Article 108.2 of Law 47/2003 of 26 November, General Budget, states that, in order to facilitate the management of Treasury funds, the Minister of Economy and Competitiveness may authorize the Secretary General of the Treasury and Financial Policy to carry out short-term operations of deposit under 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 the above provisions, this resolution lays down the general conditions to which the deposit operations will be subject, as well as the procedure for the auction of the same.

For the above, this General Secretariat has:

First. Object.

This resolution sets out the general conditions that will apply to deposit operations in financial institutions other than the Banco de España that the General Secretariat of the Treasury and Financial Policy has with the purpose of managing its 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

Second. Description of the operations.

Operations shall consist of deposits in financial institutions that are awarded in the corresponding auction.

The contracting entities will not be able to apply compensation on the constituted deposits, which will also enjoy the benefit of the unembargability of the public funds provided for in Article 23 of Law 47/2003, of 26 of November, General Budget.

Third. Deadline for operations.

The General Secretariat of the Treasury and Financial Policy will determine in the resolution of the auction the term of the operations.

Operations will always be and will be overcome on a business day basis. 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.

The transactions shall be remunerated at the fixed interest rate offered by the contracting entities. Where several requests from an institution are accepted, the interest rate of the transaction shall be that resulting from the weighted average of the rates offered in each accepted request, expressed as a percentage to three decimal places and rounded up by equal to the upside.

The interest will be accrued daily for the duration of the operation and will be calculated according to the ACTUAL/360 rule.

Procedure for concertation and execution of operations

Fifth. 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.

Sixth. Call.

The call resolution for each auction will indicate:

a) Date of the auction.

b) The duration of operations.

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

Seventh. 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.

Eighth. Communication of the liquidity offered.

Before 10:00 a.m. on the morning of the day of the auction, the General Secretariat of the Treasury and Financial Policy shall communicate the amount offered to the entities that may participate in the auction pursuant to Seventh of this resolution.

Ninth. Requests.

Entities that meet the requirements of paragraph 7 may submit their requests until 12:00 on the day the auction is held, and must be sent to the Banco de España by means of the effect.

Each request will indicate:

1. The amount requested to be expressed in millions of euros.

2. The interest rate offered in the form of a fixed rate, expressed in percentage points with two decimal places.

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 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 paragraph twelfth.

10th. 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 amount awarded to it, as well as the interest rate applicable to the transaction, 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 the total amount auctioned, a prorate will be applied to the requests accepted at the marginal rate.

In cases where the full amount of the bid is not awarded, the General Secretariat of the Treasury and Financial Policy may call a second round of the auction for the remainder not awarded.

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.

11th. 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. Irrespective of the number of requests accepted, a single deposit shall be made for each contracting entity.

12th. Execution of the concerted operations.

On the commencement day of each operation, the Banco de España, on behalf of the General Secretariat of the Treasury and Financial Policy, will transfer funds to the TARGET2-Banco de España accounts from the Treasury's operational account. the entities that have been awarded at the auction.

The replenishment of the balances deposited with each contracting entity will take place at the first hour of the day the operation expires. To this end, the Banco de España shall owe the TARGET2-Banco de España account of the contracting entity the nominal amount of the deposit and pay it into the Treasury's operational account at the Banco de España.

On the day of the maturity of the transactions, the contracting entities shall pay the corresponding interest by transfer to the Treasury's operational account at the Banco de España.

13th. Defaults.

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

-Interest shall be payable on the total amount due until the day on which its complete restitution to the Treasury was produced at the interest rate that would have been in force during the period agreed for the operation, plus a differential of 1,000 basis points. For the purposes of the calculation, an additional day shall be deemed to have elapsed when the amount due has not been satisfied at 8:00 hours each day because the balance entity is not sufficient to make the debit.

-The Treasury may not transfer to the institution funds from other operations that may be awarded in other liquidity auctions as long as it does not return due.

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

14th. Effects.

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

15th. 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, March 11, 2015. -Secretary General of the Treasury and Financial Policy, Rosa María Sánchez-Yebra Alonso.