Fondo para la Financiación de los Pagos a Proveedores

The Fondo para la Financiación de los Pagos a Proveedores (FFPP or the Fund) was set up by the Royal Decree-law 7/2012 (the Decree) on March 9, 2012, to provide a means to settle commercial arrears in the regional and local governments that had accumulated before December 31, 2011. In return, those entities that have chosen to participate have agreed upon terms and conditions for payments of principal and interest, which underpin the financial position of the FFPP. The Senior Unsecured Debt is backed by the explicit, unconditional, irrevocable and direct guarantee from the Kingdom of Spain.