Circular 20/2020 — Provision of Resources to Credit Institutions to Channel Credit to Micro, Small and Medium Enterprises and Individuals

Tuesday, June 2, 2020 OFFICIAL GAZETTE 155
BANK OF MEXICO
CIRCULAR 20/2020 addressed to multiple banking and development banking institutions, regarding the Rules applicable to the provision of resources to credit institutions to channel credit to micro, small and medium-sized enterprises, as well as to individuals.

A logo appears at the margin, stating: Bank of Mexico.- "2020, Year of Leona Vicario, Meritorious Mother of the Fatherland".

CIRCULAR 20/2020
TO MULTIPLE BANKING AND DEVELOPMENT BANKING INSTITUTIONS:
SUBJECT: RULES APPLICABLE TO THE PROVISION OF RESOURCES TO CREDIT INSTITUTIONS TO CHANNEL CREDIT TO MICRO, SMALL AND MEDIUM-SIZED ENTERPRISES, AS WELL AS TO INDIVIDUALS.

The Bank of Mexico, considering the impacts that the COVID-19 pandemic has had on the global economy and on the behavior of our country's financial markets, as well as on the foreign exchange and fixed income markets which continue to show little depth, lower liquidity, and a deterioration of operating conditions, with the object of continuing to promote the sound development of the financial system and to ensure its stability, as well as to promote the proper functioning of payment systems and avoid disturbances in them, has considered it necessary to maintain the provision of liquidity in national currency to credit institutions, in observance of the applicable regulations to the operations that this Central Institute is authorized to carry out with such institutions, with the aim of improving the functioning of national markets, strengthening credit granting channels in the economy and promoting the orderly behavior of our country's debt and exchange markets. With this, this Central Institute will contribute to the existence of conditions that facilitate credit institutions to fulfill their priority function of providing financing to the economy, which is why it has resolved to offer these institutions this liquidity facility, on a provisional basis, with the objective that they use the respective resources to grant financing directly, to micro, small and medium-sized enterprises, as well as to individuals, or indirectly, through other non-bank financial entities. For this purpose, the operations subject to this facility will be framed within the financing scenarios recognized by law, in accordance with the mandate and parameters that the Political Constitution of the United Mexican States imposes on the Central Bank, ensuring at all times that they fully comply with the financing objectives and limitations established in the Bank of Mexico Law. As part of this, the facilities that, like this one, the Bank of Mexico has implemented in response to the prevailing conditions of economic and financial stress, have been designed with the purpose that financial institutions that can access these facilities continue to fulfill their function as credit grantors to the people and companies of the country, without this extending to related parties of their respective corporate structures.

For the above, based on articles 25, second paragraph, 28, sixth and seventh paragraphs, of the Political Constitution of the United Mexican States, 7, sections I, II and X, 8, 14, first paragraph, 15, 16, 24, 28 and 36, of the Bank of Mexico Law, 54 and 96 Bis, of the Credit Institutions Law, 22 of the Law for Transparency and Ordering of Financial Services, 4, first paragraph, 8, fourth and eighth paragraphs, 10, 12, first paragraph, in relation to 19 Bis, sections I and V, 12 Bis, first paragraph, in relation to 20 Ter, section II, and 20 Quáter, sections II and IV, 14, first paragraph, in relation to 25, section VII, 14 Bis, first paragraph, in relation to 17, section I, and 14 Bis 1, first paragraph, in relation to 25 Bis 1, section IV, of the Internal Regulations of the Bank of Mexico, which grant it the authority to issue provisions through the General Directorate of Central Banking Operations, the General Directorate of Payment Systems and Market Infrastructures, the General Directorate of Financial Stability, the General Legal Directorate and the General Directorate of Affairs of the Financial System, respectively, as well as Second, sections I, IV, VI, X and XVII, of the Agreement on the Assignment of Administrative Units of the Bank of Mexico, it has resolved the following:

156 OFFICIAL GAZETTE Tuesday, June 2, 2020
FIRST. The Rules Applicable to the Provision of Resources to Credit Institutions to Channel Credit to Micro, Small and Medium-Sized Enterprises, as well as to Individuals, are issued, under the following terms:

RULES APPLICABLE TO THE PROVISION OF RESOURCES TO CREDIT INSTITUTIONS TO CHANNEL CREDIT TO MICRO, SMALL AND MEDIUM-SIZED ENTERPRISES, AS WELL AS TO INDIVIDUALS

1. Definitions.
   For the purposes of these Rules, the terms used herein, in singular or plural, shall have the meanings indicated below, without prejudice to the different treatment given to similar terms in other regulations:

BONDES: Bonds for Development issued by the Federal Government of the United Mexican States in the national market, denominated in national currency, both at fixed interest rate, also known as "BONOS M", and at variable interest rate, also known as "BONDES D", and denominated in UDIS at fixed interest rate, also known as "UDIBONOS".

BONOS UMS: Debt instruments denominated in foreign currency issued by the Federal Government of the United Mexican States in international markets.

BPAS: Securities issued for the protection of bank savings in terms of the Federal Revenue Law for the corresponding fiscal year, with respect to which the Bank of Mexico acts as financial agent for their issuance and placement in the national market, registered in the National Securities Registry referred to in the Securities Market Law.

BREMS: Monetary Regulation Bonds issued by the Bank of Mexico in the national market.

Global Credit Quality Criterion:
that applicable to securities offered for repurchase under these Rules, under which they must have, at least, two ratings, on a global scale, granted by the Securities Rating Agencies Moody’s, S&P Global Ratings, Fitch Ratings and HR Ratings equal to or greater than Ba1 / BB+ / BB+ / HR BB+ (G), respectively or, in the case of short-term securities, to the respective ratings equal to or greater than P-2 / A-2 / F2 / HR2 (G), or to a rating equivalent to the foregoing that any other Securities Rating Agency assigns.

National Credit Quality Criterion:
that applicable to securities offered for repurchase under these Rules under which they must have, at least, two ratings, on a national scale, granted by the Securities Rating Agencies Moody’s, S&P Global Ratings, Fitch Ratings and HR Ratings equal to or greater than A2.mx / mxA / A(mex) / HR A, respectively or, in the case of short-term securities, to the respective ratings equal to or greater than MX-2 / mxA-2 / F2(mex) / HR2 or to a rating equivalent to the foregoing that any other Securities Rating Agency assigns.

CETES: Certificates of the Treasury of the Federation issued by the Federal Government of the United Mexican States in the national market, excluding those issued under programs for restructuring of credits in UDIS (Special CETES).

Single Account: the national currency demand deposit bank account that the Bank of Mexico maintains for each of the Institutions in accordance with what is provided in the Operating Provisions.

Monetary Regulation Deposits:
the monetary regulation deposit that Credit Institutions are obliged to constitute in accordance with what is provided by article 28 of the Bank of Mexico Law.

Banking Business Days: the days on which Institutions are not obliged to close their doors or suspend their operations, in terms of the general provisions, for such effect, issued by the National Banking and Securities Commission.

Operating Provisions: the Provisions Applicable to the Operations of Credit Institutions, Regulated Multiple-Object Financial Companies that Maintain Patrimonial Links with Credit Institutions and the National Financial Development Company for Agriculture, Rural, Forestry and Fisheries, issued by the Bank of Mexico through Circular 3/2012, published in the Official Gazette of the Federation on March 2, 2012, as they have been modified by subsequent resolutions.

Eligible Currency: the Australian Commonwealth dollar, Canadian dollar, United States of America dollar, New Zealand dollar, European Union euro, United Kingdom of Great Britain and Northern Ireland pound sterling and Japanese yen.

State Productive Enterprises: Petróleos Mexicanos and the Federal Electricity Commission, as well as their respective subsidiary productive enterprises.

FIRA: Trusts Established in Relation to Agriculture, in which the Bank of Mexico acts as trustee institution and which correspond to the following: Guarantee and Promotion Fund for Agriculture, Livestock and Poultry, Special Fund for Agricultural Financing, Special Technical Assistance and Guarantee Fund for Agricultural Credits and Guarantee and Promotion Fund for Fishing Activities.

Indeval: S.D. Indeval, Institution for the Deposit of Securities, S.A. de C.V.

Institutions: multiple banking or development banking institutions, as applicable.

Securities Rating Agency: any of the anonymous societies authorized by the National Banking and Securities Commission to act with such character, in terms of what is provided by the Securities Market Law, as well as their foreign subsidiaries that grant credit ratings to the securities subject to repurchase under these Rules.

Manual: the operating manual to implement the repurchase operations provided for in these Rules that the Bank of Mexico makes known to Institutions through the internet portal located at the address: <http://webdgobc>.

MiPyME: the micro, small and medium-sized enterprise understood as one with a number of employees not exceeding 250 and that, in case it has entered into one or more financing agreements with the Institution in question that remain valid at the time the Institution obtains resources from the Bank of Mexico under these Rules, the sum of the principal amounts of said financing, at the date of their origin, is not greater, in total, to 50 million pesos for each of those companies.

Related Parties: the related persons referred to in article 73 of the Credit Institutions Law and, in the case of Institutions that are development banking, to those persons that have links with said Institutions in terms equivalent to those provided in that article.

UDIS: the investment units referred to in the Decree by which the obligations that may be denominated in Investment Units are established and Reform and Add various provisions of the Federal Tax Code and the Income Tax Law published in the Official Gazette of the Federation on April 1, 1995.

Government Securities: CETES and BONDES, including the coupons segregated from BONDES with fixed interest rate in pesos or in UDIS to which the "Rules for the Segregation and Reconstitution of Titles" issued by the Secretariat of Finance and Public Credit refer, BONOS UMS, as well as BPAS and BREMS.

158 OFFICIAL GAZETTE Tuesday, June 2, 2020

2. General terms and conditions.
   2.1 Conditions for granting resources.
   The corresponding Institution may obtain the resources subject to these Rules, in order to use them to grant financing to MiPyME, as well as to individuals, directly or indirectly, through other non-bank financial entities, through the following operations carried out under the terms and subject to the conditions set forth in these same Rules: (i) first, it may make withdrawals from the available amount of the Monetary Regulation Deposit constituted at the Bank of Mexico, in accordance with what is provided in numeral 3.1 Quater of the Rules applicable to Monetary Regulation Deposits, issued by the Bank of Mexico through Circular 9/2014, published in the Official Gazette of the Federation on June 9, 2014, in terms of the modifications made subsequently to that date, unless the Institutions in question have the need to maintain said Monetary Regulation Deposits to adequately manage their liquidity, and (ii) once the total available amount of the balance of the Monetary Regulation Deposit has been exhausted, subject to the appropriateness of granting such resources based on the Bank of Mexico's analysis of the liquidity management of the Institution in question in order not to alter the proper functioning of payment systems or to the Institution's determination of the need to maintain said Monetary Regulation Deposits to adequately manage its liquidity, the latter may enter into repurchase agreements on eligible securities, subject to what is provided in these Rules.

Institutions interested in obtaining resources from the Bank of Mexico under these Rules must present their requests to it, for this purpose, on the dates and within the hours indicated in the calls that the latter will make known to them for these effects. The Bank of Mexico will make known to Institutions each of the aforementioned calls, at least one Banking Business Day in advance of the initial date of each period in which it will receive the indicated requests.

The calls will be made known through the Bank of Mexico's internet site located at the address << https://www.banxico.org.mx/ >> or, as applicable, through the authorized electronic, computing or telecommunications medium, for this effect, that the Bank of Mexico itself will make known to Institutions on said internet site. Such calls will specify the dates, corresponding to periods of one week, and the hours in which Institutions may request resources from the Bank of Mexico through the performance of the operations subject to these Rules, as well as the available amount of resources for this purpose. The Bank of Mexico will issue the aforementioned calls, on the dates it considers convenient, during the validity of these Rules or until the maximum amount that it has determined for this effect has been covered.

Institutions must present, through the electronic, computing or telecommunications medium indicated for this purpose in the respective calls, the aforementioned requests in the weeks and hours indicated in such calls, in terms of the format attached to these Rules as Annex 1. In such requests, Institutions must specify the proportion of credits that, with the resources they obtain from the Bank of Mexico under these Rules, they intend to grant to MiPyME and the proportion they intend to grant to individuals under the conditions provided in these same Rules. Additionally, in case Institutions intend to grant the referred credits through non-bank financial entities, they must specify their names, the types of entities to which they correspond and the respective keys of the Registry System of Providers of Financial Services administered by the National Commission for the Protection and Defense of Users of Financial Services (CONDUSEF).

The request presented through the medium indicated in the respective call, in accordance with what is provided in the preceding paragraph, must have the advanced electronic signature of the legal representative of the Institution who has the authority to exercise acts of dominion, whose data are susceptible of verification through the corresponding valid digital certificate issued by the Tax Administration Service, except in those cases where the respective calls establish a system for the presentation of the aforementioned requests through access keys, identification and, as applicable, operation, established for the use of said system. In these cases, the electronic signature or the aforementioned keys will substitute the autograph signature of the representative of the Institution in question, so that the documentary or technical records generated or presented as a result of the use of said electronic signature or keys will produce the same effects that the laws grant to documents signed by the parties and, consequently, will have equal probative value. As an exception to the foregoing, in an extraordinary manner, in case an Institution does not have representatives with valid electronic signatures, it may, on that occasion, present its request through a document, prepared in terms of the format attached to these Rules as Annex 1, presented at the address of the Bank of Mexico, specified in the Manual, which contains the autograph signature of the legal representative of the Institution who has the authority to exercise acts of dominion.

Tuesday, June 2, 2020 OFFICIAL GAZETTE 159

Based on the analysis of the liquidity management of the Institution in question, which it shall carry out in accordance with what is provided in the first paragraph of this section, as observed with respect to the operations it carries out with the Bank of Mexico itself, the Bank of Mexico may authorize said Institution, in the allocation it issues in accordance with the indications in this section, the withdrawal of an amount from the respective Monetary Regulation Deposit that is less than the amount requested.

In the event contemplated in the preceding paragraph, the Institution in question may request in the applications it submits in accordance with this section that, in the event that the Bank of Mexico authorizes it to withdraw an amount less than the total requested from Monetary Regulation Deposits, the celebration of repurchase agreements shall take place in accordance with these Rules for the remaining amount of the total requested. For these purposes, the Institution must indicate in the same application the securities it has available, among those indicated in these Rules, to celebrate such repurchase agreements. Institutions may celebrate the repurchase agreements referred to in these Rules only in the event that they do not have available resources in Monetary Regulation Deposits or that, in the event that they do have such resources, the Bank of Mexico has authorized the granting of a part of those resources, or that in the respective applications they submit to the Bank of Mexico, they have manifested their determination of the need to maintain said Monetary Regulation Deposits to adequately manage their liquidity.

Once the one-week period indicated in the respective call for applications for the receipt of the applications referred to in this section concludes, the Bank of Mexico will analyze said applications during the following week and, no later than the last Banking Business Day of that last week, will inform the Institutions of the allocation of the resources subject to these Rules. For these purposes, the Bank of Mexico will attend to the applications submitted by the Institutions in accordance with what is provided in the preceding paragraphs and, from the respective amounts they have requested, will allocate those that are deemed appropriate in accordance with the indications in this section, which it will make known to the Institutions through the electronic, computing, or telecommunications medium indicated for this purpose by the Bank of Mexico in the respective call. In the event that the total amount indicated in all applications exceeds the available amount determined by the Bank of Mexico, this will carry out a pro rata allocation, that is, proportionally to the amounts requested by each Institution.

With respect to the disposition of the resources corresponding to the repurchase agreements celebrated based on the allocation indicated above, this will be subject to the prior transfer of the securities subject to such repurchase agreements in the respective securities deposit accounts that Indeval maintains with the Bank of Mexico or, in the case of those securities denominated in Eligible Currencies, to the corresponding custody accounts abroad. The applicable accounts, as well as the applicable schedules, will correspond to those specified in the Manual. The securities subject to the repurchase must be deposited on the Banking Business Day following that on which the Bank of Mexico has notified the respective allocation, in accordance with the terms provided in the Manual.

Only those Institutions that comply with the requirements established for each type of operation provided for this purpose in accordance with these same Rules may obtain from the Bank of Mexico the resources referred to in these Rules. Regarding development banking institutions, only those authorized to do so in accordance with the applicable regulations may celebrate the aforementioned repurchase agreements.

Institutions that have obtained resources from the Bank of Mexico in accordance with these Rules may submit new applications on the dates and times that the Bank of Mexico will make known in the subsequent calls, even in the event that, regarding the repurchase operations they have celebrated for this purpose, these remain in effect on the dates when the new operations are celebrated.

The Bank of Mexico may not accept requests for the withdrawal of Monetary Regulation Deposits or for repurchase presented by those Institutions that have not exercised the resources previously granted in accordance with these Rules for the granting of credits to MSMEs or to natural persons in terms of what is provided in this section.

2.2 Withdrawals of Monetary Regulation Deposits.

The disposition of the resources corresponding to the withdrawals of Monetary Regulation Deposits, resulting from the allocations referred to in the previous section 2.1, will be carried out in accordance with what is provided in section 3.1 Quater of the Rules applicable to Monetary Regulation Deposits, issued by the Bank of Mexico through Circular 9/2014, published in the Official Gazette of the Federation on June 9, 2014, as modified subsequently.

The Institution that falls under this circumstance and that, in turn, is the holder of Reportable Monetary Regulation Bonds (BREMS R) — issued by the Bank of Mexico in accordance with the Rules for the auctions of Reportable Monetary Regulation Bonds (BREMS R) carried out by the Bank of Mexico, issued by this Central Institute through Circular 9/2016, published in the Official Gazette of the Federation on May 12, 2016, as modified by subsequent resolutions — may use the total or partial amount corresponding to these securities to withdraw it from its Monetary Regulation Deposit, for which it must request the settlement of said securities from the Bank of Mexico itself, simultaneously with the presentation of the application referred to in section 2.1, through a communication prepared in accordance with the format included in Annex 2 of these Rules, in order for the corresponding cash amount to be credited to the Monetary Regulation Deposit in such a way that, added to the other amount from the balance of the Monetary Regulation Deposit constituted in cash, it can be withdrawn up to the amount that the Institution has specified in said application, or up to the amount that the Bank of Mexico has authorized it to obtain in accordance with what is indicated in section 2.1.

2.3 Repurchase Operations.

For the Institution in question to celebrate repurchase agreements with the Bank of Mexico in accordance with these Rules, it must previously sign the respective contract with it, which will have, at least, the following characteristics:

Repo Provider: The Bank of Mexico.
Repo Taker: The Institution that meets the requirements to obtain financing from the Bank of Mexico in accordance with these Rules.

Term for the celebration of the repurchase operation: To the Banking Business Day immediately following that on which the Bank of Mexico has notified the respective allocation, subject to the delivery of the securities subject to the repurchase, in accordance with what is established in section 2.1.

Term of the repurchase: It will be between 18 and 24 months, which may not exceed 730 calendar days, from the Banking Business Day immediately following that on which the repurchase is perfected. Exceptionally, subject to authorization from the Bank of Mexico, this term may be extended, when the characteristics of the credits that the Institution will grant with resources derived from the respective repurchase justify it. For the purposes of the aforementioned terms, section 9.4 of the Rules to which Credit Institutions; Brokerage Houses; Investment Companies; Specialized Investment Companies for Retirement Funds, and the Rural Financial Institution in their Repurchase Operations, issued by the Bank of Mexico on January 12, 2007, will not apply. For Institutions that fall under the circumstance contemplated in said section, in accordance with which those that do not have authorization to celebrate forward, option, or swap operations on real or nominal interest rates in terms of the provisions applicable to them, are prohibited from carrying out repurchase operations as repo takers on: a) Securities with a fixed yield rate and whose maturity term is greater than one calendar year, and b) Securities with a periodically adjustable rate whose term, between the dates on which the adjustment is made, is greater than one calendar year, as defined in said Rules the terms previously used.

Securities subject to the repurchase: The repurchase agreements referred to in these Rules may only be celebrated on any of the following securities that meet the characteristics indicated below:

i. Government Securities denominated in national currency, UDIS, or Eligible Currencies;
ii. Debt securities denominated in national currency or UDIS, deposited in Indeval, that meet the National Scale Credit Quality Criterion and have been issued by:
a. Entities of the Federal Public Administration's parastatal sector, including Development Banking Institutions and FIRA; b. State Productive Enterprises;
c. Multiple banking institutions, other than the Repo Taker and that do not form part of the same financial group, business group, or consortium to which the latter belongs;
d. Federative Entities; e. Municipalities; f. International financial entities and multilateral entities; g. Non-financial legal entities resident in Mexico that do not form part of the same financial group, business group, or consortium to which the Repo Taker belongs; h. Fiduciary institutions of trusts that issue said debt securities in the form of fiduciary securities certificates that represent: 1) rights over mortgage credit portfolios that are affected in said trusts or in others linked to them and have been granted by financial entities resident in Mexico, except for credits that have been granted by the Repo Taker or by financial entities of the same financial group, business group, or consortium to which it belongs, or 2) rights in favor of any State Productive Enterprise, and

OFFICIAL GAZETTE Tuesday, June 2, 2020 161

i. Fiduciary institutions of trusts through which the persons indicated in subclauses “a.” to “g.” of this clause ii) issue said debt securities in the form of fiduciary securities certificates that represent the right of their holders to receive the payment of capital and, if applicable, interest or yields.

iii. Debt securities denominated in Eligible Currencies that meet the Global Scale Credit Quality Criterion and have been issued by any of the following persons:
a. Foreign governments or central banks or foreign entities that perform similar functions. b. The persons indicated in the previous clause ii), subject to the same conditions indicated there.

The trusts referred to in subclauses “h.” and “i.” of the previous clause ii) must be constituted in accordance with the Securities Market Law and must meet the following characteristics:
a. The holders of the respective securities certificates must be placed in the first place of priority for the payment of the respective certificates and no holder will be subordinated to the payment of other holders. b. The trusts must be irrevocable.
c. The trust must not include credit derivative products in its structure or, in any other way, contemplate the use of said products for the payment of the respective fiduciary securities certificates.

Additionally, securities issued abroad through some legal figure that produces the effects of a special purpose vehicle, in accordance with the laws of the respective jurisdiction, may be securities subject to the repurchases provided in these Rules, provided that they meet the characteristics previously established and, exceptionally, in the event that the special purpose vehicle is not subject to an express clause of irrevocability, the legal instrument of its constitution must expressly provide that any modification to said instrument or to the conditions of the vehicle or the securities issued will only be for the benefit of the holders of said securities.

In the event of an early settlement of the securities referred to in subclause “h.” of clause ii) of this section 2.2, the issuance instruments must expressly stipulate that the holders of said securities will have the right to receive the full payment of the amounts covered by said securities.

Regarding the securities corresponding to the trusts indicated in subclause “i.” of clause ii), of this section 2.2, the instruments of their issuance must include an express clause by which the entities in charge of whom the collective credit object of said securities was constituted is also obliged to cover the amounts of the debts covered by said securities that are not paid by the respective trust and other parties that, if applicable, have assumed said obligation.

For its part, the securities referred to in clause ii) of this section 2.2, must not comprise structured bank securities provided for in Title Two, Chapter I, Sections I, Subsection G, and III, Subsection E, of the Operations Provisions, as well as other securities implemented with similar characteristics.

The Institution that presents the securities for the realization of the repurchase provided for in this section, must verify that they meet the characteristics previously established for each of them, without prejudice to the review that the Bank of Mexico must carry out.

The maturity of the securities subject to repurchase must be subsequent to that corresponding to the term of the repurchase. Exceptionally, in the event that the Institution in question does not have securities with maturities subsequent to the terms it has agreed to celebrate with the Bank of Mexico in accordance with the above, it must celebrate successive repurchases no later than 2 Banking Business Days prior to the maturity of the securities with shorter terms that it has available for these operations, until completing the terms agreed with the Bank of Mexico, provided that the remaining term to the maturity of said securities is at least 93 days. The rate and other general terms of the repurchases celebrated successively in accordance with the above must have the same characteristics as those corresponding to the first repurchase celebrated by virtue of the allocation that has been given. Likewise, in all cases, the total value of the securities subject to repurchase, determined in accordance with what is provided in the following paragraph, must be equal to or greater than the sum of the Repurchase Price plus the Estimated Premium of the operation and any other agreed expenses. In the event that the corresponding Institution does not contribute securities that meet the aforementioned characteristics to celebrate the subsequent repurchases, the agreement to celebrate the other additional repurchases to reach the originally agreed term will be considered terminated.

The Bank of Mexico will make known to the Institutions the valuation of the securities to be reported and the corresponding discount factors on the internet page << http://webdgobc >>.

In all cases, the Bank of Mexico, in attention to the date of issuance and placement of the securities, as well as to the depth and conditions prevailing in the market in which said securities are negotiated, may not accept securities in repurchase operations, as well as those that do not have an updated valuation at market prices, that have not been placed among several investors, or that have not been placed through a public offering. In the case of securities denominated in Eligible Currencies, the Bank of Mexico may not accept those with which it is not able to carry out the corresponding operations within the term to perfect the respective repurchase. Additionally, the Bank of Mexico will not accept, in all cases, among the securities offered by the Institutions, those that are issued by Related Parties of these.

Repurchase Price: The amount in national currency equivalent to the value of the securities subject to the repurchase made known by the Bank of Mexico at the moment of the perfection of the operation, adjusted by the discount factors that the Bank itself determines and makes known through the internet portal it maintains at the address: << http://webdgobc >>.

Premium: The one resulting from the following formula:

Where:
Interest Rate: The average interbank interest rate that the Board of Directors of the Bank of Mexico has determined as the target rate for monetary policy purposes, expressed annually and in percent with rounding to two decimals, made known on the Bank's own internet electronic page during each day of the validity of the repurchase.
Amount: to the amount agreed for the corresponding repurchase, equivalent to the Repurchase Price.
Days: to the number of calendar days that elapse between that on which the repurchase is perfected and the Banking Business Day on which it is settled.

The payment of the Premium will be made at the conclusion of the operation, through a charge that the Bank of Mexico makes in the Single Account that the Bank maintains with the Repo Taker Institution.

Valuation of the securities subject to the repurchase. The Repo Taker Institution must deliver to the Bank of Mexico, by virtue of the repurchase in question, securities whose valuation adjusted by the discount factors must be equal to or greater, at all times, to the Repurchase Price plus the Estimated Premium of the repurchase operation and any other agreed expenses. For these purposes, the value of the securities will be determined in accordance with the prices and the corresponding discount factors that the Bank of Mexico makes known to the Institutions, through the internet portal located at the address: << http://webdgobc >>.

For the circumstance provided for in the preceding paragraph, the Estimated Premium will be calculated as follows:

On the day of the perfection of the repurchase in question, the Estimated Premium will be the one resulting from applying the formula indicated above, for which the target rate for monetary policy purposes that is made known on the Bank of Mexico's internet electronic page, from the date of perfection and until the valuation date, will be taken, assuming, for the purposes of this calculation, that said rate will remain constant during the remaining term of the repurchase. Additionally, in the event that, from the day of the perfection of the repurchase and until the agreed date of the expiration of the repurchase term, the aforementioned target interest rate is modified by decision of the Board of Directors of the Bank of Mexico, the value of said rate will be taken as applicable for each of the days from that on which it has been made known and until the agreed date of expiration of the repurchase term. Without prejudice to the above, the Premium that the Repo Taker Institution must pay to the Bank of Mexico will be the one resulting from the calculation made, at the expiration of the repurchase term, in accordance with what is indicated in the item “Premium” of this section.

The value of the securities subject to the repurchase will be determined daily, until the repurchase is settled, in accordance with the valuation carried out by the Bank of Mexico and, derived from this determination, the following will be done:

a) If the value of the securities, when applying the corresponding discount factor, results in less than the sum of the Repurchase Price, the Estimated Premium, and any other agreed expenses, the Bank of Mexico will notify said situation to the Institution in question, through the site << https://webdgobc/ >>, which must send a communication in the terms established for this purpose in the Manual, in which it indicates the securities, among those specified above in this section as securities susceptible to be

---

Tuesday, June 2, 2020 OFFICIAL GAZETTE 163 subject to reporting, which will grant the Bank of Mexico to cover the amount of the difference corresponding. The Institution must carry out, on the same Banking Business Day that the Bank of Mexico notifies that the shortage is applicable, the transfer of said titles to the securities deposit account that the Bank of Mexico maintains at Indeval. In the case of those titles denominated in the Eligible Currencies, the Institutions must carry out the referred transfer to the custody accounts abroad that the Bank of Mexico makes known, for these purposes, within the schedules that the Institutions can consult in the Manual and, in this case, the Institutions must communicate to the Bank of Mexico, on the Banking Business Day immediately prior to that on which they are going to make said transfer, their intention to carry it out. b) If the value of the titles, when applying the corresponding discount factor, results greater than the sum of the Repo Price, the Estimated Premium and any other agreed expenses, the Institution may request the Bank of Mexico for the return of the excess titles, to those granted as Titles subject to the repo, through communication that it sends to the Bank of Mexico in the terms of the Manual. In the event that the Institution does not carry out the transfer of the titles in accordance with what is referred to in the previous subsection a), the Banking Business Day following will be considered prematurely terminated the repo, in which case the Institution must make a payment for the uncovered amount derived from the difference corresponding between the sum of the Repo Price, the Estimated Premium and any other agreed expenses, and the value of the titles, when applying the corresponding discount factor. Notwithstanding the foregoing, without prejudice to the corresponding conventional penalty for the uncovered amount, the Institution and the Bank of Mexico may celebrate a new repo with the rest of the titles that it had previously delivered to this one for a term equal to the remaining term of the original operation. Accreditation of resources: Once the Institution in question has signed the contract and presented the request to celebrate the corresponding repo in accordance with the previous section 2.1, said Institution must transfer the titles subject to the repo, in accordance with what is indicated in this section, to the securities deposit account that Indeval holds for the Bank of Mexico, or in custody accounts abroad, in terms of what is established in the Manual. Once the delivery of said titles has been carried out through the transfer referred to in the previous paragraph, the Bank of Mexico, during the schedules established in the Manual, will make the credit of the amount equivalent to the Repo Price in question in the Single Account that it holds for the reported Institution. The value of the titles delivered by the reported Institution to the Bank of Mexico,
adjusted by the discount factors, must cover in its entirety, both the Repo Price and the Estimated Premium and any other agreed expenses, in accordance with what is established in these Rules. Payment of the repo. The reported Institution may, prior to the expiration date agreed for the repo that it has celebrated in accordance with these Rules, pay in full or in part the amounts owed by it by virtue of said repo. In these cases, the reported Institution must inform the Bank of Mexico of this, through a communication prepared for such purposes in accordance with the format provided for in Annex 3 of these Rules and in the schedules indicated in the Manual. Once all the repos provided for in these Rules have been settled, the obligations of the parties will be extinguished. Celebration of contracts. To celebrate the repo contract subject to these Rules, interested Institutions must present to the Management of Instrumentation of Operations of the Bank of Mexico a certified copy of the deed in which the powers granted to their legal representatives to exercise acts of domain are recorded, as well as the official identifications of said representatives who sign the aforementioned contracts and the other documents indicated in them.
3. General Provisions.
3.1 Destination of resources.
Institutions must allocate the resources obtained through withdrawals from Monetary Regulation Deposits or from the repos celebrated in accordance with these Rules to the direct granting, or indirect in the terms indicated for this purpose in this section, only of new credits or expansion of existing credits to MSMEs, with special attention to smaller-sized companies, as well as payroll or personal credits for individuals. Likewise, Institutions may celebrate restructuring or refinancing of those same types of credits previously granted, through which the respective debtors can dispose of additional resources derived from those obtained by the Institutions in accordance with the operations provided for in these Rules, in which case the Institutions must compute, for the purposes of these Rules, only the additional amounts derived from the operations subject to these same Rules.

164 OFFICIAL GAZETTE Tuesday, June 2, 2020
The Institutions will grant the credits contemplated in the previous paragraph and carry out the restructuring and refinancing referred to, under their own account and risk, by virtue of which they will determine the terms and conditions applicable to them, without prejudice to those indicated in these Rules.
Additionally, said credits, restructuring and refinancing may be associated with the support and guarantee programs of the development banking Institutions, in which case the Institutions that grant them must subject them to the terms and conditions established in accordance with said programs.
In the case of those credits financed with resources coming from Monetary Regulation Deposits, these must be granted for terms not less than six months. Regarding credits to MSMEs and individuals, the principal amount of these, as well as the additional amount granted as part of the restructured or refinanced credit with resources derived from the operations subject to these Rules, must not exceed 50 million pesos per each MSME and 192,500 pesos per each individual. As for those restructuring or refinancing of credits that Institutions have granted to MSMEs and individuals prior to obtaining the resources subject to these Rules, said Institutions may only make available to the respective debtor persons, as part of those restructuring or refinancing, resources derived from the operations carried out in accordance with these Rules, provided that they agree to establish the same or better terms and conditions of term and rate as those stipulated in the contracts of the operations subject to the restructuring or financing in question. The Institutions may also allocate the respective resources for the granting of the referred credits indirectly, through another non-banking financial entity, specified in the request referred to in section 2.1, to which the corresponding Institution, in turn, grants financing for these purposes exclusively. In this case, the respective Institution must agree with said financial intermediary the terms and conditions applicable to the credits that the latter grants with the respective resources, as well as ensure to obtain from said intermediary the necessary information to present to the Bank of Mexico the report described in section 3.3 of these Rules. Regarding credits to individuals, at the time of granting the credit, said persons must be accredited or account holders of the respective Institution or of that non-banking financial entity through which the credit is channeled or well, members of credit unions through which said channeling is carried out. The Institutions will have a term of 20 Banking Business Days subsequent to that on which they have received from the Bank of Mexico the resources derived from the operations subject to these Rules, for which, at the latest by the conclusion of such term, they must allocate said resources to the previously referred credits. Regarding resources derived from a repo celebrated in accordance with these Rules, in the event that the respective Institution has allocated part of those resources to the granting of any of the credits provided for in these same Rules and, prior to the maturity of that repo, receives payment of part or the entirety of the credit in question, it must allocate the resources from that payment to the granting of a new credit in the terms described above, within a term of 20 Banking Business Days subsequent to that on which it has received said payment. Likewise, in the event that the corresponding Institution has allocated, within the 20 Banking
Business Days term mentioned, resources derived from the withdrawal of Monetary Regulation Deposits to the granting of previously referred credits and, at any time during the 125 Banking Business Days subsequent to the conclusion of that term, receives payment of part or the entirety of the credit in question, it must allocate the resources from that payment to the granting of a new credit in the terms described above, within a term of 20 Banking Business Days subsequent to that on which it has received said payment. The Institutions, in the course of their operation, may grant credits to MSMEs and individuals in accordance with what was stated above, in proportions different from those indicated regarding this in the respective requests they have presented in accordance with the previous section 2.1. In the event that the Institutions that obtain resources by virtue of the operations celebrated in accordance with these Rules do not allocate them to the granting of credits in the terms established in these same Rules, they will be obligated to reintegrate the respective resources to the Bank of Mexico in the cases indicated in the following section 3.2.
3.2 Additional Conditions.
In the event that an Institution obtains resources derived from the withdrawal of its Monetary Regulation Deposit in accordance with these Rules and does not allocate the entirety of said resources to the granting of the credits previously described in these same Rules within the term of 20 Banking Business Days subsequent to that on which the Bank of Mexico makes the credit of such resources in its Single Account, said Institution must restore to the Monetary Regulation Deposit at the Bank of Mexico the amount that it has not allocated to the granting of the referred credits. Additionally, regarding those credits that the corresponding Institution has granted in accordance with these Rules, within the term of 20 Banking Business Days mentioned in section 3.1 above, with resources derived from the withdrawal of Monetary Regulation Deposits and, in turn, this does not allocate, during the 125 Banking Business Days subsequent to the conclusion of that term, those resources that, if any, it receives in payment of part or the entirety of the credit in question to the granting of a new credit in the terms described above, said Institution must restore to the Monetary Regulation Deposit at the Bank of Mexico the amount that it has not allocated to the granting of the referred credits. Likewise, in the event that any Institution celebrates a repo in accordance with these Rules and does not allocate, during the term of that repo, the entirety of the resources derived from said operation to the granting of the credits previously described, the Institution must restore to the Bank of Mexico the amount that it has not allocated to the granting of the referred credits, in which case the repo will be considered prematurely matured and the parties may simultaneously celebrate a new repo, in the same terms, with the same maturity date as the previous one and with the same titles that cover, at least, the price equivalent to the amount of resources that the Institution has effectively allocated to the credits previously referred to, plus the Estimated Premium in accordance with the above for the remaining term and, if applicable, other agreed expenses. In the cases referred to in the first two paragraphs of this section, the Bank of Mexico, within the 10 Banking Business Days immediately following that on which the Institution presents the report on the credits it has granted in the weeks comprised in the term of 20 Banking Business Days that corresponds in accordance with said paragraphs or, omits to report the referred credits, will send to the Institution in question a notification indicating the amount that the Institution must reintegrate to the Bank of Mexico in accordance with the above, in order for it to manifest what is convenient for its rights, within the 3 Banking Business Days immediately following that on which it receives the aforementioned notification. Once the referred term of 3 Banking Business Days concludes and the Institution has not
disproven what was stated by the Bank of Mexico in the aforementioned notification, the latter will carry out, on the Banking Business Day following that on which said term concludes, a charge in the Single Account of the referred Institution for the amount that it has been obligated to restore. The Bank of Mexico may reject new requests from an Institution to make withdrawals from Monetary Regulation Deposits or celebrate repos in accordance with these Rules when said Institution does not comply with the conditions provided for in these same Rules, with what is stipulated in the respective repo contract, as well as the other conditions established by the Bank of Mexico itself for those other operations celebrated by it in accordance with the Rules and applicable stipulations. As an exception to what is provided by article 116 of the Operations Provisions, the Institutions that celebrate the repo operations subject to these Rules may not incur overdrafts in their respective Single Accounts not corresponding with guarantees for the payment of said operations. By virtue of the above, in the event that the Bank of Mexico cannot carry out the respective charge at the maturity of the repo operation in question, the payment obligation of the respective repo will be considered breached up to the uncovered amount by the Institution in question, without prejudice to the conventional penalties that, if any, are stipulated for this case.
3.3 Information to the Bank of Mexico.
The Institutions must inform the Bank of Mexico of the destination they have given to the resources that the latter has credited to them in the respective Single Accounts in accordance with what is provided for in these Rules. For these purposes, each Institution must present to the Bank of Mexico reports with a weekly frequency and with the detail that the latter indicates in the form that, for these purposes, it establishes through the Direction of Information of the Financial System. In said reports, the Institutions must describe the way in which they have attended to smaller-sized companies. The Institutions will carry out the acts provided for in these Rules, without prejudice to the faculty of the Bank of Mexico to require them, through the competent administrative units, the information that it requires for the adequate fulfillment of its functions. Said information must be sent in the form and terms that, for this effect, they are made known to them by said administrative units.
3.4 Responsibility of Institutions in the granting of credits to MSMEs and individuals.
The credits to MSMEs and individuals, with resources obtained from the Bank of Mexico as a result of the operations provided for in these Rules, will be granted by the respective Institutions as a result of decisions that only correspond to them to take, as part of the origination and evaluation process that they carry out, by which the Bank of Mexico will be excluded from all responsibility for said decisions that the Institutions take. Likewise, for the formalization of the referred credits, the Institutions must comply with the applicable regulations, including that referred to in article 115 of the Credit Institutions Law, corresponding to the prevention of operations with resources of illicit origin.

166 OFFICIAL GAZETTE Tuesday, June 2, 2020
Annex 1
Request format that Institutions must present to the Bank of Mexico Mexico City, on (DAY) of (MONTH) of (YEAR).
Bank of Mexico
Present
Attention: General Direction of Central Banking Operations By this conduct, the undersigned, [ FULL NAME ], in my capacity as [ POSITION ] of the credit institution named [ FULL DESIGNATION OF THE CREDIT INSTITUTION, INCLUDING, IF ANY, THE FINANCIAL GROUP TO WHICH IT BELONGS ], on behalf and for the account of said institution, requests the Bank of Mexico to grant to my represented the resources indicated below, in terms of what is provided for in the “Rules Applicable to the Provision of Resources to Credit Institutions to Channel Credit to Micro, Small and Medium Enterprises, as well as to Individuals”, issued by that Central Institute through Circular 20/2020, as they may be modified, if any, through subsequent resolutions. The amount of the referred resources that my represented requests is $________________ (amount in letters), pesos, national currency. Include one of the following four options:
[For these purposes, I request the Bank of Mexico to carry out the withdrawal of the balance of the Monetary Regulation Deposit that my represented maintains with this, for the amount indicated above, in the terms and subject to the conditions established for this purpose in the aforementioned Rules.]
[For these purposes, I request the Bank of Mexico to carry out the withdrawal of the balance of the Monetary Regulation Deposit that my represented maintains with this, for the amount of $________________ (amount in letters), pesos, national currency. Additionally, [independently of the fact that my represented will still maintain a balance of Monetary Regulation Deposit available after the requested return,] I request the celebration of repos for the amount of $________________ (amount in letters), pesos, national currency, for the term of ___ natural days, in the terms and subject to the conditions established for this purpose in the aforementioned Rules. [This last part by virtue of the fact that my represented has decided to maintain said Monetary Regulation Deposits to adequately manage its liquidity.]] [For these purposes, I request the Bank of Mexico to carry out the withdrawal of the balance of the Monetary Regulation Deposit that my represented maintains with this, for the amount of $________________ (amount in letters), pesos, national currency. Additionally, taking into account the decision that that Bank of Mexico may take, in accordance with the cited Rules, to authorize the withdrawal of the Monetary Regulation Deposit of my represented for an amount lower than that requested in the present, I request the celebration of repos for the amount of up to $________________ (amount in letters), pesos, national currency, for the term of ___ natural days, in the terms and subject to the conditions established for this purpose in the aforementioned Rules.](The second amount of this option can only be less than or equal to the amount of the requested withdrawal from the Monetary Regulation Deposit. The Bank of Mexico will proceed to formalize repos only when the authorized amount is lower than the requested one and it will do so for the amount equivalent to the difference between what is requested and what is authorized, or for the indicated amount, whichever is lower.

---

Tuesday, June 2, 2020 OFFICIAL GAZETTE 167
[For these purposes, I request the Bank of Mexico to celebrate repos for the amount of $________________ (amount in letters), pesos, national currency, for a term of ___ natural days, under the terms and subject to the conditions established for this purpose in the aforementioned Rules. The foregoing inasmuch as, although my represented entity maintains resources in Monetary Regulation Deposits, I request from that Bank of Mexico resources derived from the aforementioned repos, instead of withdrawing the amounts from said deposits, due to the fact that my represented entity has decided to maintain said Monetary Regulation Deposits to adequately manage its liquidity.] (Include the section in brackets only if applicable.) I declare that the resources that the Bank of Mexico grants to my represented entity in response to this request will be allocated ___% to the financing of MSMEs and the remaining amount to the financing of individuals; and the date required for the disposal of resources by my represented entity is the day of __________[, subject to the transfer of the securities subject to repo in the respective securities deposit accounts that Indeval, or custody accounts abroad, in terms of what is established in the Manual, carry to the Bank of Mexico or in the foreign custodian that the Bank of Mexico itself indicates. For these purposes, my represented entity accepts to celebrate the repo operations in the form and terms provided in the aforementioned Circular, as well as in the corresponding contracts.] Likewise, my represented entity declares its agreement with the modifications that, if any, have been made to Circular 20/2020, subsequent to the celebration of the contract documenting the repo operation with the Bank of Mexico. Likewise, it recognizes that, in case of discrepancy between the terms and conditions established in the aforementioned contract and those provided in the said Circular and its respective modifications, which are in force at the time of this request, the terms and conditions provided in the latter will prevail. Additionally, with the purpose of having agile communication for clarifications or requests for additional information, the Institution designates the following contacts:
Name Position Phone Email
Likewise, I declare that, in the report that my represented entity must present to that Bank of Mexico in accordance with the aforementioned Rules immediately after the conclusion of the term of 20 Banking Business Days subsequent to the assignment of the resources requested through this, we will present to the Bank of Mexico the description of the credits destined for the MSMEs and individuals in the period comprised between the credit of the resources to the Single Account and the conclusion of said term, in the terms indicated for this purpose by that Central Institute.
I declare, under oath, that the statements contained in this communication are true and reliable, for all legal purposes.
Sincerely,
[NAME AND SIGNATURE OF THE LEGAL REPRESENTATIVE WITH POWERS TO PERFORM ACTS OF DOMINION]

168 OFFICIAL GAZETTE Tuesday, June 2, 2020
Annex 2
Request format for repurchase of BREMS R that Institutions must present to the Bank of Mexico Mexico City, on (DAY) of (MONTH) of (YEAR).
Bank of Mexico
Present:
Attention: General Directorate of Central Banking Operations Through this channel, the undersigned, [ FULL NAME ], in my capacity as [ POSITION ] of the credit institution named [ FULL DESIGNATION OF THE CREDIT INSTITUTION, INCLUDING, IF APPLICABLE, THE FINANCIAL GROUP TO WHICH IT BELONGS ], on behalf and for the account of said institution, requests the Bank of Mexico to carry out a repurchase of XR251023 securities (BREMS XR) that [ FULL DESIGNATION OF THE CREDIT INSTITUTION, INCLUDING, IF APPLICABLE, THE FINANCIAL GROUP TO WHICH IT BELONGS ], holds in position, which will be carried out on the X of XX of 2020. For this, below, we attach the data for the settlement of the operation as a whole:

• [ FULL DESIGNATION OF THE CREDIT INSTITUTION, INCLUDING, IF APPLICABLE, THE FINANCIAL GROUP TO WHICH IT BELONGS ], via Indeval will send the [DAY] of [MONTH] of 2020_______ (amount in letters) XR251023 titles to account 02 033 5000 of the Bank of Mexico.
• Bank of Mexico, will settle on the [DAY] of [MONTH] of 2020 to [ FULL DESIGNATION OF THE CREDIT INSTITUTION, INCLUDING, IF APPLICABLE, THE FINANCIAL GROUP TO WHICH IT BELONGS ], to the account in which it maintains its Monetary Regulation Deposit, the nominal value of the securities amounting to an amount of $ __________ (amount in letters) pesos, national currency.
• Bank of Mexico will settle to [ FULL DESIGNATION OF THE CREDIT INSTITUTION, INCLUDING, IF APPLICABLE, THE FINANCIAL GROUP TO WHICH IT BELONGS ], on the [DAY] of [MONTH] of 2020 to its Single Account the accrued interest amounting to an amount of $ __________ (amount in letters) pesos, national currency.
  In relation to the foregoing, [ FULL DESIGNATION OF THE CREDIT INSTITUTION, INCLUDING, IF APPLICABLE, THE FINANCIAL GROUP TO WHICH IT BELONGS ] declares its agreement to carry out, under the terms described, the aforementioned operation on the [DAY] of [MONTH] of 2020.
  Sincerely,
  [NAME AND SIGNATURE OF THE LEGAL REPRESENTATIVE WITH POWERS TO PERFORM ACTS OF DOMINION]
  Annex 3
  Payment communication format for early repayment of financing that Institutions must present to the Bank of Mexico Mexico City, on (DAY) of (MONTH) of (YEAR).
  Bank of Mexico
  Present:
  Attention: Operations Management Management
  Through this channel, I inform you that on [DAY] of [MONTH] of [YEAR], [ FULL DESIGNATION OF THE CREDIT INSTITUTION, INCLUDING, IF APPLICABLE, THE FINANCIAL GROUP TO WHICH IT BELONGS ] will carry out the early repayment of the financing granted to it by the Bank of Mexico in terms of Circular 20/2020 for:
  The Repo Price equivalent to the amount of $ __________________ (amount in letters), pesos, national currency, plus the Repo Premium and, if applicable, corresponding accessories, or A partial payment of the Repo Price equivalent to the amount of $ __________________ (amount in letters), pesos, national currency, plus the Repo Premium and, if applicable, corresponding accessories, for which I authorize and instruct that Central Institute to make the respective charge in the Single Account that this institution holds in terms of the contract.
  Sincerely,
  (NAME AND SIGNATURE OF PERSONS PREVIOUSLY REGISTERED AT THE BANK OF MEXICO)

Tuesday, June 2, 2020 OFFICIAL GAZETTE 169
SECOND. Paragraph 3.1 Ter (Adjusted Amount) is modified and paragraph 3.1 Quater (Additional Adjusted Amount) is added to the “Rules applicable to Monetary Regulation Deposits”, issued through Circular 9/2014, published in the Official Gazette of the Federation on June 9, 2014, as it has been modified by subsequent resolutions, to remain in the following terms:
RULES APPLICABLE TO MONETARY REGULATION DEPOSITS “3.1 Ter Adjusted Amount … … … In accordance with the above, the amount of the Monetary Regulation Deposit corresponding to each Credit Institution once the distribution referred to in this paragraph is carried out, as well as the amount that will be credited to it as a result thereof, will be that which the Bank has informed them in writing, through electronic means, on April 1, 2020. Without prejudice to the foregoing, each Credit Institution must send a representative, no later than December 31, 2020, to the Bank’s Operations Support Directorate, located at Avenida Cinco de Mayo, number 6, first floor, Condesa Building, Centro Neighborhood, Mexico City, C.P. 06000, with telephone number 55-5227-8854, in order to receive the original communication that corresponds to it. Credit Institutions must inform the Bank of the destination they have given to the resources that it has credited to the respective Single Account in accordance with what is provided in this paragraph. For these purposes, on September 7, 2020, each Credit Institution will present to the Bank a report in which it describes the amount of credit to the non-banking private sector corresponding to the active operations that it has carried out with persons from said sector in the period comprised between March 31 and August 31, 2020, including the principal amounts of said operations that such Credit Institutions have granted to those persons, and in the case of a Development Banking Institution, it will also include the financing granted to financial intermediaries directly or through the guarantee service, in accordance with its object established in its respective organic law. The corresponding Credit Institutions will present said report, in the form and terms that the Financial System Information Directorate will make known to them, through the Electronic Attention Module referred to in the respective Electronic Attention Module Rules issued by the Bank through Circular 13/2012, published in the Official Gazette of the Federation on September 17, 2012, which must contain the electronic signature of the general director of the respective Credit Institution. … … … … …” “3.1 Quater. Additional Adjusted Amount The total amount of the Monetary Regulation Deposits that Credit Institutions maintain at the Bank on the date of entry into force of these Rules may be reduced, from that same date. In the event that any Credit Institution, in accordance with what is provided in paragraph 2.1 of the Rules Applicable to the Provision of Resources to Credit Institutions to Channel Credit to Micro, Small and Medium Enterprises, as well as to Individuals, issued by the Bank of Mexico through Circular 20/2020, has presented a withdrawal request that meets the requirements indicated in said paragraph, at the opening of operations of the SIAC-BANXICO on the Banking Business Day on which the Bank has determined an assignment, it will carry out the
necessary credit in the Single Account that it holds for the

170 OFFICIAL GAZETTE Tuesday, June 2, 2020
Credit Institution, for the amount that results as appropriate. Likewise, the Bank, on the same date, will credit the amount for the concept of interest that accrues on the amounts of the Monetary Regulation Deposits that have been returned in accordance with the above and that have been maintained during the last interest period.
The interest that accrues during this last period will be calculated by applying the rate that results from the formula specified in these Rules, from the beginning of said interest period, that is, from the last coupon cut, and until the Banking Business Day immediately preceding that on which the first withdrawal is carried out in accordance with this paragraph. For the calculation of the accrued interest corresponding to subsequent withdrawals, a similar criterion will be followed, considering from the Banking Business Day on which the last coupon period corresponding began and until the Banking Business Day immediately preceding that on which the new withdrawal is carried out. Additionally, interest will be recalculated on the Monetary Regulation Deposit that remains in force after the return considering the interest that ends up being paid as a result of the return itself. For the other amounts corresponding to subsequent withdrawals, the same considerations will apply. In the event that any Credit Institution does not allocate the entirety of the resources obtained to the granting of credits referred to in 3.1 of the Rules cited in the second paragraph of this paragraph, the remainder must be credited to the Bank to reintegrate the corresponding Monetary Regulation Deposit, in accordance with what is established for this purpose in paragraph 3.2 of said Rules. THIRD. Articles 115, fractions I and II, 115 Bis, first paragraph, 115 Bis 1, first paragraph, and 115 Bis 2, fractions IV, V, VII and penultimate paragraph, of the Applicable Provisions to the Operations of Credit Institutions, Regulated Multiple-Object Financial Companies that Maintain Patrimonial Links with Credit Institutions and the National Financial Institution for Agricultural, Rural, Forestry and Fisheries Development, issued by the Bank of Mexico through Circular 3/2012, published in the Official Gazette of the Federation on March 2, 2012, as they have been modified by subsequent resolutions, are modified, in the following terms:
APPLICABLE PROVISIONS TO THE OPERATIONS OF CREDIT INSTITUTIONS, REGULATED MULTIPLE-OBJECT FINANCIAL COMPANIES THAT MAINTAIN PATRIMONIAL LINKS WITH CREDIT INSTITUTIONS AND THE NATIONAL FINANCIAL INSTITUTION FOR AGRICULTURAL, RURAL, FORESTRY AND FISHERIES DEVELOPMENT THIRD TITLE OPERATIONS WITH THE BANK OF MEXICO
CHAPTER I
DEPOSITS AT THE BANK OF MEXICO
Section I
In national currency (Single Account) Guaranteed overdrafts “Article 115.- …
I. Monetary regulation deposits, constituted by cash or by securities, in accordance with what is provided in Circulares 9/2014 and 10/2014, as well as national currency money deposits constituted in the special deposit accounts referred to in Article 115 Bis 4 below, in all these cases in accordance with what is provided in Article 115 Bis of these Provisions;
II. Deposits derived from Deposit Auctions;
III. …
IV. …
…
…

Tuesday, June 2, 2020 OFFICIAL GAZETTE 171
…
…”
Characteristics of overdrafts in the Single Account guaranteed with the monetary regulation deposit “Article 115 Bis.- Institutions that intend to guarantee overdrafts in their Single Accounts in terms of Article 115 of these Provisions with monetary regulation deposits, as well as special deposits referred to in Article 115 Bis 4, must:
I. …
II…”
Contract for the celebration of repos to guarantee the overdraft of the Single Account “Article 115 Bis 1.- Institutions must celebrate with the Bank of Mexico a contract that documents the repo operations with BREMS, and with the securities referred to in Article 115 Bis 2 below, as well as for the constitution of national currency deposits that will be granted in pledge to guarantee the overdraft of the Single Account, in accordance with what is provided in Article 115 Bis of these Provisions, for which they must present to the Operations Instrumentation Management certified and simple copies of the deeds in which the powers to exercise acts of dominion of whoever intends to sign it are recorded, as well as a simple copy of their official identification. .…” Characteristics of Repos “Article 115 Bis 2.- …
I. …
II. …
III. …
…
IV. Securities subject to repo: The BREMS that make up the monetary regulation deposit in terms of what is provided by Circulares 9/2014 and 10/2014 of the Bank of Mexico, as well as BONDES, CETES, IPAB Securities and Segregated Coupons, that are the property of the corresponding Institution, excluding SPECIAL CETES;
V. Price: The nominal value of the BREMS and the market value of the BONDES, CETES, IPAB Securities, and Segregated Coupons, adjusted by the discount factor that the Bank of Mexico establishes depending on the type of Government Security involved, which will be made known on the website <http://webdgobc>;
VI. …
VII. Premium: The amount of money that results from: a) multiplying the Rate by the Price; b) multiplying the result of a), by the number of days effectively elapsed between the date of agreement of the repo operation and the termination date, and c) dividing the result of b) by three hundred sixty.
…
…
The value of the securities subject to repo will be: a) the nominal value of the BREMS and b) the market value of the BONDES, CETES, IPAB Securities, and Segregated Coupons adjusted by the discount factor that the Bank of Mexico establishes depending on the type of security involved, which will be made known on the website <http://webdgobc>.
…”

172 OFFICIAL GAZETTE Tuesday, June 2, 2020
FOURTH. Regarding the operations with titles and securities that Institutions may carry out with the Bank of Mexico in accordance with what is provided by Circular 10/2015, relating to the Rules applicable to the exercise of financing granted by the Bank of Mexico to cover additional ordinary liquidity needs, published in the Official Gazette of the Federation on May 11, 2015, in terms of the modifications made subsequent to that date; Circular 16/2020, relating to the temporary facility for securities lending operations with the Bank of Mexico., published in the Official Gazette of the Federation on May 19, 2020; Circular 17/2020, relating to the Rules applicable to repo operations of government securities with the Bank of Mexico to cover liquidity needs, published on May 19, 2020 and Circular 18/2020, relating to the Rules applicable to repo operations of corporate securities with the Bank of Mexico to cover liquidity needs, published on May 19, 2020, it will not celebrate such operations with those titles offered by Institutions that are issued by Related Parties with said Institutions, in accordance with the definition that the Rules Applicable to the Provision of Resources to Credit Institutions to Channel Credit to Micro, Small and Medium Enterprises, as well as to Individuals attributes to said term. FIFTH. The item “Repoed” of paragraph 2.2 of the Rules Applicable to Repo Operations of Government Securities with the Bank of Mexico to Cover Liquidity Needs, issued by the Bank of Mexico through Circular 17/2020, published in the Official Gazette of the Federation on May 19, 2020, is modified, in the following terms:
“2.2 Repo operations.
For the Institution in question to be able to celebrate repos with the Bank of Mexico in accordance with these Rules, it must previously sign the respective contract with it, which will have, at least, the following characteristics:
Repo Provider: …
Repo Recipient: The Institution that meets the requirements to celebrate repos with the Bank of Mexico in accordance with these Rules. Regarding Institutions that have the status of development banking, these may celebrate repos in accordance with these Rules only with the securities referred to in this paragraph whose ownership has been transferred to them by non-banking financial entities unrelated to the Federal Public Administration.
…”
TRANSITORY
FIRST. This Circular will enter into force on the day of its publication in the Official Gazette of the Federation.
SECOND. The validity of the Rules Applicable to the Provision of Resources to Credit Institutions to Channel Credit to Micro, Small and Medium Enterprises, as well as to Individuals, provided for in the first resolutive of this Circular will expire on September 30, 2020. In the event that, on the date of expiration of the validity indicated, repos celebrated by Institutions with the Bank of Mexico in accordance with these Rules remain in force, they will remain in force until their settlement date, subject to these provisions and the applicable contracts.
Mexico City, on May 25, 2020.- BANK OF MEXICO: The General Director of Central Banking Operations, Gerardo Israel García López.- Rubric.- The General Director of Payment Systems and Market Infrastructures, Manuel Miguel Ángel Díaz Díaz.- Rubric.- The General Director of Financial Stability, Fabrizio López Gallo Dey.- Rubric.- The General Legal Director, Luis Urrutia Corral.- Rubric.- The General Director of Financial System Affairs, José Luis Negrín Muñoz.- Rubric.
For any consultation regarding the content of this Circular, the Bank of Mexico is at your disposal through the Central Banking Authorizations and Sanctions Directorate at telephone (55) 5237-2000 extension 3200.