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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The law organic 6 / 2015, of 12 of June, of modification of the law organic 8 / 1980, of 22 of September, of funding of them communities autonomous (LOFCA) and of the law organic 2 / 2012, of 27 of April, of stability budget and sustainability financial (LOEPSF) introduces the article 13 bis in the LOFCA, devoting it prudence financial as principle guiding of them operations financial of them communities autonomous by integrating within the principle of financial sustainability.

The principle of financial prudence applies both to operations that they relate to financial liabilities, as they relate to financial assets or the granting of Government guarantees, contingent liabilities, and other forms of reinforcement or extrabudgetary support granted by the autonomous communities. The lack of control of the risk and cost of these operations can compromise the sustainability financial of them communities autonomous e introduce uncertainties on the future needs of financing.

Article 13 bis of the LOFCA attributed to the General Secretariat's regional coordination and Local approval of the resolution in which are fixed the conditions of financial prudence of transactions involving financial assets and guarantees or other operations of publicly guaranteed, and should be the application of the same to the Council of Fiscal policy and financial reporting. The operations relating to guarantees and guarantees that fail to comply with the conditions fixed in the present resolution will require authorization of the State.

On the other hand, paragraph 1 of article 20 of the LOEPSF sets the need for authorization by the State for granting of guarantees, reavales and other kind of guarantees to entities, in the event of failure to comply with the objectives of budgetary stability, debt or spending rule.

(By all it earlier, this Secretariat General has determined: CHAPTER FIRST conditions of prudence financial for guarantees I. field of application the present chapter is apply to the operations of guarantees granted by them communities autonomous in warranty of operations of credit to people physical or legal different of them collected in the field of application of the article 2.1. b) of the LOEPSF without prejudice to the authorization required in application of paragraph 1 of article 20 of the LOEPSF.

II. definitions and concepts for the purposes of this chapter shall mean: 1. «Collateral»: operations by bond, endorsement, reaval or any other kind of guarantee, including letters of commitment granted by the autonomous communities.

2. "community autonomous»: set of entities belonging to the Sector administrations public of a community autonomous based on the definition and delimitation of the system European of accounts national and regional (SEC).

3 ' live risk': outstanding balance of the principal secured credit operations entrenched through, reavales or existing guarantees and not executed, canceled, or released.

III. guarantees global limit.

1. amount and computation of the limit global of guarantees the amount total of guarantees authorized by each community autonomous not may be superior to the 1.5% of its GDP regional. The last GDP published by the National Institute of statistics in the Regional accounts of Spain will be used for this computation. Base 2010.

The calculation of this limit shall be regarded as the nominal amount of guarantees and other warranties at 31 December of each year more authorisations of guarantees provided for the following financial year.

2. Fund for guarantees for the purposes of the limit planned in the point 1 earlier, not is considered those surety by endorsement or guarantees whose risk live is covered with a staffing differential in them budgets of expenses of the community autonomous of a fund affection to the payment by execution of them guarantees and guarantees provided. This Fund will be expandable to adapt to the contingencies of the exercise and will be unavailable except to meet payments for execution of guarantees or warranties, including those who have not served as basis for its endowment.

If you equip this Fund, the annual budget of the Autonomous Community law establish characteristics of differentiated staffing and unavailability that make it ideal for the purposes specified in relation to the overall limit of guarantees. In addition, description should be detailed the relationship of warranty covered operations, indicating the formalized nominal amount and the pending live risk for each guarantee.

IV. obligations of information for the purposes of computation of the global limit of guarantees included in paragraph III, the autonomous communities through the Ministry or Department with competence in matters of finance and budgets, must be sent in the month of January of each year to the Ministry of finance and public administration (MINHAP), through the General Secretariat of regional and Local coordination , the amounts of all the authorizations or forecasts of authorization of guarantees of the exercise of any entity belonging to the Sector administrations public of a community autonomous in accordance with the SEC. For this purpose it will employ the model collected in the annex I of this resolution.

V. limit by operations individual with independence of it planned in the paragraph III, them communities autonomous not may arrange operations of guarantees when the extension of the warranty, by any concept, is superior to 25 million of euros or to the 0.1% of the GDP of the community.

The limit above is computed operation by operation. However, them guarantees that is granted by the community autonomous to a same person physical or legal or to any of them entities that form part of the same group of societies according to the criteria established in the article 42 of the code of trade during the year natural, is considered a single operation for the purposes of the computation of this limit. The same caution applies when regarding the warranties that have as beneficiaries to entities which form the same group according to the order of HAP/1489/2013, 18 July, approved rules for the formulation of consolidated annual accounts within the scope of the public sector.

VI. authorization of the Council of Ministers 1. Pursuant to article 13 bis.5 of the organic law 8/1980, of 22 of 22 September, financing of the autonomous communities, will need authorization from the Council of Ministers, the formalization of guarantee operations which exceed the limits of financial prudence established in this chapter. The corresponding authorizations to the global limit of paragraph III of this chapter may be made gradually by sections of amounts to endorse or guarantee.

2. also will require authorization of the Council of Ministers endorsement operations provided for in article 20.1 of the LOEPSF. This precept requires that such authorization will be carried out gradually in installments of amounts to endorse and guarantee, and will be mandatory until the Ministry of finance and public administration finds that the objective of budgetary stability, debt or spending rule fulfilled.

VII. processing of authorisations 1. Both for authorisations for breach of the global limit provided in the en el apartado section III of this chapter as for authorisation referred to in point 2 of paragraph VI, the autonomous community, through the Ministry or Department with competence in matters of finance and budgets, must send to the Ministry of finance and public administration (MINHAP) application for authorization through the General Secretariat of regional and Local coordination (, in which should be noted the list of provided guarantees for which authorization is sought, stating the following aspects of each: to) entity SEC of the autonomous community that extends the warranty.

(b) beneficiary of the guarantee.

(c) the operation of credit guaranteed or entrenched features: type, cost and timescale.

(d) calculation of the amount for the purposes of the limit he referred to in paragraph III of this chapter.

2 application for authorization of individual operations referred to in paragraph V shall include, in addition to the above-mentioned indications in point 1, the following: to) the operation of credit guaranteed or entrenched features: type, total amount, cost, time and purpose or specific target of the guaranteed credit operation.

(b) counter guarantees, where applicable.

(c) relevant aspects of the security agreement, as an extension of warranties, covenants for the benefit of excursion, agreements in relation to the position of the guarantor or surety against the secured obligation, and any other aspect that affects the risk of the operation.

(d) the MINHAP may request a report of feasibility of the operations financed by the guaranteed credit operation, specifying the risks involved and the expected loss.

3. the MINHAP may require the information or documentation that consider timely for instruct the record, additional to the planned in those numbers earlier.

4. the term for approve the agreement of authorization will be of three months, to count from the reception of the request, whose computation is suspended in case of be necessary by requirement to it community autonomous for remedy it request until is complete and by others delay that are attributable to the applicant.

5. for the granting of the authorisation referred will serve, inter alia, to the nature, characteristics and purpose of lending to support operations and the economic autonomous community, and financial situation, in particular to the fulfilment of the objectives of budgetary stability, debt and the spending rule and the degree of implementation of the measures provided for in the financial plans or , if necessary, adjustment plan. Also is considered them conditions with that is formalize them guarantees and, in particular, which pose an increase of the risk of the operation, and them relating, in his case, to the circumstances of solvency of the debtor entrenched.

SECOND CHAPTER conditions of financial prudence in relation to financial assets I. scope and definitions the conditions refer to loans in favour of third-party instruments of capital or net worth of other entities or debt securities whose owner is an autonomous community and whose counterpart is a liability or equity account net of natural or legal persons other than the collected within the scope of article 2.1. b) of the LOEPSF.

Is understood by community autonomous to the set of entities belonging to the Sector administrations public of a community autonomous, in accordance with the definition and delimitation of the system European of accounts national and regional (SEC) and by active financial, to those that have that consideration in terms of accounting national.

II. limits relating to financial assets 1. Them communities autonomous that, in accordance with the report to is concerns the article 17.3 of it LOEPSF, fail to comply with the objective of debt public, not may present a variation net of active financial positive to the closing of the exercise budget in that is issue said informesiempre that persists said breach in the report to is concerns the article 17.4 of the LOEPSF for that year.

2. the autonomous communities which, according to the report referred to in article 17.4 of the LOEPSF, fail to comply with the objective of public debt, may not submit a positive variation in net of financial assets at the close of the financial year following the issuance of the report, provided that such failure to persist during that period in accordance with the reports referred to in paragraphs 3 and 4 of article 17 of the LOEPSF.

3. the Secretariat General of coordination autonomic and Local (SGCAL) may authorize the consultation of operations of loan and the acquisition of active financial that consist in participation in the capital of companies or values representative of debt when exist risk of that is go to overcome them limits provided in this paragraph. The SGCAL will assess these effects, among other aspects, the purpose of the operation and the degree of compliance with the objectives of stability, public debt, ruler of expenditure and average period of payments to suppliers.

III. activities of monitoring and control all the autonomous communities shall present to the MINHAP before 31 March of each year, certification of net change in financial assets at the end of the previous year in terms of national accounts signed by the Auditor General.

Before the 31 of October of 2015, the communities autonomous must send information relative to the stock of active financial to 31 of December of the year 2014 in accordance with the model provided in the annex of this resolution. This information will be updated for subsequent years, by sending this model information at the end of the previous year before March 31 of each year.

Available end. Entry into force.

This resolution shall enter into force the day following its publication in the "Official Gazette", except the limits provided in paragraph III of the first chapter, which will come into force on December 31, 2015.

Madrid, 9 of September of 2015.-the Secretary General of coordinating regional and Local, Rosana Navarro Heras.

ANNEX I guarantees provided for the following exercise entity SEC GUARANTOR beneficiary (*) planned nominal amount - (thousands euros) name entities from the scope of the monthly budget execution statistics - (YES/NO)

































(*) Is recorded the personal physical or entity not SEC to which is provides the warranty. If you ignored the individual or entity, shall be «personal physics» or 'entity'.

ANNEX II active financial instructions: * the portfolio of assets should be referred to 31 of December.

* Only assets which is an entity SEC, whose counterpart is a liability or net equity of an entity NOT SEC. account holder must be filled

Rules assessment: * when the type active is 1 (actions), 2 (bonds and obligations) and 3 (other securities) is will fill the column 3.1 (value acquisition) and in the column 3.2 with the value of accounting NET to 31 of December.

* When the asset type is 4 (loans and credits) or 5 (deposits and deposits) is only filled the column 3.2 (value at 31/12/2014) that will match the outstanding balance at that date.

ENTE SEC holder of the active type of active No. of titles (3) valuation (3.1) value acquisition (3.2) value to closing exercise actions.

Bonds and obligations.

Other securities.

Loans and credits.

Bonds and deposits.