.2 Unlisted securities.

4.4/Non-residents.

4.4.1 Listed securities.

4.4.2 Unlisted securities.

5. /Indoubt assets.

5.1 Doubt partners.

5.2 Other dubious assets.

6. /Variable income portfolio.

6.1 Participations in the group.

6.2 Participations.

6.3 Other shares and variable-income securities.

7. /Fixed.

7.1 Furniture, installations and vehicles.

7.2 Infurniture.

7.3 Fixed assets acquired in payment of debts.

7.3.1 Infurniture.

7.3.2 Others.

7.4 Rights on assets taken in financial leasing.

8. /Intangible assets.

8.1 Establishment expenses.

8.2 Other intangible assets.

9. /Partners for outstanding disbursements.

9.1 Protective Partners.

9.2 Partner Partners.

10. /Accounts of the Periodicification.

10.1/Deferred financial expenses and issuance of borrowings.

10.2/Devengos of products not due.

10.3/Other Periods.

11. /losses to be regularised.

11.1/Losses from previous exercises.

11.2/Provisional losses for the year.

STEP

1. /Credit institutions.

2. /Borrowings.

3. /Obligations to pay.

3.1 Reafirending, creditor companies.

3.2 Fiances and deposits received.

3.3 Pending out-of-downs on non-required shares.

3.4 Public administrations.

3.5 Miscellaneous Creditors.

4. /Accounts of the Periodicification.

4.1 Revenue to be distributed in various exercises.

4.2 Non-expired cost Devengos.

4.3 Other Periods.

5. /Special funds.

5.1/Insolvencies fund.

5.2/Securities fluctuation fund.

5.2.1 Fixed income.

5.2.2 Variable Income.

5.3/Provisions for immobilized.

5.4/Provisions for tax.

5.5/Other specific funds.

6. /Technical provisions fund (net).

6.1 Fund endowed by society.

6.2 Non-reintegrable and similar contributions received.

6.3 Less: Technical provisions fund applied.

7. /Capital.

7.1 Protective Partners.

7.2 Partner Partners.

8. /Reservations.

8.1 Revaluation reserves.

8.2 Other reservations.

9. /Benefits.

9.1 Benefit from previous exercises.

9.2 Provisional profit for the financial year.

ORDER ACCOUNTS

1. /Risk in force by guarantees and guarantees.

1.1/Avales and guarantees in normal situation.

1.2/Avales and dubious warranties.

1.2.1 Imports claimed by the beneficiary.

1.2.2 Rest.

2. /Re-endorsed risk.

2.1/Avales and warranties.

2.1.1 In normal situation.

2.1.2 Doubt Avales.

2.2/Doubt partners.

2.2.1 Unclaimed to reavalist.

2.2.2 Reclaimed to reavalista, pending collection.

2.2.3 Disbagged by reavalists.

3. /Other accounts.

3.1/Regularized suspended assets.

3.1.1 Funds received from reincorporation companies.

3.1.2 Other funds received from third parties.

3.1.3 Rest.

3.2/Minimum social capital.

3.3/Social capital of doubtful partners.

3.4/Social capital claimed, pending reimbursement.

3.5/Social capital reimbursed.

3.6/Borrowings issued and outstanding underwriting.

3.7/Available in favor of the entity.

3.8/Contributions to the fund of technical provisions pending disbursement.

3.9/Fund of technical provisions in suspense.

3.9.1 Fund provided by the company.

3.9.2 Reintegrable and similar contributions received.

3.10/Products due and not charged with doubtful assets.

State T. 2. Profit and Loss Account

reserved

MUST

1. /Interest and similar charges.

1.1 By Obligations.

1.2 Credit institutions.

1.3 Other interest and expenses assimilated.

2. /Corretajes and commissions several.

2.1 Commissions by reaval.

2.2 Other commissions and corretages.

3. /Losses from financial operations.

3.1 Losses from financial investments.

3.2 Negative Differences of Change.

4. /Operating Expenses.

4.1/Staff expenses.

4.1.1 Wages, salaries and assimilated.

4.1.2 Social Cargas.

4.2/General.

4.2.1 Charges for claims of doubtful or suspended balances.

4.2.2 Other external services.

4.2.3 Other expenses.

4.3/Contributions and taxes.

5. /Write-downs and Saneations of the Immobilized and Intangible Assets.

5.1 Material immobilized.

5.2 Intangible fixed assets.

6. /Insolvencies.

7. /Fund for technical provisions.

7.1 Dotations to the Technical Provisions Fund.

7.2 Technical provisions fund recovered.

8. /Extraordinary breaks.

8.1 Losses by disposal and consolidation of permanent units.

8.2 Losses by disposal of fixed assets.

8.3 Special funds allocations.

8.3.1 For immobilized coverage.

8.3.2 To other funds.

8.4 Losses from operations with own obligations.

8.5 Other one-time expenses.

8.6 Expenses and losses of other exercises.

9. /Corporation tax.

10. /Net profit.

HABER

1. /Commissions received.

1.1 Commissions for the provision of guarantees.

1.2 Revenue from service delivery.

2. /Interest and income assimilated. 2.1 Credit institutions.

2.2 Fixed Income Portfolio.

2.3 Other financial products.

3. /Yields of the variable income portfolio.

3.1 Dividends of linked permanent units.

3.2 Dividends of other shares and units.

4. /Benefits by financial operations.

4.1 Financial investment benefits.

4.2 Positive Differences of Change.

5. /Recovery of other funds and assets on hold.

5.1 Insolvencies and asset fund recoveries on hold.

5.2 Other funds.

6. /Use of the technical provisions fund.

7. /Miscellaneous products.

7.1 Operating grants.

7.2 Other products.

8. /Extraordinary benefits.

8.1 Benefits in disposal of linked permanent financial units.

8.2 Benefits in disposal of intangible fixed assets.

8.3 Benefits from operations with own obligations.

8.4 Other Extraordinary Income.

8.5 Income and benefits from other exercises.

9. /Net losses.

State T. 3. Credit risk coverage

Base Amount of Coverage/Total/A Deduction

(4)/Risk

doubtful

Adjusted/Coverage

SPECIFIC RISK:

1. Dubious assets (1):

1.1 Sorted out of purple depending on their late payment:

1.1.1 Generally:

Due less than six months ago

Over six months due, not exceeding twelve

Over twelve months due, not exceeding eighteen

Over eighteen months due, not exceeding twenty-one

Over twenty-one months overdue

1.1.2 With mortgage guarantee on home, office and local multi-purpose homes and estates:

Due less than three years ago

Over three years due, not exceeding four

Over four years overdue, not exceeding five

Over five years due, not exceeding six years

Over six years overdue

1.2 Classified as doubtful for reasons other than late

2. Doubtful guarantees and guarantees (2):

2.1 Dubious ones based on their delinquencies (5):

2.1.1 With mandatory coverage

2.1.2 No mandatory coverage

2.2 Classified as doubtful for reasons other than late (6)

3. Less: Coverage not required by reafirenchment contracts

Total

OPERATIONS SET RISK (MINIMUM AMOUNT):

1. With coverage of 1 per 100

2. With coverage of 0.5 per 100

3. No mandatory coverage

4. Less: Coverage not required by reafirenchment contracts

Total (3)

(1) Amount of asset item 5.

(2) Amount of item 1.2 of order accounts.

(3) Amount of the sum of items 3 and 4 of the asset, 1.1 of order accounts and of the outstanding assets and collateral balances without mandatory coverage.

(4) Salts to be deducted: Received commissions not computed in Losses and Earnings, capital paid out by the holder and monies received specifically for their coverage.

(5) The amounts of the reestablished risks shall be included among the risks with mandatory coverage, unless other reasons for their inclusion among the risks without mandatory coverage are present.

(6) In items "classified as doubtful for reasons other than late payment", risks shall be exclusively included in which there are no grounds for classification as doubtful at the same time as their late payments, which shall be included in the items corresponding to the necessary cover.

State T. 4. Classification of collateral and guarantees provided

Avales

formalized

in the exercise

in progress (1)/Avales

in effect

to Date/Number/Amount/Number/Amount

By the endorsed sector:

Primary Sector

Industrial Sector

Construction Sector

Tertiary Sector

Total

By the person or entity that is avala:

Banks

Savings boxes

Credit Unions

Credit financial institutions

Other financial entities

Providers

Public Administrations

Other

Total

By the nature of the operation performed:

Money Credits (2) (3)

Signature Credits (2) (4)

Deferral of payment in purchase of goods in the internal market (2)

Exporting and importing goods and services

Technical Avales:

Construction of homes

Hiring of works, services or supplies and concurrency to auctions

Obligations to Finance, Courts and other public bodies (5)

Other obligations

Total

For the complementary warranties received:

Real:

Mortgage

Other

Staff

No additional warranties

Total

Avales awarded to high-level society and individuals and companies linked to them

Total

(1) The data correspond to the avales formalized from the beginning of the financial year.

(2) Financial guarantees must necessarily be included in the categories "money credits", "signature credits" or "deferral of payment in purchase of goods in the internal market".

(3) In "money credits" the direct guarantees of all cash risks shall be entered into any collateral beneficiary, including payment deferrals of all types of debt, except for those relating to purchase of goods from the internal market.

(4) In "signature credits", the indirect guarantees of money risks (guarantees of money credits) will be included exclusively.

(5) In "obligations to the Treasury, the Courts and other public bodies" the guarantees that consist of deferment of payment of debts will not be included.

Accumulated exercise of the exercise

Average Number/Amount/Term

Avals requested

Avales granted

Formatted Avals

Formalized Reavals