Regulatory Alerts2021-12-29 | Circular 13/2021Added · Updated
Circular 13/2021 — Modifications to Circular 14/2007 (External Reference Rates)
The Bank of Mexico amends Circular 14/2007 to update the definition of "Financial Institutions" and modify provisions regarding external reference rates for credit agreements. The amendments require financial institutions to contractually specify alternative reference rates in the event the primary rate ceases to exist or becomes inadequate, and explicitly authorize specific domestic rates (such as TIIE, CETES, and CCP) for national currency credits and international rates (such as SOFR, SONIA, ESTR, and LIBOR) for foreign currency credits. These modifications apply to regulated credit institutions and multiple-object financial societies and enter into force the day after publication in the Official Gazette.
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