23. Financial liabilities at amortized cost

The breakdown of the balance under these headings in the accompanying consolidated balance sheets is as follows:

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Financial Liabilities at Amortized Cost	Notes	Millions of Euros
		2013	2012	2011
Deposits from Central Banks	9	30,893	46,475	32,877
Deposits from Credit Institutions	23.1	52,423	55,675	56,601
Customer deposits	23.2	300,490	282,795	272,402
Debt certificates	23.3	64,120	86,255	81,124
Subordinated liabilities	23.4	10,556	11,815	15,303
Other financial liabilities	23.5	5,659	7,590	7,410
Total		464,141	490,605	465,717

23.1 Deposits from credit institutions

The breakdown of the balance under this heading in the consolidated balance sheets, according to the nature of the financial instruments, is as follows:

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Deposits from Credit Institutions	Notes	Millions of Euros
		2013	2012	2011
Reciprocal accounts		333	280	298
Deposits with agreed maturity		27,088	30,022	30,719
Demand deposits		2,485	3,404	2,008
Other accounts		341	206	343
Repurchase agreements	37	22,007	21,533	22,957
Subtotal		52,254	55,445	56,326
Accrued interest until expiration		168	230	276
Total		52,423	55,675	56,601

The breakdown by geographical area and the nature of the related instruments of this heading in the accompanying consolidated balance sheets, disregarding interest accrued pending maturity, is as follows:

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Deposits from Credit Institutions 2013	Millions of Euros
	Demand Deposits	Deposits with Agreed Maturity	Repurchase Agreements	Total
Spain	806	7,781	562	9,149
Rest of Europe	291	9,222	17,313	26,826
Mexico	166	2,071	3,594	5,831
South America	546	2,816	388	3,750
The United States	990	4,726	-	5,716
Rest of the world	19	813	150	982
Total	2,818	27,429	22,007	52,254

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Deposits from Credit Institutions 2012	Millions of Euros
	Demand Deposits	Deposits with Agreed Maturity	Repurchase Agreements	Total
Spain	2,078	8,407	1,157	11,642
Rest of Europe	260	11,584	6,817	18,661
Mexico	220	1,674	12,967	14,861
South America	477	3,455	376	4,308
The United States	619	4,759	216	5,594
Rest of the world	31	349	-	380
Total	3,685	30,228	21,533	55,445

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Deposits from Credit Institutions 2011	Millions of Euros
	Demand Deposits	Deposits with Agreed Maturity	Repurchase Agreements	Total
Spain	472	8,354	394	9,220
Rest of Europe	315	12,641	12,025	24,981
Mexico	359	1,430	9,531	11,320
South America	251	2,863	478	3,593
The United States	799	4,925	529	6,253
Rest of the world	111	849	-	960
Total	2,307	31,062	22,957	56,326

23.2 Customer deposits

The breakdown of this heading in the accompanying consolidated balance sheets, by type of financial instrument, is as follows:

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Customer Deposits	Notes	Millions of Euros
		2013	2012	2011
Government and other government agencies		25,058	32,439	40,566
Spanish		5,913	5,185	4,269
Foreign		10,618	10,611	12,253
Repurchase agreements	37	8,512	16,607	24,016
Accrued interests		15	36	28
Other resident sectors		136,634	119,360	108,216
Current accounts		32,430	28,653	28,211
Savings accounts		21,128	19,554	16,003
Fixed-term deposits		69,976	61,972	49,105
Repurchase agreements	37	11,608	8,443	14,154
Other accounts		950	53	35
Accrued interests		542	685	708
Non-resident sectors		138,799	130,998	123,621
Current accounts		57,502	53,088	44,804
Savings accounts		33,245	34,797	29,833
Fixed-term deposits		39,781	38,490	42,554
Repurchase agreements	37	7,740	3,999	5,809
Other accounts		201	236	210
Accrued interests		330	388	411
Total		300,490	282,795	272,402
Of which:
In euros		160,172	150,093	152,375
In foreign currency		140,318	132,702	120,027
Of which:
Deposits from other creditors without valuation adjustment		299,660	281,984	271,637
Accrued interests		830	811	765

The breakdown by geographical area of this heading in the accompanying consolidated balance sheets, by type of instrument and geographical area, disregarding valuation adjustments, is as follows:

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Customer Deposits 2013	Millions of Euros
	Demand Deposits	Savings Deposits	Deposits with Agreed Maturity	Repurchase Agreements	Total
Spain	37,540	21,147	71,710	12,433	142,829
Rest of Europe	2,192	269	7,881	8,902	19,244
Mexico	19,902	8,583	6,670	5,758	40,913
South America	24,257	14,057	17,245	659	56,218
The United States	17,532	12,348	9,141	108	39,128
Rest of the world	305	70	897	-	1,272
Total	101,727	56,473	113,544	27,860	299,604

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Customer Deposits 2012	Millions of Euros
	Demand Deposits	Savings Deposits	Deposits with Agreed Maturity	Repurchase Agreements	Total
Spain	32,663	19,729	63,025	21,594	137,011
Rest of Europe	2,494	278	5,796	4,635	13,203
Mexico	19,029	7,990	8,187	2,061	37,267
South America	22,381	14,423	17,186	759	54,749
The United States	15,415	13,946	9,473	-	38,834
Rest of the world	209	53	362	-	624
Total	92,191	56,419	104,029	29,049	281,687

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Customer Deposits 2011	Millions of Euros
	Demand Deposits	Savings Deposits	Deposits with Agreed Maturity	Repurchase Agreements	Total
Spain	31,263	16,160	39,333	38,170	124,927
Rest of Europe	3,636	294	22,511	1,148	27,588
Mexico	16,986	6,803	8,023	4,479	36,292
South America	16,247	11,428	15,538	182	43,396
The United States	14,845	12,768	9,586	-	37,199
Rest of the world	243	224	1,386	-	1,852
Total	83,221	47,677	96,378	43,979	271,255

23.3 Debt certificates (including bonds)

The breakdown of the balance under this heading in the accompanying consolidated balance sheets is as follows:

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Debt Certificates	Millions of Euros
	2013	2012	2011
Promissory notes and bills	1,318	11,156	7,491
Bonds and debentures	62,802	75,099	73,633
Total	64,120	86,255	81,124

The breakdown of the most significant outstanding issuances of debt instruments issued by the consolidated entities as of December 31, 2013, 2012 and 2011 is shown in Appendix VI.

The changes in the balances under this heading, together with the “Subordinated Liabilities” for 2013, 2012 and 2011 are included in Note 58.4.

23.3.1 Promissory notes and bills

The breakdown of the balance under this heading, by currency, is as follows:

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Promissory notes and bills	Millions of Euros
	2013	2012	2011
In euros	1,231	10,346	6,672
In other currencies	88	810	819
Total	1,318	11,156	7,491

These promissory notes were issued mainly by Banco Bilbao Vizcaya Argentaria, S.A., BBVA Banco de Financiación, S.A., BBVA Senior Finance, S.A. Unipersonal and BBVA US Senior, S.A. Unipersonal. The issues of promissory notes by BBVA Banco de Financiación, S.A., BBVA Senior Finance, S.A. Unipersonal and BBVA US Senior, S.A. Unipersonal, are guaranteed jointly, severally and irrevocably by the Bank.

23.3.2 Bonds and debentures issued

The breakdown of the balance under this heading, by financial instrument and currency, is as follows:

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Bonds and debentures issued	Millions of Euros
	2013	2012	2011
In Euros -	51,373	63,355	64,063
Non-convertible bonds and debentures at floating interest rates	177	3,141	4,648
Non-convertible bonds and debentures at fixed interest rates	11,818	14,429	9,381
Mortgage Covered bonds	31,715	35,765	33,842
Hybrid financial instruments	318	248	288
Securitization bonds made by the Group	5,830	5,484	6,638
Other securities	-	-	5,709
Accrued interest and others (*)	1,515	4,288	3,557
In Foreign Currency -	11,429	11,745	9,570
Non-convertible bonds and debentures at floating interest rates	1,387	2,163	2,256
Non-convertible bonds and debentures at fixed interest rates	7,763	7,066	4,668
Mortgage Covered bonds	185	225	289
Hybrid financial instruments	1,514	1,550	1,397
Other securities associated to financial activities	-	-	-
Securitization bonds made by the Group	518	697	450
Other securities	-	-	473
Accrued interest and others (*)	62	44	37
Total	62,802	75,099	73,633

(*) Hedging operations and issuance costs.

Most of the foreign-currency issuances are denominated in US dollars.

The issues of senior debt by BBVA Senior Finance, S.A.U., BBVA U.S. Senior, S.A.U. and BBVA Global Finance, Ltd. are guaranteed jointly, severally and irrevocably by the Bank.

The following table shows the weighted average interest rates of fixed and floating rate bonds and debentures issued in euros and foreign currencies in effect in 2013, 2012 and 2011:

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Interests Rates of Promissory Notes and Bills Issued	2013		2012		2011
	Euros	Foreign Currency	Euros	Foreign Currency	Euros	Foreign Currency
Fixed rate	3.86%	4.46%	3.89%	5.87%	3.81%	5.55%
Floating rate	3.34%	3.49%	3.78%	4.29%	2.38%	4.88%

23.4 Subordinated liabilities

The breakdown of this heading in the accompanying consolidated balance sheets, by type of financial instrument, is as follows:

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Subordinated Liabilities	Notes	Millions of Euros
		2013	2012	2011
Subordinated debt		8,432	9,259	12,668
Preferred Stock		1,827	1,847	1,760
Subtotal		10,259	11,106	14,428
Valuation adjustments and other concepts (*)		297	709	874
Total	23	10,556	11,815	15,303

(*) Includes accrued interest payable and valuation adjustment of hedging derivatives

Of the above, the issuances of BBVA International, Ltd., BBVA Capital Finance, S.A.U., BBVA International Preferred, S.A.U., BBVA Subordinated Capital, S.A.U. and BBVA Global Finance, Ltd. are jointly, severally and irrevocably guaranteed by the Bank.

Subordinated debt

These issuances are non-convertible subordinated debt and accordingly, for debt seniority purposes, they rank behind ordinary debt, but ahead of the Bank’s shareholders, without prejudice to any different seniority that may exist between the different types of subordinated debt instruments according to the terms and conditions of each issue. The breakdown of this heading in the accompanying consolidated balance sheets, disregarding valuation adjustments, by currency of issuance and interest rate is shown in Appendix VI. The balance variances are mainly due to the following transactions:

Contingent convertible securities

During 2013, BBVA issued perpetual securities eventually convertible (Contingent Convertible) into ordinary shares of BBVA, without pre-emption rights, for a total amount of 1.5 billion US dollars (€1,088 million as of 31 December, 2013). The issue allowed for discretionary distribution of coupons recognized in equity (See Note 4). The issuance was targeted only towards qualified and sophisticated foreign investors and in any case would not be made or subscribed in Spain or among Spanish-resident investors. These securities are listed in the Singapore Exchange Securities Trading Limited.

Conversion of subordinated bond issues

At its meeting on November 22, 2011, in virtue of the authorization conferred under Point Six of the Agenda of the Bank’s Annual General Meeting of Shareholders held on March 14, 2008, the Board of Directors of BBVA agreed to issue convertible bonds in December 2011 (the “Issue” or “Convertible Bonds-December 2011”, “the convertible bonds” or the “Bonds”) for a maximum amount of €3,475 million, excluding a preemptive subscription right.

This issue was aimed exclusively at holders of preferred securities issued by BBVA Capital Finance, S.A. Unipersonal (series A, B, C and D) or BBVA International Limited (series F), all guaranteed by BBVA.

Thus, those who accepted the purchase offer made by BBVA made an unconditional and irrevocable undertaking to subscribe a nominal amount of Convertible Bonds-December 2011 equivalent to 100% of the total nominal or cash amount for the preferred securities they owned and that would be acquired by BBVA.

On December 30, 2011, after the period envisaged in this respect, orders were received for the subscription of 34,300,002 Convertible Bonds with a nominal value of €100 each, giving a total of €3,430 million, compared with the initially planned €3,475 million. This means that holders of 98.71% of the preferred securities to be repurchased accepted the repurchase offer made by BBVA. The Convertible Bonds were recognized as financial liabilities since the number of Bank shares to be delivered can vary.

The terms and conditions of the Convertible Bonds established a voluntary conversion at the option of the holders on March 30, 2012. Following this date, orders were received for the voluntary conversion of a total of €955 million, corresponding to 9,547,559 Convertible Bonds, or 27.84% of the original amount of the issue of Convertible Bonds-December 2011. To meet the bond conversion, 157,875,375 new ordinary BBVA shares were issued at a par value of €0.49 each (see Note 27).

Also, in accordance with the terms and conditions of the Convertible Bonds, on December 31, 2012 a mandatory conversion of the 50% of the nominal value of the issue took place through the reduction of the nominal value of each and every one of the Convertible Bonds outstanding on that date, whose value then fell from a nominal €100 to €50. A total of 238,682,213 new ordinary BBVA shares were issued at a par value of €0.49 each to satisfy this conversion (see Note 27).

As of December 31, 2013, 2012 and 2011, the nominal amount of outstanding convertible bonds was €1,238 million.

Lastly, as of June 30, 2013, maturity date of the issue, the convertible bonds outstanding on that date were subject to mandatory conversion. An increase in the Bank’s common stock was carried out to satisfy the requirement of this conversion by the issue and distribution of 192,083,232 ordinary shares at a par value of 0,49€ each, amounting to a total of €94,120,783,68, with the share premium being €1,143,279,396.8640.

Preferred securities

The breakdown by issuer of the balance under this heading in the accompanying consolidated balance sheets is as follows:

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Preferred Securities by Issuer	Millions of Euros
	2013	2012	2011
BBVA International Preferred, S.A.U. (*)	1,666	1,695	1,696
Unnim Group (**)	109	95	-
BBVA Capital Finance, S.A.U. (***)	29	32	36
Phoenix Loan Holdings, Inc.	15	16	19
BBVA International, Ltd. (***)	8	9	9
Total	1,827	1,847	1,760

(*) Listed on the London and New York stock markets. (**) Unnim Group: Issues prior to the acquisition by BBVA. The outstanding balance of these issues after the exchange of certain issues of preferred securities for BBVA shares is shown as of December 31, 2012. (***) Issues traded on the AIAF market in Spain. As of December 31, 2012, the outstanding balances of these issues correspond to the holders of preferred securities who in December 2011 did not take part in the exchange of those preferred security issues for subordinated bonds.

These issues were fully subscribed by third parties outside the Group and are wholly or partially redeemable at the issuer company’s option after five or ten years from the issue date, depending on the terms of each issue and with prior consent from the Bank of Spain.

The breakdown of the issues of preferred securities in the accompanying consolidated balance sheets, excluding valuation adjustments, by currency of issuance and interest rate of the issues, is disclosed in Appendix VI.

23.5 Other financial liabilities

The breakdown of the balance under this heading in the accompanying consolidated balance sheets is as follows:

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Other financial liabilities	Millions of Euros
	2013	2012	2011
Creditors for other financial liabilities	1,349	2,128	2,144
Collection accounts	2,342	2,311	2,212
Creditors for other payment obligations (*)	1,968	3,151	3,054
Total	5,659	7,590	7,410

(*) Includes dividends payable but pending payment as of December 31, 2012 and 2011.

As of December 31, 2012 and 2011, the “Interim dividend pending payment” from the table above corresponds to the first interim dividend against 2012 and 2011 earnings, paid in January of the following years.