Key data
| Regulation | Resolution of 3 July 2026, from the General Secretariat of the Treasury and International Financing, updating Annex 1 of the Resolution of 4 July 2017 on financial prudence |
|---|---|
| Publication | 7 July 2026 |
| Entry into force | 7 July 2026 |
| Affected parties | Autonomous communities, provincial councils, municipalities and other local entities that borrow |
| Category | Public Sector |
| Year | 2026 |
| Data taken | 2 July 2026 |
| Reference regulation | Resolution of 4 July 2017 on the principle of financial prudence |
The maximum interest rates that sub-central public administrations can assume when borrowing have just been updated. The Resolution of 3 July 2026 from the General Secretariat of the Treasury and International Financing publishes the table in force from 7 July itself, with market data taken on 2 July 2026. This monthly update is mandatory for any local or regional entity that does not have its own financial valuation tools.
What does this regulation establish?
The principle of financial prudence, regulated since the Resolution of 4 July 2017, obliges autonomous communities and local entities not to exceed maximum interest rates when borrowing. The Treasury updates these limits monthly based on market conditions.
The table published on 7 July 2026 includes two types of reference: maximum fixed rates according to the term of the operation, and maximum spreads over euribor for variable rate operations. Below are the maximum fixed rates by term:
| Operation term | Maximum fixed rate |
|---|---|
| 1 month | 2.28% |
| 360 months (30 years) | 4.11% |
For variable rate operations, maximum spreads are published over the most common reference euribors:
| Variable reference | Maximum spread according to term |
|---|---|
| 1-month euribor | Maximum spread published in the table according to operation term |
| 3-month euribor | Maximum spread published in the table according to operation term |
| 6-month euribor | Maximum spread published in the table according to operation term |
| 12-month euribor | Maximum spread published in the table according to operation term |
The resolution also includes an escape clause: when the maximum cost resulting from the table falls below the applicable reference euribor, the administration can formalize the operation up to a maximum of euribor plus 20 basis points, provided that the operation is cancellable without commissions at any time.
Economic and operational impact
The direct impact of this update is twofold: operational and financial.
- Operational: Any administration lacking its own financial valuation tools must obligatorily consult this table before formalizing any loan or debt issuance. Failing to do so constitutes a breach of the principle of financial prudence.
- Financial: The maximum rates set act as a cost ceiling. A 30-year operation cannot exceed 4.11% in fixed rate. Any bank offer above that threshold must be rejected or renegotiated.
- Escape clause: In low-rate environments or when the market offers more favorable conditions than the table, the administration can use the euribor margin plus 20 basis points, but only if the operation allows early cancellation without penalty.
- Monthly update: Rates change every month. An operation negotiated in June may have different limits than one signed in July. It is essential to verify the table in force on the date of formalization, not on the date of negotiation.
Who does it affect?
- Autonomous communities that issue debt or formalize loans.
- Provincial and regional councils.
- Municipalities of any size that finance themselves through bank loans or debt issuances.
- Other local entities (associations, consortiums, local autonomous bodies) that operate with debt.
- Comptrollers, treasurers and financial directors of sub-central public administrations responsible for validating the conditions of debt operations.
- Financial entities that structure or market debt for the local and regional public sector, as their offers must comply with these limits.
Practical example
A medium-sized municipality needs to finance an infrastructure investment and negotiates with its reference bank a 20-year (240-month) fixed-rate loan. The bank offers it a rate of 4.50%.
Before signing, the municipal comptroller must consult the table published on 7 July 2026. The maximum fixed rate for long terms reaches 4.11% at 360 months. For a term of 240 months, the applicable limit will be below that ceiling. The bank's offer at 4.50% exceeds the maximum allowed: the municipality cannot accept it without breaching the principle of financial prudence.
The solution involves renegotiating with the bank to stay within the limit, or exploring whether the escape clause applies: if the reference euribor plus 20 basis points is lower than the offered rate and the operation is cancellable without commissions, it could be formalized under that variable modality. Otherwise, the operation must be discarded or reformulated.
What should administrations do now?
- Verify the current table before each operation: Rates are updated monthly. Download and file the table published on 7 July 2026 if you have operations in progress or planned for this month.
- Compare bank offers received with the table limits: No fixed-rate offer can exceed 4.11% (maximum term of 360 months). For shorter terms, the limit is lower. Reject or renegotiate any offer that exceeds the applicable threshold.
- Evaluate the escape clause if market conditions justify it: If the reference euribor plus 20 basis points is more favorable than the maximum fixed rate in the table, consider a variable operation with early cancellation without commissions.
- Document compliance in the file: Include in the operation file the Treasury table in force on the date of formalization and a comparison with the agreed conditions. This protects the administration against possible audits or controls.
- Schedule monthly review: If you have operations under negotiation that extend over several months, review the table each time a new update is published, as limits may vary.
Frequently asked questions
What is the maximum fixed rate that a municipality can pay on a 30-year loan in July 2026?
According to the table published on 7 July 2026 by the General Secretariat of the Treasury, the maximum fixed rate for operations at 360 months (30 years) is 4.11%. For shorter terms, the limit is lower: the minimum in the table is 2.28% for 1-month operations.
What happens if a municipality signs a loan above the Treasury's maximum rate?
It breaches the principle of financial prudence established in the Resolution of 4 July 2017. Administrations without their own valuation tools are obliged to respect these limits. Non-compliance may result in observations from control bodies (Comptroller's Office, Court of Auditors) and in the nullity or revision of the operation.
What is the escape clause and when can it be applied?
The escape clause allows formalizing a variable-rate operation of up to euribor plus 20 basis points when the maximum cost resulting from the Treasury table falls below the applicable reference euribor. To be eligible, the operation must be cancellable without commissions at any time.
How often is the Treasury's maximum rates table updated?
The table is updated monthly. The resolution published on 7 July 2026 includes data taken on 2 July 2026 and replaces the previous table. It is essential to consult the version in force on the date of formalization of each operation, not on the date of negotiation.
Which administrations are obliged to consult this table?
All autonomous communities, provincial councils, municipalities and other local entities that borrow and do not have their own financial valuation tools are obliged. Consultation is mandatory before formalizing any loan or debt issuance.
Official source
View complete regulation at official source
Notice: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://www.boe.es/diario_boe/txt.php?id=BOE-A-2026-14657