RegAlertRule · CNBV · 30 Apr 1996
Circular 1303: Credit Support Program for States and Municipalities - Modifications to UDIS Credit Restructuring Provisions
The National Banking and Securities Commission increases the total amount of the Credit Support Program for States and Municipalities to 20 billion pesos and modifies Circular 1303 to expand restructuring options for credits denominated in Investment Units (UDIs). The modification to section 1.1 restricts affected credits in trusts to those registered with the Ministry of Finance and Public Credit by March 31, 1995, and restructured in UDIS by September 30 of the current year. The amendment to section 1.2.3 updates bank accounting subaccounts to reflect specific restructuring options, including an 8-year term with up to two years of grace and a 5-year term without a grace period.
Mexico, D.F., April 30, 1996
CIRCULAR No. 1303
SUBJECT: CREDIT SUPPORT PROGRAM FOR STATES AND MUNICIPALITIES.- Modifications to the provisions applicable to the restructuring of credits in Investment Units (UDIs) and their impact on trusts.
TO MULTIPLE BANKING INSTITUTIONS:
In response to the proposals made by these institutions and with the purpose of expanding the benefits of the Credit Support Program for States and Municipalities, primarily by increasing the total amount of the Program, as well as flexibilizing the options and extending the term for the restructuring of credits in UDIS, this National Banking and Securities Commission, with prior agreement of the Ministry of Finance and Public Credit, and based on articles 99 of the Credit Institutions Law and 4, fractions III and XXXVI of the National Banking and Securities Law, informs you of the following:
1.- AMOUNT OF THE PROGRAM.
Considering the real needs for the restructuring in UDIS of the credits held by the federative entities and municipalities, the total amount of the Program is increased to the amount of $20,000 million pesos.
2.- MODIFICATIONS TO CIRCULAR 1237.
Numerals 1.1. and 1.2.3 of Circular 1237 are modified to read as follows:
“1.1 In the trusts established in accordance with the characteristics established by the Program, only credits held by the States, Municipalities, and their parastatal entities, which are registered with the Ministry of Finance and Public Credit by March 31, 1995, restructured, and denominated in UDIS by September 30 of the current year, may be affected. .........”
“1.2.3 Registration of trusts in the bank's accounting.
“.........
The first shall have the following subaccounts:
01 “Option 1.- 8 years and up to 2 years of grace” 02 “Option 2.- 5 years without grace period” .........”
Page 6229-1 of the account catalog, modified by virtue of this Circular, is attached.
Respectfully,
NATIONAL BANKING AND SECURITIES COMMISSION
Eduardo Fernández García
President
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