Circular 30/2002 — Monetary Regulation Deposits

Circular-Telefax 30/2002 Mexico, D.F., August 29, 2002.

TO THE CREDIT INSTITUTIONS OF THE COUNTRY: SUBJECT: MONETARY REGULATION DEPOSITS

The Bank of Mexico, based on the provisions of Articles 14, 24, and 28 of its Law and with the objective of regulating the liquidity surpluses foreseen for the money market, has resolved the following:

I. To declare terminated the monetary regulation deposits that multiple banking institutions have constituted in this Central Bank in accordance with the provisions of Circulars-Telefax 32/98 and 9/99 dated August 27, 1998, and February 11, 1999, respectively.

For such purposes, the principal balance of the aforementioned deposits plus the interest accrued during the last interest period in question shall be credited to the Single Account that the Bank of Mexico maintains for each multiple banking institution at the opening of the Bank of Mexico Account Holder Attention System (SIAC-BANXICO) on September 26, 2002.

The interest accrued during the last interest period in question shall be calculated using the arithmetic average of the Interbank Equilibrium Interest Rate (TIIE) for the 28-day term that the Bank of Mexico obtains each banking day, from the start of said interest period until the day immediately preceding the early payment date mentioned in the previous paragraph.

II. That credit institutions constitute a monetary regulation deposit in this Central Bank with the characteristics indicated below:

1. Amount

The total amount of the sum of the deposits of all credit institutions shall be the quantity of $150,000,000,000.00 (ONE HUNDRED FIFTY BILLION PESOS 00/100 M.N.). Of this sum, $100,000,000,000.00 (ONE HUNDRED BILLION PESOS 00/100 M.N.) must be deposited on September 26, 2002. Likewise, during each of the 5 following banking days, $10,000,000,000.00 (TEN BILLION PESOS 00/100 M.N.) must be deposited.

The amount that each institution must deposit on the mentioned days shall be the result obtained by distributing the indicated amounts pro rata based on the respective traditional national currency capture of the credit institutions as of June 30 of the current year, with the data registered as of the date of this Circular-Telefax. For this purpose, traditional capture shall be understood as defined according to the accounting criteria of the National Banking and Securities Commission.

The document containing the result of said pro rata distribution shall be sent to each institution by electronic means, and the original shall be available at our Financial System Information Directorate located at Avenida Cinco de Mayo Number 6, sixth floor, Condesa Building, Centro Colony, Mexico, Federal District, C.P. 06059, telephone number 52-27-87-40, no later than September 4, 2002.

The constitution of these monetary regulation deposits shall be carried out through charges in the Single Account that the Bank of Mexico maintains for these institutions, for the amounts corresponding to each institution in terms of the document referred to in the previous paragraph. Such charges shall be made in accordance with the applicable provisions, at the opening of the Bank of Mexico Account Holder Attention System (SIAC-BANXICO), on the dates indicated in the first paragraph of this section.

2. Term of the deposits

The deposits constituted in terms of this Circular-Telefax shall have an indefinite duration. The Bank of Mexico will inform in advance the date and procedure for the withdrawal of the balance of said deposits.

3. Returns on the deposits

The interest on the deposits shall be payable every 28 days and shall begin to accrue from September 26, 2002. In the case of non-banking days, the aforementioned term shall be adjusted to the nearest preceding or following banking day, giving preference to the preceding day in case of equality.

For each interest period, the rate resulting from the following formula shall be applied, expressed in percent with rounding to two decimal places:

r = [ ( Product_{i=1 to N} (1 + r_i / 360) )^(360/N) - 1 ] * 360

N = Number of natural days elapsed between the date of constitution of the deposit or the last interest payment and the payment date of the interest period.

i = Refers to each of the days from the date of constitution of the deposit or the last interest payment until the day immediately preceding the payment date of the interest period, taking values from 1 to N.

Product_{i=1 to N} Operator that means performing the multiplication of the factors between parentheses.

r_i = Rate at which credit institutions and brokerage houses carry out operations of sale and repurchase with a one-banking-day term for banking titles, known in the market as the "weighted interbank funding rate," calculated and made known on day i by the Bank of Mexico, through its electronic page www.banxico.org.mx, in terms of the publication in the Official Gazette of the Federation dated July 31, 2000, or through any other electronic, computational, or telecommunications medium authorized for this purpose by the Bank of Mexico itself. In the latter case, the medium through which said rate will be disseminated will be informed promptly.

In the event of a non-banking day, the rate made known on the immediately preceding banking day shall be used.

In the event that this rate cannot be determined or ceases to be made known, the Bank of Mexico shall request in writing from two "brokerage houses" selected by the Money Market Committee of the Association of Bankers of Mexico, A.C., the average of the sale and repurchase operations with a one-day term for banking titles. The Bank of Mexico shall calculate the average of the two rates obtained for its determination and make the result known in the form and medium mentioned, as a substitute rate for the aforementioned one.

The respective interest shall be calculated by multiplying the daily average balance of the deposit in each interest period by the rate calculated in accordance with this section, divided by three hundred sixty, and multiplying the obtained result by the number of days effectively elapsed during the interest period in question.

Such interest shall be credited to the Single Account in national currency that the Bank of Mexico maintains for the credit institutions.