Circular 5/2007 — Modifies Circular 2019/95

CIRCULAR 5/2007 Mexico, D.F., June 15, 2007. TO THE MULTIPLE BANKING INSTITUTIONS: SUBJECT: MODIFICATIONS TO CIRCULAR 2019/95.

The Bank of Mexico, based on Article 28 of the Political Constitution of the United Mexican States, sixth and seventh paragraphs; Articles 7, fractions I and II, 14, and 24 of the Bank of Mexico Law; as well as on Article 8, third and fourth paragraphs, 10, Article 17, fraction I, and Article 20, fraction IV, of the Internal Regulations of the Bank of Mexico, and on fraction IV of the Single Article of the Agreement on the Assignment of Administrative Units of the Bank of Mexico, with the objective of promoting the proper functioning of payment systems, making the availability of interest that, where applicable, titles subject to repo operations with this Central Institute generate more agile, by depositing such interest in the Unique Account held for them; has resolved to modify numeral M.71.31.7, as well as to add a sixth paragraph, shifting the current sixth and seventh paragraphs in their order in numerales 1.21.4 of Annex 1 and 5.4 of Annex 5, all of Circular 2019/95, to remain in the following terms:

M.71.3 REPO OPERATIONS WITH THE BANK OF MEXICO TO PROVIDE LIQUIDITY TO PAYMENT SYSTEMS.

“M.71.31.7 In the case of automatic renewal, the interest that, where applicable, the Titles Subject to the Repo pay during the term of the operations, will be credited by the Bank of Mexico to the Unique Account held for the Repo-taker, on the day they have been paid by the issuer.”

ANNEX 1 INTERBANK EQUILIBRIUM INTEREST RATE IN NATIONAL CURRENCY (TIIE)

1.21. Financing that the Bank of Mexico will grant to participating institutions.

“1.21.4 Repos will have the following characteristics: …

2

The interest that, where applicable, the Titles Subject to the Repo pay during the term of the operations, will be credited by the Bank of Mexico to the Unique Account held for the Repo-taker, on the day they have been paid by the issuer. …”

ANNEX 5 LIQUIDITY AUCTIONS CONDUCTED BY THE BANK OF MEXICO

5. FORMALIZATION OF ALLOCATIONS.

“5.4 Repos will have the following characteristics: …

The interest that, where applicable, the Titles Subject to the Repo pay during the term of the operations, will be credited by the Bank of Mexico to the Unique Account held for the Repo-taker, on the day they have been paid by the issuer. …”

TRANSITORY

SINGLE.- This Circular shall enter into force on June 29, 2007.