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Resolution Of September 9, 2015, Of The General Secretariat Of Regional And Local Coordination, Which Defined The Principle Of Financial Prudence Of The Autonomous Communities Of Financial Transactions That Relate To Active...

Original Language Title: Resolución de 9 de septiembre de 2015, de la Secretaría General de Coordinación Autonómica y Local, por la que se define el principio de prudencia financiera de las comunidades autónomas de las operaciones financieras que tengan por objeto activo...

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Organic Law 6/2015 of 12 June, amending the Organic Law 8/1980, of 22 September, of financing of the Autonomous Communities (LOFCA) and of the Organic Law 2/2012, of 27 April, of budgetary stability and Financial Sustainability (LOEPSF) introduces Article 13a into the LOFCA, enshrining financial prudence as the guiding principle of the financial operations of the autonomous communities, integrating within the principle of sustainability financial.

The principle of financial prudence applies both to transactions involving financial liabilities, to those relating to financial assets or to the granting of public guarantees, contingent liabilities and other forms of strengthening or non-budgetary support granted by the Autonomous Communities. The lack of risk control and cost of these operations can compromise the financial sustainability of the autonomous communities and introduce uncertainties about future financing needs.

Article 13a of the LOFCA gives the General Secretariat for Autonomic and Local Coordination the approval of the Resolution setting out the conditions for the financial prudence of operations relating to assets financial and collateral or other public guarantee operations, with the application of the same to the Fiscal and Financial Policy Council. Operations relating to guarantees and guarantees which do not comply with the conditions laid down in this Resolution shall require State authorisation.

Moreover, in Article 20 (1) of the LOEPSF, the need for State authorization is established for the granting of guarantees, guarantees and other guarantees to entities, in the event of non-compliance with the objectives of the budgetary stability, public debt or the spending rule.

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

CHAPTER FIRST

Financial prudence conditions for endorsements

I. Scope of application

This Chapter shall apply to the operations of guarantees granted by the Autonomous Communities in respect of credit operations to natural or legal persons other than those collected in the field of application of the Article 2 (2) (b) of the LOEPSF, without prejudice to the authorisations required pursuant to Article 20 (1) of the LOEPSF.

II. Definitions and concepts

For the purposes of this chapter:

1. "Avales": Bail operations, collateral, collateral, or any other kind of collateral, including commitment letters granted by the Autonomous Communities.

2. 'Autonomous Community' means a set of entities belonging to the Public Administrations Sector of an autonomous community in accordance with the definition and delimitation of the European System of National and Regional Accounts (ESA).

3. 'Live risk' means the outstanding balance of the principal collateralised credit operations through collateral, collateral or other collateral in place and not executed, cancelled or released.

III. Global limit of endorsements.

1. Amount and computation of the global limit of endorsements

The total amount of guarantees authorized by each autonomous community may not exceed 1.5% of its regional GDP. For this calculation, the last GDP published by the National Statistics Institute in the Spanish Regional Accounting Office will be used. Base 2010.

For the calculation of this limit, the nominal amount of guarantees and other guarantees shall be considered as of 31 December of each year plus the authorisations of guarantees provided for the following year.

2. Fund for Avales

For the purposes of the limit set out in point 1 above, no guarantee or guarantee shall be considered for guarantees the living risk of which is covered by a differentiated allocation in the expenditure budgets of the autonomous community. of a fund affected the payment for the execution of the guarantees and guarantees provided. This fund may be extensible to be adapted to the contingencies of the financial year and shall be unavailable except in order to respond to payments for the execution of guarantees or guarantees, including those which have not been used as a basis for their allocation.

If this fund is to be established, the annual budget law of the Autonomous Community shall establish the characteristics of the differentiated allocation and unavailability that make it appropriate for the intended effects in relation to the limit Global avales. In addition, the ratio of covered collateral operations shall be detailed, indicating the nominal amount formalised and the outstanding outstanding risk for each guarantee.

IV. Reporting obligations

For the purposes of calculating the global limit of guarantees included in paragraph III, the autonomous communities through the department or department with funding and budgets, will have to submit in the month of January of each year to the Ministry of Finance and Public Administrations (MINHAP), through the General Secretariat of Autonomous and Local Coordination, the amounts of all authorizations or forecasts for authorization of the financial year of any entity belonging to the Public Administrations Sector of an autonomous community according to the SEC. For this purpose, the model set out in Annex I to this resolution shall be used.

V. Limit by individual operations

Regardless of what is provided for in paragraph III, the autonomous communities may not enter into collateral operations where the extension of the guarantee, by any means, is greater than EUR 25 million or 0,1% of the Community GDP.

The above limit will be computed by operation. However, guarantees granted by the autonomous community to the same natural or legal person or to any of the entities forming part of the same group of companies in accordance with the criteria laid down in Article 42 of the Code Trade during the calendar year shall be considered as a single transaction for the purposes of calculating this limit. The same caution applies when it comes to guarantees that the beneficiaries will have the same group as the same group in accordance with the HAP/1489/2013 Order of 18 July 2013 laying down the rules for the formulation of accounts. consolidated annual accounts in the field of the public sector.

VI. Authorizations of the Council of Ministers

1. In accordance with Article 13a.5 of the Organic Law 8/1980 of 22 September 22 of the Financing of the Autonomous Communities, it will require the approval of the Council of Ministers, the formalization of the operations of the the limits of financial prudence laid down in this Chapter. The authorisations corresponding to the overall limit of paragraph III of this Chapter may be carried out in a gradual manner by tranches of amounts to be guaranteed or guaranteed.

2. The approval operations provided for in Article 20.1 of the LOEPSF shall also be required by the Council of Ministers. This precept specifies that such authorization may be carried out gradually by tranches of amounts to be guaranteed and guaranteed, and will be required until the Ministry of Finance and Public Administrations finds that the objective of budgetary stability, public debt or the spending rule.

VII. Processing of the authorizations

1. Both for the authorisations for non-compliance with the overall limit provided for in paragraph III of this Chapter and for the authorisations referred to in point 2 of paragraph VI, the autonomous community, through the department or department with powers in matters of financing and budgets, shall send to the Ministry of Finance and Public Administrations (MINHAP) the application for authorization through the General Secretariat for Autonomous and Local Coordination, in which it shall be record the list of guarantees to be provided for which authorisation is sought, indicating the following aspects of each:

a) The autonomous community's SEC entity that grants the warranty.

b) Guarantee beneficiary.

c) Characteristics of the secured or secured credit operation: Type, cost and time frame.

(d) Calculation of the amount for the purposes of the limit referred to in paragraph III of this Chapter.

2. The application for the authorisation of individual operations provided for in paragraph V shall include, in addition to the information referred to in point 1, the following:

a) Characteristics of the secured or secured credit operation: Type, total amount, cost, time and purpose or specific destination of the secured credit operation.

b) Contragarantias, if any.

c) Relevant aspects of the guarantee contract, as an extension of the guarantee, covenants relating to the benefit of excision, agreements in relation to the position of the guarantor or guarantor in the face of the guaranteed obligation, and any other aspect that affects the risk of the operation.

(d) The MINHAP may request the Feasibility Report of the operation financed by the secured credit operation, explaining the risks assumed and the expected loss.

3. The MINHAP may require the information or documentation it deems appropriate to instruct the file, in addition to that provided for in the previous numbers.

4. The time limit for approving the authorization agreement shall be three months from the receipt of the application, the computation of which shall be suspended if necessary by requiring the autonomous community to rectify the application until it has received the request. complete and for other delays that are attributable to the applicant.

5. For the granting of such authorization, among other aspects, the nature, characteristics and purpose of the credit operations to be approved shall be addressed to the economic and financial situation of the autonomous community, in particular to the compliance with the objectives of budgetary stability, public debt and the rule of expenditure and the extent to which the measures provided for in the Economic and Financial Plans are implemented or, where appropriate, the adjustment plan. The conditions under which guarantees are formalised, and in particular those involving an increase in the risk of the transaction, and those relating, where appropriate, to the solvency circumstances of the established debtor, shall also be considered.

CHAPTER SECOND

Financial prudence conditions in relation to financial assets

I. Scope and definitions

The conditions relate to loans in favour of third parties, instruments of capital or net worth of other entities or debt securities whose owner is an autonomous community and whose counterpart is a liabilities or net worth account of natural or legal persons other than those listed in the scope of Article 2.1.b) of the LOEPSF.

Autonomous Community shall mean all entities belonging to the Public Administrations Sector of an autonomous community, in accordance with the definition and delimitation of the European System of National Accounts and (SEC) and by financial assets, to those who have such consideration in terms of national accounting.

II. Limits in relation to financial assets

1. The autonomous communities which, in accordance with the report referred to in Article 17.3 of the LOEPSF, do not meet the public debt target, may not submit a net change of positive financial assets at the end of the financial year the issuing of such information shall mean that the non-compliance with the report referred to in Article 17.4 of the LOEPSF for that year persists.

2. The autonomous communities which, in accordance with the report referred to in Article 17.4 of the LOEPSF, do not meet the public debt target, may not submit a net change of positive financial assets at the close of the following financial year. of the issuance of that report, provided that such non-compliance persists during that financial year in accordance with the reports provided for in paragraphs 3 and 4 of Article 17 of the LOEPSF.

3. The General Secretariat for Autonomous and Local Coordination (SGCAL) may authorise the concertation of lending operations and the acquisition of financial assets consisting of the equity of undertakings or securities representing debt where there is a risk that the limits provided for in this paragraph are to be exceeded. The SGCAL shall assess for these purposes, inter alia, the purpose of the operation and the degree of compliance with the objectives of stability, public debt, expenditure rule and average period of payment to suppliers.

III. Follow-up and control actions

All Autonomous Communities shall submit to the MINHAP before 31 March each year, certification of net variation of financial assets at the end of the previous financial year in terms of national accounts subscribed by their General Financial Controller.

By 31 October 2015, the Autonomous Communities shall submit information relating to the stock of financial assets at 31 December 2014 in accordance with the model set out in the Annex to this Resolution. This information shall be updated for subsequent years, with the information being forwarded to the previous financial year before 31 March of each year.

Final disposition. Entry into force.

This Resolution shall enter into force on the day following that of its publication in the Official Gazette of the State, with the exception of the limits provided for in paragraph III of Chapter 1 which shall enter into force on 31 December 2015.

Madrid, September 9, 2015. -General Secretariat of Autonomous and Local Coordination, Rosana Navarro Heras.

ANNEX I

Avales planned for the following year

AVALISTA SEC Entity

Payee (*)

Planned nominal amount

-

(Thousands Euros)

denomination

Entes of the scope of the monthly budget execution statistic

-

(SI/NO)

(*) The physical staff or non-SEC entity to which the guarantee is provided shall be entered. If the natural person or entity is unknown, 'physical personnel' or 'entity' shall be placed.

ANNEX II

Financial assets

Instructions:

* The asset portfolio should be referred to as of December 31.

* Only the assets of which an ESA entity is a holder, the counterparty of which is a liability or a net worth account of a non-SEC entity.

Valuation Rules:

* When the asset type is 1 (shares), 2 (bonds and bonds) and 3 (other securities) is filled in column 3.1 (acquisition value) and column 3.2 with the net book value at 31 December.

* When the Asset Type is 4 (loans and credits) or 5 (sureties and deposits) only column 3.2 (Value to 31/12/2014) will be filled in with the live balance to that date.

-holder SEC (SEC)

Asset Type

No. of titles

(3) Valuation

(3.1) Acquisition value

(3.2) Value to exercise

Actions.

Bonds and obligations.

Other securities.

Loans and credits.

Fiances and Constituted repositories.