Regulatory Alerts2020-05-19 | Circular 18/2020Added
Circular 18/2020 — Corporate Bond Repo Operations with the Bank of Mexico to Cover Liquidity Needs
The Bank of Mexico establishes rules allowing multiple and development banking institutions to conduct corporate bond repurchase operations with the central bank to obtain national currency liquidity without selling assets under stressed market conditions. Eligible institutions must submit requests via SIAC-BANXICO, offering corporate debt securities rated at least Ba1/BB+/BB+/HR BB+ (global) or A2.mx/mxA/A(mex)/HR A (national) that meet specific credit quality criteria. The operations have a fixed term of three months (max 93 days), with interest calculated at 1.1 times the one-day interbank rate, and require the deposit of titles into designated accounts.
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