Regulatory Alerts2020-06-18 | Circular 25/2020Added
Circular 25/2020 — Financing from the Bank of Mexico Guaranteed with Qualified Credit Assets of Banks for Channeling to Micro, Small and Medium Enterprises
The Bank of Mexico establishes rules allowing multiple and development banks to obtain national currency liquidity facilities guaranteed by eligible credit assets, specifically to channel resources directly or indirectly to micro, small, and medium-sized enterprises (MiPyME). Eligible assets must meet global or national credit quality criteria, with MiPyME defined as entities with up to 250 employees and total outstanding principal financing of 50 million pesos or less. Banks must submit applications via electronic means, provide independent valuations, and execute contracts within ten banking days of resource assignment, with financing terms ranging from 18 to 24 months.