Key data
| Regulation | Resolution of September 8, 2026, from the General Secretariat of the Treasury and International Financing, updating Annex 1 of the Resolution of July 4, 2017 on financial prudence |
|---|---|
| Publication | September 11, 2026 |
| Effective date | September 11, 2026 |
| Affected parties | Regional governments, provincial councils, municipalities and local entities that contract debt |
| Category | Public Sector |
| Fiscal year | 2026 |
| Minimum fixed rate published | 2.47% annual (1 month term) |
| Maximum fixed rate published | 4.43% annual (360 month / 30 year term) |
| Variable rate alternative | Reference euribor + 20 basis points, with penalty-free cancellation |
| Official source | BOE-A-2026-18999 |
Regional governments and municipalities that are negotiating or renewing loans in September 2026 must verify their conditions against a new maximum interest rate table. The General Secretariat of the Treasury and International Financing has published the monthly update of Annex 1 of the Resolution of July 4, 2017 on financial prudence, with data captured on September 4, 2026 and immediate effect from September 11.
This update is not a structural change to the regulation: it is the monthly review of the specific values that determine whether a debt operation is compliant or not. What changes each month are the numbers. And the numbers this month are the ones that have legal validity right now.
What does this regulation establish?
The 2017 Resolution on financial prudence requires regional governments and local entities not to contract debt under conditions more expensive than those the Treasury considers prudent. To do this, the Treasury publishes monthly a table with the maximum fixed interest rates and the maximum spreads over euribor allowed according to the term of the operation.
The September 2026 update sets the following maximum annual fixed rates by term:
| Term | Maximum annual fixed rate |
|---|---|
| 1 month | 2.47% |
| 360 months (30 years) | 4.43% |
Intermediate terms not explicitly published in the table will be calculated using linear interpolation between the two closest published values.
For variable rate operations, the regulation contemplates a specific alternative: when the maximum cost resulting from the table is lower than the reference euribor, the administration may formalize the operation at euribor plus 20 basis points. Mandatory condition: the operation must be cancelable without commissions.
Administrations that have their own valuation tools may use them. Those that do not are required to apply this table to demonstrate compliance with the principle of financial prudence.
Economic and operational impact
The direct impact of this resolution is twofold: it limits the maximum cost at which an administration can borrow and determines the legal validity of operations signed from September 11, 2026 onwards.
From an operational standpoint, any loan, debt issuance or credit line renewal that exceeds the table rates falls outside the principle of financial prudence, which may compromise the operation's approval by control bodies and generate observations in audits or interventions.
The range between the minimum rate (2.47% at 1 month) and the maximum (4.43% at 30 years) reflects the current market rate curve. For long-term operations, the available margin is relatively narrow in the context of elevated rates: an administration negotiating a 20-year loan must ensure that the agreed rate does not exceed the interpolated value corresponding to that term.
The variable rate option (euribor + 20 basis points) may be more favorable at certain points in the cycle, but requires that the operation be cancelable without penalty, which adds flexibility but also means that the financial entity may not offer the same price conditions as in an operation without a cancellation clause.
Who does it affect?
- Regional governments that contract new debt operations or refinance existing debt.
- Provincial and regional councils with credit operations or debt issuances.
- Municipalities of any size that access bank financing or capital markets.
- Other local entities (associations, consortiums, dependent entities) subject to the principle of financial prudence.
- Comptrollers, treasurers and financial directors of public administrations responsible for validating operation conditions.
- Financial entities that structure or offer financing to public administrations and need to know current limits.
Practical example
A medium-sized municipality negotiates in September 2026 a fixed-rate loan at 15 years (180 months) to finance an infrastructure investment. Its bank offers it an annual rate of 4.10%.
The municipality does not have its own valuation tool, so it must apply the Treasury table. The 180-month term is not explicitly published, so it applies linear interpolation between the closest available values in the table. The interpolated result indicates what the maximum rate allowed for that specific term is.
If the offered rate (4.10%) is below the maximum interpolated rate, the operation complies with the principle of financial prudence and can be formalized. If it exceeds it, the municipality must renegotiate the conditions or document the use of its own valuation tool that justifies the operation.
Alternatively, if the variable rate resulting from the table were lower than the reference euribor at that time, the municipality could choose to formalize the operation at euribor + 20 basis points, as long as it includes an early cancellation clause without commissions.
What should administrations do now?
- Review all debt operations under negotiation and verify that the offered rates do not exceed the values of the table effective from September 11, 2026.
- Calculate by linear interpolation the maximum rate applicable to intermediate terms not explicitly published in the table (between 1 month and 360 months).
- Evaluate the variable rate option: if the maximum rate in the table is lower than the reference euribor, consider formalizing at euribor + 20 basis points, ensuring the operation includes penalty-free cancellation.
- Document compliance in the operation file, indicating the table values applied and the verification result, for support in case of intervention or audit.
- If you have your own valuation tool, verify that it is properly accredited; otherwise, the Treasury table is mandatory.
- Update internal processes to incorporate monthly consultation of the Treasury table as a prior step to approving any new debt operation.
Frequently asked questions
What are the maximum fixed rates in effect from September 11, 2026?
The table published by the Treasury with data from September 4, 2026 sets a minimum annual fixed rate of 2.47% for the 1-month term and a maximum of 4.43% for the 360-month (30-year) term. Intermediate terms are calculated by linear interpolation between the closest values in the table.
What happens if a municipality contracts debt above these rates?
The operation breaches the principle of financial prudence established in the Resolution of July 4, 2017. This may generate observations or objections from municipal intervention, compromise the operation's approval and be exposed in financial control audits. The regulation does not establish a direct economic penalty, but non-compliance has consequences for internal control and spending legality.
When can euribor + 20 basis points be used instead of the fixed rate table?
This alternative is only applicable to variable rate operations and only when the maximum cost resulting from the Treasury table is lower than the reference euribor at that time. Additionally, it is mandatory that the operation be cancelable without commissions. If both conditions are not met simultaneously, this option cannot be used.
How often is this Treasury table updated?
The General Secretariat of the Treasury updates Annex 1 of the 2017 Resolution on a monthly basis. Each update captures market data from a specific date in the previous month. The table effective from September 11, 2026 is based on data from September 4, 2026. Administrations must consult the current version at the time of formalizing each operation.
Are all administrations required to use this table?
The obligation to use the Treasury table applies to administrations that do not have accredited proprietary valuation tools. Those that do have such tools may use them as an alternative. In practice, most medium and small-sized municipalities and local entities do not have these tools, so the table is mandatory for them.
Official source
View complete regulation at official source
Disclaimer: 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-2026-18999
