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FONDO DE GARANTÍADE DEPÓSITOS

DE ENTIDADES DE CRÉDITO

ANNUAL REPORT 2018

FONDO DE GARANTÍADE DEPÓSITOS

DE ENTIDADES DE CRÉDITO*

ANNUAL REPORT 2018

Approved by the Management Committee on 5 June 2019 and presented

to their members and to the Bank of Spain.

(*) Translation of the annual report originally issued in Spanish. In the event of a discrepancy, the Spanish

language version prevails.

FONDO DE GARANTÍA DE DEPÓSITOS DE ENTIDADES DE CRÉDITO

José Ortega y Gasset, 22 - 28006 MADRID

COMISIÓN GESTORA DEL FONDO DE GARANTÍA DE DEPÓSITOS

DE ENTIDADES DE CRÉDITO

Depósito legal: M. 28392-2019Unidad de Servicios Auxiliares, Banco de España

Abbreviations, acronyms and signs

EUR t: Thousand euro.

EUR M: Million euro.

FGDEC: Fondo de Garantía de Depósitos de Entidades de Crédito

(Deposits Guarantee Fund of Credit Institutions).

FGDEB: Fondo de Garantía de Depósitos en Establecimientos Bancarios

(Deposits Guarantee Fund of Banks Institutions).

FGDCA: Fondo de Garantía de Depósitos en Cajas de Ahorro

(Deposits Guarantee Fund of Saving Banks).

FGDCC: Fondo de Garantía de Depósitos en Cooperativas de Crédito

(Deposits Guarantee Fund of Credit Unions).

FROB: Fondo de Reestructuración Ordenada Bancaria

(Fund for Orderly Bank Restructuring).

Management: Management Company for the Deposits Guarantee Fund.

—: Amount equal to zero or non-existence of the considered concept.

(): In an amount, indicates it is negative.

MANAGEMENT COMMITTEE OF THE FONDO DE GARANTÍA DE DEPÓSITOS DE ENTIDADES DE CRÉDITO

(At 31 December 2018)

(Integrated under the Royal Decree – Law 16/2011, of 14 October)

President Ms. Margarita Delgado Tejero (since 11 September 2018) Deputy Governor of Bank of Spain

Mr. Javier Alonso Ruiz-Ojeda (until 11 September 2018) Deputy Governor of Bank of Spain

Vice president Mr. Carlos San Basilio Pardo (since 15 June 2018) General Secretariat of the Treasury and International Financing

Mr. Fernando Francisco Navarrete Rojas (6 April to 15 June 2018) General Secretariat of the Treasury and Financial Policy

Ms. Emma Navarro Aguilera (until 6 April 2018) General Secretariat of the Treasury and Financial Policy

Secretariat Mr. Francisco Javier Priego Pérez General Secretariat of Bank of Spain

Regular Members Mr. Pablo Arellano Pardo (since 22 June 2018) State Management Financial Controller

Ms. M.ª Luisa Lamela Díaz (until 22 June 2018) State Management Financial Controller

Mr. José Francisco Doncel Razola (since 13 November 2018) Director General of Intervention and Management Financial Controller

of Banco Santander, SA

Mr. Matías Rodríguez Inciarte (until 13 November 2018) Executive of Banco Santander, SA

Mr. Xabier Egíbar Gainza (since 21 November 2018) Director of Business Development Area of Laboral Kutxa

Mr. Julio Gallastegui Zubizarreta (until 21 November 2018) Director General of Caja Laboral Popular, Cooperativa de Crédito

Mr. Isidro Fainé Casas President of the Confederación Española de Cajas de Ahorros

Mr. José María Méndez Álvarez-Cedrón Director General of the Confederación Española de Cajas de Ahorros

Ms. Mercedes Olano Librán (since 26 October 2018) Supervision Director General of the Bank of Spain

Mr. Julio Durán Hernández (until 26 October 2018) Supervision Director General of the Bank of Spain

Ms. Cristina de Parias Halcón Spain and Portugal Director of BBVA

Mr. Jesús Saurina Salas Director General of Financial Stability, Regulation and Resolution of the

Bank of Spain

Substitute Members Mr. José Luis Aguirre Loaso President of Ibercaja Banco, SA

Ms. Lucía Arranz Alonso Legal Department Director of the Bank of Spain

Mr. Juan Ayuso Huertas Director General of Operations, Markets and Payment Systems Bank of Spain

Mr. Juan Miguel Bascones Ramos (since 30 July 2018) Director National Accounting Office, Ministry of Finance and Public Administration

Ms. Rosario Martínez Manzanedo (until 30 July 2018) Director National Accounting Office, Ministry of Finance and Public Administration

Ms. María Dolores Dancausa Treviño CEO of Bankinter, SA

Mr. Jaime Guardiola Romojaro CEO of Banco Sabadell, SA

Mr. Alberto Martín del Campo Sola Deputy General Director on Legislation of Credit Entities, and Bank and Payment

Services of the Economy and Business Ministry

Mr. Guillermo Téllez Vázquez (since 17 January 2018) Director General of Caja Rural del Sur, SCC

Mr. Rafael López-Tarruella Martín (until 17 January 2018) Director General of Caja Rural del Sur, SCC

Mr. Gregorio Villalabeitia Galarraga CEO of Kutxabank, SA

General Director: Mr. Mariano Herrera García-Canturri (since 27 December 2018)

Mr. Luis Lorenzo Olmeda (until 27 December 2018)

Since 31 December 2018, there have not been changes to the FGDEC’s Management Committee.

INDEX

Pages

MANAGEMENT REPORT 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

ANNUAL ACCOUNTS FINANCIAL YEAR 2018

Balance sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Income statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Income and expenses statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Statements of cash flows. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

DIRECTOR’S REPORT 2018

Notes to the annual accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Notes to the balance sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

Notes to the income statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87

Other notes to the annual accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

ANNEXES

Annex 1 Allocation of the annual accounts for 2018 to deposits guarantee and securitiesguarantee compartments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

Annex 2 List of shareholdings at 31 December 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109

Annex 3 Historical series of contributions, cash and securities deposits, assets, and investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

Annex 4 Credit institutions members at 31 December 2018. . . . . . . . . . . . . . . . . . . . . . . . 117

Annex 5 Rehabilitation or restructuring operations of credit institutions . . . . . . . . . . . . . . . 121

Annex 6 Legislative index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126

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Article 2nd - 4 b) of Royal Decree 2606/1996, of 20 December, on deposits guarantee funds of credit institutions states that it is a function of the Management Committee the approval of the accounts that the Fondos de Garantía de Depósitos (now the Fondo de Garantía de Depósitos de Entidades de Crédito) must report annually to its members and the Bank of Spain.

In compliance with this legal mandate, on 6 May 2019 the financial statements for 2018, comprising the balance sheet, income statement, statement of changes in equity, the cash flow statement and the report, are issued providing information on the activities carried out in 2018, showing a fair equity presentation and financial situation of the Fon-do de Garantía de Depósitos de Entidades de Crédito at year-end as well as manage-ment results and resources obtained and applied in that period, information that is ex-tended with data concerning the year 2017 and the financial statements resulting from the differential allocation of resources to the deposits guarantee compartment or to the securities guarantee compartment, as set out in the article 6 - 2 of Royal Decree-law 16/2011, of 14 October, by which the Deposits Guarantee Fund of Credit Institutions is created, according to the wording given by the tenth final provision of Law 11/2015, of 18 June, on recovery and resolution of credit institutions and investment services com-panies.

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MANAGEMENT REPORT 2018

Establishment

1. On 15 October 2011 came into force Royal Decree Law 16/2011, of 14 October, and the Fondo de Garantía de Depósitos de Entidades de Crédito (FGDEC) is created, dissolving the three existing deposits guarantee funds (the Fondo de Garantía de Depósi-tos en Cajas de Ahorro, the Fondo de Garantía de Depósitos en Establecimientos Ban-carios, and the Fondo de Garantía de Depósitos en Cooperativas de Crédito), their as-sets were integrated into the FGDEC, and all rights and obligations of those were subrogated.

The references that appear in this report to FGDCA, FGDEB and FGDCC correspond to the three deposits guarantee funds dissolved.

Operation

2. The FGDEC has legal personality, with full capacity for the development of its pur-poses under private law and not subject to the rules governing public agencies and state corporations.

FGDEC function is the guarantee of deposits in credit institutions as provided in Royal Decree-Law 16/2011 and its implementing regulations.

To fulfil its functions, the FGDEC thrives on: a) the annual contributions by mem-ber institutions provided in the rules governing their operation; b) extraordinary contri-butions made to such entities, distributed according to the basis of calculation of con-tributions and limits established by regulation, having to register such apportionments as equity once they are agreed, and c) the funds raised in the securities markets, loans or any other debt operations.

Additionally, the deposits guarantee compartment may be financed by payment commitments of its member institutions provided that such commitments are: a) fully backed by guarantees of low-risk assets, free of charge and freely available for FGDEC, and b) do not exceed 30% of the compartment’s total available resources.

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Constitution of separate compartments

3. The tenth final disposal of Law 11/2015, of 18 June, on recovery and resolution of credit institutions and investment services companies amended the Royal Decree-Law 16/2011, determining that, from the date of entry into force of the mentioned law, the re-sources of the FGDEC will be allocated to “deposits guarantee compartment” or “securi-ties guarantee compartment”, which will be separated accounts, and each compartment should be liable for its own costs, expenses and obligations. The same rule states that rights and obligations acquired by the FGDEC prior to its entry into force shall be allocat-ed to the deposits guarantee compartment.

Activity report

4. The management and administration of the FGDEC in 2018 have focused on act-ing and following the guidelines of recent years, in terms of:

– Management of the liquid assets of the FGDEC investing them in government debt.

Revenues from financial investments in Spanish government debt amounted to EUR 17,120.1 t (EUR 14,666.5 t in 2017), which, on an average investment in the exercise, without considering the coupons, of EUR 5,006.9 M (EUR 5,249.2 M in 2017) have provided a return of 0.34% per annum (0.28% per year in 2017).

However, financial income, which includes income from financial investments, the cost of received financing, the result of the sale of public debt and the impact of the financial updating of expected payments because of the assets protection schemes (EPA) granted, as well as other payments and expected incomes, has resulted in a financial net loss of EUR 126,504.6 t (EUR 155,237.5 t in 2017).

– Operations related to the management and the divestment of assets acquired in 2010 from the Caja de Ahorros de Castilla-La Mancha (CCM), in accordance with the provisions of the action plan of the entity.

– Operations related to the management and development of assets portfolios re-lated to the EPA granted in 2011 and 2012 to Banco CAM, SA, and Unnim Banc, SA, respectively, in each case in accordance with the corresponding plan of action or restructuring plan approved for that purpose and to the revision of the EPA’s liquidation proposal granted in 2010 to Banco de Castilla-La Mancha, SA (BdCLM).

– Actions related to the deferred collections and payments arising from the sales of shareholdings in NCG Banco, SA, and Catalunya Banc, SA, carried out in 2014 and 2015, respectively. Both shares were acquired by the FGDEC through voluntary purchase offers announced by the FGDEC on 10 June 2013.

– Management of credits granted to investees and the other assets acquired in credit institutions as a consequence of previous actions on credit institutions.

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– Preparation of management committees and implementation of the adopted deci-sions.

– Continue with the management, initiated in 2015, of the payments of guaranteed deposits up to a limit of EUR 100,000 to depositors of Banco de Madrid, SAU, hav-ing determined the Bank of Spain, on 18 March 2015 that given its financial situa-tion this entity was unable to restore their cash deposits in the immediate future.

– Continue with the management, initiated in 2015, of the assets acquired in exercise of the right of first refusal in the EPA granted to Banco CAM on the assets covered by this scheme, in order to minimize the losses in said EPA.

Action Plan of Caja de Ahorros de Castilla-La Mancha

5. Management and divestment of assets from actions in CCM have been continued, assets that in 2012 were transferred to Inversiones Corporativas, SA (IC), also from CCM and since 2010 a subsidiary of the FGDEC in 100% through a nonmonetary contribution of such assets by an expansion of its share capital.

After all these assets were put together, from 2013 to 2018 both included, funds re-sulting from the divestments have been applied to IC expenses or from its subsidiaries, as well as to reducing their debt, as a consequence the FGDEC has not received any cash from such divestitures.

As of 31 December 2015, as a consequence of the deterioration of its financial invest-ments, the balance of IC had negative net equity, as a result of which FGDEC’s participa-tion in the company was fully deteriorated. Subsequently, on 27 December 2016, the company formalized with its principal creditor BdCLM a removal of part of its debt as well as the transformation of another part of its debt into a participatory loan, which has al-lowed it to continue its operations focused on the realization of its assets, notwithstanding of which it is considered very reduced the possibility that the FGDEC can obtain a return, that is why its participation in the society stays fully deteriorated.

In addition, as part of the action plan of CCM, the FGDEC (then the FGDCA) granted an EPA to BdCLM over certain assets portfolio, assuming the FGDEC the possible losses for a period of five years as from 31 December 2009, this deadline was subject to an ex-tension up to seven more years under certain circumstances, above the provisions that the portfolio had and up to a given maximum, establishing for it in BdCLM a security de-posit for an amount equal to that maximum.

On 2 December 2014, the BdCLM and the FGDEC signed an addendum to the regu-lations governing the EPA extending its maturity until 31 December 2016. At the end of the year 2016, BdCLM reported its estimation of the losses in the portfolio subject to the EPA at maturity exceeded the maximum limit covered by the FGDEC, as a result of which the FGDEC has preventatively recorded a provision for the same amount up to the afore-mentioned maximum.

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On 26 October 2017, BdCLM submitted to the FGDEC its proposal for the liquida-tion of the EPA showing a loss greater than the deposit constituted as a guarantee, pursuant to which there would be no amounts to be returned by BdCLM. On 20 Decem-ber 2018, the FGDEC has informed Liberbank, SA, that after the analysis carried out by the services of the FGDEC, there have been no elements that determined that the effective loss of the EPA would have been lower than the maximum guarantee granted by the FGDEC, therefore, there is no amount to be recovered from the guarantee de-posit constituted in its day by the FGDEC in BdCLM. Based on the aforementioned, the FGDEC has definitively declared the liquidation presented by BdCLM, so as of 31 De-cember 2018, the financial statements of the FGDEC show no amount for this concept.

Restructuring of Banco CAM, SA

6. The commitments arising from the restructuring of Banco CAM, SA, obey to the EPA granted on certain assets portfolio, assuming the FGDEC the 80% of the losses that might occur in it for a period of ten years from 31 July 2011 above the existing provisions on the said portfolio, with the limit established in the Clarification Agreement to Section II of the Protocol that regulates the EPA of 17 December 2018. At the end of 2018, the FGDEC has accounted, at its current value, the amount of the payments to be made to meet all the losses expected until the end of the EPA according to the latest available es-timate.

Restructuring of Unnim Banc, SA

7. The commitments arising from the restructuring of Unnim Banc, SA, obey to the EPA granted on certain portfolio, assuming the FGDEC the 80% of the losses that might occur in it for a period of ten years from 31 October 2011, above the existing provisions on the said portfolio with the limit established in the Clarification Agreement to Section II of the Protocol that regulates the EPA of 13 December 2018. At the end of 2018, the FGDEC has accounted, for its current value, the amount of payments to be made to meet all the losses expected until the end of the EPA according to the latest available estimate.

European financial assistance

8. On 16 July 2012, and in order to facilitate the operation of European financial as-sistance for the recapitalization of Spanish banks under the terms established in the fifth additional provision of Royal Decree-Law 21/2012, of 13 July, on liquidity measures of the Public Administrations and the financial sector, and under paragraph 4 of that provi-sion, the FGDEC signed a guarantee in favour of the Republic of Finland, committing it-self to create pledges for an amount equivalent to 40% of the risk assumed by the said State in disbursements to be made by the European Financial Stability Facility to the

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Kingdom of Spain, contract subsequently adapted to the final establishment of the Euro-pean Stability Mechanism by the corresponding addendum of 28 November 2012.

The participation of the Republic of Finland in the European Stability Mechanism at 28 November 2012 was of 1.7974%, and disbursements made to the Kingdom of Spain were EUR 39,468.0 M in November 2012 and EUR 1,865.0 M in January 2013, be-cause of which the FGDEC constituted two separate cash deposits as a guarantee, the first on 28 November 2012 amounting to EUR 283,759.1 t and the second on 22 Janu-ary 2013 amounting to EUR 13,408.6 t.

Subsequently, and in accordance with the terms of the guarantee agreement, these amounts have been invested in securities issued by Member States of the euro area with the highest credit rating. It is estimated that the granting of the said guarantee shall not entail any losses for the FGDEC.

During 2018, EUR 6,072.1 t of the coupons and securities acquired (EUR 2,273.2 t in 2017) have been received; and no investment maturities have occurred (EUR 92,676.0 t in 2017), that under the terms of the signed contract, may be used in the acquisition of securities issued by Member States of the euro area with the highest credit rating, which remain in guarantee of the operation, having been applied to this end most of these funds with the remainder in cash account held in the custodian bank, also in guarantee the op-eration. The change in the total value of the collateral is due to changes in the market val-ue of the securities.

Subscription of shares of NCG Banco, SA, and Catalunya Banc, SA

9. Under the fifth additional provision of Royal Decree-Law 21/2012, of 13 July, as amended by Article 2 of Royal Decree Law 6/2013, of 22 March, on protection to holders of certain saving and investment products and other financial measures, on 10 June 2013 the FGDEC announced the offer of voluntary purchase offer for common shares of NCG Banco, SA, and Catalunya Banc, SA, with certain considerations and conditions. As a re-sult of these, the FGDEC acquired 640,964,146 shares of Catalunya Banc, SA (repre-senting 32.4% of its capital), for a total cost of EUR 1,000,939.9 t; and 603,671,160 shares of NCG Banco, SA (representing 25.6% of its capital), for a total cost of EUR 802,364.1 t, signing at the same time with the controlling shareholder, the Fund for Order-ly Bank Restructuring (FROB), certain agreements of partial coverage of the evolution of the value and the result of the sale of such shares.

On 18 December 2013, the FROB announced the award, after the study of the binding offers received in the corresponding sales process, of a shareholding of 88.3% of NCG Banco, SA, to Banco Etcheverría, SA (Banesco Group). As provided in Articles 26.2 and 64.1.c of Law 9/2012, of 14 November, on restructuring and resolution of credit institu-tions, the referral sale process included the shares owned by the FGDEC. Subsequently, on 25 June 2014 the FROB announced the consummation of the transaction after obtain-ing all the necessary authorizations.

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In view of the conditions of the aforementioned operation and the charges that the FGDEC was expected to receive, at the end of 2013, the necessary consolidation was carried out to adjust the carrying amount of the FGDEC’s stake in NCG Banco, SA, to the value of said future charges.

At 31 December 2014, payments received by the FGDEC in this operation amounted to EUR 139,630.2 t, being estimated that the current value at that date of the collections and future payments expected from it would amount to a net charge of EUR 84,830.2 t Subsequently, after successive variations in the provisional liquidations that the FROB has been presenting, in the year 2016 collections were received for EUR 58,982.2 t, be-ing estimated at EUR 43,278.9 t the current value of the net charges expected, in the year 2017 collections were received for EUR 1,062.5 t, being estimated at EUR 4,015.2 t the current value of the expected net charges and in the year 2018 collections have been received for EUR 1,627.9 t, being estimated at EUR 1,249.6 t the current value of the net charges expected.

Therefore, as of 31 December 2018, the collections already received by the FGDEC of said operation amount to EUR 201,302.8 t (EUR 199,674.9 t in 2017).

The decrease in the present value of the expected net collections in 2018 is the result of a modification of the settlement of the operation reported by the FROB to the FGDEC, which has meant: i) an increase in the cost of the guarantees granted to the buyer, and ii) a partial deferment in the collection of the amount to be paid by the FROB to the FGDEC by reason of the agreements subscribed between both of them for partial cover-age of the evolution of the value.

On 21 July 2014, the FROB announced the award, after the study of the binding of-fers received in the corresponding sales process of a stake of 98.4%, or 100% under certain circumstances, of Catalunya Banc, SA, to Banco Bilbao Vizcaya Argentaria, SA (BBVA). As provided in the aforementioned items 26.2 and 64.1.c of Law 9/2012, the ref-erenced sales process included the shares owned by the FGDEC. The transaction was subject to compliance with the legally established requirements and to the corresponding approval by the relevant national and international authorities. Subsequently, on 24 April 2015 the FROB announced the completion of the operation for the 98.4%, after obtain-ing all the necessary authorizations.

In view of the conditions of this transaction and payments estimated to be received by the FGDEC at the end of 2014, the FGDEC’s stake in Catalunya Banc, SA, was updated to adjust its book value to the value of said future charges.

On 4 September 2015, the FGDEC received from the FROB EUR 142,461.2 t for the settlement at fair value of the sale of the aforementioned participation, retaining the FROB an amount equal to the share to be assumed by the FGDEC of the estimated financial guarantees given to the buyer, value which can change in the future based on the actual cost that eventually could reach those financial supports granted in the operation. In 2016 the FROB paid to FGDEC EUR 1,031.4 t as a result of the lower estimated cost of the guarantees granted to the buyer. In 2017 there has been no var-iation with respect to the settlement presented by the FROB for the previous year. In

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2018, the FROB paid the FGDEC EUR 16,071.4 t as a consequence of the lower esti-mated cost of the guarantees granted to the buyer.

Therefore, as of 31 December 2018, the collections already received by the FGDEC of said operation amount to EUR 159,564.0 t (EUR 143,492.6 t in 2017), not expecting, with the best information available, to receive new charges.

Depositors’ coverage of Banco de Madrid, SAU

10. From the information received from the Bankruptcy Administration of the entity, the FGDEC proceeded, during 2015 and subsequently according to the new information received, to inform depositors of Banco de Madrid, SAU, the status of their deposits and the guaranteed amounts, requesting their conformity to proceed with the payment of those amounts. At 31 December 2018, the guaranteed amounts reported to depositors amounted EUR 127,060.5 t (EUR 127,040.7 t in 2017), with no outstanding amount to communicate to depositors (EUR 1.3 t at 31 December 2017).

At the same date of 31 December 2018, once received in each case the conformity of the depositor, the FGDEC had paid guaranteed amounts for a total of EUR 125,706.2 t, (EUR 125,158.9 t in 2017) thus outstanding payments amount to EUR 1,354.3 t (EUR 1,883.1 t in 2017) which could not been made because the depositors were untraceable, or in disagreement to the data or other incidents managed by the Bankruptcy Administra-tion.

At 31 December 2018, Banco de Madrid, SAU, has paid the FGDEC an amount of EUR 93,874.5 t (EUR 62,342.5 t at 31 December 2017), thus reducing its obligation to pay for the guaranteed deposits paid by the FGDEC to depositors of that entity, which have the ordinary credit rating in the creditors’ tender.

As of 31 December 2018, in view of the information provided by the aforementioned Bankruptcy Administration, a provision has been constituted on the described collection rights in the amount of EUR 9,500.0 t (EUR 6,500.0 t in 2017).

Acquisition of assets in exercise of the right of first refusal

11. On 17 November 2015, in exercise of the right of first refusal provided for in the EPA Protocol granted to Banco CAM, SA, FGDEC acquired certain real estate properties at a cost of EUR 30,034.5 t. During 2016 and in exercise of the same right of first refusal, the FGDEC acquired other real estate and financial assets at a cost of EUR 184.9 t and EUR 149.9 t, respectively.

In 2018 the FGDEC has continued to commercialize these mentioned assets initiated in 2016.

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Disputes with heirs of Mr. Domingo López Alonso

12. With regard to the judicial proceeding initially held with the former president of Banco de Valladolid, SA (later, Barclays Bank, SAU, later absorbed by Caixabank, SA), Mr. Domingo López Alonso, and later with his heirs, the legal proceedings continue for the recovery of the amounts (EUR 27.4 M) delivered at the end of 2003 by the FGDEC to Mr. Domingo López Alonso in execution of the judgment of 6 October 1998. However, it should be noted that at present there is no information about the destination of the money given to Mr. López Alonso and of the result of the final liquidation of the inheritance that was accepted for the benefit of inventory. It also continues the judicial proceeding to claim amounts from the heirs of Mr. Domingo López Alonso in favour of the FGDEC for an amount of EUR 1.6 M, stemming from an executive judgment of 1981.

Investment coverage function

13. By resolution of the Secretary of the State Economy (Secretario de Estado de Economía) of 1 August 2002, issued pursuant to the provisions of paragraph 3 of Article 74 of Law 24/2001, of 27 December, on fiscal and administrative measures and on social order, were set the percentages that would satisfy each of the three deposits guarantee funds then existing and the Fondo General de Garantía de Inversiones on the total com-pensation for the obligations incurred by such Fondo as a consequence of the failures of investment companies prior to the entry into force of the Law 24/2001.

Under that resolution, the percentage distribution of the total amount of compensation to be paid to the harmed investors between the dissolved deposits funds and the Fondo General de Garantía de Inversiones was established as follows:

%

Fondo de Garantía de Depósitos de Entidades de Crédito . . . . . . . . . . . . . . . . . . . . 99.83

Fondo de Garantía de Depósitos en Establecimientos Bancarios . . . . . . . . . . . . . . . . . . 53.98

Fondo de Garantía de Depósitos en Cajas de Ahorro . . . . . . . . . . . . . . . . . . . . . . . . . . . 40.90

Fondo de Garantía de Depósitos en Cooperativas de Crédito . . . . . . . . . . . . . . . . . . . . 4.95

Fondo General de Garantía de Inversiones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.17

The total amount of compensations estimated by the Gestora del Fondo General de Garantía de Inversiones, SA, amounted to EUR 79.7 M, corresponding to the deposits guarantee funds an amount of EUR 79.5 M. On 4 April 2017, the aforementioned Man-aging Entity informed to the FGDEC that certain obligations had prescribed, after which the amount of outstanding claims assumed by the FGDEC at 31 December 2018 and 2017 amounts to EUR 0.7 M.

In 2018 and 2017 no amount has been disbursed for this concept.

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Integrated entities and their contributions

14. At 1 January 2018, 128 entities were adhered. During 2018 have been deregis-tered 9 entities, so at year end there were 119 adhered entities. The list of the member institutions at 31 December 2018 is in Annex 4 of these annual accounts.

Pursuant to article 6 of Royal Decree-Law 16/2011, of 14 October, modified according to the final tenth provision of Law 11/2015, dated 18 June, and by article 3 of Royal De-cree 2606/1996, of 20 December, modified by the first final provision of Royal Decree 1012/2015, of 6 November, which developed Law 11/2015, the annual contributions of the member entities, both to the deposits guarantee compartment and to the securities guarantee compartment shall be determined by the Management Committee of the FGDEC, in accordance with the respective calculation bases established in paragraphs a) and b) of section 2 of said article 3 of Royal Decree 2606/1996, and in the case of the deposits guarantee fund, from 2016, to the risk profile of each entity.

In addition, article 6 of Royal Decree-Law 16/2011, supplemented by its second addi-tional provision incorporated under the tenth final provision of Law 11/2015, states that:

– The financial resources available of the deposits guarantee compartment must at-tain at least, and no later than 3 July 2024, the 0.8% of the amount of the guaran-teed deposits. However, the FGDEC may ask the European Commission to reduce this level to 0.5% taking into account certain factors.

– Annual contributions to the securities guarantee compartment may not exceed 0.3% of the amount of the guaranteed values.

– Contributions to a compartment is suspended when the available financial means not engaged in operations object of the mentioned compartment equals or exceeds 1% of the total amounts guaranteed by the compartment.

Addressing to it, the Management Committee of the FGDEC, at its meeting held on 12 December 2018, has determined the annual contributions for 2018 to the deposits guarantee compartment equal to 1.8/1,000 of the guaranteed monetary deposits exist-ing as at 30 June 2018, which would be calculated for each entity based on its guaran-teed deposits and risk profile, and the annual contribution to the securities guarantee compartment equal to 2/1,000 of 5/100 of the valuation to the last working day of 2018 of the Securities deposited as of 31 December 2018, also determining that the dis-bursement of both contributions be made on the last working day of February 2019.

The Bank of Spain, according to the current legal framework does not have to make any contribution.

Guaranteed deposits and asset coverage

15. On 3 June 2010 was published the Royal Decree 628/2010, of 14 May, amend-ing Royal Decree 2606/1996, of 20 December, and Royal Decree 948/2001, of 3 August,

24

on compensation schemes of investors, stating that the guaranteed amount of deposits will be limited to the amount of EUR 100,000 per account holder and the secured amount guaranteed to the investors that have entrusted securities and financial instruments to the credit institution shall be independent and will reach a maximum of EUR 100,000 per ac-count holder.

Subsequently, the tenth final disposition of the Law 11/2015, of 18 June, amending Royal Decree-Law 16/2011, has expanded the amount of guaranteed deposits, by provid-ing that, in addition to the amount above mentioned, will be guaranteed, regardless of the amount and for three months from the time the amount has been credited or from the mo-ment when such deposits have become legally transferable: i) the amounts from transac-tions with residential real estate and private nature; ii) those arising from payments one-off basis received by the depositor relating to marriage, divorce, retirement, dismissal, disability or death, and iii) which are based on the payment of insurance benefits or com-pensation for damages resulting from a crime or a miscarriage of justice.

In turn, the regulatory changes mentioned have assumed that, since 2015, has come to define as “eligible deposits” those defined in previous legislation as “guaranteed deposits”; now defined as “guaranteed deposits” those previously denominated “covered deposits”. This change has not affected the securities deposits that still retain their previous terminology, i.e. the guaranteed securities (equivalent to eligible in the deposits compartment) and covered (equivalent to those guaranteed in the deposits compartment). In addition, from 2015 the cal-culation basis of the contributions that entities must make on cash deposits becomes com-posed by the guaranteed deposits (before it was by the eligible).

The column headings (a) and (c) of the following table, expressed in million euros, are adjusted to the terminology used by the current legislation, being the basis for calculating each year (b) those determined by the current regulation at all times, which justifies the relevant variation of the amount since 2015.

YearsEligible deposits

and guaranteed values (a)Basis for calculating

contributions (b)Guaranteed deposits and

covered securities (c)% coverage

(c/a)

12.31.1993. . . . . . . . . . . 279,856.6 279,856.6 133,727.7 47.78

12.31.1994. . . . . . . . . . . 298,108.4 298,108.4 142,104.8 47.67

12.31.1995. . . . . . . . . . . 319,992.3 319,992.3 148,661.7 46.46

12.31.1996. . . . . . . . . . . 316,887.0 316,887.0 185,299.7 58.48

12.31.1997. . . . . . . . . . . 317,391.6 317,391.6 182,881.1 57.62

12.31.1998. . . . . . . . . . . 337,448.6 337,448.6 185,378.4 54.94

12.31.1999. . . . . . . . . . . 377,872.2 377,872.2 205,270.6 54.32

12.31.2000. . . . . . . . . . . 417,778.8 417,778.8 244,364.3 58.49

12.31.2001. . . . . . . . . . . 742,921.9 477,849.7 311,175.4 41.89

12.31.2002. . . . . . . . . . . 740,303.0 508,062.7 318,361.1 43.00

12.31.2003. . . . . . . . . . . 811,140.3 547,543.0 335,517.1 41.36

12.31.2004. . . . . . . . . . . 849,784.8 587,193.0 350,629.5 41.26

12.31.2005. . . . . . . . . . . 950,281.4 652,226.3 371,890.7 39.13

12.31.2006. . . . . . . . . . . 1,127,567.1 753,000.5 396,649.8 35.18

12.31.2007. . . . . . . . . . . 1,209,858.1 829,527.1 420,353.0 34.74

25

YearsEligible deposits

and guaranteed values (a)Basis for calculating

contributions (b)Guaranteed deposits and

covered securities (c)% coverage

(c/a)

12.31.2008. . . . . . . . . . . 1,171,019.2 888,317.6 736,271.3 62.87

12.31.2009. . . . . . . . . . . 1,221,925.9 917,702.5 781,115.6 63.92

12.31.2010. . . . . . . . . . . 1,216,780.8 948,386.4 790,302.7 64.95

12.31.2011. . . . . . . . . . . 1,213,656.3 923,759.4 792,281.2 65.28

12.31.2012. . . . . . . . . . . 1,154,804.3 904,953.0 794,845.2 68.83

12.31.2013. . . . . . . . . . . 1,197,049.1 936,898.2 796,873.8 66.57

12.31.2014. . . . . . . . . . . 1,193,093.3 939,111.0 788,307.0 66.07

12.31.2015. . . . . . . . . . . 1,305,302.5 702,802.9 776,298.7 59.47

12.31.2016. . . . . . . . . . . 1,343,168.6 717,146.1 790,063.6 58.82

12.31.2017. . . . . . . . . . . 1,381,080.9 725,912.7 797,420.3 57.74

12.31.2018. . . . . . . . . . . 1,381,510.1 742,941.1 805,777.2 58.33

Since 31 December 2001 to 31 December 2014, eligible deposits (before guaranteed) and guaranteed securities include the amount of the securities and guaranteed financial instruments, and the basis of calculation of contributions includes eligible cash deposits and 5% of the securities and financial instruments, referring the data from previous years only to cash deposits; finally from 31 December 2015 the calculation basis of contribu-tions includes the guaranteed cash deposits and the 5% of the deposited securities and financial instruments.

The eligible and guaranteed cash deposits as of 30 June 2018, which, as indicated in the previous section, were those considered for the calculation of the contributions for 2018 to the deposits guarantee compartment, amounted to EUR 1,035,912.0 M and EUR 723,317.3 M, respectively (EUR 993,724.4 M and EUR 705,988.7 M at 30 June 2017).

At 31 December 2018, eligible and guaranteed cash deposits amounted respectively to EUR 1,048,553.4 M and EUR 726,293.3 M (EUR 1,004,685.2 M and EUR 707,092.9 M at 31 December 2017). At the same date guaranteed and covered securities amounted respectively to EUR 332,956.7 M and EUR 79,483.9 M (EUR 376,395.7 M and EUR 90,327.4 M at 31 December 2017).

Section 3.2 of Appendix 3 includes the evolution of the eligible and guaranteed cash deposits and of the guaranteed and hedged securities, at the end of each year since 2015, date on which the deposit and securities guarantee compartments were estab-lished separately.

Financial situation

16. The financial resources (consisting of contributions and extraordinary contribu-tions from member institutions accounted in for short-term, public investments in short- and long-term government debt, and cash) amounted to EUR a 6,633,137.5 t at 31 De-cember 2018 (EUR 7,035,412.4 t at 31 December 2017), having decreased in the year by

26

EUR 402,274.9 t (EUR 214,180.6 t in 2017). The financial resources have been invested in public debt of the State.

At year-end, financial investments in short and long term Spanish State debt amount-ed to EUR 5,249,104.7 t (EUR 5,620,255.2 t in 2017), and are invested in Treasury bills, bonds and debentures. The weighted average maturity is 615.3 days (701.5 days in 2017).

Extraordinary expenditures approved

17. The Management Committee of the FGDEC in session on 30 July 2012, and in order to restore capital adequacy of the FGDEC according to the provisions of the Arti-cle 6.2 of Royal Decree-Law 16/2011, of 14 October, agreed an extraordinary contribu-tion by member institutions for a nominal amount of EUR 2,346,000 t, distributed accord-ing to the basis of contributions at 31 December 2011, which will be payable by each entity in ten equal annual instalments, with total annual payments of EUR 234,600 t, to be paid on the same day as the ordinary annual contributions are met, and that each ad-hered entity may deduct such payment from the regular annual contribution met on the same date and up to the amount of the ordinary contribution.

At 31 December 2018, the annual payments to be made by the member institutions have fallen slightly to EUR 234,119.9 t (EUR 234,370.7 t in 2017), because several enti-ties have paid their contributions in advance for being no longer affiliated entities to the FGDEC and to the amount of the annual fee of the extraordinary contribution of Banco de Madrid, SAU.

In 2018 the sixth annual fee has been collected.

Profit and equity

18. The year closed with a surplus of EUR 177,708.3 t (surplus of EUR 356,968.0 t in 2017) as detailed below, in thousands of euros:

Concepts2018 2017

Management Financial Total Management Financial Total

Revenue . . . . . . . . . . . . . . . . . . . . . . . . 1,095,969.8 20,877.0 1,116,846.8 1,069,331.2 21,044.6 1,090,375.8

Management and financial expenses . . (7,380.2) (147,381.6) (154,761.8) (6,788.0) (176,282.1) (183,070.1)

Gains on sale of assets . . . . . . . . . . . . 0.6 — 0.6 47.1 — 47.1

Losses due to impairment of fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . (0.4) — (0.4) (66.8) — (66.8)

Exceptional items . . . . . . . . . . . . . . . . . (784,376.9) — (784,376.9) (550,318.0) — (550,318.0)

Total . . . . . . . . . . . . . . . . . . . . . . . . 304,212.9 (126,504.6) 177,708.3 512,205.5 (155,237.5) 356,968.0

Memorandum:

Deposits guarantee compartment . . . . . 271,450.0 (126,961.0) 144,489.0 475,140.1 (155,662.9) 319,477.2

Guaranteed securities compartment . . . 32,762.9 456.4 33,219.3 37,065.4 425.4 37,490.8

27

The management revenues include EUR 1,095,937.8 t of the current value of the corresponding ordinary contributions paid by the member institutions to the FGDEC on 28 February 2019 (EUR 1,069,309.1 t in 2017); of that amount EUR 1,062,987.7 t (EUR 1,032,073.0 t in 2017) correspond to deposits guarantee compartment and EUR 32,950.1 t (EUR 37,236.1 t in 2017) to the securities guarantee compartment.

The exceptional items correspond to the higher costs of the actions or restructuring processes of credit institutions with respect to those calculated in previous years, all of which relate to the deposits guarantee compartment.

Management costs assigned to the deposits and securities guarantee compartments during 2018 have amounted to EUR 7,192.1 t and EUR 188.1 t, respectively (EUR 6,618.6 t and EUR 169.4 t in 2017). Regarding financial income and expenses, net ex-penses of EUR 126,961.0 t correspond to the deposits compartment, and net revenues of EUR 456.4 t to the securities compartment (EUR 155,662.9 t and EUR 425.4 t in 2017).

The accumulated assets at 31 December 2018, including the surplus for the year is positive with EUR 2,181,212.1 t (EUR 1,990,733.8 t in 2017).

In addition, on 28 February 2019 the FGDEC has received from member institutions the seventh annual payment corresponding to the extraordinary contributions mentioned in paragraph 17 above, amounting to EUR 234,119.9 t (EUR 234,370.7 t in 2018) al-though the collection of this amount, even when it concerns the financial situation of the FGDEC, does not affect its assets situation, as it was already recorded as an asset and as equity in its balance sheet.

Economic and financial control

Audit Court

19. At the date of preparation of this report the contracts formalised in 2018 have al-ready been forwarded to the Court of Auditors.

External audit

20. The audit report for the year, conducted by Grant Thornton SLP, Sociedad Uni-personal, is incorporated.

Subsequent events

21. Note 7 to the financial statements, included in the 2018 annual accounts, details the significant events occurred after 31 December 2018 and until the date of preparation of the financial statements.

2929

ANNUAL ACCOUNTS FINANCIAL YEAR 2018

30


BALANCE SHEET

Thousands of euros

Asset Notes 12.31.2018 12.31.2017

NON CURRENT ASSETIntangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 258.5 335.7 Property, plant and equipment . . . . . . . . . . . . . . . . . . . . 9 743.9 915.1 Real estate investments . . . . . . . . . . . . . . . . . . . . . . . . . . 10 2,103.9 2,034.7 Non-current investments in group companies and associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 — — Company shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 673,015.3 673,015.3 Impairment shareholdings . . . . . . . . . . . . . . . . . . . . . . . . . . 11 (673,015.3) (673,015.3)Non-current financial assets . . . . . . . . . . . . . . . . . . . . . . 12 5,140,009.7 5,714,940.2 Credit entities. Extraordinary expenditure . . . . . . . . . . . . . . 12.1 659,077.7 867,026.6 Debtors for provided guarantees by EPA . . . . . . . . . . . . . 12.2 3,606.6 5,318.4 Expenditures collection rights and contributions Banco Madrid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.3 176.4 352.8 Payment receivables depositors Banco Madrid . . . . . . . . 12.4 23,686.0 58,199.5 National debt euro area . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.5 294,839.2 296,137.4 Guarantee deposit made . . . . . . . . . . . . . . . . . . . . . . . . . . 12.5 254.0 681.0 National debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.6 4,155,694.6 4,484,377.4 Subordinate debentures (net) . . . . . . . . . . . . . . . . . . . . . . . 12.7 2,237.7 2,184.3 Credit entities investments . . . . . . . . . . . . . . . . . . . . . . . . . 12.8 — 120.2 Other financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.9 131.3 201.4 Staff loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.10 311.2 341.2 Total non-current assets . . . . . . . . . . . . . . . . . . . . . . 5,143,116.0 5,718,225.7 CURRENT ASSETSNon-current assets for sale . . . . . . . . . . . . . . . . . . . . . . . 13 9,811.3 20,387.8 Debtors and other account receivables . . . . . . . . . . . . . 14 2,575.5 46,502.6 Current investments in group companies and associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 7,828.9 7,893.0 Current financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . 16 2,467,746.2 2,494,293.2 Credit entities. Extraordinary expenditure . . . . . . . . . . . . . . 16.1 & 12.1 233,004.0 233,253.6 Ordinary contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.2 1,095,937.8 1,069,309.1 Short term loans FROB-NCG Banco, SA . . . . . . . . . . . . . . 16.3 1,249.6 4,015.2 Reimbursement rights EPA. . . . . . . . . . . . . . . . . . . . . . . . . 16.4 — 2,475,000.0 Impairment reimbursement rights EPA . . . . . . . . . . . . . . . . 16.4 — (2,475,000.0)National debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.5 1,093,410.1 1,135,877.8 National debt accrued interest . . . . . . . . . . . . . . . . . . . . . . 16.6 43,989.8 51,506.2 Deposits receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.7 19.4 138.3 Staff loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.8 73.0 68.0 Other short term loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.9 62.5 125.0 Current prepayments and accrued income . . . . . . . . . . 17 81.2 88.2 Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . 18 11,101.2 61,088.3 Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . 2,499,144.3 2,630,253.1 TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,642,260.3 8,348,478.8

3131


BALANCE SHEET

Thousands of euros

Equity and liabilities Notes 12.31.2018 12.31.2017

EQUITY

Own funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 2,134,664.5 1,929,780.6

Equity fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 1,929,780.6 1,539,648.5

Extraordinary expenditure . . . . . . . . . . . . . . . . . . . . . . . . . 19.1 27,175.6 33,164.1

Surplus (deficit) financial year . . . . . . . . . . . . . . . . . . . . . . 177,708.3 356,968.0

Adjustments for changes in value financial investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.2 46,547.6 60,953.2

Total equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,181,212.1 1,990,733.8

NON-CURRENT LIABILITIES

Long term provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 3,671,982.9 4,567,499.4

Disbursement provision EPA Banco CAM . . . . . . . . . . . . 20.1 2,935,917.3 3,247,966.7

Disbursement provision EPA Unnim Banc . . . . . . . . . . . . 20.2 670,609.2 1,254,493.4

Provision for asset management commission . . . . . . . . . 20.3 60,939.2 60,939.2

Compensations (Art. 74, Law 24/2001) . . . . . . . . . . . . . . 20.4 731.3 731.3

Commitments with staff . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.5 1,617.8 1,600.7

Other provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.6 2,168.1 1,768.1

Long term debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 1,759.4 1,750.7

Total non-current liabilities . . . . . . . . . . . . . . . . . . . 3,673,742.3 4,569,250.1

CURRENT LIABILITIES

Short term debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 1,787,305.7 1,788,492.2

Creditors and other payables . . . . . . . . . . . . . . . . . . . . . . 22.1 9,020.8 9,718.9

Public administrations payables . . . . . . . . . . . . . . . . . . . . 22.2 199.8 195.7

Creditors payables EPA Banco CAM . . . . . . . . . . . . . . . . 22.3 1,776,730.8 1,776,694.5

Commitments to depositors of Banco de Madrid . . . . . . . 22.4 1,354.3 1,883.1

Current prepayments and accrued income . . . . . . . . . 23 0.2 2.7

Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . 1,787,305.9 1,788,494.9

Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,461,048.2 6,357,745.0

TOTAL EQUITY AND LIABILITIES . . . . . . . . . . . . . . 7,642,260.3 8,348,478.8

32


INCOME STATEMENTS

Thousands of euros

Continuing operations Notes 12.31.2018 12.31.2017

Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 1,095,969.8 1,069,331.2

Contributions from member institutions . . . . . . . . . . . . . . 24.1 1,095,937.8 1,069,309.1

Providing services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24.2 32.0 22.1

Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 (7,380.2) (6,788.0)

Outcome disposal of assets and other income. . . . . . 0.6 47.1

Extraordinary items . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 (784,376.9) (550,318.0)

Losses due to impairment of fixed assets . . . . . . . . . . (0.4) (66.8)

Operating surplus/loss . . . . . . . . . . . . . . . . . . . . . . 304,212.9 512,205.5

Financial income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 20,877.0 21,044.6

Financial costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 (147,381.6) (176,282.1)

Financial loss/surplus . . . . . . . . . . . . . . . . . . . . . . . (126,504.6) (155,237.5)

CONTINUING OPERATIONS SURPLUS/LOSS . . . . 177,708.3 356,968.0

SURPLUS (DEFICIT) FINANCIAL YEAR . . . . . . . . . . . . 177,708.3 356,968.0

33


INCOME AND EXPENSES STATEMENT

In 2018 and 2017, the only items of income and expense recognized directly in equity have been those that have had their origin in: i) the current higher value of the expected collection of the extraordinary expenditure, adopted on 30 July 2012, and ii) the revalua-tion of financial investments.

STATEMENT OF CHANGES IN NET EQUITY

Thousands of euros

Concepts 12.31.2018 12.31.2017

INITIAL EQUITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,990,733.8 1,597,832.3

Member credit entities contributions . . . . . . . . . . . . . . . . . . . . . . . . . . 1,095,937.8 1,069,309.1

Provision of services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.0 22.1

Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,380.2) (6,788.0)

Gains on sales of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6 47.1

Extraordinary items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (784,376.9) (550,318.0)

Losses due to impairment of fixed assets . . . . . . . . . . . . . . . . . . . . . (0.4) (66.8)

Operating surplus/loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304,212.9 512,205.5

Financial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (126,504.6) (155,237.5)

SURPLUS (DEFICIT) FINANCIAL YEAR . . . . . . . . . . . . . . . . . . . . . 177,708.3 356,968.0

VARIATION OF VALUE OF FINANCIAL INVESTMENTS . . . . . . . . (14,405.6) 2,769.4

CREDIT ENTITIES EXTRAORDINARY EXPENDITURE . . . . . . . . . 27,175.6 33,164.1

INCREASE (DECREASE) IN EQUITY FINANCIAL YEAR . . . . . . . 190,478.3 392,901.5

FINAL EQUITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,181,212.1 1,990,733.8

34


STATEMENTS OF CASH FLOWS

Prepared using the indirect method

Thousands of euros

2018 2017

Surplus/deficit financial year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177,708.3 356,968.0

Adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 929,117.9 715,815.3 Depreciation and amortisation charge . . . . . . . . . . . . . . . . . . . . . . . . . . 333.4 238.1

Impairment losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000.0 31,318.3

Changes in provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 941,311.7 696,441.6

Losses due to impairment of fixed assets . . . . . . . . . . . . . . . . . . . . . . . — 66.8

Finance income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (15,527.2) (13,909.5)

Finance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 1,660.0

Changes in working capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,589,504.3) (1,027,175.5)Trade and other receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257,333.3 83,333.5

Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8,811.1) 2,165.7

Trade and other payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,838,033.1) (1,114,667.4)

Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.6 2,139.7

Other non-current assets and liabilities . . . . . . . . . . . . . . . . . . . . . . . . . — (147.0)

Other cash flows from operating activities . . . . . . . . . . . . . . . . . . . . 15,527.2 12,249.5 Payment of interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (1,660.0)

Collection of interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,527.2 13,909.5

CASH FLOWS FROM MANAGEMENT ACTIVITIES. . . . . . . . . . . . . . . 467,150.9 57,857.3

Payments due to investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (886,335.9) (1,033,888.3)Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (35.3) (142.7)

Property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (30.1) (884.8)

Other financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (886,270.5) (1,032,860.8)

Proceeds on divestments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,303,499.7 1,025,432.6 Real-estate investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 433.3 —

Other financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,303,066.4 1,025,432.6

CASH FLOWS FROM INVESTING ACTIVITIES . . . . . . . . . . . . . . . . . . 417,163.8 (8,455.7)

Receivables and payables for non-current liabilities instruments . — —

Other debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — —

CASH FLOWS FROM FINANCING ACTIVITIES . . . . . . . . . . . . . . . . . . — —

NET INCREASE/DECREASE IN CASH AND CASH EQUIVALENTS . (49,987.1) 49,401.6

Cash and cash equivalents at beginning of year . . . . . . . . . . . . . . . 61,088.3 11,686.7

Cash and cash equivalents at end of year . . . . . . . . . . . . . . . . . . . . . 11,101.2 61,088.3

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STATEMENTS OF CASH FLOWS

Prepared using the direct method

Thousands of euros Income (disbursements)

2018 2017

CONTINUING ACTIVITY Contributions from credit institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,309,804.5 1,157,648.2 Payment EPA CAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,489,998.5) (983,830.7)Collection of interests EPA CAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 1,909.1Payment EPA UNNIM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (359,058.2) (132,641.3)Debtors fee EPA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,976.2 2,094.9 Interests EPA BdCLM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,704.2 — Finance income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,505.8 13,576.3 Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8,950.9) (9,021.5)IVA refund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136.4 289.6 Payments depositors Banco de Madrid, SAU. . . . . . . . . . . . . . . . . . . . . (547.3) (2,157.0)Partial collection depositors Banco de Madrid, SAU . . . . . . . . . . . . . . . 31,532.0 2,383.9 Partial collection of extraordinary expenditures and contributions Banco de Madrid, SAU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176.4 352.8Collection of claims against the estate Banco de Madrid, SAU. . . . . . . — 97.8Other minor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.5 4.2

Total variation of continuing activity . . . . . . . . . . . . . . . . . . . . . . . . . (455,716.9) 50,706.3 INVESTMENT ACTIVITYMaturity and divestment of financial investments . . . . . . . . . . . . . . . . . . 1,253,979.2 927,102.1 Acquisition of financial investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . (887,993.5) (937,952.6)Acquisition of shares Catalunya Banc, SA . . . . . . . . . . . . . . . . . . . . . . . 16,071.4 — Acquisition of shares NCG Banco, SA . . . . . . . . . . . . . . . . . . . . . . . . . . 1,627.9 1,062.6 Income sale shares Bankia SA & Unicaja Banco, SA . . . . . . . . . . . . . . 1,387.6 640.3 Income sale Aguas de Panticosa, SA . . . . . . . . . . . . . . . . . . . . . . . . . . 124.9 289.5 Deposits guarantee application euro area . . . . . . . . . . . . . . . . . . . . . . . — 92,676.0 Cash reinvestment guarantee euro area . . . . . . . . . . . . . . . . . . . . . . . . 681.0 202,716.8 Public debt interest euro area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,072.1 2,273.2 Acquisition public debt euro area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,753.1) (297,666.1)Real estate acquisition and commercialisation from Activos Valencia, SA . 20,532.3 7,553.5

Changes in the total investment activity . . . . . . . . . . . . . . . . . . . . . . 405,729.8 (1,304.7)Net increase/decrease in cash or equivalent . . . . . . . . . . . . . . . . . . . (49,987.1) 49,401.6 INITIAL CASH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61,088.3 11,686.7 FINAL CASH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,101.2 61,088.3

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DIRECTOR’S REPORT FINANCIAL YEAR ENDED AT 31 DECEMBER 2018

NOTES TO THE ANNUAL ACCOUNTS

1. CREATION, NATURE, PURPOSES AND GUARANTEES

Creation: On 15 October 2011 came into force Royal Decree Law 16/2011, of 14 Oc-tober, which established the Fondo de Garantía de Depósitos de Entidades de Crédito (FGDEC) and the dissolution of the three existing deposits guarantee funds until that date (the Fondo de Garantía de Depósitos en Cajas de Ahorro, the Fondo de Garantía de Depósitos en Establecimientos Bancarios and the Fondo de Garantía de Depósitos en Cooperativas de Crédito), their assets were integrated into the FGDEC, and all rights and obligations of those were subrogated by this latter.

Nature: The FGDEC has legal personality and full capacity for the development of its purposes, under private law.

It is governed and administered by a Management Committee composed of eleven members: a representative of the Ministry of Economy and Business, one of the Ministry of Finance, four appointed by the Bank of Spain and five representing the associated credit entities, in the terms established by the regulations.

Representatives of the Bank of Spain are appointed by its Executive Committee. One of them is the Deputy Governor who will hold the Presidency of the Management Commit-tee.

The representative of the Ministry of Economy and Business is the Secretary General of the Treasury and International Financing, which holds the Vice Presidency of the Man-agement Committee and replaces the President in his duties in case of vacancy, absence or illness.

The representative of the Ministry of Finance is the General Comptroller of the State Administration.

The representatives of the member institutions are designated under the terms estab-lished by the regulations, as follows: three by associations representing banks, one for the savings bank and one by the credit unions.

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The registered office is in Madrid, José Ortega y Gasset, No. 22, and the scope of its actuation is national.

The Spanish commercial regulations require, with certain exceptions, that the domi-nant entities of corporate groups formulate annually the corresponding consolidated financial statements and the consolidated management report. However, commercial law also states that, in exceptional cases where the application of a legal provision in ac-counting is incompatible with the fair image that annual accounts must provide, such pro-vision shall not apply.

In this sense, the FGDEC has conducted an analysis of the need to present consoli-dated financial statements and, given its special legal nature, given the specific legal reg-ulations that regulate it and given the special characteristics of performing investments in investees, it has concluded that it has no need to prepare consolidated financial state-ments, on the understanding that these would not meet the purpose of offering the fair presentation of the nature and purpose of the shares of the FGDEC, not being additional-ly required to do so in the specific legislation regulating the FGDEC. Among the issues considered are the extremely special circumstances requiring participation of the FGDEC in processes in which it has acquired majority shares, which the taking of such majority holdings is aimed at completing a restructuring process and there is no aim for profit, and the consideration that the presentation of these consolidated financial statements would not provide relevant information to potential users of such information.

Purposes: The purpose of the FGDEC is to guarantee deposits in credit institutions as provided for in Royal Decree-Law 16/2011, of October 14, and on its implementing regulations.

Guarantees: The guarantees provided by the FGDEC are different and independent for cash deposits and securities or other financial instruments deposits, which have a maximum independent limit in each for the amount of EUR 100,000 per depositor and credit institution, as it was established by Royal Decree 628/2010, of 14 May. The guar-antee of cash deposits reaches unpaid accrued interests up to the date of the events giv-ing rise to the execution of the guarantee, without exceeding in any case the above limits.

In addition to the aforementioned limit, the tenth final disposition of Law 11/2015, of 18 June, amending Royal Decree-Law 16/2011, has expanded the amount of guaranteed cash deposits for, i) the amounts from transactions with residential real estate nature and sole owner; ii) those arising from payments one-off basis received by the depositor relat-ing to marriage, divorce, retirement, dismissal, disability or death, and iii) those which are based on the payment of insurance benefits or compensation for damages resulting from a crime or a miscarriage of justice, all of them regardless of their amount and for three months from the time the amount has been credited or from when such deposits have be-come legally transferable.

Eligible cash deposits: Deposits are considered eligible when the creditors’ balances held in account, including funds from transitory situations by traffic operations and exclud-ing deposits referred to in article 4 paragraph 4 of Royal Decree 2606/1996, of 20 De-cember, which the entity must repay under the legal and contractual conditions applica-ble, whatever the currency in which they are denominated and provided they are made

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only in Spain or in another member State of the European Union, including fixed-term de-posits and savings deposits.

Guaranteed cash deposits: Guaranteed deposits are those eligible cash deposits not exceeding the coverage levels mentioned above.

Guaranteed securities: Guaranteed securities are securities and financial instru-ments referred to in Article 2 of the Law on the Securities Market that have been entrust-ed to the credit institution for deposit or registration, or for performing some investment service of certain characteristics described in the current legislation.

The guaranteed amount to investors that have committed to a credit institution securi-ties or financial instruments shall be independent of those for cash deposits, and to a maximum of EUR 100,000.

2. BASIS OF PRESENTATION

a) Fair image

The balance sheet, income statement, statement of changes in equity, the cash flow statement and Notes 1 to 32 of the accompanying report are displayed before the ap-plication of results, and have been prepared on the basis of the accounting records of the FGDEC and are presented in accordance with the regulatory framework of financial information indicated in Note 2 c), and in particular with the accounting principles and criteria contained therein, which is the one that the management understands that best suits the nature and activity of the FGDEC in order to show the fair presentation of the equity and financial position at 31 December 2018 and the results of operations and cash flows that have occurred during the year.

There are no mandatory accounting principles that, having a significant effect on the fi-nancial statements, haven’t been applied.

b) Use of estimates

In the accounts have been used estimates to quantify various assets, liabilities, in-come, expenses and commitments, as detailed in each section, the estimates have been made based on the best information available at the time of its formulation and referred to 31 December 2018, however, it is possible that future events may have effects on these estimates, these effects are recognized in the income statement of the years concerned under the heading of extraordinary items.

The FGDEC has granted various guarantees in order to carry out the restructuring of certain entities (see Notes 20.1, 20.2 and 22.3). The FGDEC has estimated the amount of provisions according to the methodology indicated in these Notes. Although these esti-

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mates were made on the basis of the best information available at the date of preparation of these financial statements, the amount of the provisions made for these items will de-pend on the fulfilment of the key assumptions used in their determination, as well as the future evolution of the contingencies covered by these guarantees.

c) Formulation of annual accounts, comparison of information and regulatory framework applied by the FGDEC

The accounts have been prepared in accordance with the rules established in the General Accounting Plan approved by Royal Decree 1514/2007, of 16 November, and the later amendments.

The annual accounts are expressed in thousands of euros, unless otherwise stated, and, for comparative purposes, in addition to the figures for 2018 are presented those corresponding to the previous year.

d) Deposits guarantee compartment and securities guarantee compartment

In compliance with the provisions of the tenth final disposition of Law 11/2015, which amended the Royal Decree-Law 16/2011, and from the entry into force of that law the FGDEC resources should be allocated to the deposits guarantee compart-ment or to the securities guarantee compartment, which will be accounted separately, so that the corresponding assets, costs, expenses and obligations are the proper re-sponse to the intended use of the funds. The same rule states that rights acquired and obligations of the FGDEC prior to its entry into force shall be allocated to the de-posits guarantee compartment. The aggregation of both compartments composes the FGDEC annual accounts at 31 December 2018.

The detail of the balance sheet and profit and loss account as at 31 December 2018, for each compartment is attached in Annex 1.

e) Participation in the capital of credit institutions

At 31 December 2017, the FGDEC was directly involved in the capital of Banco Mare Nostrum, SA (with 2,691,098 shares, representing 0.17% of its capital, coming from the exchange of bonds issued in the past by savings banks). After the takeover merger of Banco Mare Nostrum, SA, by Bankia, SA, registered in the Registro Mercantil de Valen-cia on 8 January 2018, the aforementioned participation became capital of Bankia, SA, with 343,696 shares, representing 0.01% of its capital.

In 2018, in accordance with the resolution adopted by its Management Committee, the FGDEC has sold the aforementioned shares, obtaining a benefit of EUR 1,267.4 t for this transaction.

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At 31 December 2017, through the company Inversiones Corporativas, SA, owned 100% by the FGDEC, and coming from CCM within the action plan of that entity, the FGDEC participated in the capital of Banco Sabadell, SA (70,527 shares, representing 0.001% of its share capital, coming from the exchange of bonds issued in the past by Banco Gallego, SAU). In 2018, Inversiones Corporativas, SA, has sold the aforemen-tioned shares.

f) Participation in the capital of other companies

The FGDEC directly and indirectly is involved in many societies. Units are presented under “Investments in group companies and associates” measured at acquisition cost, net of related impairment. Equity information is provided in Annex 2.

g) Classification of current and non-current items

For the classification of current items, the maximum term of one year has been con-sidered since the date of these annual accounts.

3. ACCOUNTING POLICIES AND VALUATION

The accounting principles and standards applied are the generally accepted, and are contained in the General Accounting Plan and supplementary provisions.

a) Accrual

The accounts have been prepared on the accrual basis, regardless of when the cash flows of collection or payment occur, except in the cash flow statement presented by the direct method.

b) Intangible fixed assets

The intangible fixed assets are recorded in the asset by its acquisition cost, amortised over a period of four years.

c) Tangible assets

Assets included in this group are valued at their purchase price. They are amortised over their estimated from six to eight years for movables and facilities and in four years for computer equipment.

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d) Financial investments

Financial investments available for sale are initially recorded at cost of acquisition, pro-ceeding to adjust monthly to fair value in the case of financial assets with a value of liquid market and annually in the case of illiquid markets, taking to equity the differences between the carrying amount and the market value determined by valuations obtained from the sec-ondary market until the asset is sold or its value becomes impaired, at which moment those earnings previously recognized in equity are recognized in the profit and loss account.

Financial investments held to maturity are recorded at acquisition cost, subsequently being valued at amortised cost. Accrued interest is recognized in the consolidated income statement by applying the effective interest rate.

Additionally, in the case of financial assets they are adjusted accordingly if there is ob-jective evidence that their impairment is a result of a reduction or delay in the estimated future cash flows in the case of acquired debt instruments or by lack of recoverability of the carrying value of the asset in the case of investments in equity instruments. The valu-ation adjustment is the difference between its cost and its amortised cost minus, where appropriate, any previously recognized valuation adjustment in the income statement and the fair value at the time the assessment is made. In the case of equity instruments measured at cost because its fair value cannot be determined, the correction value is de-termined in the same way as for investments in the equity of group companies, joint ven-tures and associates.

If there is objective evidence of irreversible impairment in financial assets classified as available for sale it is recorded in the income statement for the cumulative loss previously recognized in equity by decrease in its fair value. The impairment losses thus recognized in the profit and loss account for equity instruments are not reversed through the income statement.

The fair values of quoted investments are based on current purchase prices. If the market for a financial asset is not active (and for unlisted securities), fair value is estab-lished using valuation techniques that include the use of duly informed recent transac-tions between stakeholders, references to other substantially similar instruments, dis-counting methods of future estimated cash flows and pricing models of options making maximum use of observable market data and relying as little as possible on subjective considerations.

Financial investments are included in current assets when their maturity is equal or less than twelve months, and are classified as non-current assets when their maturity is more than twelve months.

e) Non-current assets and disposable groups of elements held for sale

A non-current asset is classified as held for sale when its carrying amount is expected to mainly be recovered through sale rather than through continuing use and provided that the following conditions are met:

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1. The asset is available in its current condition for immediate sale, subject to usual and customary terms for sale.

2. Its sale is highly probable, because the following circumstances:

2.1. The holding company is committed to a plan to sell the asset, as it has initi-ated a program to locate a buyer and complete the plan.

2.2. The sale of the asset is being actively negotiated at the right price in relation to its current fair value.

2.3. It is expected to complete the sale within one year from the date of classifi-cation of the asset as held for sale, unless, by events or circumstances be-yond the control of the holding, the period of sale has to be extended, al-though it will remain committed to the asset disposal plan.

2.4. Actions to complete the plan indicate that it is unlikely that significant chang-es may occur or that it will be withdrawn.

Non-current assets held for sale are measured at book value at the time of classifica-tion in this category or fair value minus selling costs, if the latter is lower, registering in this case an impairment loss of that asset.

While an asset is classified as non-current held for sale, it is not amortised, allocating the appropriate valuation adjustments so that the carrying amount does not exceed the fair value minus selling costs.

The valuation adjustments due to impairment losses of non-current assets held for sale, as well as its reversion when the circumstances that motivated them have ceased to exist, are recognised in the income statement except when it is appropriate to record them directly in equity according to the criteria generally applicable to the assets in their specific rules.

f) Revenue recognition

Revenues from ordinary contributions are recognised on an accrual basis. The ex-traordinary expenditures and contributions are recorded, once agreed and in accordance with applicable regulations, directly in equity at the present value of expected cashing, subsequent capitalization is also recorded as equity.

Interest on investments is recognised using the method of effective interest rate.

g) Collections and payments deferred in time

These are recognised by the amount resulting from the updating and financial capitali-zation of expected cash flows at market rates. In 2018 the annual rate applied to update is 3%, the same as in 2017.

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h) Transactions with related parties

Transactions with related parties are carried out under market conditions and in ac-cordance with the assumed commitments. The subsequent valuation is performed in accordance with the provisions of the relevant regulations.

i) Impairments

Impairments are carried out on items where there is objective evidence that there have been circumstances that allow to not assuming the full recovery of the carrying amount of the assets.

j) Restructuring costs of credit institutions

The equity effect on the FGDEC arising as a result of restructuring or action plans of credit institutions, or other related operation, is charged to income in the year in which it occurs, taking into account data resulting from agreements contained in specific opera-tions and the best estimate of the effect of the acquired commitments. In the event that future events may modify these estimates, this variation in cost is recognized in the profit and loss account under the heading of extraordinary items.

k) Commitments with the employees

The commitments on supplementary pension of the staff entitled to such a benefit are outsourced to insurance companies.

l) Tax regime

There is an exemption from corporation tax, as required by Article 9.1.c) of the revised text of the Corporation Tax Act, and indirect tax exemption on grounds of acts and opera-tions that the FGDEC performs in fulfilling its purposes as determined in section 2.b) of Article 3 of Royal Decree-law 16/2011.

4. APPLICATION OF RESULTS

The surplus or deficit for the year is allocated to the equity fund.

5. FINANCIAL RISK MANAGEMENT

In compliance with the legal mandate of the FGDEC, the non-committed assets are materialised in government bonds or other assets of high liquidity and low risk.

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6. RESTRUCTURING OR ACTION PLANS OF MEMBER ENTITIES

In addition to other very residual items arising from the restructurings of entities pre-viously carried out, the financial statements for the years 2018 and 2017 show amounts related to: the assets arrived at the FGDEC in 2010 from the restructuring of the Caja de Ahorros de Castilla-La Mancha (CCM), represented by the participation of FGDEC in its subsidiary Inversiones Corporativas, SA, the EPA granted in 2010, 2011 and 2012 to Banco de Castilla-La Mancha, SA (BdCLM), Banco CAM, SA, and Unnim Banc, SA, respectively, assets acquired in exercise of the right of first refusal from the members of the EPA portfolio granted to Banco CAM, rights and collection obligations relating to the sale of the shares of NCG Banco, SA, and Catalunya Banc, SA, and ob-ligations and rights derived from the amounts guaranteed by the FGDEC to the deposi-tors of Banco de Madrid, SAU.

On 3 November 2009, the Management Committee of the FGDCA approved the ac-tion plan for CCM, by which the assets of the company not integrated into the banking business or to the welfare fund were transferred to the FGDCA in an exchange for finan-cial support amounting to EUR 1,650 M in advance, establishing that, as compensation for the losses that may eventually result from it for the FGDCA, CCM (now CCM Founda-tion), would transfer a part of its share in the capital of BdCLM with a maximum of 15% of such capital.

As of 31 December 2017, this participation had lost all its value as a result of the amortization of 100% of the shares representing the capital of BdCLM and its simultane-ous increase through the issuance of new shares, subscribed to 100% by its parent Liber-bank, SA. The aforementioned transaction was approved by the Extraordinary General Meeting of BdCLM on 18 December 2017 and published in the BORME on 20 December 2017.

The plan also included the granting to BdCLM of an EPA assuming the FGDCA for a period of five years, extendable to seven by agreement of the parties, the losses from a predetermined portfolio of assets for an amount of EUR 7,975 M, with provisions of EUR 1,496 M, once absorbed the provisions made for those assets in a maximum amount of EUR 2,475 M. On 2 December 2014, under the provisions of the plan, it was agreed to extend the deadline of the EPA for a period of two years, setting as effective termination date 31 December 2016.

On 20 December 2018, the FGDEC informed Liberbank, SA, that after the analysis conducted by the FGDEC’s services, no elements were found that would determine that the effective loss of the EPA would have been less than the maximum guarantee granted by the FGDEC, therefore there is no amount to recover from the deposit in guarantee constituted in its day by the FGDEC in BdCLM. Based on the aforementioned, the FGDEC has declared definitive the liquidation presented by BdCLM, so as of 31 Decem-ber 2018, the financial statements of the FGDEC show no amount for this concept.

On 7 December 2011, the Management Committee of the FGDEC agreed to take part in the restructuring of Banco CAM, SA, assuming the following commitments:

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a) Acquire the 100% capital of Banco CAM, SA, by subscribing one or more capital increases amounting to EUR 5,249 M, and then sell for one euro to Banco Sabadell, SA, the shares thus acquired.

b) To grant Banco CAM, SA, an EPA assuming the FGDEC, for a period of ten years from 31 July 2011, 80% of the losses on a portfolio of assets for a predetermined amount of EUR 24,644.3 M, with provisions of EUR 3,882.2 M, once absorbed the provisions made on those assets.

Such losses comprise those resulting from disposals of assets, repossessions, adjudications or other similar operations related to asset disposals and irreversible impairment revealed in the assets during the term of the EPA, as well as the rea-sonable estimated impairment in the protected portfolio to the due date of the EPA.

After that date, and subsequently of an operation which reduced to zero the capital of Banco CAM, SA, on 15 December 2011, the FGDEC signed a first capital increase for an amount of EUR 2,800 M.

Following authorization by the competent authorities of the restructuring operation of Banco CAM, SA, on 1 June 2012, the FGDEC signed a second capital increase of EUR 2,449 M, selling then for one euro to Banco Sabadell, SA, the total subscribed shares of the capital of Banco CAM, SA.

On 17 December 2018, Banco de Sabadell, the FGDEC and the FROB signed a Clari-fication Agreement to Section II of the Protocol that regulates the EPA, by virtue of which certain situations regarding the content and development of the indicated Section have been clarified, and it has been established that the amount of payments that would corre-spond to the FGDEC, from its signature, will be limited to a maximum of EUR 4,147 M.

On 7 March 2012, the Management Committee of the FGDEC agreed to take part in the restructuring of Unnim Banc, SA, assuming the following commitments:

a) Financially support the purchase by BBVA to the FROB of the entire share capital of Unnim Banc, SA, for the price of one euro, providing the necessary funds for the FROB to recover, in the sales process, the full amount of its participation in Unnim Banc, SA, which amounted to EUR 953,263.8 t.

b) Grant to Unnim Banc, SA, an EPA assuming the FGDEC for a period of ten years from 31 October 2011, 80% of the losses on a portfolio of assets amounting to EUR 7,359.7 M with provisions of EUR 1,330.3 M, once absorbed the provisions made on those assets.

As in the EPA granted to Banco CAM, SA, such losses comprise those resulting from disposals of assets, repossessions, adjudications or other similar operations related to asset disposals and irreversible impairment revealed in the assets dur-ing the term of the EPA, as well as the reasonable estimated impairment in the protected portfolio to the due date of the EPA.

47

Following approval by the competent authorities of the restructuring operation of Un-nim Banc, SA, on 27 July 2012, the purchase by BBVA to the FROB of the entire share capital of Unnim Banc, SA, was formalized, for the price of one euro. Next, in order to compensate the losses of the FROB in the operation, the FGDEC recognised a loan of EUR 953,263.8 t, maturing on 1 March 2013. In consideration, the FROB granted a card payment by that amount, cancelling the FGDEC’s loss compensation commitment. On 1 March 2013, this loan was repaid.

On 13 December 2018, BBVA, the FGDEC and the FROB signed a Clarification Agreement to Section II of the Protocol that regulates the EPA, by virtue of which certain situations regarding the content and development of the indicated Section have been clarified, and it has been established that the amount of payments that would correspond to the FGDEC, from its signature, will be limited to a maximum of EUR 1,506 M.

In the case of assets from CCM, its accounting is carried out taking into account the book value of the subsidiary Inversiones Corporativas, SA. At 31 December 2018, the FGDEC participation in this society has an impairment of 100% of the cost.

The losses for the FGDEC that may arise from the EPA that have been granted to Banco CAM and Unnim Banc are shown provisioned on basis: i) of the reports issued by independent experts that, in view of the situation of protected portfolios at year end, they have estimated the total loss in each of them at the end of the corresponding EPA, and ii) of the Clarification Agreements signed with the beneficiary entities, responding the cov-erage constituted at 31 December 2018 to the present value of the payments that is ex-pected to be assumed by the FGDEC in each EPA in order to cover part of the total loss according with the commitments taken on with each entity.

On 23 March 2013 was published the Royal Decree Law 6/2013, of 22 March, which modifies in its second article the fifth additional provision of Royal Decree-Law 21/2012, of 13 July, allowing the FGDEC to subscribe or acquire shares or debt of the Sareb and shares not admitted to listing of the entities that have transferred assets to the Sareb, thus allowing to provide liquidity to such shares received by holders in mandatory re-demptions made within management exercises of hybrid capital instruments and subordi-nated debt performed in restructuring and resolution processes.

Under that provision, the FGDEC acquired in 2013 shares of NCG Banco, SA, and Catalunya Banc, SA. Both shares have been sold in 2014 and 2015, respectively.

On 16 March 2015, the provisional administrators of Banco de Madrid, SAU, designat-ed the 12th of that month by the Bank of Spain, requested the bankruptcy of the entity. On 18 March 2015, the Bank of Spain, after consultation with the Management Commit-tee of the FGDEC determined that, having produced non-payment of due and payable cash deposits, for reasons directly arising from the financial situation of the institution, it was unable to return them in the immediate future, a situation that, under the provisions of Article 8.1.b) of Royal Decree-law 16/2011, the FGDEC was compelled to pay the guaranteed deposits to the entity clients.

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Earlier that day, on 18 March 2015, the FROB agreed not to carry out a process of resolution of that entity. In turn, on 25 March 2015 the Commercial Court number 1 of Madrid declared voluntary bankruptcy of Banco de Madrid, SAU.

Until 31 December 2018 and according to the information received from the Bankrupt-cy Administration of the company, the FGDEC had completed the communication pro-cess of informing to the clients of the entity the state of their accounts and their guaran-teed amounts totalling EUR 127,060.5 t (EUR 127,040.7 t in 2017), having satisfied until that date a total of EUR 125,706.2 t (EUR 125,158.9 t at 31 December 2017) (Note 12.4). The outstanding amount at the specified date, which had not been paid because the de-positors did not answer, were untraceable or in disagreement with the informed data or other incidents managed by the Bankruptcy Administration, amounted to EUR 1,354.3 t (EUR 1,883.1 t in 2017) and is recognised as current liabilities (Note 22.4).

7. EVENTS AFTER THE REPORTING DATE

On 28 February 2019, the FGDEC has received from member institutions EUR 1,335,306.7 t, of which EUR 1,068,078.8 t are from the ordinary deposits to the guaran-tees compartment (corresponding EUR 1,068,077.0 t to the contributions 2018 and EUR 1.8 t to regularisations of the contributions for 2017) and EUR 33,108.0 t to the ordinary contributions to the securities guarantee compartment (corresponding EUR 33,089.0 t to the contributions 2018 and EUR 19.0 t to regularisations of the contributions for 2017), both recognised as results for the year 2018 at their present value at 31 December 2018 (Notes 16.2 and 24.1), and the remainder EUR 234,119.9 t corresponds to the seventh annual disbursement of the extraordinary expenditures cited in Notes 12.1 and 16.1 here-in. The collections of this extraordinary expenditure, even if relevant to the financial situa-tion of the FGDEC do not affect its equity situation, as they appear already registered as assets and as net equity in the balance sheet. The difference between the amount of said seventh annual disbursement of the extraordinary expenditures and the nominal amount of EUR 234,600 t foreseen in its day corresponds to member institutions to the FGDEC upon the approval of the expenditures that later were deregistered, paying the current value of their outstanding payments, and to the amount of the annual fee of the extraordi-nary expenditure by Banco de Madrid, SAU.

On 28 February 2019, the FGDEC has made the fifth disbursement derived from the coverage granted by the EPA to Banco CAM, SA, amounting to EUR 994,631.8 t. In the FGDEC balance of 31 December 2018 it is recognised the present value of this amount as a current liability, as described in Notes 20.1 and 22.3 of this report.

On 27 March 2019, the Court of First Instance No. 6 of Madrid, has issued judg-ment, notified to the FGDEC on 1 April, dismissing the claim made by the FGDEC against Briareo Gestión, SA, and Liberbank, SA, and estimating the counterclaim for-mulated by the aforementioned management company for the discrepancy described in Note 20.3. The sentence condemns the FGDEC to pay to Briareo Gestión, SA, the in-voices subject to the litigation in cash, as well as to the payment of the corresponding legal interests and the costs derived from the instance. Within the established term, the

49

FGDEC will present before the Provincial Court of Madrid the corresponding appeal against the aforementioned sentence.

On 10 and 16 April 2019, Banco de Madrid, SAU, paid an amount of EUR 9,259.9 t to the FGDEC of which EUR 49.4 t reduce their obligation to pay for the extraordinary ex-penditures and the extraordinary contribution, and the remaining EUR 9,210.5 t reduce their payment obligation for the guaranteed deposits paid by the FGDEC to depositors of said entity.

No other significant events subsequent to 31 December 2018 that may affect FGDEC accounts, except as indicated above, are known.

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NOTES TO THE BALANCE SHEET

8. INTANGIBLE ASSETS

Corresponding to licenses for computer use, amortised over a period of four years.

9. PROPERTY, PLANT AND EQUIPMENT

It covers moveable goods, facilities, computer equipment and vehicles that have been acquired by the FGDEC or were transferred to it from the Management Committee upon its dissolution, for their net book value.

They are amortised over their estimated durability from six to eight years for movables and facilities and in four years for computer equipment. On 28 December 2012, Law 16/2012, of 27 December, was published and in its Article 9 states that property, plant and equipment, and real estate investments located in Spain and abroad may be updat-ed. Evaluated the potential accounting implications of the Law 16/2012, the FGDEC did not take advantage of the mentioned Law.

10. REAL ESTATE INVESTMENTS

Real estate investments relate to properties acquired mostly in 2015 and partially in 2016 and that are leased to third parties, while the ultimate goal of them is selling. Amorti-sation is based in the value of construction, and their estimated useful life in 50 years. The cost value amounts to EUR 2,184.0 t (EUR 2,095.0 t at 31 December 2017) and the accumulated depreciation to EUR 80.1 t (EUR 60.3 t at 31 December 2017). The income derived from leasing amounted to EUR 509.3 t (EUR 364.6 t in 2017) (Note 26.2), pend-ing collection at year end, net of impairment, of EUR 3.2 t classified as of doubtful collec-tion (EUR 6.3 t in 2017, of which EUR 3.2 t were classified as of doubtful collection) (Note 14.4). The said real estate acquisition derives from the exercise of the right of first refusal foreseen in the Protocol of 7 December 2011 regulating the EPA granted to Banco CAM.

The movement in 2018, in thousands of euros, is as follows:

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Concepts Real estate investments

Cost at 31 December 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,095.0

Net transfers non-current assets for sale (Note 13) . . . . . . . . . . . . . . . . . 522.3

Sales of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (433.3)

Cost at 31 December 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,184.0

The movement in 2017, in thousands of euros, was as follows:

Concepts Real estate investments

Cost at 31 December 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,800.4

Net transfers non-current assets for sale (Note 13) . . . . . . . . . . . . . . . . . 323.5

Sales of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (28.9)

Cost at 31 December 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,095.0

11. NON-CURRENT INVESTMENTS IN GROUP COMPANIES AND ASSOCIATES

The detail is as follows, in thousands of euros:

Item 12.31.2018 12.31.2017

Company shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 673,015.3 673,015.3

Impairment shareholdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (673,015.3) (673,015.3)

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — —

Company shares relates mainly to the acquisitions made in the action plan of CCM. This item has not had any movement in 2018 and 2017. On 27 December 2016, the FGDEC, its indirect 100% subsidiary, Midamarta, SL, holding a share of Inversiones Cor-porativas, SA, and Liberbank, SA, entered into an agreement pursuant to which the latter granted a put option to the first two, and the former two to the latter an option to purchase in this respect the shares representing the capital of Inversiones Corporativas, SA, at an exercise price equal to the greater of one euro and its market value, to be exercised dur-ing the term of thirty calendar days after 30 June 2020, or sooner if certain circumstances were met. It is estimated that this agreement does not imply any breach for the FGDEC.

At 31 December 2018, the FGDEC maintains fully impaired the value of cost of its par-ticipation in Inversiones Corporativas, SA, because at that date the equity of that compa-ny is negative.

The composition of the balance sheet at 31 December 2018, which is unchanged from that at 31 December 2017, is as follows, in thousand euros:

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Companies

2018

%direct holding

%indirect holding

Costs Impairment

Inversiones Corporativas, SA . . . . . . . . . . . . . . . 99.99 0.01 669,688.9 (669,688.9)

C. R. Aeropuerto, SL. . . . . . . . . . . . . . . . . . . . . . 6.07 30.36 2,678.0 (2,678.0)

Ccm Inmobiliaria Centrum, SA . . . . . . . . . . . . . . 0.01 99.99 10.0 (10.0)

Other investees . . . . . . . . . . . . . . . . . . . . . . . . . . 638.4 (638.4)

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 673,015.3 (673,015.3)

In 2018 and 2017 there were no provisions for impairment of the investees, as they were already deteriorated to 100%.

The detail of direct and indirect holdings is attached in Annex 2.

12. NON CURRENT FINANCIAL ASSETS

The detail at 31 December 2018 and 2017 is as follows, in thousands of euros:

Items Notes 12.31.2018 12.31.2017

Credit entities. Extraordinary expenditure . . . . . . . . . . . . . . 12.1 659,077.7 867,026.6

Receivables for provided guarantees EPA . . . . . . . . . . . . . 12.2 3,606.6 5,318.4

Expenditures collection rights and contributions Banco de Madrid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.3 176.4 352.8

Payment receivables depositors Banco de Madrid . . . . . . 12.4 23,686.0 58,199.5

National debt euro area . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.5 294,839.2 296,137.4

Cash deposits constituted guarantee Finland . . . . . . . . . . 12.5 254.0 681.0

National debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.6 4,155,694.6 4,484,377.4

Subordinate debentures . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.7 2,232.7 2,184.3

Credit entities investments . . . . . . . . . . . . . . . . . . . . . . . . . 12.8 — 120.2

Other financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.9 131.3 201.4

Staff loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.10 311.2 341.2

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,140,009.7 5,714,940.2

12.1. Credit entities. Extraordinary expenditure

The Management Committee of the FGDEC, at its meeting on 30 July 2012, agreed to make an extraordinary expenditure by the member institutions for a total amount of EUR 2,346,000 t, distributed according to the calculation basis of regular contributions at 31 December 2011, payable in ten equal annual instalments of EUR 234,600 t to be set-tled the same day as the ordinary contributions from 2013 to 2022, and may be deducted

54

from the regular annual contribution of each entity up to the amount of their correspond-ing ordinary contribution.

At 31 December 2018, the nominal value of each of the outstanding annual instal-ments stood at EUR 234,119.9 t (EUR 234,370.7 t in 2017) (Notes 7, 16.1 and 24.1) as a result that entities members of the FGDEC upon the approval of the extraordinary expen-ditures have later deregistered, proceeding to pay the current value of their outstanding disbursements. It has also been discounted the amount of contributions for Banco de Ma-drid, SAU, for having cancelled its commitments due to bankruptcy.

At 31 December 2018, the current value of outstanding receipts, using an annually discount rate of 3%, amounts to EUR 892,081.7 t (EUR 1,100,280.2 t at 31 December 2017), of this amount, EUR 233,004.0 t (EUR 233,253.6 t at 31 December 2017) are rec-ognised as current assets corresponding to the payment which must be received on 28 February of the following year (Note 16.1) and the remaining amount of EUR 659,077.7 t is recognised as long-term financial investments (EUR 867,026.6 t at 31 De-cember 2017).

12.2. Receivables for provided guarantees EPA

The EPAs granted to Banco CAM, SA, and Unnim Banc, SA, include a compensation fee of 0.01% on the available balance of the respective EPA at the beginning of each year, which must be received by the FGDEC as a consideration of the guarantee throughout its validity, whose future charges are estimated annually according to the best available information on the expected evolution of each EPA. The variation for the finan-cial year was as follows, in thousands of euros:

Concepts Banco CAM Unnim Banc Total

Initial balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,995.6 1,322.8 5,318.4

Invoicing corresponding to 2018 (Note 14.1) . . . . . . . . (1,355.6) (439.2) (1,794.8)

Changes on the estimated recovery (Note 26.1) . . . . . . . 0.1 (76.3) (76.2)

Financial update (Note 27) . . . . . . . . . . . . . . . . . . . . . 119.5 39.7 159.2

Final balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,759.6 847.0 3,606.6

The variation in 2017 was as follows, in thousands of euros:

Concepts Banco CAM Unnim Banc Total

Initial balance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,427.6 1,679.7 7,107.3

Invoicing corresponding to 2017 (Note 14.1) . . . . . . . . . . (1,500.6) (475.6) (1,976.2)

Changes on the estimated recovery (Note 26.1) . . . . . . . (94.2) 67.8 (26.4)

Financial update (Note 27) . . . . . . . . . . . . . . . . . . . . . . . . 162.8 50.9 213.7

Final balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,995.6 1,322.8 5,318.4

The amount of the financial update, at 3% per annum according to the temporary esti-mate of the collection of the aforementioned commissions, was of EUR 159.2 t in 2018, having been in 2017 of EUR 213.7 t (Note 27).

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Additionally, the EPA granted to BdCLM described in Note 16.4 included an income for the FGDEC determined at 1.5% annual on the available loss coverage. Initially, the amount of the guarantee amounted to EUR 2,475,000.0 t, this amount has varied annual-ly depending on the accumulated amount of estimated losses and the provisions made for impairment of the portfolio according to information received from the BdCLM on the indicated provisions for impairment of the risks covered and, therefore, of the available coverage. In Note 14.1 is indicated the incidence arising in connection with the billing and collection of this commission.

12.3 Extraordinary expenditures collection rights and extraordinary contribution Banco de Madrid

At 31 December 2015, under Article 146 of the Insolvency Act, the FGDEC qualified as expired the outstanding amounts of Banco de Madrid, SAU, in respect of the extraordi-nary expenditures, agreed by the Management Committee of the FGDEC at its meeting of 30 July 2012, and the extraordinary contribution established in Royal Decree Law 6/2013 because the entity was in bankruptcy (Note 19.1).

On 22 March 2018 and 14 December 2017, Banco de Madrid, SAU, paid the FGDEC EUR 176.4 t and EUR 352.8 t, respectively, equivalent to 75% of the said collection rights, thus reducing its obligation to pay for the extraordinary expenses and the extraor-dinary contribution.

12.4 Depositors collection rights Banco de Madrid

This item includes, at nominal value, the amount of guaranteed deposits to depositors of Banco de Madrid, SAU, according to information received from the Bankruptcy Admin-istration, pending collection by the FGDEC at 31 December 2018. Up to date, Banco de Madrid, SAU, had paid the FGDEC an amount of EUR 93,874.5 t (EUR 62,342.5 t at 31 December 2017) reducing the payment obligation in respect of the guaranteed depos-its paid by FGDEC to depositors of that entity, payment obligation that has the ordinary credit rating in the bankruptcy.

As of 31 December 2018, in light of the information provided by the aforementioned Bankruptcy Administration, the FGDEC has increased in EUR 3,000.0 t (Note 26.17) the provision on the described collection rights registered in 2017, up to a total amount of EUR 9,500.0 t (EUR 6,500.0 t in 2017; Note 26.17).

12.5 Public debt of the euro area and guarantee deposit made

On 16 July 2012, in order to facilitate the operation of European financial assistance for the recapitalization of Spanish banks under the terms provided in the fifth additional provi-

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sion of Royal Decree-Law 21/2012, of July 13, and under paragraph 4 of that provision, the FGDEC signed a guarantee in favour of the Republic of Finland pledging to make pledges for an amount equivalent to 40% of the risk assumed by that State in disbursements that would be made by the European Financial Stability Fund to the Kingdom of Spain. Subse-quently, as a result of the definitive establishment of the European Stability Mechanism, on 28 November 2012 the FGDEC and the Republic of Finland signed an addendum to that contract in order to adapt to the new situation. The participation of the Republic of Finland in the European Stability Mechanism on 28 November 2012 was of 1.7974%.

In fulfilment of that commitment, on 28 November 2012 the FGDEC made a cash guarantee deposit amounting to EUR 283,759.1 t due to the first disbursement facilitated by the indicated Mechanism to the Kingdom of Spain. On 22 January 2013, a second contribution was made, amounting to EUR 13,408.6 t.

Since their constitution, and in accordance with the provisions of the signed contract, the indicated deposits, which are assigned to the deposits guarantee compartment, to-gether with the interests produced are being invested in securities issued by Member States of the euro area with the highest credit rating less the portion that may appear as balance cash account, which is also open as guarantee in the custodian entity. On Janu-ary 2013, under the made deposit, as provided in the signed contract EUR 283,756.4 t were invested in securities issued by the Member States of the euro area with the highest credit rating. In February 2013, the disbursement of the second contribution was invested in the same class of securities, up to a total of EUR 297,166.7 t. Subsequently all the in-terests and depreciations collected have been reinvested.

In 2018 EUR 6,072.1 t have been received from the collection of coupons (EUR 2,273.2 t in 2017) with no income for maturity dates of the investments. The investment for the year amounted to EUR 6,499.0 t, as the securitised proposed new acquisitions of securities (EUR 296,985.1 t in 2017).

At 31 December 2018, the balance of cash guarantee deposit amounts to EUR 254.0 t (EUR 681.0 t in 2017) and the market value –minus the accrued coupon– of the securi-ties in guarantee amounts to EUR 291,489.5 t (EUR 292,932.6 t at 31 December 2017). Interest accrued at the same date amounted to EUR 3,349.7 t (EUR 3,204.8 t at 31 De-cember 2017). The market value of these investments is less than the accounting cost in EUR 208.2 t (EUR 78.4 t less than the accounting cost at 31 December 2017) (Note 19.2), which amount is included as an adjustment in equity. The classification of these in-vestments in the long term corresponds to what is expected to happen before they can be released given the commitment assumed with the securitised. The detail of these securi-ties at 31 December 2018 is as follows, in thousands of euros:

Titles-value 12.31.2018 Maturity

Finnish National Debt 4.375% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68,022.8 7.4.2019French National Debt 1% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109,318.2 5.25.2019Austrian Nacional Debt 1.95% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107,813.9 6.18.2019Finnish National Debt 3.375% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,334.6 4.15.2020

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 291,489.5 Accrued interests 3,349.7

TOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294,839.2

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The detail of the mentioned securities in guarantee at 31 December 2017 was as fol-lows, in thousands of euros:

Titles-value 12.31.2017 Maturity

Finnish National Debt 4.375% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71,349.6 7.4.2019

French National Debt 1% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111,086.6 5.25.2019

Austrian Nacional Debt 1.95% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,496.4 6.18.2019

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292,932.6

Accrued interests 3,204.8

TOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 296,137.4

It is estimated that the granting of this guarantee will not entail any losses for the FGDEC, so no coverage was made on it.

12.6 National debt

In this heading are recognised investments in the Spanish National Debt with a residu-al maturity exceeding one year. The detail at 31 December 2018 is as follows, in thou-sands of euros:

Titles-maturity ISIN CodeAmounts

at maturityCarrying amounts

Investments assigned to the deposits compartment

Obligations 4% maturity 4.30.2020 . . . . . . . . . . . . . . . . . . ES00000122D7 593,283.0 627,992.4

Bonds 1.15% maturity 7.30.2020 . . . . . . . . . . . . . . . . . . . ES00000127H7 705,270.0 721,911.6

Obligations 4.85% maturity 10.31.2020 . . . . . . . . . . . . . . ES00000122T3 1,406,635.0 1,538,477.5

Bonds 0.75% maturity 7.30.2021 . . . . . . . . . . . . . . . . . . . ES00000128B8 470,760.0 481,809.7

Bonds 0.05% maturity 10.31.2021 . . . . . . . . . . . . . . . . . . ES0000012C46 94,013.0 94,318.0

Obligations 5.85% maturity 1.31.2022 . . . . . . . . . . . . . . . ES00000123K0 44,081.0 52,117.8

Bonds 0.40% maturity 4.30.2022 . . . . . . . . . . . . . . . . . . . ES00000128O1 298,450.0 302,795.4

Bonds 0.45% maturity 10.31.2022 . . . . . . . . . . . . . . . . . . ES0000012A97 223,283.0 226,299.1

Total deposits compartment . . . . . . . . . . . . . . . . . . 3,835,775.0 4,045,721.5

Investments assigned to the securities compartment


Obligations 4.85% maturity 10.31.2020 . . . . . . . . . . . . . . ES00000122T3 26,850.0 29,366.6


Bonds 4.40% maturity 10.31.2023 . . . . . . . . . . . . . . . . . . ES00000123X3 1,517.0 1,803.9

Total securities compartment . . . . . . . . . . . . . . . . . 105,362.0 109,973.1

TOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,941,137.0 4,155,694.6

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The breakdown of these investments at 31 December 2017 was as follows, in thou-sands of euros:

Titles-maturity ISIN CodeAmounts

at maturityCarrying amounts

Investments assigned to the deposits compartment

Bonds 0.25% maturity 1.31.2019 . . . . . . . . . . . . . . . . . . . ES00000128AD 748,320.0 753,887.5

Obligations 4.60% maturity 7.30.2019 . . . . . . . . . . . . . . . ES00000121L2 311,500.0 335,840.6

Obligations 4.30% maturity 10.31.2019 . . . . . . . . . . . . . . ES00000121O6 24,500.0 26,578.8

Obligations 4% maturity 4.30.2020 . . . . . . . . . . . . . . . . . . ES00000122D7 593,283.0 651,329.8


Obligations 4.85% maturity 10.31.2020 . . . . . . . . . . . . . . ES00000122T3 1,406,635.0 1,603,493.6


Total deposits compartment . . . . . . . . . . . . . . . . . . 4,095,075.0 4,413,576.5

Investments assigned to the securities compartment


Obligations 4.85% maturity 10.31.2020 . . . . . . . . . . . . . . ES00000122T3 26,850.0 30,607.7


Total securities compartment . . . . . . . . . . . . . . . . . 66,030.0 70,800.9

TOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,161,105.0 4,484,377.4

At 31 December 2018, investments in Long-term Public Debt are classified in the available-for-sale investment portfolio with changes in equity, with a market value of EUR 46,614.5 t in excess of the carrying amount, included as an adjustment in net equity (EUR 60,074.3 t at 31 December 2017) (Note 19.2). Of the mentioned amount, EUR 45,572.4 t (EUR 59,239.2 t in 2017) correspond to the deposits guarantee compartment and EUR 1,042.1 t (EUR 835.1 t in 2017) to the securities guarantee compartment.

12.7. Subordinated debentures (net)

The balance of this item corresponds to perpetual debentures or to 99 years with zero interest acquired as aid for rehabilitation of savings banks in prior years.

The detail at 31 December 2018 is as follows, in thousands of euros:

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Issuer entities Subscription Depreciation fund Net amount

Perpetual debentures – Savings banks

M. P. and C. A. S. Fdo., Guadalajara, Huelva, Jerez and Sevilla (currently Caixabank) . . . . . . . . . . . . . . . . . . . . . . 18,030.4 (17,850.1) 180.3

Caja de Ahorros del Mediterráneo (currently Banco Sabadell) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,025.3 (14,875.1) 150.2

Unicaja. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,040.5 (23,800.1) 240.4

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57,096.2 (56,525.3) 570.9

Debentures 99 years – Savings banks

M. P. and C. A. S. Fdo., Guadalajara, Huelva, Jerez and Sevilla (currently Caixabank) . . . . . . . . . . . . . . . . . . . . . . 15,025.3 (13,363.5) 1,661.8

TOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,121.5 (69,888.8) 2,232.7

The detail at 31 December 2017 was as follow, in thousands of euros:

Issuer entities Subscription Depreciation fund Net amount

Perpetual debentures – Savings banks

M. P. and C. A. S. Fdo., Guadalajara, Huelva, Jerez and Sevilla (currently Caixabank) . . . . . . . . . . . . . . . . . . . . . . 18,030.4 (17,850.1) 180.3

Caja de Ahorros del Mediterráneo (currently Banco Sabadell) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,025.3 (14,875.1) 150.2

Unicaja. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,040.5 (23,800.1) 240.4

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57,096.2 (56,525.3) 570.9

Debentures 99 years – Savings banks

M. P. and C. A. S. Fdo., Guadalajara, Huelva, Jerez and Sevilla (currently Caixabank) . . . . . . . . . . . . . . . . . . . . . . 15,025.3 (13,411.9) 1,613.4

TOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,121.5 (69,937.2) 2,184.3

The difference between the balance of the item at 31 December 2018 (EUR 2,232.7 t) and at 31 December 2017 (EUR 2,184.3 t) corresponds to the lower depreciation of de-bentures to 99 years because of their nearer maturity, an increase of EUR 48.4 t (EUR 47.0 t in 2016) (Note 27).

12.8. Shares in credit institutions

Originating in the exchange of perpetual special subordinated debt issued by Caja Es-paña de Inversiones, as set out in the resolution of the Governing Committee of the FROB of 16 May 2013, by which are agreed actions of recapitalization and management of hybrid instruments and subordinated debt under the Plan de Resolución de Banco de Caja España de Inversiones, Salamanca y Soria, SA (CEISS), the FGDEC became own-er of 1,992,595 shares of this entity. On 3 April 2014, the FGDEC made the exchange of

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the said shares of Banco CEISS for shares of Unicaja Banco, SA, to own, at 31 Decem-ber 2014, 483,158 shares of this entity.

During the year 2017, in accordance with the agreement adopted by its Management Committee, the FGDEC sold all of its stake in Unicaja Banco, SA, obtaining a benefit for this operation of EUR 565.3 t, registered as income in 2017 (Note 26.11).

Similarly, and originating in the exchange of perpetual subordinated debt issued by Caja Granada, as set out in the resolution of the Governing Committee of the FROB of 27 May 2013, by which it agrees to implement management actions of hybrid capital and subordinated debt in execution of the Plan de Reestructuración de Banco Mare Nostrum, SA (BMN), the FGDEC became the owner of 2,691,098 shares of this entity (Note 2 e).

Following the merger by absorption of Banco Mare Nostrum, SA, by Bankia, SA, regis-tered with the Mercantile Registry of Valencia on 8 January 2018, the latter entity pro-ceeded to exchange the shares of Banco Mare Nostrum, SA, for shares of Bankia, SA, and the mentioned participation becomes 343,696 shares of this entity, representing 0.01% of its capital.

In 2018, in accordance with the resolution adopted by its Management Committee, the FGDEC has sold all of its stake in Bankia, SA, obtaining a profit from this operation of EUR 1,267.4 t, recorded as income in the year 2018 (Note 26.11).

At 31 December 2017, the shares are recognised as detailed below, in thousands of euros:

Entities%

sharesNumber of shares Amount

Banco Mare Nostrum, SA . . . . . . . . . . . . . . . . . . . . . . . . . 0.17 2,691,098 120.2

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120.2

12.9. Other financial assets

The detail of this item at 31 December 2018 is as follows, in thousands of euros:

Items Cost Impairment Net

Third debtors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,340.6 (34,340.6) —

Bonds and deposits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 594.2 (462.9) 131.3

Caja Extremadura (currently Liberbank, SA) . . . . . . . . . 2.3 (2.3) —

Caja de Ahorros de Ávila (currently Bankia, SA) . . . . . . 1.3 (1.3) —

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,938.4 (34,807.1) 131.3

Third debtors. From the total amount, EUR 27,124.3 t are the resulting net balance (amount received minus the recovered plus expenses) of the allocation that the previous FGDEB made in 2003 before the Court of 1st Instance No. 4 in Madrid, in favour of Mr. Domingo López Alonso, since then, object to the corresponding claiming in court, the

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remaining amount of EUR 7,216.3 t responds to several remnant balances in charge of Mr. López Alonso and his corporate group. Both amounts are fully impaired. These bal-ances have not changed in recent years.

Bonds and deposits. This item includes: i) judicial allocations amounting to EUR 462.9 t, deteriorated to 100%; ii) EUR 58.9 t in bonds paid by the FGDEC, mainly for leasing offices and parking spaces, and iii) EUR 72.4 t of bonds deposited in official agencies for the lease of real estate registered under the heading of real estate invest-ments.

At 31 December 2017, this section was as follows:

Items Cost Impairment Net

Third debtors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,340.6 (34,340.6) —

Bonds and deposits. . . . . . . . . . . . . . . . . . . . . . . . . . . 601.9 (462.9) 139.0

Caja Extremadura (currently Liberbank, SA) . . . . . . . 2.3 (2.3) —

Caja de Ahorros de Ávila (currently Bankia, SA) . . . . 1.3 (1.3) —

Credit rights Aguas de Panticosa . . . . . . . . . . . . . . . 62.4 — 62.4

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,008.5 (34,807.1) 201.4

12.10. Staff loans

In this item are recognised the instalments with more than one year maturity of the loans granted to the employees amounting to EUR 311.2 t (EUR 341.2 t at 31 Decem-ber 2017), with maturities up to the year 2026. In 2018 new transactions amounting to EUR 45.7 t were granted (EUR 169.9 t in 2017), of which EUR 2.7 t (EUR 8.1 t in 2017) were classified in the short term, operations have not been cancelled in advance (EUR 4.0 t in 2017) and EUR 73.0 t transferred to the short term (EUR 68.0 t in 2017) (Note 16.8).

13. NON CURRENT ASSETS FOR SALE

This item recognises the net value of the impairment of the real estate owned by the FGDEC available for sale and not rented to third parties. Of its balance, EUR 9,583.1 t (EUR 20,241.8 t at 31 December 2017) correspond to the price paid and costs associat-ed with the purchase of real estate acquired in the exercise of the right of first refusal on the assets covered by the EPA granted to Banco CAM. The rest, amounting to EUR 228.2 t (EUR 146.0 t in 2017) come from the financial restructuring of other entities and recoveries made on judicial procedures related to them. The entry of new assets generat-ed extraordinary income in the year 2018 of EUR 85.1 t (Note 26.12) and an impairment allowance amounting to EUR 13.9 t (Note 26.20).The assets included in this section meet the requirements described in Note 3.e) of these financial statements.

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The movement in this item during 2018 is as follows:

ConceptNon-current assets

for sale

Balance at 12.31.2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,387.8

Net transfers to the heading Real Estate Investment (Note 10) . . . . . . . . . . . . . . . . . . (522.3)

VAT deductible for transfer to Real Estate Investment . . . . . . . . . . . . . . . . . . . . . . . . . (83.3)

Sales of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,050.3)

Residual property net recoveries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96.1

Of which with effect on results (Note 26.12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85.1

Exercise endowment (Note 26.20) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (13.9)

Impairment of previous exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2.8)

Balance at 12.31.2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,811.3

At 31 December 2017, the composition of this item was:

ConceptNon-current assets

for sale

Balance at 12.31.2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,313.3

Net transfers to the heading Real Estate Investment (Note 10) . . . . . . . . . . . . . . . . . . (323.5)

VAT deductible for transfer to Real Estate Investment . . . . . . . . . . . . . . . . . . . . . . . . . (50.4)

Sales of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,551.6)

Balance at 12.31.2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,387.8

14. OTHER RECEIVABLES/PAYABLES


Items Notes 12.31.2018 12.31.2017

Debtors fee EPA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.1 1,794.8 45,932.6

Debtors for assets sales . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.2 77.1 366.8

Public Administrations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.3 620.7 146.5

Other debtors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.4 82.9 56.7

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,575.5 46,502.6

14.1. Debtors fee EPA

Amounts receivable arising from the invoicing of fees to the beneficiary organizations of those granted EPA (Note 12.2). The variation was as follows, in thousands of euros:

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Concepts BdCLM Banco CAM Unnim Banc Total

Invoicing 2010 . . . . . . . . . . . . . . . . . . . . . . . . . 37,125.0 — — 37,125.0

Invoicing 2011 . . . . . . . . . . . . . . . . . . . . . . . . . 24,033.4 710.5 81.7 24,825.6

Complementary invoicing 2011 . . . . . . . . . . . . 2,297.6 — — 2,297.6

Invoicing 2012 . . . . . . . . . . . . . . . . . . . . . . . . . 15,404.8 1,688.7 490.4 17,583.9

Complementary invoicing 2012 . . . . . . . . . . . . 3,447.5 — — 3,447.5

Invoicing 2013 . . . . . . . . . . . . . . . . . . . . . . . . . 8,178.8 1,684.0 489.1 10,351.9

Invoicing 2014 . . . . . . . . . . . . . . . . . . . . . . . . . 8,896.2 1,684.0 489.1 11,069.3

Invoicing 2015 . . . . . . . . . . . . . . . . . . . . . . . . 7,698.4 1,684.0 489.1 9,871.5

Invoicing 2016 . . . . . . . . . . . . . . . . . . . . . . . . . 8,978.1 1,604.5 490.4 11,073.0

Invoicing 2017 (Note 12.2) . . . . . . . . . . . . . . . — 1,500.6 475.6 1,976.2

Invoicing 2018 (Note 12.2) . . . . . . . . . . . . . . . — 1,355.6 439.2 1,794.8

Uncontentious interests . . . . . . . . . . . . . . . . . . 1,021.4 — — 1,021.4

Accrued interests (Notes 26.8 & 26.9) . . . . . . 6,579.2 — — 6,579.2

Provisions in advance . . . . . . . . . . . . . . . . . . . (123,408.2) (10,556.3) (3,005.4) (136,969.9)

Write-off invoiced late payment interest (Note 26.9) . . . . . . . . . . . . . . . . . . . . . . . . . . . (252.2) — — (252.2)

Final balance . . . . . . . . . . . . . . . . . . . . . . . . . — 1,355.6 439.2 1,794.8

At 31 December 2017, the BdCLM had not paid the invoice included in the table above for 2010, disagreeing with the procedure followed by the FGDEC for calculating the mentioned invoice. Because of this, the FGDEC filed a lawsuit before the ordinary courts seeking payment of that invoice plus interest for late payment, and confirmation re-garding the system followed by the FGDEC for calculating the reference invoices. In this regard, the ruling of 30 December 2013 of Court of 1st Instance did not recognise the right of the FGDEC to collect that invoice.

Following the appeal by the FGDEC in 2014, on 8 June 2015 the Audiencia Provincial of Madrid fully upheld the claim filed by the FGDEC, the ruling has been appealed before the Supreme Court (Tribunal Supremo) by the BdCLM so at 31 December 2016, is main-tained the provision recognised on 31 December 2013 of EUR 18,562.5 t, equivalent to 50% of the principal. The interests claimed for in the invoice were fully provisioned at 31 December 2016.

On 20 December 2017, the civil court of the Supreme Court denied the appeal filed by BdCLM, so as of 31 December 2017, the FGDEC proceeded to release the provisions constituted by the principal of the invoice, EUR 18,562.5 t, and for late payment interest recorded at 31 December 2016, EUR 4,184.2 t (Note 26.8) and to recognize the higher amount of default interest for EUR 2,395.0 t (Note 26.9).

The balance as of 31 December 2017, related to BdCLM, for an amount of EUR 43,956.4 t corresponded to the principal of the 2010 commission object of claim, EUR 37,125.0 t, to the interest of delay of the mentioned invoice, EUR 6,579.2 t (EUR 4,184.2 t plus EUR 2,395.0 t) plus interest of delay corresponding to the in-

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voices issued in the period 2013 by rectification of the information provided by the beneficiary entity, EUR 252.2 t.

On 25 July 2018, BdCLM paid the FGDEC an amount of EUR 43,704.2 t, correspond-ing to the principal of the invoice and interests for delay of the same, at the close of the 2018 financial year the FGDEC wrote-off the interest of delays corresponding to invoices issued in the 2013 period, considering that, based on the best information available, col-lection is unlikely (Note 26.9), so as of 31 December 2018, there are no collection rights against BdCLM.

14.2. Debtors for assets sales

At 31 December 2018 and 2017 this item reflects the balance amount of bank cheques pending collection for the sale of real estate acquired in the exercise of the right of first refusal on assets covered by the EPA granted to Banco CAM formalized at the end of the year. All cheques have been collected, respectively, in the first days of the month of January 2019 and 2018.

14.3. Public Administrations

It includes mainly the VAT that has to be received for 2018, amounting to EUR 613.0 t (EUR 136.4 t in 2017).

14.4. Other debtors

It includes: i) EUR 35.1 t corresponding to various debtors for transactions with real estate (EUR 2.6 t 2017); ii) EUR 42.8 t (EUR 45.7 t in 2017), corresponding to the bal-ance, net of impairments carried out, of unpaid bills and other debts arising from items originated in rehabilitations made by the previous guarantee funds of banks, savings banks and credit cooperatives; iii) EUR 3.2 t (EUR 3.2 t in 2017) to unpaid rents, classi-fied as doubtful at the end of the year, of the properties registered under the heading of “Real Estate Investments” (Note 10), and iv) EUR 1.8 t (EUR 2.1 t in 2017), by debtors by ordinary activity. In addition, in 2017 it included EUR 3.1 t corresponding to rents pending collection, not classified as doubtful, at the end of the year of the properties registered un-der the heading of “Real estate investments” (Note 10).

15. INVESTMENTS IN GROUP COMPANIES AND ASSOCIATES

It corresponds to the FGDEC receivables from subsidiaries, for loans acquired in reha-bilitation of credit institutions, and expenses paid on its own account.

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The detail and variation in the year were as follows, in thousands of euros:

Concepts 12.31.2017 Debts(Collection

and write-off/reclassification)

12.31.2018

Personal secured loans . . . . . . . . . . . . . 8,265.5 293.5 (233.1) 8,325.9

Accountable cost . . . . . . . . . . . . . . . . . . . . 8,265.5 293.5 (233.1) 8,325.9

Impairment (Note 26.20) . . . . . . . . . . . . . . (372.5) (124.5) — (497.0)

Net final balance . . . . . . . . . . . . . . . . . . . 7,893.0 169.0 (233.1) 7,828.9

The amounts of the debts and charges include, mainly, EUR 32.0 t (Note 24.2) of the turnover in 2018 (EUR 22.1 t in 2017) for the sublease of the offices of the FGDEC to its subsidiary Inversiones Corporativas, SA, and EUR 148.1 t corresponding to the short-term participative loan granted, in the year 2018, by the FGDEC to its investee company, Realizaciones Patrimoniales, SA, in order to rebalance its equity situation.


Concepts 12.31.2016 Debts(Collection

and write-off/reclassification)

12.31.2017

Personal secured loans . . . . . . . . . . . . . 8,218.6 48.7 (1.8) 8,265.5

Accountable cost . . . . . . . . . . . . . . . . . . . . 8,218.6 48.7 (1.8) 8,265.5

Impairment . . . . . . . . . . . . . . . . . . . . . . . . . (372.5) — — (372.5)

Net final balance . . . . . . . . . . . . . . . . . . . 7,846.1 48.7 (1.8) 7,893.0

16. SHORT TERM FINANCIAL INVESTMENTS


Items Notes 12.31.2018 12.31.2017

Credit institutions. Extraordinary expenditures . . . . . . . . . 16.1 233,004.0 233,253.6

Ordinary contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.2 1,095,937.8 1,069,309.1

Short term loans FROB-NCG Banco, SA . . . . . . . . . . . . . 16.3 1,249.6 4,015.2

Reimbursement rights EPA . . . . . . . . . . . . . . . . . . . . . . . . 16.4 — 2,475,000.0

Impairment reimbursement rights EPA . . . . . . . . . . . . . . . 16.4 — (2,475,000.0)

National debt (bills, bonds and Government bonds) . . . . 16.5 1,093,410.1 1,135,877.8

National debt accrued interests . . . . . . . . . . . . . . . . . . . . 16.6 43,989.8 51,506.2

Debtors by deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.7 19.4 138.3

Staff loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.8 73.0 68.0

Other short term loans . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.9 62.5 125.0

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,467,746.2 2,494,293.2

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16.1. Credit entities. Extraordinary expenditures

At 31 December 2018, it corresponds to the current value of the seventh collection of the extraordinary expenditure agreed on 30 July 2012 of a nominal of EUR 234,119.9 t maturing on 28 February 2019. At 31 December 2017, it reflected the current value of the sixth collection due on 28 February 2018 of a nominal of EUR 234,370.7 t (Notes 7, 12.1 and 24.1).

16.2. Ordinary contributions

At 31 December 2018, it records the present value of the ordinary contributions cal-culated according to the calculation basis at 30 June 2018 for the contributions corre-sponding to the deposits compartment, and according to the calculation basis at 31 De-cember 2018 for the contributions corresponding to the securities compartment, to which, in each case, the rectifications to the contributions for the year 2017 are incorpo-rated due to subsequent rectifications of the information taken for the calculation of those, which the member entities paid to the FGDEC on 28 February 2019. From the present value of these contributions EUR 1,062,987.7 t correspond to the deposits compartment (EUR 1,032,073.0 t in 2017) and EUR 32,950.1 t to the securities com-partment (EUR 37,236.1 t in 2017) (Notes 24.1 and 27).

The nominal value of the said ordinary contributions to the deposits compartment and to the securities compartment amounted to EUR a 1,068,078.8 t (EUR 1,037,016.0 t in 2017) and EUR 33,108.0 t (EUR 37,414.4 t in 2017), respectively (Notes 7, 24.1 and 27).

16.3. Short term loans FROB-NCG Banco, SA

Under the fifth additional provision of Royal Decree-Law 21/2012, as amended by Arti-cle 2 of Royal Decree Law 6/2013, on 10 June 2013 the FGDEC announced an offer to acquire common shares of NCG Banco, SA, with certain considerations and conditions. As a result of that offer, the FGDEC acquired 603,671,160 shares of NCG Banco, SA (representing 25.6% of its capital), for a total cost of EUR 802,364.1 t, while subscribing with the controlling shareholder of the entity, the FROB, certain agreements of partial coverage of the evolution of the value and of the result of the sale of the stake.

On 18 December 2013, the FROB announced the award of a shareholding of 88.3% of NCG Banco, SA, after the study of the binding offers received in the corresponding sales process, to Banco Etcheverría, SA (Banesco Group). As provided in Articles 26.2 and 64.1.c of Law 9/2012, of 14 November, the referenced sales process included the shares owned by the FGDEC.

As a result of the hedging contract on the involvement of the FGDEC in NCG Banco, SA, in 2013 a settlement was made for a total of EUR 3,684.7 t paid by the FROB, which

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lowered the cost of such participation, having been collected EUR 1,874.0 t in 2013 and EUR 1,810.7 t in 2014.

In view of the conditions of this operation and the estimated net receipts estimated to be received by the FGDEC at year-end 2013, an impairment of EUR 577,379.4 t was reg-istered.

On 25 June 2014, the FROB announced the consummation of the transaction after obtaining all the mandatory authorizations. Subsequently it informed the FGDEC the set-tlement of the transaction, according to which on 30 September 2014 it was recorded a greater impairment of EUR 1,154.0 t, in addition to the recorded on 31 December 2013 amounting to EUR 577,379.4 t, to adjust the amounts recognised at their present value at the date of collections and payments foreseen in the operation.

As of 31 December 2014, the collections already received by the FGDEC for this op-eration amounted to EUR 139,630.2 t, being estimated that the current value at that date of future collections and future payments would amount to a net charge of EUR 84,830.2 t.

Subsequently, the FROB has modified on several occasions the settlements submit-ted to the FGDEC, according to the following detail:

On 20 July 2015, the FROB informed the FGDEC a modification of the cost to be assumed by the latter, by an increase in the value of the guarantees granted to the purchaser up to EUR 7,189.9 t, which has meant an estimated revenue reduction at 31 December 2014 by its current value of EUR 6,827.3 t. In the opposite way, the FROB has reported an advanced payment on the recovery of deferred amounts that, by an increase in the current value of these, has led to the recognition of higher in-come amounting to EUR 36.7 t.

In the year of 2015, there was no collection for this transaction, estimated at EUR 80,533.7 t the current value of the expected net receipts.

On 21 July 2016, the FROB notified the FGDEC of a new modification of the cost to be assumed by the FGDEC due to a reduction of the value of the guarantees granted to the buyer in EUR 2,231.7 t, as well as an advance on the scheduled dates for payment, which together meant a reduction of the current value of the estimated payments in EUR 526.5 t. In the same communication, the FROB also reported an increase of EUR 17,421.9 t of the amount to be paid by it to the FGDEC due to the agreements of partial coverage of the evolution of the value and of the result of the sale of the stake, with a current value of EUR 16,857.9 t. In addition, in 2016 there was an advance on the esti-mated date in the collection of an amount of EUR 57,954.2 t corresponding to the de-ferred part of the sale price, which has meant an income of EUR 2,507.0 t in relation to the current value for which said amount was recorded at the time of collection.

In the year 2016 the collections received by the FGDEC amounted to EUR 58,982.2 t, estimating the current value of the expected net collections in EUR 43,278.9 t.

On 9 October 2017, the FROB notified the FGDEC of a new modification of the settle-ment, according to which the former was to pay the latter charges to be received for the

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deferred part of the sale price, amounting to EUR 86,867.0 t as well as part of the com-pensation of the FROB to the FGDEC, due to the agreements of partial coverage of the evolution of the value and of the result of the sale of the participation, in the amount of EUR 40,520.8 t. On the other hand, the FROB reported charging the FGDEC an amount of EUR 126,294.3 t for the guarantees granted to the buyer, corresponding EUR 86,867.0 t to the expected cost of the guarantees pending to be settled up to that point and EUR 39,427.3 t to an increase of said cost. In addition, the FROB has reported a de-crease in the sale price for an amount of EUR 31.0 t ascribable to the administrative costs of the operation to be paid by the FGDEC, which raised in 2017 the deterioration of the sales operation in EUR 39,458.3 t (Note 26.16). On the other hand, the aforemen-tioned modification of the settlement gave rise to an income in the year 2017 of EUR 444.2 t (Note 26.4).

In the year 2017, the collections received by the FGDEC amounted to EUR 1,062.5 t, and the current value of the expected net charges is estimated at EUR 4,015.2 t.

On 19 October 2018, the FROB communicated to the FGDEC a new modification of the settlement, according to which it has proceeded: i) to pay in the year 2018 an amount of EUR 2,786.5 t by reason of the agreements signed between both of partial coverage of the evolution of value and to defer, until 2019, the remaining payment for this concept for the amount of EUR 1,267.9 t, and ii) to increase and debit, also in the year 2018, a higher cost of the guarantees granted to the buyer for an amount of EUR 1,158.6 t (Note 26.16).

As a result, in the year 2018 the collections received by the FGDEC amounted to EUR 1,627.9 t, the current value of the expected net charges being estimated at EUR 1,249.6 t, which correspond to the remaining amount of the compensation of the FROB for partial coverage agreements on the evolution of the value, to be received in a period less than a year, without it being foreseen that new payments must be assumed that compensate the aforementioned collections.

Therefore, as of 31 December 2018, the collections already received by the FGDEC of said operation amount to EUR 201,302.8 t (EUR 199,674.9 t in 2017).

As of 31 December 2018, the financial capitalization of the present value of the pend-ing collections has amounted to EUR 20.9 t (EUR 2,473.0 t in 2017) (Note 27). In finan-cial year 2017, the financial capitalization of the present value of the expected payments amounted to EUR 1,660.0 t (Note 28).

16.4. Reimbursement rights EPA and impairment reimbursement rights EPA

Among the supports contemplated in the action plan of CCM was included the grant-ing to Banco de Castilla-La Mancha, SA (BdCLM), of an EPA for which the FGDEC would assume the losses in a predetermined portfolio of assets during a period of five years as of 31 December 2009, extendable in certain circumstances to seven years, once the pro-visions established have been absorbed and up to a maximum of EUR 2,475,000.0 t. On 2 December 2014, the BdCLM and the FGDEC signed an addendum to the rules that

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regulates the EPA, extending its expiration in the two years foreseen in them, that is, until 31 December 2016, its liquidation being foreseen later.

As foreseen in the action plan, the FGDEC established a deposit in BdCLM for said amount of EUR 2,475,000.0 t, with BdCLM having to reimburse at the end of the EPA the remaining amount after liquidating the losses.

At the end of the year 2016, BdCLM reported its estimate of the losses in the subject portfolio of the EPA at maturity that exceeded the maximum limit covered by the FGDEC, as a result of which, as of 31 December 2016, a provision was booked for an amount equal to the aforementioned maximum of EUR 2,475,000.0 t, which determined the ab-sence of any remnant to be settled by the entity to the FGDEC. In addition, the provision for a success fee was recovered, as the premises established in the rules that regulate the EPA for recognition were not given, since the entire guarantee provided by the FGDEC in said EPA was consumed.

On 26 October 2017, as provided in the regulations of the EPA and its addendum, BdCLM submitted to the FGDEC its proposal for the liquidation of the EPA, which showed a loss, updated financially as of 31 December 2009, higher than the deposit es-tablished on that date for EUR 2,475,000.0 t, so there were no foreseeable amounts to be returned by BdCLM. Following the review of the aforementioned settlement proposal, on 20 December 2018, the FGDEC informed Liberbank, SA, that after the analysis, there were no elements that indicated that the effective loss of the EPA was less than the maximum guarantee granted by the FGDEC, so it was not appropriate to submit an al-ternative EPA settlement proposal. Based on the foregoing, as of 31 December 2018 the financial statements of the FGDEC do not show any amount for this concept.

16.5. National debt (treasury bills and Government bonds)

Its content responds to purchases of Government bonds and obligations with a maturi-ty lower than a year assigned to the deposits guarantee compartment. The detail at 31 December 2018 is as follows, in thousands of euros:

Titles-maturity ISIN codes Amount at maturity Account amount

Bonds 0.25% maturity 1.31.2019 . . . . . . . . . . . . . . . . . . . ES00000128AD 748,320.0 748,769.0

Obligations 4.60% maturity 7.30.2019 . . . . . . . . . . . . . . . ES00000121L2 311,500.0 319,181.6

Obligations 4.30% maturity 10.31.2019 . . . . . . . . . . . . . . ES00000121O6 24,500.0 25,459.5

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,084,320.0 1,093,410.1

At 31 December 2018, the public debt is classified in the investment portfolio availa-ble for sale with changes in equity, with their market value higher than book cost in EUR 141.3 t, which amount is included as an adjustment in equity (EUR 957.3 t in 2017) (Note 19.2).

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The inventory of Treasury bills and bonds and debentures at 2017 with a term of less than one year was as follows, in thousands of euros:

Titles-maturity ISIN codes Amount at maturity Account amount

Treasury bills maturity 2.16.2018 . . . . . . . . . . . . . . . . . . . ES0L01802161 179,470.0 179,609.9

Bonds 4.50% maturity 1.31.2018 . . . . . . . . . . . . . . . . . . . ES00000123Q7 198,300.0 199,144.8

Bonds 0.25% maturity 4.30.2018 . . . . . . . . . . . . . . . . . . . ES00000127D6 618,963.0 620,473.3

Obligations 4.10% maturity 7.30.2018 . . . . . . . . . . . . . . . ES00000121A5 133,100.0 136,649.8

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,129,833.0 1,135,877.8


Concepts Amount

Balance at 12.31.2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,135,877.8

Acquisitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —

Long-term transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,106,031.8

Maturities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,129,833.0)

Issuance premium accrual/deferral and adjustments to market value . . . . . . . . . . . . . . (18,666.5)

Balance at 12.31.2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,093,410.1


Concepts Amount

Balance at 12.31.2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 795,285.3

Acquisitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179,977.7

Long-term transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 969,668.6

Maturities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (795,285.3)

Issuance premium accrual/deferral and adjustments to market value . . . . . . . . . . . . . . (13,768.5)

Balance at 12.31.2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,135,877.8

16.6. National debt accrued interests

This item includes accrued interest not expired from financial investments in long and short term debts. At 31 December 2018, it shows a balance of EUR 43,989.8 t (EUR 51,506.2 t in 2017), of which EUR 43,512.8 t correspond to the deposits com-partment and EUR 477.0 t to the securities compartment (EUR 51,160.0 t and EUR 346.2 t, respectively, in 2017). The variation in 2017 and 2018 was as follows, in thousands of euros:

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Concepts 2018 2017

Initial balance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51,506.2 59,887.5

Coupon income in the acquisition . . . . . . . . . . . . . . . . . . . . . . . 1,722.2 2,869.6

Accrued interests. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130,432.4 141,650.8

Accrued interests expired and collected . . . . . . . . . . . . . . . . . . (139,671.0) (152,901.7)

Final balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,989.8 51,506.2

16.7. Debtors by deposits

As of 31 December 2017, it corresponded mainly to the allocation made by the FGDEC in the Provincial Court of Madrid to cover the liability that could derive from a claim of fees made by a representative ad litem. In fiscal year 2018, and after the judg-ment issued by the Provincial Court of Madrid favourable to the representative ad litem, the FGDEC has proceeded to regularize the aforesaid collection rights (Note 26.19).

16.8. Staff loans

Under this item at 31 December 2018 are recognised the instalments with a maturity of less than one year of loans granted to staff for EUR 73.0 t (EUR 68.0 t at 31 Decem-ber 2017). In 2018 new operations were granted for an amount of EUR 2.7 t (EUR 8.1 t at 31 December 2017), amortised operations amounting to EUR 70.7 t (EUR 62.0 t at 31 December 2017) and transferred from the long term EUR 73.0 t (EUR 68.0 t at 31 De-cember 2017) (Note 12.10).

16.9. Other short-term credits

In 2016 and in the exercise of its right of first refusal on the assets covered by the EPA granted to Banco CAM, the FGDEC acquired certain credit rights on the company Aguas de Panticosa, SA. On 25 April 2017, the FGDEC sold the reference credit rights with de-ferred payment, being, at 31 December 2018, the outstanding amount for short-term col-lection for EUR 62.5 t (EUR 125.0 t at 31 December 2017), registered under this heading. This operation represented a profit in the year 2017 of EUR 350.0 t (Note 26.10).

17. SHORT-TERM ACCRUAL/DEFERRALS

As of 31 December 2018 and 2017, it corresponds to the accrual of annual payments of insurance premiums linked to employees and real estate assets of the FGDEC and to the advance payments not accrued to suppliers.

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18. CASH AND CASH EQUIVALENTS

Freely available balances in credit institutions and in the Bank of Spain. Of the total cash, EUR 10,923.6 t corresponds to the deposits guarantee compartment and EUR 177.6 t to the securities guarantee compartment (EUR 59,319.8 t and EUR 1,768.5 t in 2017). The composition is as follows, in thousands of euros:

Entities 12.31.2018 12.31.2017

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.0 1.5

Bank of Spain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,039.6 58,414.7

Credit institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,058.6 2,672.1

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,101.2 61,088.3

19. NET EQUITY

Net equity at 31 December 2018 is positive in EUR 2,181,212.1 t (EUR 1,990,733.8 t at 31 December 2017) detailed as follows, in thousands of euros:

Concepts 12.31.2018 12.31.2017

INITIAL EQUITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,990,733.8 1,597,832.3

Operating loss/profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304,212.9 512,205.5

Financial loss/profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (126,504.6) (155,237.5)

SURPLUS (DEFICIT) FINANCIAL YEAR . . . . . . . . . . . . . . . . . . . . . 177,708.3 356,968.0

Surplus (deficit) deposits compartment. . . . . . . . . . . . . . . . . . . . . . . . 144,489.0 319,477.2

Surplus (deficit) securities compartment . . . . . . . . . . . . . . . . . . . . . . . 33,219.3 37,490.8

EXTRAORDINARY EXPENDITURES CREDIT INSTITUTIONS (Note 19.1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,175.6 33,164.1

Adjustment for variation of value of financial investments (Note 19.3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14,405.6) 2,769.4

INCREASE (DECREASE) IN EQUITYFINANCIAL YEAR . . . . . . . . . 190,478.3 392,901.5

FINAL EQUITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,181,212.1 1,990,733.8

Final equity of deposits compartment . . . . . . . . . . . . . . . . . . . . . . . . . 2,037,634.3 1,880,582.1

Final equity of securities compartment . . . . . . . . . . . . . . . . . . . . . . . . 143,577.8 110,151.7

In section 3.3 of the Annex 3 the equity historical development is detailed.

19.1 Extraordinary expenditure

Note 12.1 details the source of the extraordinary expenditure. The total amount of pay-ments that would be collected by the FGDEC from the member institutions was EUR 2,346,000.0 t. Its equity accounting record at 31 December 2018 was as follows, in thou-sands of euros:

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Concepts Amount

Nominal amount of recoveries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,346,000.0

Financial discount charges at 30 July 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (320,028.7)

Amount recognised in equity upon extraordinary expenditures approval . . . . . . . 2,025,971.3

Capitalization pending charges recognised in equity 2012 . . . . . . . . . . . . . . . . . . . . . . 25,178.5







Amount recognised in equity at 31 December 2018 . . . . . . . . . . . . . . . . . . . . . . . . . 2,301,582.5

During 2018, nine entities affiliated to the FGDEC have been deregistered, seven of them have been integrated into other adhered entities and the other two have paid the nominal value of the outstanding payments of the extraordinary expenditures.

During 2017 three deregistered entities (other six between 2014 and 2016) paid the current value of the outstanding payments of the extraordinary expenditure. For that rea-son the amount the FGDEC will deposit at the end of the period for disbursing will be less than the nominal projected total of EUR 2,346,000.0 t, in an amount equal to the differ-ence between what would correspond the deregistered entities to pay, but payed in ad-vance of the expiration date and the lower payment made because of the financial update applied for anticipating such payment.

In addition, at 31 December 2015 under Article 146 of the Insolvency Act the out-standing contributions of Banco de Madrid, SAU, were transferred from “Credit institu-tions. Extraordinary expenditures” to “Collection rights extraordinary expenditures and contribution Banco Madrid” due to the entity being in arrangement with creditors and liq-uidation (Note 12.3).

19.2. Adjustments for changes in value of financial investments

The adjustments for changes in value of financial investments in the financial year were as follows, in thousands of euros:

Concepts 2018 2017

Initial balance (Notes 12.5, 12.6 and 16.5) . . . . . . . . . . . . . . . . . . . 60,953.2 58,183.8

National debt adjustment euro area (Note 12.5) . . . . . . . . . . . . . . . . (129.8) (55.3)

National debt adjustment long term (Note 12.6). . . . . . . . . . . . . . . . . (13,459.8) 2,192.5

National debt adjustment short term (Note 16.5) . . . . . . . . . . . . . . . . (816.0) 632.2

Final balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,547.6 60,953.2

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20. LONG TERM PROVISIONS


Concepts Notes 12.31.2018 12.31.2017

Disbursement provisions EPA Banco CAM, SA . . . . . . . . . . 20.1 2,935,917.3 3,247,966.7

Disbursement provisions EPA Unnim Banc, SA . . . . . . . . . 20.2 670,609.2 1,254,493.4

Asset management fee provision . . . . . . . . . . . . . . . . . . . . 20.3 60,939.2 60,939.2

Compensations (Art. 74, Law 24/2001) . . . . . . . . . . . . . . . 20.4 731.3 731.3

Commitments with staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.5 1,617.8 1,600.7

Other provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.6 2,168.1 1,768.1

Final balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,671,982.9 4,567,499.4

20.1. Disbursement provisions EPA Banco CAM, SA

Under the restructuring plan of Banco CAM, SA, the FGDEC granted an EPA to that entity (now absorbed by Banco Sabadell, SA), by which the FGDEC assumed, for a peri-od of ten years from 31 July 2011, 80% of the losses from a portfolio of assets of a prede-termined amount of EUR 24,644.3 M with provisions made by EUR 3,882.2 M, once ab-sorbed these provisions.

Afterwards, on 17 December 2018, Banco de Sabadell, the FGDEC and the FROB signed a Clarification Agreement to Section II of the Protocol that regulates the EPA, by virtue of which certain situations regarding the content and development of the indicated Section have been clarified, and it has been established that the amount of payments that would correspond to the FGDEC, from its signature, will be limited to a maximum of EUR 4,147 M, therefore, the maximum loss for the FGDEC derived from the EPA, taking into account the payments made up to the date of the Agreement, shall not exceed EUR 7,386 M.

The losses arising from the EPA are provisioned on basis of the estimates made by an independent firm of renowned experts at the end of each year and to the Clarification agreement, responding the coverage constituted to the present value of all payments ex-pected to be made by the FGDEC by such reason.

Prior to the issuance of the guarantee, and in order to estimate the total loss of the protected portfolio throughout the term of the EPA, a report by independent experts was issued, quantifying the loss in EUR 5,557.0 M. Given the date of preparation of said report, it was considered that its estimate corresponded to the situation of the protected portfolio in 2011. As there is an accounting provision for this portfolio of EUR 3,882.0 M, the loss not covered would amount to EUR 1,675.0 M and, therefore, the loss for the FGDEC during the life of the EPA was estimated at EUR 1,340.0 M. The updated value of the latter amount at 3%, according to the expected payment

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dates, amounted at 31 December 2011 to EUR 1,145,468.9 t, a sum which was con-sidered for the purposes of the cost of the restructuring of Banco CAM, SA.

At year-end 2012, the new independent expert report prepared according to the state of the protected portfolio to that date brought the total expected loss in the protected port-folio to EUR 7,589.3 M, so the estimated loss for the FGDEC during the term of the EPA increased by EUR 1,625,532.0 t, up to a total of EUR 2,965,726.9 t. The updated value of the latter amount at 3%, according to the expected payment dates, amounted at 31 De-cember 2012 to EUR 2,680,545.1 t.

The report of the independent expert, made in view of the situation of the protect-ed portfolio at 31 December 2013, estimated a total loss during the term of the EPA of EUR 8,850.1 M, so the loss of the FGDEC was predicted to amount EUR 3,974,338.1 t, EUR 1,008,611.2 t higher than the estimated by the previous report, drawn up taking into account the situation of the protected portfolio at year-end 2012. The updated value of that amount at 3% interest, according to the expected payment dates, totalled at 31 December 2013, EUR 3,647,933.6 t.

The report of the independent expert, made in view of the situation of the protected portfolio at 31 December 2014, estimated a total loss during the term of the EPA of EUR 9,899.5 M therefore, the estimated loss for the FGDEC increased with respect to that of the 2013 report in EUR 839,552.0 t, up to a total of EUR 4,813,890.1 t. The updated port-folio value of the latter amount at 3%, according to the expected payment dates, totalled at 31 December 2014 EUR 4,551,091.0 t.

The report of the independent expert, made in view of the situation of the protected portfolio at 31 December 2015, estimated a total loss during the term of the EPA of EUR 11,701.1 M, so the loss by the FGDEC increased with respect to the report of 2014 in EUR 1,441,276.0 t, up to a total of EUR 6,255,166.1 t. The updated portfolio value of the latter amount at 3%, according to the expected payment dates, totalled at 31 December 2015 EUR 5,852,525.7 t.

On 29 February 2016, the FGDEC made a first payment of EUR 825,875.3 t as a re-sult of the losses incurred declared up to 31 December 2015 by the EPA beneficiary enti-ty. Clause 7.2 of the Protocol establishes that the effective date of payment of these loss-es is 28 February of each year. Taking into account that 28 February in 2016 was Sunday and therefore the payment date would have been on 26 February, the FGDEC and the beneficiary entity agreed that the former would pay the latter the interest accrued from 26 February to 29 February 2016, settlement date of the contributions of the member en-tities, at a rate equivalent to 0.68% per year, agreed between the parties and equal to the profitability of the placements in Public debt so that in this way the FGDEC should not disinvest, amount that amounted to EUR 46.1 t.

The report of the independent expert, drawn up in view of the situation of the protect-ed portfolio at 31 December 2016, estimated a total loss in it during the lifetime of the EPA of EUR 11,272.0 M, which resulted in a loss by the FGDEC of EUR 5,911,822.1 t, lower by EUR 343,344.0 t to that estimated by the previous report, made taking into ac-count the situation of the protected portfolio at the end of the financial year 2015.

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However, according to the aforementioned report, the estimation of the total loss was influenced by a significant reduction in the level of deterioration expected in the sub-port-folios of loans guaranteed with plots and awarded plots in relation to the appraisal values at the levels appreciated in previous reports issued by the same experts, due –according to the methodology followed– to the positive evolution observed in the sales of plots in 2016, while the level of deterioration expected in relation to the valuation values in other typologies of real estate presents values close to those considered in previous reports.

Due to this, and in anticipation that in the future the indicated positive evolution in sales may not persist, in order to constitute the corresponding provision, a total loss in the portfolio covered by the EPA of EUR 11,558.6 M is considered, greater than that concluded in the aforementioned report issued by the experts in the amount of EUR 286.6 M, equal to the highest estimate of total loss that would have resulted from the existence of expected deterioration levels in said sub-portfolios in relation to the appraisal values similar to those considered in previous reports issued by said ex-perts, so that the estimated loss for the FGDEC decreased with respect to that of the 2015 report in EUR 114,041.6 t, up to a total of EUR 6,141,124.5 t, resulting in an es-timated loss pending settlement, after the payments made, of EUR 5,315,249.2 t. The updated value of the latter amount at 3%, according to the expected payment dates, amounted to EUR 5,018,858.2 t at 31 December 2016.

On 28 February 2017, the FGDEC made a second payment for the amount of EUR 983,830.7 t due to the losses declared up to 31 December 2016 by the beneficiary entity of the EPA.

The report of the independent expert, drawn up in view of the situation of the pro-tected portfolio at 31 December 2017, estimated a total loss in it during the term of the EPA of EUR 12,248.8 M, resulting in a loss under the FGDEC of EUR 6,693,307.7 t, higher by EUR 781,485.6 t than the estimated by the previous report and by EUR 552,183.2 t with respect to that considered when establishing the corresponding provi-sion as of 31 December 2017.

On 28 February 2018, the FGDEC made a third payment for the amount of EUR 1,429,303.6 t for the incurred losses declared up to 31 December 2017 by the entity ben-eficiary of the EPA.

The Clarification Agreement signed on 17 December 2018, in addition to limiting the total amount of payments to be made by the FGDEC as of the signing thereof, also re-solved an existing discrepancy between the beneficiary entity and the FGDEC that has led to the release of a withholding, paid on 19 December 2018, made by the FGDEC in the payment made on 28 February 2018, amounting to EUR 60,694.9 t.

The aforementioned payment has generated an increase in the present value of the provision relating to the EPA CAM amounting to EUR 1,914.9 t, which has been recorded under the heading “Extraordinary Items” (Note 26.6).

The latest report of the independent experts, drawn up in view of the situation of the protected portfolio at 31 December 2018, estimates a total loss in the portfolio during the term of the EPA of EUR 13,184.3 M, which would mean that the estimated loss for

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the FGDEC would have increased, compared to that of the 2017 report, in EUR 748,392.8 t, that is up to a total of EUR 7,441,700.5 t.

However, taking into account the limit of future payments to be made by the FGDEC established in the Clarification Agreement, the maximum loss estimated for it at the end of the year amounts to EUR 7,386,009.6 t, higher by EUR 692,701.9 t than that estimated by the report of the independent expert drawn up taking into account the situation of the protected portfolio at the end of 2017, resulting in an estimated loss pending settlement, after made payments, of EUR 4,086,305.1 t. The updated value of this latter amount at 3%, according to the expected payment dates, amounts to EUR 3,925,661.2 t as of 31 December 2018.

This amount is higher by EUR 639,037.1 t (Note 26.6) to the result of updating finan-cially at 31 December 2018 the balance of the provision registered in the long term at the beginning of the year of EUR 3,190,897.2 t (Note 28).

The current value of the payments thus estimated that the FGDEC should still make is recorded in current liabilities amounting to EUR 989,743.8 t (EUR 1,422,279.4 t in 2017) (Note 22.3) and in non-current liabilities in the amount of EUR 2,935,917.3 t (EUR 3,247,966.7 t in 2017).

On 28 February 2019, the FGDEC made a fifth payment for an amount of EUR 994,631.8 t (Note 7) for the losses incurred declared until 31 December 2018 by the ben-eficiary of the EPA.

At the date of preparation of these annual accounts, the FGDEC has disbursed a total of EUR 4,294,336.3 t due to the coverage provided by the EPA, having made a first pay-ment of EUR 825,875.3 t in February 2016, a second payment of EUR 983,830.7 t in February 2017, a third payment of EUR 1,429,303.6 t in February 2018, a fourth payment of EUR 60,694.9 t in December 2018, and a fifth payment of EUR 994,631.8 t in February 2019 (Note 7).

20.2. Disbursement provisions EPA Banco Unnim Banc, SA

As a consequence of the restructuring of Unnim Banc, SA, the FGDEC granted an EPA to that entity (now absorbed by BBVA) by which the FGDEC would assume, during the period of ten years from 31 October 2011, the 80% of losses on a portfolio of assets of a predetermined amount of EUR 7,359.7 M, with provisions made by EUR 1,330.3 M, once absorbed these provisions.

Subsequently, on 13 December 2018, a Clarification Agreement was signed between BBVA, the FGDEC and the FROB to Section II of the Protocol that regulates the EPA, by virtue of which certain situations relating to the content and development of the aforemen-tioned Section have been clarified, and it has been established that the amount of pay-ments that would correspond to the FGDEC, from its signature, will be limited to a maxi-mum of EUR 1,506 M, therefore, the maximum loss for the FGDEC derived from the

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EPA, taking into account the payments made up to the date of the Agreement, shall not exceed EUR 1,998 M.

The losses arising from the EPA are provisioned on basis of the estimates made by an independent firm of renowned experts at the end of each year and of the Clarification Agreement, responding the constituted coverage to the present value of all payments ex-pected to be made by the FGDEC by such reason.

In order to estimate the total loss of the protected portfolio throughout the life time of the EPA, it was compiled a report issued by independent experts on 25 February 2013 and 23 April 2013, which, based on the situation of the protected portfolio in late 2012, it quantified the loss in EUR 2,578.0 M. As there is an accounting provision of this portfolio of EUR 1,330.3 M, the non-covered loss amounts to EUR 1,247.7 M, and the estimated loss for the FGDEC during the term of the EPA, to EUR 998.1 M. The updated value of the latter amount at 3%, according to the expected payment dates, would be, on the date of grant of the EPA, of EUR 866,258.0 t, a sum which was considered for the purposes of the restructuring cost of Unnim Banc, SA. The updated value of this amount at 3%, ac-cording to the expected payment dates, amounted at 31 December 2012, to EUR 885,676.6 t.

The report of the independent expert, made in view of the situation of the protected portfolio at 31 December 2013, estimated a total loss for the lifetime of the EPA of EUR 2,984.0 M, so the estimated loss for the FGDEC increased with respect to that of the 2012 report by EUR 324,847.7 t, up to a total of EUR 1,322,947.7 t. The updated portfolio value of the latter amount at 3%, according to the expected payment dates, totalled at 31 December 2013 EUR 1,201,165.4 t.

The report of the independent expert, made in view of the situation of the protected portfolio at 31 December 2014, estimated a total loss for the lifetime of the EPA of EUR 3,319.0 M, so the estimated loss for the FGDEC increased with respect of the report of 2013 by EUR 268,000.0 t, up to a total of EUR 1,590,947.7 t. The updated portfolio value of the latter amount at 3%, according to the expected payment dates, totalled at 31 De-cember 2014 EUR 1,487,829.8 t.

The report of the independent expert, drawn up in view of the situation of the protected portfolio at 31 December 2015, estimated a total loss in it during the lifetime of the EPA of EUR 3,497.0 M, so the estimated loss for the FGDEC increased with respect to that of the 2014 report in EUR 142,400.0 t, up to a total of EUR 1,733,347.7 t. The updated val-ue of this latter amount at 3%, according to the expected payment dates, amounted to EUR 1,576,993.1 t at 31 December 2015.

The report of the independent expert, drawn up in view of the situation of the pro-tected portfolio at 31 December 2016, estimated a total loss in it during the lifetime of the EPA of EUR 3,602.0 M, so it increased the estimated loss for the FGDEC with re-spect to that of the 2015 report by EUR 84,000.0 t, up to a total of EUR 1,817,347.7 t. The updated value of this latter amount at 3%, according to the expected payment dates, amounted to EUR 1,688,707.7 t at 31 December 2016, estimating for this pur-pose that the first payment to be made on 30 June 2017 would be EUR 207,677.2 t.

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However, the aforementioned first payment made by the FGDEC on 30 June 2017 fi-nally amounted to EUR 132,641.3 t due to the incurred losses declared at 31 December 2016 by the beneficiary entity of the EPA.

As the payment made in June 2017 was less than that expected at the end of 2016, and consequently the provision made on 31 December 2016 was greater than necessary given the longer term existing until the time of the payments, we have proceeded to recal-culate the provision recorded based on the new dates in which the expected payments would be made, resulting in a current value at the beginning of the year 2017 of EUR 1,683,953.9 t. The difference between this amount and that registered at 31 December 2016, EUR 4,753.8 t (Note 26.7), have been allocated in Extraordinary Items as a lower provision relative to the EPA Unnim.

The report of the independent expert, drawn up in view of the situation of the protected portfolio at 31 December 2017, estimates a total loss in it during the lifetime of the EPA of EUR 3,633.5 M, so the loss estimated for the FGDEC has increased with respect to that of the 2016 report by 25,200.0 t, up to a total of EUR 1,842,547.7 t. The updated value of this latter amount at 3%, after discounting the payments made and according to the ex-pected payment dates, amounts to EUR 1,608,908.5 t at 31 December 2017, being esti-mated for this purpose that the second payment to be made on 30 June 2018 would be of EUR 359,692.0 t.

However, the aforementioned second payment made by the FGDEC on 30 June 2018 was finally for the amount of EUR 359,058.2 t for the losses incurred declared until 31 December 2017 by the beneficiary of the EPA.

As the payment made in June 2018 was lower than that expected at the end of 2017 and consequently the provision made at 31 December 2017 was greater than necessary given the longer term existing until the payments were made, the provision recorded has been recalculated based on the new dates on which the expected payments would be made, resulting in a current value at the beginning of the year 2018 of EUR 1,608,872.8 t. The difference between this amount and that recorded as of 31 December 2017, EUR 35.7 t (Note 26.7), has been charged to Extraordinary Items as a lower provision relative to the EPA Unnim.

The last report of the independent experts, drawn up in view of the situation of the pro-tected portfolio at 31 December 2018, estimates a total loss in the portfolio during the life of the EPA of EUR 3,831.5 M, which would mean that the estimated loss for the FGDEC would have increased, compared to the 2017 report, to EUR 158,400.0 t that is, up to a total of EUR 2,000,947.7 t.

However, taking into account the limit of future payments to be made by the FGDEC established in the Clarification Agreement, the maximum loss estimated for the FGDEC at the end of the year amounts to EUR 1,997,699.5 t, higher by EUR 155,151.8 t than that estimated by the report of the independent expert drawn up taking into account the situa-tion of the protected portfolio at the end of 2017, resulting in an estimated loss pending settlement, after payments made, of EUR 1,506,000.0 t. The updated value of the latter amount at 3%, according to the expected payment dates, amounts at 31 December 2018 to EUR 1,457,596.2 t.

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This amount is higher by EUR 164,861.5 t (Note 26.7) to the result of financially updat-ing at 31 December 2018 the amount of EUR 1,255,082.3 t corresponding to the present value of the long-term provision at the beginning of the year (Note 28).

The current value of the estimated payments that should be made by the FGDEC is recorded in current liabilities amounting to EUR 786,987.0 t (EUR 354,415.1 t in 2017) (Note 22.3) and non-current liabilities amounting to EUR 670,609.2 t (EUR 1,254,493.4 t in 2017).

At the date of formulation of these annual accounts, the liquidation of the beneficiary entity has been received, reporting the losses of the hedged portfolio as of 31 December 2018 for an amount exceeding by EUR 1,633,337.7 t (EUR 626,480.8 t in 2017) the amount of provisions existing at 31 October 2011. Discounting said amount from provi-sional adjustments estimated to date amounting to EUR 20,332.8 t (EUR 11,064.2 t in 2017), and taking into account the payments made on 30 June 2017 and 2018, results in a payment to be made on 30 June 2019 of EUR 798,704.5 t (EUR 359,692.0 t in 2017) that has been recorded as current liabilities at their current value as of 31 December 2018, at the expense of the amount that could finally result once the settlement is fully re-viewed.

At the date of formulation of these annual accounts, the FGDEC has disbursed a total of EUR 491,699.5 t for the coverage provided by the EPA, having made a first payment of EUR 132,641.3 t in June 2017 and a second payment of EUR 359,058.2 t in June 2018.

20.3. Assets management fee provision

Under the plan of action of CCM, services of divestment and management for main-taining the value of assets acquired by the FGDEC were entrusted to a management company under a contract of 3 December 2010 and for a period of seven years from that date being agreed a payment of a fixed annual fee and quarterly variable fees based on the value of assets under management.

Formalised agreements limit the liability of the FGDEC, regarding these bills and other payments already made by it, depending on the asset value of the assets received from CCM. The agreement also stipulates that the payment of invoices must be made in cash as long as the FGDEC received it as consideration for the realization of assets received from CCM. Otherwise, payment must be made by delivering part of the remaining assets received from CCM. In application of the mentioned conditions, the FGDEC suspended cash payments in the third quarter of 2012 offering to the managing company to pay these fees in non-cash assets, which was not accepted by such management company.

In addition, in 2014, in view of the situation of such assets, it was estimated that the aforementioned limit of liability of the FGDEC would have already been exhausted with the satisfied bills before the third quarter of 2012, notwithstanding that in the future it could proceed a reconsideration of that fact in case of a recovery of the equity.

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At the beginning of year 2015 IC carried out divestments that resulted in a recovery of the equity and the consequent revival of the FGDEC limit of liability for payment of invoic-es issued by the management company. However, at 31 December 2015 and after the adjustments, based on the best information available, that the company has carried out a significant financial investment, the balance of IC has net negative own resources without reasonable prospect that the company can restore its balance sheet by ordinary activity, so that definitely is esteemed exhausted the limit of liability referred to the FGDEC, a situ-ation that remained at the end of 2016.

In this situation, after the disagreement of the management company to accept pay-ment of their bills in non-cash assets, last October 2015 the FGDEC filed for ordinary pro-ceedings in the Courts of Madrid in order to obtain the relevant resolution to determine the shape and limit of the referred payments, this action being followed by the filing by the mentioned management company of a counterclaim in relation to the matter.

Subsequently, on 27 December 2016, the FGDEC, the mentioned management com-pany and its parent company, Liberbank, SA, agreed to terminate the management con-tract of 3 December 2010 with effect from that date, as well as to maintain the dispute in relation to the form in which the FGDEC must pay the remuneration as consideration for the services provided by the management company under the contract, a dispute that is the subject of the procedure followed before the Court of First Instance No. 6 of Madrid, process in which the FGDEC bears the status of counterclaimed complainant, the man-agement company of counterclaiming defendant and Liberbank, SA, as of defendant.

At 31 December 2018 and 2017, for reasons of prudence, the recorded cover includes items for EUR 60,939.2 t, amount equal to the principal of the invoices issued by the management company from the third quarter of 2012 up to December 2016 plus an in-voice from June 2017 rectifying a variable commission accrued previously, not settled due to disagreement of the FGDEC with that society as to whether, in accordance with the commitments they were to be addressed by payment in cash or by delivery of the re-maining assets received at the time by the FGDEC from CCM, as well as the limit of liabil-ity of FGDEC.

The variation of this provision since 2015 until 2018 was as follows, in thousands of euros:

Concepts Amount

Balance at 12.31.2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71,350.3

Financial update . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 647.3

Provision recovery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,739.0)

Balance at 12.31.2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61,258.6

Provision recovery (Note 26.5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (319.4)

Balance at 12.31.2018 & 12.31.2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,939.2

On 27 March 2019, the Court of First Instance No. 6 of Madrid, issued a ruling dis-missing the claim made by the FGDEC against the managing company and Liberbank, SA, and estimated the counterclaim formulated by the managing company (Note 7), hav-

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ing condemned the FGDEC to pay the managing company the invoices issued until 5 April 2016, which amount to EUR 61,087.3 t, corresponding EUR 50,513.6 t to the prin-cipal and EUR 10,573.7 t to the VAT (Note 22.1), plus legal interests and costs, which at the date of the judgment are respectively estimated at EUR 10,479.5 t and EUR 1,106.2 t.

At 31 December 2018, the non-liquidated invoices issued by the managing company amount to a total of EUR 73,702.3 t (Note 29), of which EUR 60,939.2 t correspond to the principal and EUR 12,763.1 t to the VAT.

Within the established term, the FGDEC will present before the Provincial Court of Madrid the corresponding appeal against the aforementioned judgment.

20.4. Compensations (Art. 74, Law 24/2001)

Outstanding amounts resulting from the obligation under Article 74 of Law 24/2001, of 27 December, regarding the distribution rate between the FGDEC and the Fondo General de Garantía de Inversiones on compensations derived from the retroactive effect of the investment guarantee system.

The variation is as follows, in thousands of euros:

Concepts 12.31.2018 12.31.2017

Provision 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,791.3 63,791.3

Provision 2004. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,773.1 15,773.1

Disbursements between 2002 and 2010 . . . . . . . . . . . . . . . . . . . . . . . . (64,920.0) (64,920.0)

Disbursements in 2011 (to 10.15.2011) . . . . . . . . . . . . . . . . . . . . . . . . . (53.4) (53.4)

Provisions cancellation reduction in 2011 (to 10.15.2011) . . . . . . . . . . . (8,813.2) (8,813.2)

Disbursements in 2011 (since 10.15.2011) . . . . . . . . . . . . . . . . . . . . . . (41.6) (41.6)

Disbursements in 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (38.3) (38.3)




Disbursements in 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.6) (1.6)

Adjustment by procedure prescription in 2017 (Note 26.12) . . . . . . . . . (4,899.7) (4,899.7)

Disbursements in 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — —

Disbursements in 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — —

Final balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 731.3 731.3

On 4 April 2017, the Manager of the General Investment Guarantee Fund sent a com-munication to the FGDEC in which it reported that, due to the prescription of some of the payment obligations, the maximum amount to be paid as compensation for both Funds amounted to EUR 732.5 t, with an amount of EUR 731.3 t corresponding to the FGDEC.

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The decrease in the amount of the aforementioned obligation of the FGDEC with respect to 2016, was registered as an income in the heading of Extraordinary Items (Note 26.12).

20.5. Commitments with staff

Among the agreements signed in 2000 on the occasion of the transfer of staff from FGDEB and FGDCC to the Management Company, remnant personnel that was trans-ferred in turn to the FGDEC in December 2012, it was included that the company would not assume the costs for possible compensations for dismissal of the personnel coming from the two deposits guarantee funds mentioned, so the possible amount of this was calculated at 30 June 2000, an amount that has been updated annually until 31 Decem-ber 2011 and that with the dissolution of the Management Company has been transferred to the FGDEC. It also includes the current calculation of other commitments with employ-ees whose expected costs will be accrued during their working life.

20.6. Other provisions

This heading includes: i) the extraordinary provision, amounting to EUR 1,700.0 t (EUR 1,300.0 t in 2017; Note 26.15), with an increase in the provision in 2018 of EUR 400.0 t (Note 26.15), reasonably sufficient to meet the expenses to be paid by FGDEC in the case of a payment event of guaranteed deposits affecting an entity with a volume of guaranteed deposits equal to that at the end of the third quarter of the adhered entities, other than systemic ones, supervised by the European Central Bank or foreseeably sub-ject to resolution measures in case of event, as defined in the “Guidelines on strength tests of deposit guarantee schemes under Directive 2014/49/EU”, issued by the Europe-an Banking Authority on 19 October 2016, and ii) provisions for business risks arising from past actions in credit institutions, without movement in the year.

21. LONG TERM DEBTS


Concepts Notes 12.31.2018 12.31.2017

Commitments to depositors . . . . . . . . . . . . . . . . . . . . . . . . 21.1 1,542.7 1,542.7

Other creditors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216.7 208.0

Final balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,759.4 1,750.7

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21.1. Commitments to depositors

It corresponds to the amount of compensation for depositors in credit institutions, oth-er than Banco de Madrid, SAU, which have not been claimed and deposits received for the lease of real estate registered in the heading Real estate investments.

22. SHORT TERM DEBTS

The detail of the balance at the end of the year is as follows, in thousands of euros:

Concepts Notes 12.31.2018 12.31.2017

Creditors and other payables . . . . . . . . . . . . . . . . . . . . . . 22.1 9,020.8 9,718.9

Public administrations payables . . . . . . . . . . . . . . . . . . . . 22.2 199.8 195.7

Creditors payables EPA . . . . . . . . . . . . . . . . . . . . . . . . . . 22.3 1,776,730.8 1,776,694.5

Commitments with depositors of Banco de Madrid . . . . . 22.4 1,354.3 1,883.1

Final balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,787,305.7 1,788,492.2

22.1. Creditors and other payables

At 31 December 2018, this heading includes mainly EUR 8,273.4 t for the VAT of the unpaid invoices issued by the company that provides services to the FGDEC for the man-agement and divestment of assets acquired in the action plan of CCM for the amount of such invoices. It is estimated that according to the relevant arrangements it is responsibil-ity of the FGDEC, without prejudice that the payment of the principal of such invoices should be made by delivery of assets received from CCM (Notes 7 and 20.3).

At 31 December 2017 this heading included mainly: i) the EUR 8,273.4 t mentioned in the previous paragraph, and ii) EUR 503.8 t pending payment to the manager of the real estate assets acquired in exercise of the right of first refusal foreseen in the EPA Protocol granted to Banco CAM, SA (Note 29).

22.2. Public administrations payables

Includes amounts for the withholding on income tax and the contribution to Social Se-curity of December of the corresponding fiscal year, whose settlement has been submit-ted at the beginning of the following fiscal year.

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22.3. Creditors payables EPA

At 31 December 2018, this item includes: i) the present value of the payment made on 28 February 2019 for a total of EUR 989,743.8 t (EUR 1,422,279.4 t in 2017) related to the coverage of the protected portfolio by the EPA granted to Banco CAM, SA. This pay-ment is the fifth reimbursement made by the FGDEC in relation to said EPA (Note 20.1), and ii) the current value of the payment to be made by the FGDEC on 30 June 2019, due to the coverage of the protected portfolio by the EPA granted to Banco UNNIM, SA, for a sum of EUR 786,987.0 t (EUR 354,415.1 t at 31 December 2017) (Note 20.2).

22.4. Commitments with depositors of Banco de Madrid

In this item the outstanding amounts are reflected in respect of guaranteed deposits to the depositors of Banco de Madrid, SAU, according to the information provided by its bankruptcy administrator, that have not been paid in the most part because of the ab-sence or difficulty locating the depositors and, to a lesser extent, for having claimed their disagreement or due to other incidents managed by the Bankruptcy Administration (Note 6).

23. SHORT-TERM ACCRUAL/DEFERRAL

At 31 December 2018, it includes the amount pending to be charged to income for the agreed interest, collected in advance, in the sale of the credit rights on Aguas de Pantico-sa, SA (Note 16.9).

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NOTES TO THE INCOME STATEMENTS

24. INCOME

24.1. Contributions from member entities

At its meeting on 12 December 2018, the FGDEC Management Committee set the annual contribution to the deposits guarantee compartment in an amount equal to 1.8/1,000 of the guaranteed cash deposits existing as of 30 June 2018, which would be calculated for each entity based on its guaranteed deposits and its risk profile, and the annual contribution to the securities guarantee compartment in an amount equal to 2/1,000 of the 5/100 of the value at the last trading day of 2018 of the Securities deposited at 31 December 2018, also determining that the disbursement of these contributions be made on the last business day of February 2019.

On 28 February 2019, the annual contributions of the member entities have been re-ceived and the seventh maturity of the extraordinary expenditures has been settled. The amount entered was EUR 1,335,306.7 t (EUR 1,308,801.1 t in February 2018), of which EUR 234,119.9 t (EUR 234,370.7 t in February 2018) correspond to the income of the seventh maturity of the extraordinary expenditures and EUR 1,101,186.8 t (EUR 1,074,430.4 t in 2017) to the entry of the extraordinary expenditures as follow (Notes 7, 12.1 and 16.1):

Concept

12.31.2018 12.31.2017

Deposits compartment

Securitiescompartment

Deposits compartment

Securitiescompartment

Contribution of the exercise . . . . . . . . . . . . . . . . 1,068,077.0 33,089.0 1,036,901.2 37,414.4

Supplementary contribution previous year . . . . . 1.8 19.0 114.8 —

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,068,078.8 33,108.0 1,037,016.0 37,414.4

As of 31 December 2018, the current value of the ordinary contributions to the depos-its compartment and the securities compartment had amounted to EUR 1,062,987.7 t (EUR 1,032,073.0 t in 2017) and EUR 32,950.1 t (EUR 37,236.1 t in 2017), respectively (Note 16.2).

In paragraph 3.1 of Annex 3 is detailed the historical development of contributions from credit institutions to all deposits guarantee funds.

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24.2. Providing services

As of 31 December 2018 and 2017, this heading reflects the billing of the sublease of the offices of the FGDEC to Inversiones Corporativas, SA, a company wholly owned by the former (Note 15). Of the amount registered under this heading, EUR 31.1 t cor-respond to the deposits compartment and EUR 0.9 t to the securities compartment. In fiscal year 2017, the entire amount registered under this heading corresponded to the deposits guarantee compartment.

25. OPERATING EXPENSES


Concepts Notes 12.31.2018 12.31.2017

Staff costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.1 5,001.5 4,952.5

Professional services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.2 164.8 240.0

Other operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . 25.3 1,366.7 792.3

Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.4 9.5 8.4

Leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.5 524.4 556.7

Amortisation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.5 313.3 238.1

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,380.2 6,788.0

Of the total operating expenses EUR 7,192.1 t (EUR 6,618.6 t in 2017) correspond to the deposits guarantee compartment and EUR 188.1 t (EUR 169.4 t in 2017) to the secu-rities guarantee compartment.

25.1. Staff costs

The breakdown of the staff costs is as follows, in thousands of euros:

Item 12.31.2018 12.31.2017

Wages and salaries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,175.3 4,087.1

Social Security. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 787.5 805.8

Other social expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38.7 59.6

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,001.5 4,952.5

Of the total staff costs EUR 4,871.5 t (EUR 4,827.1 t in 2017) corresponds to the de-posits compartment and EUR 130.0 t (EUR 125.4 t in 2017) to the securities compart-ment.

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In 2018 the staff of the FGDEC has remained stable compared to the one existing in 2017. The “Other social expenditure” relates mainly to the accrual of employee life insur-ance premiums, and contributions or insurance premiums paid by the staff pension funds to those entitled to such benefit.

The average number of employees of the FGDEC in the years 2018 and 2017 distrib-uted by professional categories and gender, is shown in the following table:

ClassificationAverage 2018/2017 Total 12.31.2018/2017

Men Women Total Men Women Total

Executives . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 4 2 2 4

Specialists . . . . . . . . . . . . . . . . . . . . . . . . . 27 13 40 27 13 40

Administrative staff . . . . . . . . . . . . . . . . . . 3 7 10 3 7 10

Total . . . . . . . . . . . . . . . . . . . . . . . . . . 32 22 54 32 22 54

In 2018 and 2017 the FGDEC has not recorded any costs related to per diems for the Management Commission.

At 31 December 2018 and 2017, there were not advances or loans, or either acquisi-tions of pension commitments, life insurance, or guarantees commitments to any previous or current members of the Management Committee of the FGDEC.

At 31 December 2018, the wages corresponding to the FGDEC’s senior management (CEO, CFO and General Counsel) totalled EUR 525.8 t and the cost of insurance premi-ums to EUR 9.3 t (EUR 513.0 t and EUR 12.3 t in 2017, respectively).

25.2. Professional services

It corresponds to the total cost of the services provided by lawyers, auditors, and nota-ries or similar.

Of the total expenditures recognized at 31 December 2018 under this heading, EUR 161.7 t corresponds to the deposits compartment and EUR 3.1 t to the securities com-partment (EUR 235.4 t and EUR 4.6 t in 2017, respectively).

25.3. Other operating expenses

It includes costs of security, cleaning, repairs and also for publications, subscriptions, banking fees, and other minor expenses.

The distribution of these costs between the deposits and securities compartments amounted to EUR 1,333.6 t and EUR 33.1 t, respectively (EUR 773.2 t and EUR 19.1 t in 2017).

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25.4. Taxes

As of 31 December 2018, this heading includes EUR 9.5 t for expenses of various tax-es (EUR 8.4 t in 2017).

The distribution of this amount between the deposits guarantee compartment and se-curities guarantee compartment amounts to EUR 9.3 t and EUR 0.2 t, respectively (EUR 8.2 t and EUR 0.2 t in 2017).

25.5. Leasing and amortisation

The expense recorded at 31 December 2018 in leases is distributed between the de-posits and securities compartments to EUR 510.8 t and EUR 13.6 t, respectively (EUR 542.6 t and EUR 14.1 t in 2017).

Regarding the depreciation of fixed assets, EUR 305.2 t corresponds to the deposit compartment and EUR 8.1 t to the securities compartment (EUR 232.1 t and EUR 6.0 t in 2017).

26. EXTRAORDINARY ITEMS

Includes amounts from the positive and negative deviations from the initial estimates of the costs of the actions or restructuring plans of credit institutions.

The balance of this item corresponds to the deposits compartment since all rehabilita-tion originating it have occurred prior to 19 June 2015.

The detail in thousands of euros is as follows:

Concepts Notes 12.31.2018 12.31.2017

Guarantee fee EPA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26.1 0.1 —

Net results acquired assets EPA CAM . . . . . . . . . . . . . . 26.2 10,533.7 3,591.0

Recovery Catalunya Banc, SA . . . . . . . . . . . . . . . . . . . . 26.3 16,071.4 —

Recovery NCG Banco, SA . . . . . . . . . . . . . . . . . . . . . . . 26.4 — 444.2

Asset management fee received from CCM . . . . . . . . . . 26.5 — 319.4

Cost EPA Banco CAM, SA . . . . . . . . . . . . . . . . . . . . . . . 26.6 — —

Cost EPA Unnim Banc, SA . . . . . . . . . . . . . . . . . . . . . . . 26.7 35.7 4,753.8

Provision recovery on commission EPA BdCLM . . . . . . 26.8 — 22,746.7

Default interest EPA BdCLM . . . . . . . . . . . . . . . . . . . . . . 26.9 — 2,395.0

Recovery EPA CAM-Aguas de Panticosa, SA . . . . . . . . 26.10 — 350.0

Other results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26.11 1,267.4 591.2

Other extraordinary income . . . . . . . . . . . . . . . . . . . . . . . 26.12 132.2 4,899.7

Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,040.5 40,091.0

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Concepts Notes 12.31.2018 12.31.2017

Guarantee fees by EPA granted . . . . . . . . . . . . . . . . . . . . 26.1 (76.3) (26.4)

Cost EPA Banco CAM, SA . . . . . . . . . . . . . . . . . . . . . . . . 26.6 (640,952.0) (507,231.2)

Cost EPA Unnim Banc, SA . . . . . . . . . . . . . . . . . . . . . . . 26.7 (164,861.5) (9,052.2)

Default interest EPA BdCLM . . . . . . . . . . . . . . . . . . . . . . 26.9 (252.2) —

Participatory rights in BdCLM . . . . . . . . . . . . . . . . . . . . . . 26.13 — (24,818.3)

Professional services provided . . . . . . . . . . . . . . . . . . . . . 26.14 (1,376.8) (2,022.1)

Provision on expenses for events payment of coverage to depositors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26.15 (400.0) (1,300.0)

Net impairment NCG Banco, SA . . . . . . . . . . . . . . . . . . . 26.16 (1,158.6) (39,458.3)

Impairment collection rights Banco de Madrid, SAU . . . . 26.17 (3,000.0) (6,500.0)

Professional services provided Banco de Madrid, SAU . . 26.18 (74.1) —

Representative ad litem fees BdCLM . . . . . . . . . . . . . . . . 26.19 (118.9) —

Other extraordinary expenditures . . . . . . . . . . . . . . . . . . . 26.20 (146.5) —

VAT sanctions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.5) (0.5)

Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (812,417.4) (590,408.9)

TOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (784,376.9) (550,318.0)

26.1. Guarantee fees for granted EPA

It corresponds to the best estimate of the present value of the amounts expected to be received by the guarantees granted in each of the EPA in effect, according to the new estimate of the amounts for which such charges will be settled.

EPA corresponding fee 12.31.2018 12.31.2017

Banco CAM, SA (Note 12.2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1 (94.2)

Unnim Banc, SA (Note 12.2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (76.3) 67.8

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (76.2) (26.4)

26.2. Net results acquired assets EPA CAM

As of 31 December 2018, this heading reflects the net result derived from: i) sales benefits of EUR 11,726.0 t (EUR 5,056.4 t in 2017); ii) income of the lease amounting to EUR 509.3 t (EUR 364.6 t in 2017) (Note 10); iii) adjustment of the VAT pro rata per sale for the amount of EUR 523.2 t (EUR 106.4 t in 2017); iv) other minor income amounting EUR 41.0 t (EUR 21.1 t in 2017), and v) expenses for maintenance and taxes of EUR 2,265.8 t (EUR 1,957.5 t in 2017) of the property acquired in exercise of the right of first refusal under the EPA Protocol granted to Banco CAM, SA (Notes 10 and 13).

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26.3. Recovery Catalunya Banc, SA

At 31 December 2018, it reflects the payment made by the FROB to the FGDEC in the year as a consequence of the lower estimated cost of the guarantees granted to the buy-er and consequently the higher income obtained by the FGDEC in the sale of its partici-pation.

26.4. Rehabilitation NCG Banco, SA

At 31 December 2017, it included the positive result for 2017 in the amount of EUR 444.2 t derived from the modification of the liquidation of the sale of the shares of NCG Banco, SA, presented by the FROB to the FGDEC on 9 October 2017, as described in Note 16.3.

26.5. Management fees of assets received from CCM

At 31 December 2017, this item included the recovery of a part of the provision estab-lished at the end of 2016 upon the issuance by the management company of a rectifying invoice of a variable commission accrued prior to the resolution of the contract subscribed by it with the FGDEC (Note 20.3).

26.6. Cost EPA Banco CAM, SA

The allocation or the recovery of the provision made at the end of each year corre-sponds to the difference between the result of capitalizing at 3% per annum the coverage existing at the end of the previous year, after deduction from the said coverage the pre-sent value that the payment, if it had been made, had at the end of the previous year, and the current value of the total coverage required at the end of the financial year in ques-tion, in accordance with the latest estimate made (Note 20.1).

In 2018, the provision corresponds, on the one hand, to the difference between i) the result of capitalizing at 3% per annum the long-term coverage that would have been es-tablished at the end of 2017 for the amount of EUR 3,190,897.2 t (EUR 4,041,762.1 t in 2016), if the date and amount of the payment made on 19 December 2018 had been known, and ii) the present value of the total coverage required at the end of the year in accordance with the latest estimate made (Note 20.1).

On the other hand, in fiscal year 2018 this heading also includes the increase in the present value of the expected loss during the period of the EPA, estimated at the end of 2017, to amount to EUR 1,914.9 t, derived from the payment made on 19 De-cember 2018 amount of EUR 60,694.9 t.

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26.7. Cost EPA Unnim Banc, SA

Since the beginning of the EPA the allocation made at the end of each year corre-sponds to the difference between the result of capitalizing at 3% per annum the coverage existing at the end of the previous year, after deduction from the said coverage the pre-sent value that the payment, if it had been made, had at the end of the previous year, and the current value of the total coverage required at the end of the financial year in ques-tion, in accordance with the latest estimate made (Note 20.2).

In 2018 and 2017, the provision corresponds, respectively, to the difference be-tween i) the result of capitalizing at 3% per annum the coverage that would have been established at the end of 2017 and 2016 in the amount of EUR 1,255,082.3 t and EUR 1,553,258.5 t, respectively, if payment to be made on 30 June 2018 and 2017 had been known, once the present value of the aforementioned payment has been deduct-ed from said coverage at the closing date of the previous year, and ii) the present val-ue of the total coverage required at the end of the year according to the last estimate made (Note 20.2).

In addition, in 2018 and 2017 this heading also includes as income the modification made of the current value of the expected loss during the term of the EPA estimated at the end of 2017 and 2016, as described in Note 20.2, in the amount of EUR 35.7 t and EUR 4,753.8 t, respectively.

26.8. Provision recovery on commission EPA BdCLM

At 31 December 2017, this heading included the recovery of the provision set up on 31 December 2016, because the entity did not attend the commission invoice corre-sponding to the 2010 period for the EPA granted to BdCLM, which was recorded after the Supreme Court decision of 20 December 2017 (Note 14.1).

26.9. Default interest EPA BdCLM

At 31 December 2018, this heading includes the default interests corresponding to the invoices issued in 2013 for rectification of the information provided by the beneficiary enti-ty (Note 14.1).

At 31 December 2017, this item included the increase in the collection rights against BdCLM for late payment of the invoice mentioned in the previous section (Note 14.1).

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26.10. Recovery EPA CAM-Aguas de Panticosa, SA

At 31 December 2017, this heading reflected the benefit from the sale of credit rights on Aguas de Panticosa, SA (Note 16.9).

26.11. Other results

At 31 December 2018, it reflects the profits obtained from the sale of the stake in Bankia, SA (Note 12.8).

At 31 December 2017, it mainly included the profits obtained from the sale of the stake of Unicaja Banco, SA, for an amount of EUR 565.3 t (Note 12.8).

26.12. Other extraordinary income

At 31 December 2018, it reflects, mainly the recovery of available-for-sale assets from the restructuring of credit institutions, in the amount of EUR 85.1 t (Note 13).

At 31 December 2017, it reflected the positive result of the recovery of part of the pro-vision constituted in its day in compliance with Article 74 of Law 24/2001, of 27 Decem-ber, on fiscal, administrative and fiscal order measures, by the prescription of compensa-tions guaranteed by the FGDEC, according to a communication sent on 4 April 2017 by the Management of the General Investment Guarantee Fund (Note 20.4).

26.13. Participatory rights in BdCLM

As of 31 December 2017, it reflected the allocation to results, to totally impair the cur-rent value of participatory rights in BdCLM after the capital reduction and amortization of all the representative shares of the same, including those owned by the CCM Foundation. Until 31 December 2016, the aforementioned rights were quantified based on the equity value of BdCLM (Note 6).

26.14. EPAs Professional services provided

At 31 December 2018 and 2017, it reflects the amount invoiced by professionals, mainly appraisal companies, independent experts and law firms, for advice related to the different EPAs granted or managed by the FGDEC.

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26.15. Provision on expenses for payment events of coverage to depositors

As of 31 December 2018 and 2017, it includes the provision made that is deemed necessary to cover the expenses that the FGDEC would have to pay if there were a pay-ment event of guaranteed deposits in an adhered entity of those described in the Note 20.6.

26.16. Net impairment NCG Banco, SA

At 31 December 2018 and 2017, it reflects the greater deterioration recorded in the sale of the stake of NCG Banco, SA, according to the new information submitted by the FROB to the FGDEC every year (Note 16.3).

26.17. Impairment collection rights Banco de Madrid, SAU

As of 31 December 2018 and 2017, it reflects the provision deemed necessary on the collection rights held by the FGDEC with respect to that entity (Note 12.4).

26.18. Professional services provided Banco de Madrid, SAU

It reflects the amount invoiced by external auditors and representatives ad litem, for advice related to Banco de Madrid, SAU.

26.19. Representative ad litem fees BdCLM

As of 31 December 2018, it reflects the imputation to results of the appropriation made in favour of a representative ad litem following the ruling of the Provincial Court of Madrid (Note 16.7).

26.20. Other extraordinary expenditures

As of 31 December 2018, it mainly reflects the impairment of the collection rights of the FGDEC vis-à-vis the investee companies for an amount of EUR 124.5 t (Note 15) and the impairment of non-current assets for sale, amounting to EUR 13.9 t (Note 13).

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27. FINANCIAL INCOME

From the total financial income recognised in 2018, EUR 15,249.1 t corresponds to the deposits compartment (EUR 20,619.2 t in 2017) and EUR 278.1 t to the securities compartment (EUR 425.4 t in 2017) and its detail is as follows, in thousands of euros:

Concepts 12.31.2018 12.31.2017

Financial income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,527.2 13,909.5

Treasury bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (84.5) (665.1)

Bonds and State obligations interests . . . . . . . . . . . . . . . . . . . . . . . . 17,204.6 15,331.6

National debt euro area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,595.4) (778.7)

Equity investments and other income . . . . . . . . . . . . . . . . . . . . . . . . . 2.5 21.7

Financial updates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,349.8 7,135.1

Assets financial update . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,349.8 7,135.1

TOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,877.0 21,044.6

In 2018 financial income from investments in treasury bills, Government bonds, Na-tional debt and euro area debt amounted collectively to EUR 15,524.7 t (EUR 13,887.8 t in 2017).

In the same financial year, the financial update of assets corresponds to the income from the update at 3% of the estimated amount of: i) fees to be charged from the EPAs granted, amounting to EUR 159.2 t (EUR 213.7 t in 2017) (Note 12.2); ii) from the updat-ing of the charges for the sale of NCG Banco, SA, amounting to EUR 20.9 t (EUR 2,473.0 t in 2017) (Note 16.3); iii) of the updating of charges for ordinary contributions to the deposits compartment and the securities compartment collected on 28 February 2018 amounting to EUR 4,943.0 t and EUR 178.3 t, respectively (4,228.8 t and EUR 172.6 t in 2017) (Note 16.2), and iv) EUR 48.4 t of the update of the obligations of Caja de Ahorros de San Fernando, Guadalajara, Huelva, Jerez and Sevilla (EUR 47.0 t in 2017) (Note 12.7).

28. FINANCIAL COSTS

All financial expenses recorded in 2018 and 2017 were allocated to the deposits com-partment, and correspond to the financial update of financial liabilities at the rate of 3%, as are the estimates that have to be paid by EPA disbursements and the amounts paya-ble to the FROB from the sale of NCG Banco, SA, due to the guarantees given by it to the buyer of the entity.

The EPA of Banco CAM, SA, has generated a financial cost of EUR 104,461.5 t (EUR 126,078.4 t in 2017) after updating at 3% per annum the existing coverage esti-mated at the beginning of the year. Of this amount, i) EUR 7,024.2 t correspond to the update until 28 February 2018 of the balance of EUR 1,422,279.4 t (EUR 977,096.1 t in 2017) recorded at the beginning of the year, under the heading Creditors for EPA pay-

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ments (Note 22.3), and ii) the remaining EUR 97,437.3 t correspond to the update of the long-term provision amounting to EUR 3,249,881.5 t (EUR 4,041,762.1 t in 2017), after having taken into account the fourth payment made to the beneficiary entity on 19 December 2018 for a nominal amount of EUR 60,694.9 t, and a current value, as of 31 December 2017, of EUR 58,984.3 t (Note 20.1).

The EPA of Unnim Banc, SA, has originated a financial cost of EUR 42,920.1 t (EUR 48,543.7 t in 2017) by updating to 3% per annum, until 31 December 2018, the balance that would have corresponded to the long-term provision at the beginning of the year for EUR 1,255,082.3 t (EUR 1,553,258.5 t in 2017) and to update, at the same interest rate and until 30 June 2018, the balance that would correspond equally to the item Creditors for EPA payments at the beginning of the year for EUR 353,790.5 t (EUR 130,695.3 t in 2017) (Note 20.2).

The breakdown of financial expenses is as follows, in thousands of euros:

Concepts 12.31.2018 12.31.2017

EPA Banco CAM, SA (Note 20.1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104,461.5 126,078.4

EPA Unnim Banc, SA (Note 20.2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,920.1 48,543.7

Update NCG Banco, SA (Note 16.3) . . . . . . . . . . . . . . . . . . . . . . . . . . . — 1,660.0

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147,381.6 176,282.1

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OTHER NOTES TO THE ANNUAL ACCOUNTS

29. INFORMATION ABOUT THE AVERAGE PAYMENT PERIOD TO SUPPLIERS. THIRD ADDITIONAL DISPOSAL, “DUTY OF DISCLOSURE”, OF LAW 15/2010, OF 5 JULY

The detail of the average payment period of 2018 and 2017, as well as the payments made during those years and the outstanding payments at 31 December 2018 and 2017, pursuant to the provisions of Law 15/2010, of 5 July, establishing measures to combat late payment is as follows, in days and thousands of euros:

Concepts

2018 2017

Days Days

Average payment period to suppliers . . . . . . . . . . . . . . . . . . . . . . . . . 13 33

Ratio of paid operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 33

Ratio of outstanding payment transactions . . . . . . . . . . . . . . . . . . . . 11 30

Amount Amount

Total payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,219.6 4,642.7

Total outstanding payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268.8 0.2

This information is presented as established in the only additional provision of the Resolution of 29 January 2016, of the Institute of Accounting and Auditing, on the infor-mation to be included in the Notes to the financial statements in relation to the average period payment to suppliers in commercial transactions.

Up to 31 December 2018, the FGDEC had received several invoices from one suppli-er, of which several of them (for a total of EUR 73,702.3 t, including VAT) (Note 20.3) had not been paid, and they were issued before the period established in The Royal Decree-Law 4/2013, of 22 February, to support the entrepreneur and stimulate growth and job creation, due to the disagreement with that supplier as to whether, according to the con-tracts signed, said invoices should be settled in cash or by delivery of part of the remain-ing assets of those received by the FGDEC within the CCM’s action plan, and the said supplier has not accepted the collection in such non-cash assets.

In order to obtain the pertinent resolution determining the form and the limit of the ref-erenced payments, in October of 2015 the FGDEC filed a lawsuit in the courts of Madrid,

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followed by the presentation by the said provider of a counterclaim for the matter (Note 20.3).

Up to 31 December 2017, the FGDEC had received several invoices from another provider, of which several (for a total of EUR 445.9 t, VAT included) were rectified by the same in the months of January and February 2018 and paid by the FGDEC on those dates (Note 22.1).

These invoices has not been included for the calculation of the ratios of the preceding table.

30. TAX SITUATION

The FGDEC has a tax exemption of corporate tax and indirect taxes that may accrue by reason of its constitution, its operation and acts and transactions undertaken in fulfil-ment of its purposes.

According to current legal provisions, tax settlements cannot be considered definitive until they have been inspected by the tax authorities or the limitations period has elapsed, currently set at four years. The FGDEC has open to inspection the last four years for all taxes that are applicable.

31. OTHER DISCLOSURES

The auditor of the entity is Grant Thornton, SLP, and Single-member Company. Audit fees for the year amount to EUR 44.0 t (EUR 44.0 t in 2017). At 31 December 2018, Grant Thornton, SLP, had invoiced other services amounting EUR 4.0 t (EUR 26.0 t in 2017).

32. ENVIRONMENTAL IMPACT

They are considered minimal, and in any case, the environmental risks that may arise from the activity are adequately covered, and it is estimated that no additional liabilities will arise with this risk. In 2018 no expenses have been occurred for this item or environ-ment-related grants received.

Report issued on 6 May 2019.

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ANNEXES

Annex 1 Allocation of the annual accounts for 2018 to deposits guarantee and securities guarantee compartments.

Annex 2 List of shareholdings at 31 December 2018.

Annex 3 Historical series of contributions, cash and securities deposits, assets, and investments.

Annex 4 Credit institutions members at 31 December 2018.

Annex 5 Rehabilitation or restructuring operations of credit institutions.

Annex 6 Legislative index.

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ANNEX 1

ALLOCATION OF THE ANNUAL ACCOUNTS FOR 2018 TO DEPOSITS GUARANTEE AND SECURITIES GUARANTEE COMPARTMENTS

BALANCE SHEET

Thousands of euros

Assets Notes

Deposits guarantee compartment

Securities guarantee compartment

12.31.2018 12.31.2017 12.31.2018 12.31.2017

NON CURRENT ASSETS

Intangible assets . . . . . . . . . . . . . . . . . . . . 8 258.5 335.7 — —

Property, plant and equipment . . . . . . . . 9 743.9 915.1 — —

Real estate investments . . . . . . . . . . . . . . 10 2,103.9 2,034.7 — —

Non-current investments in group companies & associates . . . . . . . . . . . . . 11 — — — —

Shareholdings . . . . . . . . . . . . . . . . . . . . . . . 11 673,015.3 673,015.3 — —

Impairment shareholdings . . . . . . . . . . . . . . 11 (673,015.3) (673,015.3) — —

Non-current financial assets . . . . . . . . . . 12 5,030,036.6 5,644,139.3 109,973.1 70,800.9

Credit entities. Extraordinary expenditure . . 12.1 659,077.7 867,026.6 — —

Receivables for provided guarantees EPA . 12.2 3,606.6 5,318.4 — —

Ext. expenditure & contribution collection rights Banco Madrid . . . . . . . . . . . . . . . . . . 12.3 176.4 352.8 — —

Depositors collection rights Banco Madrid . . . . 12.4 23,686.0 58,199.5 — —

Public debt euro area . . . . . . . . . . . . . . . . . 12.5 294,839.2 296,137.4 — —

Guarantee deposits made . . . . . . . . . . . . . . 12.5 254.0 681.0 — —

National debt . . . . . . . . . . . . . . . . . . . . . . . . 12.6 4,045,721.5 4,413,576.5 109,973.1 70,800.9

Subordinate debentures (net) . . . . . . . . . . . 12.7 2,232.7 2,184.3 — —

Shares in credit institutions . . . . . . . . . . . . . 12.8 — 120.2 — —

Other financial assets . . . . . . . . . . . . . . . . . 12.9 131.3 201.4 — —

Staff loans . . . . . . . . . . . . . . . . . . . . . . . . . . 12.10 311.2 341.2 — —

Total non-current assets . . . . . . . . . . 5,033,142.9 5,647,424.8 109,973.1 70,800.9

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Assets Notes



12.31.2018 12.31.2017 12.31.2018 12.31.2017

CURRENT ASSETS . . . . . . . . . . . . . . . . . .

Non-current assets for sale . . . . . . . . . . . 13 9,811.3 20,387.8 — —

Debtors and other account receivables . 14 2,575.5 46,502.6 — —

Investments in group companies & associates . . . . . . . . . . . . . . . . . . . . . . . . . 15 7,828.9 7,893.0 — —

Short term financial investments . . . . . . 16 2,434,319.1 2,456,710.9 33,427.1 37,582.3

Credit entities. Extraordinary expenditure . . 16.1&12.1

233,004.0 233,253.6 — —

Ordinary contributions . . . . . . . . . . . . . . . . . 16.2 1,062,987.7 1,032,073.0 32,950.1 37,236.1

Short term loans FROB-NCG Banco, SA . . 16.3 1,249.6 4,015.2 — —

Reimbursement rights EPA . . . . . . . . . . . . . 16.4 — 2,475,000.0 — —

Impairment reimbursement rights EPA . . . . 16.4 — (2,475,000.0) — —

National debt . . . . . . . . . . . . . . . . . . . . . . . . 16.5 1,093,410.1 1,135,877.8 — —

National debt accrued interests . . . . . . . . . 16.6 43,512.8 51,160.0 477.0 346.2

Deposits receivables . . . . . . . . . . . . . . . . . . 16.7 19.4 138.3 — —

Staff loans . . . . . . . . . . . . . . . . . . . . . . . . . . 16.9 73.0 68.0 — —

Other short term loans . . . . . . . . . . . . . . . . 16.10 62.5 125.0 — —

Short term accrual/deferrals . . . . . . . . . . 17 81.2 88.2 — —

Cash & cash equivalents . . . . . . . . . . . . . 18 10,923.6 59,319.8 177.6 1,768.5

Total current assets . . . . . . . . . . . . . . 2,465,539.6 2,590,902.3 33,604.7 39,350.8

TOTAL ASSETS . . . . . . . . . . . . . . . . . . 7,498,682.5 8,238,327.1 143,577.8 110,151.7

105



BALANCE SHEET

Thousands of euros

Equity and liabilities Notes



12.31.2018 12.31.2017 12.31.2018 12.31.2017

EQUITY

Own funds . . . . . . . . . . . . . . . . . . . . . . . . 19 1,992,128.8 1,820,464.0 142,535.7 109,316.6

Equity fund . . . . . . . . . . . . . . . . . . . . . . . . 19 1,820,464.2 1,467,822.7 109,316.4 71,825.8

Extraordinary expenditure . . . . . . . . . . . . . 19.1 27,175.6 33,164.1 — —

Surplus (deficit) financial year . . . . . . . . . . 144,489.0 319,477.2 33,219.3 37,490.8

Adjustments for value changes financial investments 19.3 45,505.5 60,118.1 1,042.1 835.1

Of which National Debt long term . . . . . 19.3 45,572.4 59,239.2 1,042.1 835.1

Of which National Debt short term . . . . 19.3 141.3 957.3 — —

Of which Debt zone euro . . . . . . . . . . . . 19.3 (208.2) (78.4) — —

Total net equity . . . . . . . . . . . . . . . . . 2,037,634.3 1,880,582.1 143,577.8 110,151.7

NON-CURRENT LIABILITIES

Long term provisions . . . . . . . . . . . . . . . 20 3,671,982.9 4,567,499.4 — —

Disbursement provision EPA Banco CAM 20.1 2,935,917.3 3,247,966.7 — —

Disbursement provision EPA Unnim Banc 20.2 670,609.2 1,254,493.4 — —

Assets management fee provision . . . . . . 20.3 60,939.2 60,939.2 — —

Compensations (Art. 74, Law 24/2001) . . 20.4 731.3 731.3 — —

Commitments with staff . . . . . . . . . . . . . . . 20.5 1,617.8 1,600.7 — —

Other provisions . . . . . . . . . . . . . . . . . . . . 20.6 2,168.1 1,768.1 — —

Long term debts . . . . . . . . . . . . . . . . . . . 21 1,759.4 1,750.7 — —

Other creditors. . . . . . . . . . . . . . . . . . . . . . 21.2 1,759.4 1,750.7 — —

Total non-current liabilities . . . . . . . 3,673,742.3 4,569,250.1 — —

106

Equity and liabilities Notes



12.31.2018 12.31.2017 12.31.2018 12.31.2017

CURRENT LIABILITIES

Short terms debts . . . . . . . . . . . . . . . . . . 22 1,787,305.7 1,788,492.2 — —

Creditors and other payables . . . . . . . . . . 22.1 9,020.8 9,718.9 — —

Public administrations payables . . . . . . . . 22.2 199.8 195.7 — —

Creditors payables EPA . . . . . . . . . . . . . . 22.3 1,776,730.8 1,776,694.5 — —

Commitments with depositors of Banco de Madrid . . . . . . . . . . . . . . . . . . . . . . . . . 22.4 1,354.3 1,883.1 — —

Short-term accrual/deferrals . . . . . . . . . 23 0.2 2.7 — —

Total current liabilities . . . . . . . . . . . 1,787,305.9 1,788,494.9 — —

Total liabilities . . . . . . . . . . . . . . . . . . 5,461,048.2 6,357,745.0 — —

TOTAL EQUITY AND LIABILITIES . . 7,498,682.5 8,238,327.1 143,577.8 110,151.7

107



INCOME STATEMENT

Thousands of euros

Continuing operations Notes


Securities guarantee compartments

12.31.2018 12.31.2017 12.31.2018 12.31.2017

Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 1,063,018.8 1,032,095.1 32,951.0 37,236.1

Contributions from member institutions . . . . . . . . 24.1 1,062,987.7 1,032,073.0 32,950.1 37,236.1

Of which ordinary contributions . . . . . . . . . . . . . 24.1 1,062,985.9 1,031,958.7 32,931.3 37,236.1

Of which complementary contributions . . . . . . . 24.1 1.8 114.3 18.8 —

Provided services . . . . . . . . . . . . . . . . . . . . . . . . . 24.2 31.1 22.1 0.9 —

Operating expenses . . . . . . . . . . . . . . . . . . . . . . 25 (7,192.1) (6,618.6) (188.1) (169.4)

Outcome disposal of assets and other income . 0.6 47.1 — —

Extraordinary items . . . . . . . . . . . . . . . . . . . . . . 26 (784,376.9) (550,318.0) — —

Impairment by sales fixed assets . . . . . . . . . . . (0.4) (65.5) — (1.3)

Management results . . . . . . . . . . . . . . . . . . . . 271,450.0 475,140.1 32,762.9 37,065.4

Financial income . . . . . . . . . . . . . . . . . . . . . . . . . 27 20,420.6 20,619.2 456.4 425.4

Financial loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 (147,381.6) (176,282.1) — —

Financial results . . . . . . . . . . . . . . . . . . . . . . . (126,961.0) (155,662.9) 456.4 425.4

RESULT OF CONTINUING OPERATIONS . . . 144,489.0 319,477.2 33,219.3 37,490.8

SURPLUS (DEFICIT) FINANCIAL YEAR . . . 144,489.0 319,477.2 33,219.3 37,490.8

109


ANNEX 2

LIST OF SHAREHOLDINGS AT 31 DECEMBER 2018

Entities - Direct and indirect holdings above 10% % shares

Angalia Tour Operador, SA (in liquidation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.00

CCM Conecta, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.00

CCM Iniciativas Industriales, SL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.00

CCM Inmobiliaria Centrum, 2004, SL (in liquidation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.00

CCM Servicios Turísticos, SAU (in liquidation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.00

Explotaciones Forestales y Cinegéticas Alta-Baja, SAU . . . . . . . . . . . . . . . . . . . . . . . . . . 100.00

Inmobiliaria San Miguel del Cross, SAU. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.00

Instituto de Economía y Empresa, SLU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.00

Inversiones Corporativas, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.00

Midamarta, SL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.00

Planes e Inversiones CLM, SA (in liquidation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.00

Pombo 22, SAU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.00

Prominca, SAU (in liquidation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.00

Promociones Miralsur, SL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.00

Realizaciones Patrimoniales, SAU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.00

Gesimca, SA (in liquidation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99.97

Empresa Constructora Cantabria, SA (in liquidation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95.16

Agrocaja, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93.79

H2 Puente Largo, SA (in liquidation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83.71

Icatejo, SA (in liquidation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73.68

Centro de Servic. de Castilla-La Mancha, SA (in liquidation) . . . . . . . . . . . . . . . . . . . . . . 52.00

Planes e Inversiones del Sur, SA (in liquidation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51.00

Polígono Romica, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.00

Aldaban Iniciativas, SL (in liquidation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49.00

Claudia Zahara 22, SL (in liquidation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38.25

Airport Operaciones, SL (in liquidation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36.43

C. R. Aeropuertos, SL (in liquidation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36.43

110

Entities - Direct and indirect holdings above 10% % shares

Madrid Sur Rail, SL (in liquidation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36.43

Industrializaciones Estratégicas, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.00

Atalia Iniciativas, SL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33.33

Kipoa de Inversiones, SL (in liquidation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.00

Área Logística Oeste, SL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27.28

Hormigones y Áridos Aricam, SL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.00

Grupo Naturener, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00

Naturener Asset Management, SL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00

Naturener North America, LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00

Naturener Solar, SAU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00

Telecom Castilla-La Mancha, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00

Urbanizadora Montearagón, SL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00

Desarrollo Industrial Aricam, SL (in liquidation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.81

Obenque, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.20

DHO Grupo Constructor Corporativo, SL (in liquidation) . . . . . . . . . . . . . . . . . . . . . . . . . . 16.01

Tranvía de Parla, SA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.00

Toletum Visigodo, SL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.54

El Reino de D. Quijote de La Mancha, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.80

Onlygreen SGPS, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.15

Soc. Des. Ind. Castilla-La Mancha, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.82

EBM Alisma, FCR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.66

EBM Vaccaria, FCR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.11

Espírito Santo Iberia I, FCR (in liquidation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.89

Baring Iberia III Inversión en Capital, FCR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.38

Desarrollos Tecnológicos y Logísticos, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.07

Alqlunia 8, SRL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.00

Inversora de Autopistas del Sur, SL (in liquidation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.00

Jardines de la Ribera del Tajo, SL (in liquidation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.00

Indirect participations of the Grupo Naturener, SA, are not included because of its high number.

111


ANNEX 3

HISTORICAL SERIES OF CONTRIBUTIONS, CASH AND SECURITIES DEPOSITS, ASSETS, AND INVESTMENTS

3.1. Contributions of member entities

The year-on-year evolution of the contributions made to FGDEC and to the dissolved deposits guarantee funds was as shown in the table below, in nominal thousands of eu-ros.

YearCredit

institutionsBank

of SpainTotals Changes (%)

1980. . . . . . . . . . . . . . . . . . . 38,941.4 38,941.4 77,882.8 —

1981. . . . . . . . . . . . . . . . . . . 46,657.2 46,657.2 93,314.4 19.81

1982. . . . . . . . . . . . . . . . . . . 84,253.6 84,253.6 168,507.2 80.58

1983. . . . . . . . . . . . . . . . . . . 98,717.3 98,717.3 197,434.6 17.17

1984. . . . . . . . . . . . . . . . . . . 112,234.7 112,234.7 224,469.4 13.69

1985. . . . . . . . . . . . . . . . . . . 143,194.8 143,194.8 286,389.6 27.59

1986. . . . . . . . . . . . . . . . . . . 148,770.3 148,770.3 297,540.6 3.89

1987. . . . . . . . . . . . . . . . . . . 150,960.4 150,960.4 301,920.8 1.47

1988. . . . . . . . . . . . . . . . . . . 120,170.7 120,170.7 240,341.4 (20.40)

1989. . . . . . . . . . . . . . . . . . . 201,998.1 114,759.4 316,757.5 31.79

1990. . . . . . . . . . . . . . . . . . . 277,654.2 154,246.6 431,900.8 36.35

1991. . . . . . . . . . . . . . . . . . . 312,742.2 173,713.0 486,455.2 12.63

1992. . . . . . . . . . . . . . . . . . . 339,290.9 189,987.5 529,278.4 8.80

1993. . . . . . . . . . . . . . . . . . . 231,283.4 138,214.3 369,497.7 (30.19)

1994. . . . . . . . . . . . . . . . . . . 260,654.7 155,943.3 416,598.0 12.75

1995. . . . . . . . . . . . . . . . . . . 331,048.6 303,251.8 634,300.4 52.26

1996. . . . . . . . . . . . . . . . . . . 325,192.0 308,063.8 633,255.8 (0.16)

1997. . . . . . . . . . . . . . . . . . . 164,108.2 — 164,108.2 (74.09)

1998. . . . . . . . . . . . . . . . . . . 161,191.5 — 161,191.5 (1.78)

1999. . . . . . . . . . . . . . . . . . . 167,855.4 — 167,855.4 4.13

112

YearCredit

institutionsBank

of SpainTotals Changes (%)

2000. . . . . . . . . . . . . . . . . . . 183,840.8 — 183,840.8 9.52

2001. . . . . . . . . . . . . . . . . . . 287,788.4 — 287,788.4 56.54

2002. . . . . . . . . . . . . . . . . . . 251,354.3 — 251,354.3 (12.66)

2003. . . . . . . . . . . . . . . . . . . 266,856.7 — 266,856.7 6.17

2004. . . . . . . . . . . . . . . . . . . 277,763.4 — 277,763.4 4.09

2005. . . . . . . . . . . . . . . . . . . 297,019.0 — 297,019.0 6.93

2006. . . . . . . . . . . . . . . . . . . 328,675.6 — 328,675.6 10.66

2007. . . . . . . . . . . . . . . . . . . 379,645.0 — 379,645.0 15.51

2008. . . . . . . . . . . . . . . . . . . 417,596.3 — 417,596.3 10.00

2009. . . . . . . . . . . . . . . . . . . 447,489.9 — 447,489.9 7.16

2010. . . . . . . . . . . . . . . . . . . 771,216.7 — 771,216.7 72.34

2011. . . . . . . . . . . . . . . . . . . 885,926.3 — 885,926.3 14.87

2012. . . . . . . . . . . . . . . . . . . 2,517,413.6 — 2,517,413.6 184.16

2013. . . . . . . . . . . . . . . . . . . 1,809,914.8 — 1,809,914.8 (28.10)

2014. . . . . . . . . . . . . . . . . . . 2,340,346.7 — 2,340,346.7 29.31

2015. . . . . . . . . . . . . . . . . . . 1,829,547.5 — 1,829,547.5 (51.63)

2016. . . . . . . . . . . . . . . . . . . 1,855,587.1 — 1,855,587.1 1.42

2017. . . . . . . . . . . . . . . . . . . 1,308,801.1 — 1,308,801.1 (29.47)

2018. . . . . . . . . . . . . . . . . . . 1,335,306.7 — 1,335,306.7 2.02

Total . . . . . . . . . . . . . . . 21,509,009.5 2,482,080.1 23,991,089.6

The graphic representation is as follows:

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

2,200,000

2,400,000

2,600,000

2,800,000

3,000,000

3,200,000

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Contributions from credit institutions(t euros)

113

3.2. Eligible and guaranteed cash deposits and guaranteed and hedged values

The year-on-year evolution of the eligible and guaranteed cash deposits and of the guaranteed and hedged securities, at the end of each year, has been the following in thousands of euros since 2015:

YearDeposits compartment Securities compartment

Eligible deposits Guaranteed deposits Guaranteed securities Hedged securities

2015. . . . . . . . . . . . . . . . . . . 947,279.1 684,901.7 358,023.4 91,397.0

2016. . . . . . . . . . . . . . . . . . . 979,636.7 698,969.5 363,531.9 91,094.1

2017. . . . . . . . . . . . . . . . . . . 1,004,685.2 707,092.9 376,395.7 90,327.4

2018. . . . . . . . . . . . . . . . . . . 1,048,553.4 726,293.3 332,956.7 79,483.9

3.3. Inter-annual changes in equity of deposits guarantee funds

The inter-annual evolution of the assets of the FGDEC and the dissolved deposits guarantee funds was as follows, in thousands of euros:

YearSurplus/deficit

for the yearValue adjustment

financial investments

Extraordinary expenditures and

contributionsEquity fund

1980. . . . . . . . . . . . . . . . . . . . 54,633.2 — — 54,633.2

1981. . . . . . . . . . . . . . . . . . . . 11,190.4 — — 65,823.6

1982. . . . . . . . . . . . . . . . . . . . 24,452.0 — — 90,275.6

1983. . . . . . . . . . . . . . . . . . . . (281,326.1) — — (191,050.5)

1984. . . . . . . . . . . . . . . . . . . . (48,973.2) — — (240,023.7)

1985. . . . . . . . . . . . . . . . . . . . (18,025.7) — — (258,049.4)

1986. . . . . . . . . . . . . . . . . . . . 108,730.6 — — (149,318.8)

1987. . . . . . . . . . . . . . . . . . . . 285,365.7 — — 136,046.9

1988. . . . . . . . . . . . . . . . . . . . 156,917.7 — — 292,964.6

1989. . . . . . . . . . . . . . . . . . . . 124,445.3 — — 417,409.9

1990. . . . . . . . . . . . . . . . . . . . 88,257.8 — — 505,667.7

1991. . . . . . . . . . . . . . . . . . . . (21,678.8) — — 483,988.9

1992. . . . . . . . . . . . . . . . . . . . 557,678.7 — — 1,041,667.6

1993. . . . . . . . . . . . . . . . . . . . 409,686.6 — — 1,451,354.2

1994. . . . . . . . . . . . . . . . . . . . (778,702.2) — — 672,652.0

114

YearSurplus/deficit

for the yearValue adjustment

financial investments

Extraordinary expenditures and

contributionsEquity fund

1995. . . . . . . . . . . . . . . . . . . . 674,019.7 — — 1,346,671.7

1996. . . . . . . . . . . . . . . . . . . . 736,388.5 — — 2,083,060.2

1997. . . . . . . . . . . . . . . . . . . . 319,906.4 — — 2,402,966.6

1998. . . . . . . . . . . . . . . . . . . . 294,593.3 — — 2,697,559.9

1999. . . . . . . . . . . . . . . . . . . . 275,278.4 — — 2,972,838.3

2000. . . . . . . . . . . . . . . . . . . . 304,689.9 — — 3,277,528.2

2001. . . . . . . . . . . . . . . . . . . . 442,884.4 — — 3,720,412.6

2002. . . . . . . . . . . . . . . . . . . . 331,691.5 — — 4,052,104.1

2003. . . . . . . . . . . . . . . . . . . . 362,069.5 — — 4,414,173.6

2004. . . . . . . . . . . . . . . . . . . . 390,194.4 — — 4,804,368.0

2005. . . . . . . . . . . . . . . . . . . . 410,498.9 — — 5,214,866.9

2006. . . . . . . . . . . . . . . . . . . . 461,198.1 — — 5,676,065.0

2007. . . . . . . . . . . . . . . . . . . . 826,651.7 — — 6,502,716.7

2008. . . . . . . . . . . . . . . . . . . . 698,535.1 — — 7,201,251.8

2009. . . . . . . . . . . . . . . . . . . . 677,304.1 — — 8,005,143.8

2010. . . . . . . . . . . . . . . . . . . . (2,104,201.6) — — 5,793,239.8

2011. . . . . . . . . . . . . . . . . . . . (7,829,546.9) 10,791.9 — (2,025,515.2)

2012. . . . . . . . . . . . . . . . . . . . (1,263,777.5) (9,342.5) 2,051,149.8 (1,247,485.4)

2013 (*) . . . . . . . . . . . . . . . . . (613,924.5) (1,533.7) 1,864,842.4 1,898.8

2014. . . . . . . . . . . . . . . . . . . . (274,459.1) 108.3 1,638,800.1 1,366,348.1

2015. . . . . . . . . . . . . . . . . . . . (419,873.4) 701.3 75,147.7 1,022,323.7

2016. . . . . . . . . . . . . . . . . . . . 468,723.0 57,458.5 49,327.1 1,597,832.3

2017. . . . . . . . . . . . . . . . . . . . 356,968.0 2,769.4 33,164.1 1,990,733.8

2018. . . . . . . . . . . . . . . . . . . . 177,708.3 (14,405.6) 27,175.6 2,181,212.1

The 2013 data are presented with the restatement made in that year to record the or-dinary contributions in the year in which they are approved instead of the year in which they are collected. The column “surplus / (deficit) for the year” reflects the ordinary contri-bution approved for the year 2013 in the amount of EUR 1,639,212.4 t. The column of “extraordinary expenses and extraordinary contribution” includes the ordinary contribution for the year 2012, amounting to EUR 1,575,314.8 t together with the extraordinary ex-penses and extraordinary contribution for a joint amount of EUR 289,527.6 t.

115


Equity evolution(t euros)

-2,000,000

-1,000,000

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

3.4. Inter-annual evolution of financial investments in National debt

The year-on-year evolution of financial investments in National debt of the FGDEC and the dissolved deposits guarantee funds is as follows, in thousands of euros:

Year Investments

1987. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,618.5

1988. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93,581.7

1989. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190,950.5

1990. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181,844.5

1991. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315,738.7

1992. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 417,596.5

1993. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 928,832.1

1994. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,305,778.2

1995. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,465,620.7

1996. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,676,236.8

1997. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,010,496.2

1998. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,396,869.2

1999. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,688,505.3

2000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,960,293.1

2001. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,255,030.3

116

Year Investments

2002. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,755,639.2

2003. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,035,818.2

2004. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,482,821.6

2005. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,881,127.0

2006. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,311,097.4

2007. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,371,450.1

2008. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,069,135.2

2009. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,423,404.8

2010. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,639,848.8

2011. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,260,936.3

2012. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 356,487.3

2013. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59,787.8

2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,838,048.5

2015. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,370,998.8

2016. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,597,441.6

2017. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,620,255.2

2018. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,249,104.7


Financial investment evolution (t euros)

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

117


ANNEX 4

CREDIT INSTITUTIONS MEMBERS AT 31 DECEMBER 2018

The institutions members of the FGDEC at year-end 2018 are as follows:

Entity Code

A&G Banca Privada, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0241

Abanca Corporación Bancaria, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2080

Allfunds Bank, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0011

Andbank España, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1544

Aresbank, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0136

Banca March, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0061

Banca Pueyo, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0078

Banco Alcalá, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0188

Banco Bilbao Vizcaya Argentaria, SA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0182

Banco Caixa Geral, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0130

Banco Caminos, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0234

Banco Cetelem, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0225

Banco Cooperativo Español, SA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0198

Banco de Albacete, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0091

Banco de Crédito Social Cooperativo, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0240

Banco de Depósitos, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0003

Banco de la Nación Argentina, Branch in Spain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0169

Banco Sabadell, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0081

Banco Europeo de Finanzas, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0184

Banco Finantia Sofinloc, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0220

Banco Industrial de Bilbao, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0113

Banco Inversis, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0232

Banco Mediolanum, SA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0186

Banco Occidental, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0121

Banco Pichincha España, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0235

Banco Santander, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0049

118

Entity Code

Bancofar, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0125

Bank Degroof Petercam Spain, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0200

Bankia, SA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2038

Bankinter, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0128

Bankoa, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0138

BMCE Bank International, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0219

BNP Paribas España, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0058

Caixa de Crèdit dels Enginyers - Caja de Crédito de los Ingenieros, S. Coop. de Crédito . 3025

Caixa Popular-Caixa Rural, S. Coop. de Crédito Valenciana . . . . . . . . . . . . . . . . . . . . . . 3159

Caixa Rural Altea, Cooperativa de Crèdit Valenciana . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3045

Caixa Rural Benicarló, S. Coop. de Crèdit Valenciana . . . . . . . . . . . . . . . . . . . . . . . . . . . 3162

Caixa Rural d'Algemesi, S. Coop. Valenciana de Crèdit . . . . . . . . . . . . . . . . . . . . . . . . . . 3117

Caixa Rural de Callosa d'en Sarrià, Cooperativa de Crédito Valenciana . . . . . . . . . . . . . 3105

Caixa Rural de L'Alcudia, Sociedad Cooperativa Valenciana de Crédito . . . . . . . . . . . . . 3096

Caixa Rural de Turis, Cooperativa de Crédito Valenciana. . . . . . . . . . . . . . . . . . . . . . . . . 3123

Caixa Rural Galega, Sociedad Cooperativa de Crédito Limitada Galega . . . . . . . . . . . . . 3070

Caixa Rural La Vall “San Isidro”, Sociedad Cooperativa de Crédito Valenciana . . . . . . . 3111

Caixa Rural Les Coves de Vinromà, S. Coop. de Crèdit Valenciana . . . . . . . . . . . . . . . . 3166

Caixa Rural “Sant Josep” de Vilavella, S. Coop. de Crédito Valenciana. . . . . . . . . . . . . . 3160

Caixa Rural “Sant Vicent Ferrer” de La Vall d'Uixó, Coop. de Crèdit Valenciana . . . . . . . 3102

Caixa Rural Torrent, Cooperativa de Crèdit Valenciana . . . . . . . . . . . . . . . . . . . . . . . . . . 3118

Caixa Rural Vinarós, S. Coop. de Crèdit Valenciana. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3174

Caixabank, SA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2100

Caja de Ahorros y Monte de Piedad de Ontinyent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2045

Caja de Arquitectos S. Coop. de Crédito . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3183

Caja de Crédito de Alcoy, Cooperativa de Crédito Valenciana (in liquidation) . . . . . . . . . 3184

Caja de Crédito de Petrel, Caja Rural, Cooperativa de Crédito Valenciana . . . . . . . . . . . 3029

Caja Laboral Popular, Coop. de Crédito. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3035

Caja Rural Católico-Agraria, S. Coop. de Crédito Valenciana . . . . . . . . . . . . . . . . . . . . . 3110

Caja Rural Central, Sociedad Cooperativa de Crédito . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3005

Caja Rural de Albacete, Ciudad Real y Cuenca, Sociedad Cooperativa de Crédito . . . . 3190

Caja Rural de Albal, Cooperativa de Crédito Valenciana . . . . . . . . . . . . . . . . . . . . . . . . . 3150

Caja Rural de Alginet, Sociedad Cooperativa de Crédito Valenciana . . . . . . . . . . . . . . . . 3179

Caja Rural de Almendralejo, Sociedad Cooperativa de Crédito . . . . . . . . . . . . . . . . . . . . 3001

Caja Rural de Aragón, Sociedad Cooperativa de Crédito . . . . . . . . . . . . . . . . . . . . . . . . . 3191

Caja Rural de Asturias, Sociedad Cooperativa de Crédito . . . . . . . . . . . . . . . . . . . . . . . . 3059

119

Entity Code

Caja Rural de Baena Ntra. Sra. de Guadalupe, Sociedad Cooperativa de Crédito Andaluza . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3089

Caja Rural de Burgos, Fuentepelayo, Segovia y Castelldans, S. Cooperativa de Crédito . . 3060

Caja Rural de Cañete de las Torres “Ntra. Sra. del Campo”, S. Coop. Andaluza de Crédito . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3104

Caja Rural de Casas Ibáñez, S. Coop. de Crédito de Castilla-La Mancha . . . . . . . . . . . . 3127

Caja Rural de Cheste, Sociedad Cooperativa de Crédito . . . . . . . . . . . . . . . . . . . . . . . . . 3121

Caja Rural de Extremadura, Sociedad Cooperativa de Crédito. . . . . . . . . . . . . . . . . . . . . 3009

Caja Rural de Gijón, Sociedad Cooperativa Asturiana de Crédito . . . . . . . . . . . . . . . . . . 3007

Caja Rural de Granada, Sociedad Cooperativa de Crédito . . . . . . . . . . . . . . . . . . . . . . . . 3023

Caja Rural de Guissona, Sociedad Cooperativa de Crédito . . . . . . . . . . . . . . . . . . . . . . . 3140

Caja Rural de Jaén, Barcelona y Madrid, Sociedad Cooperativa de Crédito . . . . . . . . . . 3067

Caja Rural de Navarra, S. Coop. de Crédito . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3008

Caja Rural de Nueva Carteya, Sociedad Cooperativa Andaluza de Crédito . . . . . . . . . . . 3098

Caja Rural de Salamanca, Sociedad Cooperativa de Crédito . . . . . . . . . . . . . . . . . . . . . . 3016

Caja Rural de Soria, Sociedad Cooperativa de Crédito . . . . . . . . . . . . . . . . . . . . . . . . . . . 3017

Caja Rural de Teruel, Sociedad Cooperativa de Crédito . . . . . . . . . . . . . . . . . . . . . . . . . . 3080

Caja Rural de Utrera, Sociedad Cooperativa Andaluza de Crédito . . . . . . . . . . . . . . . . . . 3020

Caja Rural de Villamalea, S. Coop. de Crédito Agrario de Castilla-La Mancha . . . . . . . . 3144

Caja Rural de Villar, Coop. de Crédito Valenciana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3152

Caja Rural de Zamora, Cooperativa de Crédito . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3085

Caja Rural del Sur, S. Coop. de Crédito . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3187

Caja Rural La Junquera de Chilches, S. Coop. de Crédito Valenciana . . . . . . . . . . . . . . 3157

Caja Rural “Nuestra Madre del Sol”, S. Coop. Andaluza de Crédito . . . . . . . . . . . . . . . . . 3115

Caja Rural “Nuestra Señora de la Esperanza” de Onda, S. Coop. de Crédito Valenciana . . 3134

Caja Rural Regional “San Agustín” de Fuente Álamo Murcia, Sociedad Cooperativa de Crédito . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3018

Caja Rural “San Isidro” de Vilafames, S. Coop. de Crédito Valenciana . . . . . . . . . . . . . . 3165

Caja Rural “San Jaime” de Alquerías del Niño Perdido, S. Coop. de Crédito Valenciana 3119

Caja Rural “San José” de Alcora, S. Coop. de Crédito Valenciana. . . . . . . . . . . . . . . . . . 3113

Caja Rural “San José” de Almassora, S. Coop. de Crédito Valenciana . . . . . . . . . . . . . . 3130

Caja Rural “San José” de Burriana, S. Coop. de Crédito Valenciana . . . . . . . . . . . . . . . . 3112

Caja Rural “San José” de Nules, S. Coop. de Crédito Valenciana . . . . . . . . . . . . . . . . . . 3135

Caja Rural “San Roque” de Almenara, S. Coop. de Crédito Valenciana . . . . . . . . . . . . . 3095

Cajamar Caja Rural, Sociedad Cooperativa de Crédito . . . . . . . . . . . . . . . . . . . . . . . . . . . 3058

Cajasiete, Caja Rural, Sociedad Cooperativa de Crédito . . . . . . . . . . . . . . . . . . . . . . . . . 3076

Cajasur Banco, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0237

Cecabank, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2000

120

Entity Code

Colonya - Caixa d’Estalvis de Pollença . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2056

Credit Suisse AG, Sucursal en España . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1460

Deutsche Bank, SAE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0019

EBN Banco de Negocios, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0211

Eurocaja Rural, Sociedad Cooperativa de Crédito . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3081

EVO Banco, SA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0239

Ibercaja Banco, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2085

JP Morgan Chase Bank National Association, Branch in Spain . . . . . . . . . . . . . . . . . . . . 0151

Kutxabank, SA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2095

Liberbank, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2048

Nuevo Micro Bank, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0133

Open Bank, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0073

Renta 4 Banco, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0083

Ruralnostra, S. Coop. de Crédito Valenciana. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3138

Sabadell Consumer Finance, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0242

Santander Consumer Finance, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0224

Santander Investment, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0036

Santander Securities Services, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0038

Self Trade Bank, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1490

Targobank, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0216

Unicaja Banco, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2103

Wizink Bank, SA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0229

121


ANNEX 5

REHABILITATION OR RESTRUCTURING OPERATIONS OF CREDIT INSTITUTIONS

Grants made by the deposits guarantee funds in the rehabilitation or restructuring op-erations of credit institutions. On these amounts are not considered the recovered amounts.

5.1. Fondo de Garantía de Depósitos en Establecimientos Bancarios, until 15 October 2011

Detail, by entities, of the grants provided by the FGDEB until 15 October of 2011, in millions of euros:

Year Entities SharesTangible assets

Financial assets

Shares in companies

LoansPayment deposits

Losses TotalTotal in M euros 2018 (*)

CPI (2018 = 100)

1978 Banco de Navarra, SA (1). . . . . . . . . . . . — — 3.6 — — 25.0 — 28.6 186.6 15.3

1978 Banco Cantábrico, SA (2) . . . . . . . . . . . . 4.7 4.2 — — 25.3 — — 34.2 223.2 15.3

1978 Banco Meridional, SA (3) . . . . . . . . . . . . 6.1 — 61.1 4.7 — — — 71.9 469.2 15.3

1978 Banco de Valladolid, SA (4) . . . . . . . . . . — 7.0 64.3 11.8 60.1 — 33.0 176.2 1,149.8 15.3

1979 Banco de Granada, SA (5) . . . . . . . . . . . 18.1 — — — 57.2 — 31.7 106.9 603.4 17.7

1980 Banca López Quesada, SA (6) . . . . . . . . 18.1 16.8 — — 80.7 — — 115.5 566.0 20.4

1980 Banco Promoción de Negocios, SA (1) . . 9.3 — 51.7 4.2 47.6 — 3.2 115.7 566.9 20.4

1980 Banco Catalán de Desarrollo, SA (7) . . . 18.0 — — — — — 96.2 114.2 559.6 20.4

1980 Banco de Asturias, SA (8) . . . . . . . . . . . 6.0 — 1.6 — 12.0 — — 19.6 96.0 20.4

1980 Banco Industrial del Mediterráneo, SA (9) 15.0 — — — — — 42.1 57.1 279.8 20.4

1981 Banco de los Pirineos, SA (1). . . . . . . . . — — — — — 17.0 — 17.0 72.8 23.3

1981 Banco de Descuento, SA (10) . . . . . . . . 14.9 15.1 80.6 5.2 26.5 — — 141.7 606.9 23.3

1981 Banco Occidental, SA (**) . . . . . . . . . . . . 21.4 9.4 240.9 21.3 90.2 — — 383.2 1,641.4 23.3

1982 Banca Más Sardá, SA (11) . . . . . . . . . . . — — — — 12.0 — 28.9 40.9 153.7 26.6

1982 Banco Unión, SA (12) . . . . . . . . . . . . . . . — 60.1 30.1 139.7 — — 90.4 319.6 1,200.8 26.6

1982 Banco de Préstamo y Ahorro, SA (13) . . — — 35.6 1.3 — — 9.0 45.9 172.5 26.6

1982 Banco de Alicante, SA (14) . . . . . . . . . — 11.3 5.0 — 41.3 — — 57.6 216.4 26.6

1982 Banco de Crédito e Inversiones, SA (15) . — 5.7 61.7 — 42.8 — — 110.2 414.1 26.6

122

Year Entities SharesTangible assets

Financial assets

Shares in companies

LoansPayment deposits

Losses TotalTotal in M euros 2018 (*)

CPI (2018 = 100)

1982 Banca Catalana, SA (***) (16) . . . . . . . 81.8 43.5 574.2 46.8 214.3 — 49.2 1,009.6 3,793.3 26.6

1982 Banco de Gerona, SA (17) . . . . . . . . . — — 1.2 — — — — 1.2 4.5 26.6

1982 Banco de Levante, SA (18) . . . . . . . . . 33.1 1.0 193.6 55.8 44.8 — 30.8 359.1 1,349.2 26.6

1984 Banco Simeón, SA (19) . . . . . . . . . . . — 11.0 — — — — — 11.0 33.8 32.5

1985 Banco de Finanzas, SA (20) . . . . . . . . — — 15.0 — — — — 15.0 42.6 35.2

1985 Banco Urquijo Unión, SA (21) . . . . . . . — — 207.6 144.0 — — — 351.6 998.3 35.2

1991 Bank of Credit and Commerce, SAE (1) . — — — — — 26.2 — 26.2 51.7 50.7

1991 Banco Europeo de Finanzas, SA . . . . . — — — — — 3.3 — 3.3 6.5 50.7

1992 Banco Ibercorp, SA (22) . . . . . . . . . . . — — — — — 0.7 — 0.7 1.3 53.4

1994 Banco Español de Crédito, SA (23) . . . 1,081.8 — — — 1,893.2 — 1,712.4 4,687.4 8,025.0 58.4

1996 Banco Credipás, SA (1) . . . . . . . . . . . — — — — — 13.2 — 13.2 21.0 62.9

2004 Eurobank del Mediterráneo, SA (1) . . . — — — — — 82.7 — 82.7 105.1 78.7

Total . . . . . . . . . . . . . . . . . . . . . . . . 1,328.3 185.1 1,627.8 434.8 2,648.0 168.1 2,126.9 8,517.0 23,611.4

(*) This column states the total of the rehabilitation operations, the amounts updated according to the CPI, establishing as base 100 December 2018.

(**) Includes its subsidiary Banco Comercial Occidental, SA.(***) Includes its subsidiaries Banco Industrial de Cataluña, SA, and Banco Industrial del Mediterráneo, SA.(1) Deregistered entity.(2) Integrated in Banco de Gestión Financiera, SA (currently integrated in BBVA).(3) Integrated in Banco de Jerez, SA (currently integrated in CaixaBank, SA).(4) Integrated in Barclays Bank, SA (currently integrated in CaixaBank, SA).(5) Integrated in CaixaBank, SA.(6) Integrated in BNP Paribas España, SA. (7) Integrated in Banco Sanpaolo, SA (currently integrated in Banco Sabadell, SA).(8) Integrated in Banco de Sabadell, SA.(9) Integrated in Novo Banco, SA, branch office in Spain (entity non-adhered to the FGDEC). (10) Integrated in Bank of Credit and Commerce, SAE (subsequent deregistration in the Entities Registry).(11) Integrated in Banca Catalana, SA (currently integrated in BBVA).(12) Integrated in Banco Urquijo, SA (currently integrated in Banco Sabadell, SA).(13) Integrated in Banco de Crédito Canario, SA (currently integrated in BBVA).(14) Integrated in BBVA.(15) Integrated in Banco Gallego, SA (currently integrated in Banco Sabadell, SA).(16) Integrated in BBVA.(17) Integrated in Solbank SBD, SA (currently integrated in Banco Sabadell, SA).(18) Integrated in Citibank España, SA (subsequent deregistration in the Entities Registry).(19) Integrated in Banco Caixa Geral, SA.(20) Integrated in Banco Caixa Geral, SA.(21) Integrated in Banco Sabadell, SA.(22) Integrated in Probanca, Servicios Financieros, SA (currently integrated in EBN Banco de Negocios, SA).(23) Integrated in Banco Santander, SA.

123

5.2. Fondo de Garantía de Depósitos en Cajas de Ahorro, until 15 October 2011

Detail by entities of the grants provided by the FGDCA until 15 October of 2011, in mil-lions of euros:

Year EntitiesPurchases of assets

Subordinates debentures

Maximum collateral

provisions (a)Loans Total

Total in M euros 2018

(*)

CPI (2018 = 100)

1983 Cáceres (1) . . . . . . . . . . . . . . . . . . . . . . . . . 37.0 37.0 123.9 29.9

1985 Cáceres (1) . . . . . . . . . . . . . . . . . . . . . . . . . 4.5 4.5 12.8 35.2

1987 Cáceres (1) . . . . . . . . . . . . . . . . . . . . . . . . . 3.4 3.4 8.5 39.9

1986 Plasencia (2) . . . . . . . . . . . . . . . . . . . . . . . . 10.2 10.2 26.7 38.1

1989 Plasencia (2) . . . . . . . . . . . . . . . . . . . . . . . . 23.5 0.5 24.0 53.2 45.1

1983 Cádiz (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.0 12.0 40.2 29.9

1991 Unicaja (2) . . . . . . . . . . . . . . . . . . . . . . . . . . 24.0 24.0 47.3 50.7

1985 Palencia (3) . . . . . . . . . . . . . . . . . . . . . . . . . 7.2 7.2 20.4 35.2

1985 Central Ávila (4) . . . . . . . . . . . . . . . . . . . . . . 12.0 36.1 48.1 136.6 35.2

1987 Huelva (5) . . . . . . . . . . . . . . . . . . . . . . . . . . 9.0 9.0 22.6 39.9

1990 Huelva (5) . . . . . . . . . . . . . . . . . . . . . . . . . . 18.0 18.0 37.5 48.1

1989 Valladolid Popular (6) . . . . . . . . . . . . . . . . . . . 2.1 2.1 4.7 45.1

1989 Valladolid Provincial (6) . . . . . . . . . . . . . . . . . 2.5 1.3 3.8 8.4 45.1

1990 España de Inversiones (6) . . . . . . . . . . . . . . . 6.6 6.6 13.7 48.1

1990 Ceuta (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.8 11.4 15.2 31.6 48.1

1990 Provincial de Granada (8) . . . . . . . . . . . . . . . . 12.0 12.0 25.0 48.1

1991 Provincial de Alicante y Valencia (9) . . . . . . . . 3.1 3.1 6.1 50.7

1992 Provincial de Alicante y Valencia (9) . . . . . . . . 15.0 15.0 28.1 53.4

1994 C. A. San Fernando de Sevilla y Jerez (10) . . . . . . 15.0 15.0 25.7 58.4

2010 C. A. Castilla-La Mancha (11) . . . . . . . . . . . . . 1,693.4 2,475.0 4,168.4 4,533.6 91.9

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,758.5 90.6 2,475.0 114.5 4,438.6 5,206.6


(a) States the maximum amount guarantee granted by the FGDEC in an EPA.(1) Integrated in Caja de Ahorros y Monte de Piedad de Extremadura (currently integrated in Unicaja Banco, SA).(2) Integrated in Monte de Piedad y Caja de Ahorros de Ronda, Cádiz, Almería, Málaga y Antequera (Unicaja).(3) Integrated in Caja de Ahorros de Salamanca y Soria (currently integrated in Unicaja Banco, SA).(4) Integrated in Caja de Ahorros y Monte de Piedad de Ávila (currently integrated in Bankia, SA).(5) Integrated in Monte de Piedad y Caja de Ahorros de Huelva y Sevilla (currently integrated in Caixabank, SA).(6) Integrated in Caja España de Inversiones, Caja de Ahorros y Monte de Piedad (currently integrated in Unicaja Banco,

SA).(7) Integrated in Caja de Ahorros y Monte de Piedad de Madrid (currently integrated in Caixabank, SA).(8) Integrated in Caja General de Granada (currently integrated in Caixabank, SA).(9) Integrated in Caja de Ahorros del Mediterráneo (currently integrated in Banco Sabadell, SA).(10) Integrated in Banca Cívica (currently integrated in Caixabank, SA).(11) Partially integrated in Banco de Castilla-La Mancha (currently integrated in Liberbank, SA).

124

5.3. Fondo de Garantía de Depósitos en Cooperativas de Crédito, until 15 October 2011

Detail by entities of the grants provided by the FGDCC until 15 October of 2011, in millions of euros:

Year EntitiesPurchasesof assets

Financialassets

Loans TotalTotal in M euros 2018 (*)

CPI (2018 = 100)

1982 CRP Jaén (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.8 1.8 6.8 26.6

1983 C. Laboral y E. Salamanca (2) . . . . . . . . . . . . . . . . . . . . 1.3 1.3 4.4 29.9

1984 C. Cto. Ind. Coop. Madrid (3) . . . . . . . . . . . . . . . . . . . . . 4.2 4.2 12.9 32.5

1984 Coop. Cto. Jávea (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.0 2.0 6.1 32.5

1984 CRP Las Palmas (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1 3.1 9.5 32.5

1984 CRP La Coruña (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.0 14.3 15.3 47.0 32.5

1984 CRP Badajoz (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.7 2.7 8.3 32.5

1984 CRP La Rioja (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.9 2.9 8.9 32.5

1984 CRP Palencia (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.3 52.6 62.9 193.2 32.5

1986 CRP Palencia (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2 0.2 0.5 38.1

1984 CRP Pontevedra (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . 24.6 24.6 75.6 32.5

1984 CRP Sevilla (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.6 28.0 33.6 103.2 32.5

1984 CRC Interp. Creta (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.7 2.7 8.3 32.5

1984 CR Cto. U. C. Avicultura (10) . . . . . . . . . . . . . . . . . . . . . 1.5 1.5 4.6 32.5

1984 CRP Santander (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.4 2.5 21.9 67.3 32.5

1984 CRP Alicante (11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2 4.2 12.9 32.5

1984 CRP Málaga (12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3 3.3 10.1 32.5

1984 CR Sax, Montaña y Vinalopó (13) . . . . . . . . . . . . . . . . . . 3.5 3.5 10.8 32.5

1987 CR Sax, Montaña y Vinalopó (13) . . . . . . . . . . . . . . . . . . 4.2 4.2 10.5 39.9

1984 CRP Ávila (14) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.1 9.1 28.0 32.5

1984 CRP Teruel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.3 15.3 47.0 32.5

1984 CRP Murcia (15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.0 18.0 55.3 32.5

1984 CRP Madrid (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.8 1.8 5.5 32.5

1984 CRP Baleares (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.8 3.1 5.9 18.1 32.5

1984 CR Nacional (16). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.1 19.1 58.7 32.5

1985 CR La Mancha, S. C. Agrícola (17) . . . . . . . . . . . . . . . . . 4.5 4.5 12.8 35.2

1986 C. Inversión, C. Coop. Cto. Ltda. (3) . . . . . . . . . . . . . . . . 2.1 2.1 5.5 38.1

1986 CR Pirineo (18) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.0 6.0 15.7 38.1

1987 CRP Cádiz (19) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.3 20.3 50.9 39.9

1987 CRP Salamanca . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.6 3.6 9.0 39.9

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.4 53.0 239.2 301.6 907.5


(1) Acquired by Caja Rural de Jaén, Barcelona y Madrid, SCC.(2) Withdrawal by agreement of the executive committee of the Bank of Spain.(3) Acquired by CA and MP Madrid (currently integrated in Bankia, SA).(4) Acquired by Cajamar Caja Rural, SCC.(5) Acquired by Caja de Ahorros de Galicia (currently integrated in Abanca Corporación Bancaria, SA). (6) Acquired by Caja Rural de Extremadura, SCC.(7) Acquired by Caja de Ahorros de La Rioja (currently integrated in Bankia, SA).

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(8) Acquired by Caja Rural del Sur, SCC.(9) Acquired by Caja de Ahorros para la Vejez y de Ahorros de Cataluña y Baleares (currently integrated in CaixaBank, SA).(10) Acquired by Caja de Ahorros de Cataluña (currently integrated in BBVA).(11) Acquired by Caja Rural Valencia, SCC (currently integrated in Cajamar Caja Rural, SCC).(12) Acquired by Caja Rural de Almería y Málaga, SCC (currently integrated in Cajamar Caja Rural, SCC).(13) Acquired by Caja Rural de Valencia, CCV (currently integrated in Cajamar Caja Rural, SCC).(14) Acquired by Caja de Ahorros y MP de Salamanca (currently integrated in Unicaja Banco, SA).(15) Acquired by Caja de Ahorros de Murcia (currently integrated in Bankia, SA).(16) Acquired by Banco de Crédito Agrícola, SA (currently integrated in BBVA).(17) Acquired by C. R. P. Albacete (currently integrated in Globalcaja).(18) Acquired by C. A. P. Barcelona (currently integrated in BBVA).(19) Acquired by C. A. P. San Fernando (currently integrated in CaixaBank, SA).

5.4. Fondo de Garantía de Depósitos de Entidades de Crédito, since 15 October 2011

Details by entities of the grants provided by the FGDEC since 15 October 2011, in mil-lions of euros:

Year EntitiesCapital

injections

Maximumcollateral provisions

(a)Total

Total in M euros 2018

(*)

CPI(2018 = 100)

2011 Banco CAM, SA (1) . . . . . . . . . . . . . . . . . . . . . . 5,249.0 16,609.7 21,858.7 23,216.7 94.2

2012 Unnim Banc, SA (2) . . . . . . . . . . . . . . . . . . . . . . 953.3 4,823.5 5,776.8 5,962.8 96.9

2013 NCG Banco, SA (3) . . . . . . . . . . . . . . . . . . . . . . 802.4 825.8 97.2

2013 Catalunya Banc, SA (4) . . . . . . . . . . . . . . . . . . . 1,000.9 1,030.0 97.2

2015 Banco de Madrid, SAU (5) . . . . . . . . . . . . . . . . . 125.8 130.8 96.2

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,564.6 31,166.1

(*) This column states the total of the rehabilitation operations, the amounts updated according to the CPI, establishing as base 100 December 2018. In the case of NCG Banco, SA, and Catalunya Banc, SA, the amounts correspond to the cost of the shares purchased through public offerings of voluntary acquisition aimed at retail investors, originated in management actions of hybrid instruments carried out by the FROB in the respective entities. In the case of Banco de Madrid, SAU, the amount includes payments of guaranteed amounts and payments made in excess of the coverage based on the informa-tion sent by the bank’s Bankruptcy Administration.

(a) States the maximum guarantee amount granted by the FGDEC in each EPA. (1) Acquired by Banco Sabadell, SA.(2) Acquired by BBVA.(3) Acquired by Corporación Bancaria, SA.(4) Acquired by BBVA. (5) Subsequent deregistration in the Entities Registry.

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ANNEX 6

LEGISLATIVE INDEX

Basic law

• Royal Decree-law 16/2011, of 14 October, under which the Fondo de Garantía de Depósitos de Entidades de Crédito is created.

• Royal Decree 2606/1996, of 20 December, on deposits guarantee funds of credit in-stitutions.

Additional legislation

• Royal Decree 102/2019, of 1 March, which creates the Macro prudential Authority Financial Stability Board, establishes its legal regime and develops certain aspects related to macro prudential tools.

• Circular 1/2019, of 30 January, of the Bank of Spain, by which Circular 8/2015, of 18 December, is modified, to the entities and branches attached to the Deposits Guarantee Fund of Credit Institutions, on information to determine the basis for cal-culating the contributions to the Deposits Guarantee Fund of Credit Institutions (en-try into force on 8 August 2019).

• Articles 30 quater and 43 of Royal Decree 217/2008, of 15 February, on the legal re-gime of investment services companies and other entities that provide investment services and which partially modifies the Regulations of the Law 35/2003, of 4 No-vember, of Collective Investment Institutions, approved by Royal Decree 1309/2005, of 4 November, included by the Fourth Final Provision of Royal Decree 1464/2018, of 21 December (entry into force on 17 April 2019).

• Circular 1/2018, of 31 January, which modifies the Circular 5/2016, of 27 May, on the method of calculation so that the contributions of the entities adhered to the De-posits Guarantee Fund of Credit Institutions are proportional to their risk profile, and Circular 8/2015, of 18 December, to the entities and branch offices attached to the Deposits Guarantee Fund of Credit Institutions, on information to determine the cal-

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culation bases of the contributions to the Deposits Guarantee Fund of Credit Institu-tions.

• Royal Decree-Law 11/2017, of 23 June, on urgent financial measures.

• Corrections of errors of Circular 5/2016, of 27 May, of the Bank of Spain, on the method of calculating the contributions of the member institutions to the Fondo de Garantía de Depósitos de Entidades de Crédito, for them to be proportional to their risk profile.

• Circular 5/2016, of 27 May, of the Bank of Spain, on the method of calculating the contributions of the member institutions to the Fondo de Garantía de Depósitos de Entidades de Crédito, for them to be proportional to their risk profile.1

• Correction of errors of Circular 8/2015, of 18 December, of the Bank of Spain to the entities and subsidiaries members of the Fondo de Garantía de Depósitos de Enti-dades de Crédito, on information to determine the basis for calculating contributions to the Fondo de Garantía de Depósitos de Entidades de Crédito.

• Circular 8/2015, of 18 December, of the Bank of Spain to the entities and subsidiar-ies members of the Fondo de Garantía de Depósitos de Entidades de Crédito, on in-formation to determine the basis for calculating the contributions to the Fondo de Garantía de Depósitos de Entidades de Crédito.2

• Royal Decree 1012/2015, of 6 November, implementing Law 11/2015, of 18 June, on recovery and resolution of credit institutions and investment services companies, developing and amending the Royal Decree 2606/1996, of 20 December, on depos-its guarantee funds of credit institutions.

• Law 11/2015, of 18 June, on recovery and resolution of credit institutions and invest-ment services companies.

• Sixth Additional Provision of Royal Decree 84/2015, of 13 February, by which it is implemented the Law 10/2014, of 26 June, on management, supervision and sol-vency of credit institutions (representatives of the member entities in the Managing Committee of the Deposits Guarantee Fund).

• Law 9/2012, of 14 November, on restructuring and resolution of credit institutions.

• Royal Decree-Law 2/2011, of 18 February, to strengthen the financial system.

• Royal Decree 628/2010, of 14 May, amending the Royal Decree 2606/1996, of 20 December, on deposits guarantee funds in credit institutions and the Royal Decree 948/2001, of 3 August on compensation mechanisms to the investors.

1 Circular modified by Circular 1/2018, of 31 January, published in the BOE on 9 February 2018.2 Circular modified by Circular 1/2018, of 31 January, published in the BOE on 9 February 2018.

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Community Legislation

• Commission Delegated Regulation (EU) 2015/63, of 21 October 2014, supplement-ing Directive 2014/59/EU of the European Parliament and of the Council with regard to ex ante contributions to resolution financing arrangements.

• Directive 2014/59/EU of the European Parliament and of the Council, of 15 May 2014, establishing a framework for the restructuring and resolution of credit institutions and investment services firms and amending Council Directive 82/891/EEC, and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No. 1093/2010 and (EU) No. 648/2012, of the European Parliament and of the Council.

• Directive 2014/49/EU, of 16 April, of the European Parliament and of the Council, on deposits guarantee schemes.

• Directive 2009/14/EC of the European Parliament and of the Council, of 11 March 2009, amending Directive 94/19/EC on deposit-guarantee schemes as regards the coverage level and the pay-out delay.

• Directive 97/9/EC of the European Parliament and of the Council, of 3 March 1997, on investor-compensation schemes.

• Directive 94/19/EC of the European Parliament and of the Council, of 30 May 1994, on deposit-guarantee schemes.

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