Resolution Of March 11, 2015, Of The General Directorate Of The Treasury And Financial Policy, By Which Establish The General Conditions Applicable To The Operations Of Deposit In Bodies Other Than The Bank Of Spain And Why Is R...

Original Language Title: Resolución de 11 de marzo de 2015, de la Secretaría General del Tesoro y Política Financiera, por la que se establecen las condiciones generales aplicables a las operaciones de depósito en entidades distintas del Banco de España y por la que se r...

Read the untranslated law here: http://www.boe.es/buscar/doc.php?id=BOE-A-2015-2631

The article 108.2 from the Law 47/2003, of 26 November, General budget, establishes that, in order to facilitate management Treasurer of funds from the public Treasury, the Minister of economy and competitiveness may authorize the General Directorate of the Treasury and financial policy to perform short term deposit in conditions that materialize in the authorization.

In that sense, the order ECC/4/2015, of 13 January, by which the creation of government debt has during the year 2015 and 2016 January, in its article 19.3, authorizes to «the General Directorate of the Treasury and financial policy to perform operations of deposit placement of balances in accounts and term treasurers remunerated in bodies other than the Bank of Spain ".

In accordance with those provisions, the present resolution sets the General conditions which shall be subject the deposit operations, as well as the procedure of auctions for the conclusion of the same.

On the basis of the above, the General Secretariat has: first. Object.

This resolution establishes the conditions that shall apply to the operations of deposit in financial institutions other than the Bank of Spain, which concluded the General Directorate of the Treasury and financial policy with the purpose of managing its cash.

This resolution also collects the procedure by which will be developed and resolved auctions is inviting to these operations.

Conditions of the second operations. Description of the operations.

The operations consist of the Constitution of deposits in financial institutions resulting in the corresponding auction awarded.

Awarding entities may not apply offsets on the deposits, which shall be in addition to the benefit of imprescriptible of public funds envisaged in article 23 of the Law 47/2003, of 26 November, General budget.

Third party. Time of the operations.

The General Directorate of the Treasury and financial policy will determine the resolution's call for the auction the period of operations.

Operations will constitute and will always expire on business day. For these purposes, will be non-working days that have this consideration in the calendar of the city of Madrid or in the calendar of TARGET2.

Room. Type of interest.

Operations are remunerated at the rate fixed interest rate offered by the awarding entities. Where the number of requests for an entity to be accepted, the interest rate of the operation will be the resulting to the weighted average rate offered in each request accepted, expressed as a percentage, to three decimal places, rounded by equidistance upward.

Interest is accrued daily for the duration of the operation and shall be calculated according to the ACTUAL/360 rule.

Fifth procedure for the conclusion and execution of operations. Procedure.

Operations shall cooperate with the entities that awarding auctions convened by the General Directorate of the Treasury and financial policy (liquidity auctions). Resolutions call for proposals will be published in the «Official Gazette».

The agent bank functions will be exercised by the Bank of Spain, and through regular communications between the General Directorate of the Treasury and financial policy and the bidding entities will take place.

Sixth. Call.

The resolution's call for each auction shall indicate: a) date of conclusion of the auction.

(b) the period of validity of the operations.

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

Seventh. Bidding entities.

They may participate in the auction all financial entities that have cash account in TARGET2-Bank of Spain payments module and which meet one of the following requirements: 1. be counterparties of the Bank of Spain in its adjustment of monetary policy operations.

2 have been authorized by the General Directorate of the Treasury and financial policy, on request, by having a high level of solvency and adequate means human, technical and operational capacity to operate in short-term funding markets. The General Directorate of the Treasury and financial policy shall seek timely reports on the fulfilment of these requirements of the Bank of Spain.

Eighth. Communication of the offered liquidity.

Before 10:00 a.m. of the day of conclusion of the auction, the General Directorate of the Treasury and financial policy information about the offered amount to entities that can participate in it under the seventh paragraph of this resolution.

Ninth. Requests.

Entities that meet the requirements of paragraph seventh may submit their requests until 12:00 hrs of the day that the auction is held, and must refer to the Bank of Spain through the means authorized for the purpose.

Each request shall indicate: 1. the amount requested shall be expressed in millions of euros.

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

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

The presentation of a petition by an institution in an auction will result in, in the event that finally is awarded, their authorization to carry out the corresponding debts referred to in the second subparagraph of paragraph twelfth.

Tenth. Adjudication.

The General Directorate of the Treasury and financial policy will solve the auctions, and through the Bank of Spain, informed bidding entities of the acceptance or not of your requests. In addition, each entity awarded will tell you the amount that has been awarded to you, as well as the interest rate applicable to the operation, in the terms referred to in the fourth paragraph of this resolution.

In cases in which the amount requested at rates equal to or higher than the minimum accepted exceeds the total amount auctioned, an apportionment shall apply to requests accepted at the marginal rate.

In cases in which not all of the offered amount is awarded, the General Directorate of the Treasury and financial policy may convene a second round of the auction for the rest not awarded.

The General Directorate of the Treasury and financial policy award funds based on types offered in each request. However, you can limit the number assigned to a particular entity in order to avoid an excessive risk of counterpart.

Eleventh. Perfecting.

Entities will be bound by the petitions in the terms that had been carried out at the end of the time of receipt of applications. However, the improvement of the agreement will occur with the communication of the award to the entity. Regardless of the number of requests accepted, shall constitute a single deposit for each entity awarded.

12th. Implementation of concerted operations.

The day of beginning of each operation, the Bank of Spain, on behalf of the General Directorate of the Treasury and financial policy, will transfer fee to the Treasury operational account funds to TARGET2-Bank of Spain accounts of entities that have been awarded in the auction.

The replenishment of balances deposited in each entity awarded will take place in the early hours of the day on which expires the operation. For this purpose, the Bank of Spain due account TARGET2-Bank of Spain of the entity awarded the nominal amount of the deposit and pay the operational account of the treasure in the Bank of Spain.

The day of the expiry of the operations, the awarding entities shall pay interest by transfer the operational account of the treasure in the Bank of Spain.

13th. Non-compliance.

In the event that an entity not treated at maturity the funds to the account of the Treasury in the Bank of Spain, be derived the following consequences:-be shall accrue interest on the total amount due until the day in which there is full restitution to the public Treasury at the rate that had been in effect during the period agreed upon for the operation , over a 1,000 basis points differential. For the purposes of the computation it will be considered after an extra day when the amount owed has not satisfied at 8:00 every day by not having enough balance entity to carry out the debit.

-The treasure may not transfer to the entity proceeds, other operations that might have awarded in other auctions of liquidity, both as soon as you replace not due.

-The General Directorate of the Treasury and financial policy may prohibit the entity participation in future liquidity auctions.

Fourteenth. Effects.

This resolution shall take effect from the day following its publication in the «Official Gazette».

Fifteenth. Applicable law and jurisdiction.

The entities participating in the operations referred to in this resolution are subject to the General conditions laid down in the preceding paragraphs and the individuals that are established in resolutions call for corresponding auctions, being applicable in any case the Spanish law for how many questions or actions may arise.
For this purpose, will be competent the courts or tribunals of the city of Madrid, renouncing any other jurisdiction that may correspond to them participating institutions, and reaching an agreement as a place of fulfilment of the obligations the domicile of the General Directorate of the Treasury and financial policy.

Madrid, 11 March 2015.-the General Directorate of the Treasury and financial policy, Rosa María Sánchez-Yebra Alonso.