Royal Decree-Law on urgent measures on financial matters (Royal Decree-Law 4/2016, published in the Official State Gazette (BOE) of December 3rd)
The Royal Decree-Law regulates certain matters relating to the Single Resolution Fund, to the specific accounting regime of the Asset Management Company for Assets Arising from Bank Restructuring (SAREB) and to the divestment period of the Fund for the Orderly Restructuring of the Banking Sector (FROB) of the institutions in which it participates.
The Royal Decree-Law grants the Ministry of Economy, Industry and Competitiveness the
authorisation to sign the loan facility agreement [2] with the Single Resolution Board and grants the General Secretariat of the Treasury and Financial Policy the authorisation to perform the transactions deriving from this agreement.
The Royal Decree-Law also
amends Law 9/2012, of November 14
th, on credit institution restructuring and resolution, specifying the recognition regime of the valuation adjustments of assets, net of their tax effect, with a charge to an equity item.
Lastly, it
amends Law 11/2015, of June 18
th, on the recovery and resolution of credit institutions and investment firms, to extend the period of divestment by the FROB of the ordinary shares or capital contributions acquired in the framework of restructuring and resolution processes from five to seven years. This period may subsequently be extended by agreement of the Spanish Cabinet when the Ministry of Economy, Industry and Competitiveness deems it necessary to best achieve resolution objectives.