Regulatory Application

Banco Bilbao Vizcaya Argentaria SA
21 November 2006



Banco Bilbao Vizcaya Argentaria, S.A. (BBVA), pursuant to the provisions of
article 82 of the Spanish Securities Market Act, proceeds by means of the
present document to notify the following:



                                  RELEVANT EVENT



Today, 21 November 2006, the Spanish Congress' definitive approval of the text
of the Draft Bill on Personal Income Tax which also partially amends the laws on
Corporation Tax and Taxes for Non-Resident Persons and Wealth Tax, was published
in the Official Gazette of the Spanish Congress (BOCG). Paragraph 11 of the
final provision number two stipulates, among other issues, the reduction of the
general Corporate Tax rate to 32.5% for the fiscal periods starting in 2007, and
to 30% for the fiscal periods starting in 2008.


According to currently prevailing accounting standards, the BBVA Group has
recorded deferred tax assets and liabilities due to temporary differences, which
reflect the differences between the recorded value of the asset or liability and
the amount of their tax base. These temporary differences should be valued, as
provided in said standards, in accordance with the tax rate that would be
expected to apply in the year when the asset was realised or the liability was
settled; therefore the actual calculations are made with a tax rate of 35%.


Under International Accounting Standards, the definitive approval of said Draft
Bill and its publication in the BOCG provides sufficient certainty on the
reduction of the tax rate and makes it obligatory in 2006 to recalculate the
temporary differences using the new tax rate that will be applicable at the time
of its future recovery or materialization, ie, 32.5% for 2007 tax year and 30%
for tax year 2008 or after.


The BBVA Group has estimated the adverse effect that the above mentioned
adjustment will have in the BBVA shareholders fund at about € 450 million of the
Group's balance sheet for 2006, of which € 360 million will be registered as
expenses in the Income Statement.  Once the effect of such 'valuation
adjustments' has been discounted, the total impact on equity would be of
approximately € 250 million. Obviously, the precise impact may not be determined
exactly until the end of the current tax year.


This effect shall be offset with the positive impact that the reduction of the
tax rate will have on an ongoing basis on the future Group income statements for
the tax years starting as of January 1, 2007. Therefore, the overall valuation
of this legislative amendment must undoubtedly be considered positive for
Spanish corporations despite the adverse effect on their 2006 income statements.




                                                      Madrid, 21st November 2006



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