PREAMBLE

Article 108.2 of Law 47/2003, of November 26, General Budget establishes that, in order to facilitate the treasury management of the funds of the Treasury, the Minister of Economy and Competitiveness may authorize the General Secretariat of the Treasury and Financial Policy to carry out short-term operations for the placement of funds in treasuries in the conditions specified in the authorization.

In this regard, Order ECC/4/2015 of 13 January, which provides for the creation of State Debt during the year 2015 and January 2016, in its Article 19.3, authorizes " the General Secretariat of the Treasury and Financial Policy to carry out the term deposit and the placement of balances in remunerated treasuries in entities other than the Banco de España. "

As provided for in these provisions, this resolution lays down the general conditions to which the operations will be subject, as well as the procedure of the auctions for the concertation of the same, replacing the resolution of 23 May 2014. A series of modifications are introduced that allow to adapt to the reality of the operative and the current context of the markets:

-The interest rate of the operations will always be fixed.

-The minimum bid of 10% affects only the request with the highest type and not the successive ones.

-The monthly interest payment date passes to the first business day of the following month.

-The fifteenth point referred to defaults is modified in its entirety.

For the above, this General Secretariat has resolved:

First. Object.

This resolution sets out the general conditions for the placement of balances in paid treasuries in financial institutions other than the Banco de España as the General Secretariat of the Bank of Spain. Treasury and Financial Policy are designed to manage your treasury.

Also, this resolution collects the procedure for developing and resolving the auctions that are called for the conduct of these operations.

Terms of Operations and Accounts

Second. Description of the operations.

The transactions shall consist of the placement of balances on current accounts of the Treasury's public interest that will be opened by the financial institutions that will be awarded in the corresponding auction.

During the currency of each transaction the corresponding balance will be transferred to the remunerated accounts every business day after the payment cycle of the Public Treasury, and the next business day must be returned. the entities to the account at the Banco de España that the General Secretariat of the Treasury and Financial Policy designates.

Third. Deadline for operations.

The General Secretariat of the Treasury and Financial Policy will determine in the resolution of the call for the deadline of the operations.

Operations will always start and expire on a business day. For these purposes, the days with this consideration in the calendar of the city of Madrid or in the calendar of TARGET2 shall be indeft.

Fourth. Interest rate.

Operations shall be remunerated at the interest rate offered by the contracting entities.

The interest rate will be fixed.

In the event that several requests from an entity are accepted, the interest rate of the transaction shall be that resulting from the weighted average of the types or differentials offered in each accepted request, expressed in percentage to three decimal places and rounded up by equal to the upside (as set out in the Eleventh section of this resolution).

The interest will be accrued for each calendar day elapsed and for the balance deposited at the end of the same, and will be calculated according to the current rule/360.

Fifth. Current accounts.

For the implementation of the operative described in this resolution, it will be necessary to have an account with the NIF of the General Secretariat of the Treasury and Financial Policy in the name of the Treasury.

Those entities entitled to tender in auctions that do not have such an account may urge the General Secretariat of the Treasury and Financial Policy to conclude the account opening contract, which will be adjusted to the model attempted by this.

The accounts used must be open in Spain and will not be permitted by any other operative than the one resulting from the application of the conditions set out in this resolution and in that of the call for the corresponding auction.

Due to the operations that have resulted in the opening of the accounts, the entities shall keep the accounts open for the performance of future operations in the framework of this resolution.

These accounts are excluded from the power of compensation and will benefit from the benefit of the inembargability of the public funds provided for in Article 23 of Law 47/2003, of 26 November, General Budget.

In the event that this is requested by the General Secretariat of the Treasury and Financial Policy, the contracting entities will offer the electronic banking service in consultation mode for access to information on balances and movements of the accounts.

Procedure for concertation and execution of operations

Sixth. Procedure.

The operations will be arranged with the entities that will be awarded in the auctions convened by the General Secretariat of the Treasury and Financial Policy (liquidity auctions). Call resolutions will be published in the "Official State Gazette".

The functions of the agent bank will be performed by the Banco de España, and through it will be the regular communications between the General Secretariat of the Treasury and Financial Policy and the legal entities.

Seventh. Call.

The call resolution for each auction will indicate:

a) The date of the auction celebration.

b) The deadline for operations.

c) Where appropriate, other additional conditions or specialties that are applicable to the auction or to the operations.

Eighth. Bidding entities.

All financial institutions that hold cash account in the TARGET2-Banco de España payment module may participate in the auction and meet one of the following requirements:

1. To be counterparties of the Banco de España in its monetary policy adjustment operations.

2. Having been authorized by the General Secretariat of the Treasury and Financial Policy, upon request, for having a high level of solvency and of the appropriate technical, human and operational means to operate in the markets of Short-term financing. The General Secretariat of the Treasury and Financial Policy will seek from the Bank of Spain appropriate reports on compliance with these requirements.

Prior to the participation of the entities in the auctions, the current account referred to in paragraph 5 of this resolution shall be open in the auctions.

Ninth. Communication of the liquidity offered.

Before 10:00 a.m. on the day of the day the petitions are submitted for each auction, the General Secretariat of the Treasury and Financial Policy shall make available to the entities that may participate in the auction, information on the estimated balance offered during the lifetime of the auction.

10th. Requests.

Entities that meet the requirements of the eighth point may submit their requests until 12:00 hours of the day indicated in the call, and must be sent to the Banco de España by means of the effect.

Each request will indicate:

1. The requested amount to be expressed in percentage points without decimals.

The minimum bid for the highest type request that each entity presents will be ten percent. The other bids of each institution may be carried out by lower balance percentages.

2. The interest rate offered in the form of a fixed or differential rate expressed in basis points on the applicable reference interest rate.

Each bidding entity may submit up to five requests at each auction. The sum of the amounts of all the requests of each entity shall not exceed 100% of the total amount auctioned.

The filing of a request by an entity at an auction will, in the event that it is ultimately awarded, be authorized to carry out the corresponding debits referred to in the second subparagraph of the Thirteenth paragraph.

11th. Award.

The General Secretariat of the Treasury and Financial Policy will resolve the auctions and, through the Banco de España, will inform the bidding entities of the acceptance or not of their requests. In addition, each contracting entity shall inform it of the percentage which has been awarded to it, as well as the interest rate applicable to the operation, in accordance with the terms set out in paragraph 4 of this resolution.

In cases where the amount requested at rates equal to or greater than the accepted minimum exceeds one hundred per cent of the auctioned balance, a pro-rata will be applied to the accepted requests at the marginal rate.

In cases where one hundred percent of the amount offered is not awarded, the General Secretariat of the Treasury and Financial Policy may call a second round for the unawarded amount.

The General Secretariat of the Treasury and Financial Policy will award the funds according to the types offered in each request. However, it may limit the amount allocated to a given entity in order to avoid excessive counterparty risk.

12th. Perfecting.

The entities will be bound by the requests submitted in terms of the closing of the time of receipt of applications. However, the improvement of the agreement will be produced with the communication of the award to the entity. Regardless of the number of requests accepted, the operation will be unique for each contracting entity.

13th. Execution of the concerted operations.

On the day of the start of each operation, starting at 14:30, the Banco de España, on behalf of the General Secretariat of the Treasury and Financial Policy, will transfer the funds to the public treasury accounts opened in the entities that have been awarded at the auction. The amount to be transferred to each contracting entity shall be rounded down to EUR 1 million.

The replenishment of balances deposited in the open accounts in each contracting entity shall take place at the first hour of the business day immediately thereafter. The Banco de España will owe in the account TARGET2-Banco de España of the contracting entity the corresponding amount, proceeding subsequently it is to charge in the account of the Public Treasury open in the same the amount owed.

This operation will be played daily for the duration of the operation.

Without prejudice to the provisions of paragraph 4 of this resolution as to the accrual of interest, your payment shall be made on the first working day of each calendar month for the amount corresponding to accrued interest. up to that date, except for accruals within the last month of the operation to be paid on the day of completion of the transaction.

In any case, interest payments will be made separately by transfer to the Treasury's operating account at the Banco de España. In the event that the contracting entities so require, they are authorized to carry out the interest in the account of the Public Treasury open in the same, and transfer them below to the Banco de España with charge account.

14th. Updating the information.

During the duration of the operations, the General Secretariat of the Treasury and Financial Policy will make available to the contracting entities information on the expected evolution of the balances. On a regular basis, the first business day of each week, the forecast of estimated daily balances for that week will be updated. This is without prejudice to the fact that, provided that it is considered appropriate on the basis of over-coming events, the balance forecasts shall also be updated.

15th. Defaults.

In the event that an entity does not withhold funds to the Treasury account at the Banco de España, the following consequences will be derived:

-A penalty will be applied on the total amount not returned, regardless of whether the entity has partial balances in the TARGET2 payment system that do not allow the total restitution to the Public Treasury. The applicable interest rate shall be 7%. For the purposes of the temporary calculation, an additional day shall be considered to be an additional day if the amount due has not been satisfied at 8:00 hours on the first and following days until replenishment.

However, if the return occurred before 9:00 a.m. on the first day of the default, the penalty would be reduced by 50%.

-The non-reintegrated part will continue to accrue interest in favor of the Public Treasury at the interest rate that would have been in effect during the period agreed upon for the operation.

-New funds will not be transferred to the entity as soon as it does not return the amounts due. Once the funds are returned, the General Secretariat of the Treasury and Financial Policy may unilaterally declare the agreement.

-The General Secretariat of the Treasury and Financial Policy may prohibit the entity from participating in future liquidity auctions.

sixteenth. Regulatory repeal.

The Resolution of 23 May 2014, of the General Secretariat of the Treasury and Financial Policy, laying down general conditions for the placement of balances in treasuries accounts is hereby repealed. paid in entities other than the Banco de España and for which the procedure for its concertation is regulated.

seventeenth. Effects.

This resolution shall have effect from the day following that of its publication in the "Official State Gazette".

Eighteenth. Applicable law and jurisdiction.

The entities participating in the transactions referred to in this resolution shall be subject to the general conditions laid down in the preceding paragraphs and to the particular conditions laid down in the call for the corresponding auctions, where the Spanish law is applicable in any case for any questions or actions that may arise.

To this effect, the Courts or Courts of the City of Madrid will be competent, renouncing the participating entities to any other jurisdiction that could correspond to them, and by agreeing as a place of fulfillment of the obligations the Address of the General Secretariat of the Treasury and Financial Policy.

Madrid, June 16, 2015. -Secretary General of the Treasury and Financial Policy, P.S. (Royal Decree 345/2012, of 10 February), the Director General of the Treasury, José María Fernández Rodríguez.