Opening direct accounts

What are direct accounts?

Direct accounts are securities accounts opened at Banco de España to keep the State debt balances in book entries for their holders.

These balances of securities remain segregated by direct account in the name of their holders in the register of third parties of Banco de España.

Only those natural or legal persons resident in Spain who cannot be authorised to operate directly through the registered Spanish public debt markets may be holders of direct accounts.

Under no circumstances may the holder of a direct account open a cash account at Banco de España in the name of the holder of the direct account.

Banco de España may refuse to open or withdraw a direct account when the holder(s) do not make the payments corresponding to their awarded subscription requests within the established time limits, or when their action compromise the proper functioning of the Direct Account Service.

How to open a direct account

A direct account will be opened as a consequence of:

The direct underwriting of State debt at Banco de España or by the Treasury web page (www.tesoro.es)
The transfer of balances of securities from an entity participating in the Spanish public debt markets (bank, savings bank, etc.) to the Banco de España-Direct Accounts.
«Mortis causa» acquisitions by the heirs or legatees of registered State debt balances that were already registered at Banco de España in the name of the deceased.

What information must be provided?

Natural persons must provide their tax identification number (NIF); legal persons, their tax identification number (NIF) and the deeds and powers entered in the Business Registry and, where appropriate, the publication of the entry in the Business Registry Official Gazette (BORME).
When the operation is executed, a form must be filled in with the details of those with a signature recognised by the Bank and the account number of the institution where you wish the amounts of amortisation, interest, surpluses, etc. to be paid.
The ownership of direct accounts opened by natural persons may be individual (a single holder) or joint (two or more holders). In order to facilitate account management, holders can conclude an agreement with the Banco de España on the availability of one or more of the holders and even of third parties.

What do direct accounts offer?

In general:

The exercise of the economic rights arising from registered balances of debt (collection of interest, amortization, payments), that shall become effective by means of a bank transfer to the account indicated by the holder.
At the request of the holder, amortised Debt reinvestments provided that said amortisation is made on the same date as debts issuance (instrument schedules are prepared so issuances are followed by amortisations). If there is a possibility of reinvestment, Banco de España notifies the holders in time to do so.
Timely management information is provided through the mailing of transaction receipts, reinvestment requests, notification of cash credits, letters with tax information, etc.
The possibility of transferring the registered debt, before its maturity, to another entity participating in the Spanish public debt markets or to the entity designated as legal aid by the BMEX for sales on the secondary market.

What do direct accounts exclude?

In general:

No purchase or sale of government debt may be made on the secondary debt market.
Changes in ownership arising from any transactions on the secondary market cannot be recorded.

What expenses do they incur?

Cash transfers are charged to Banco de España at the rates agreed by its Executive Committee.

Since 2 January 2005, these have been set at 1.5 per thousand, with 0.9 euros minimum and 200 euros maximum, on the amount to be transferred.

How to subscribe public debt again

Direct account holders can underwrite public debt in person at the offices of Banco de España or by the Treasury web page (www.tesoro.es).

In addition, only if holders have their handwritten signature recognised by the Direct Account Service of Banco de España, the form provided in the attached application could be completed and signed and sent by post to the office of Banco de España where the account is held. In any case, the underwriting will be carried out once the existence of sufficient funds in the payment account associated to the direct account has been verified.

How to claim

Holders of direct accounts who do not agree with the actions of Banco de España as a participant in the Spanish public debt markets may file a complaint with the Subdirectorate General for Public Debt of the Directorate General for the Treasury and Financial Policy or with the Institutions’ Conduct Department of Banco de España.