Circular 5/2024 — Extension of the Deadline for Provisional Measures on Minimum Payment Amounts for Revolving Credit Card Loans Due to Hydrometeorological Damage in Guerrero

Tuesday, April 30, 2024 OFFICIAL GAZETTE 575
BANCO DE MEXICO
CIRCULAR 5/2024 addressed to multiple banking institutions, regulated multiple-object financial societies that maintain equity links with credit institutions, unregulated multiple-object financial societies, regulated multiple-object financial societies that maintain equity links with entities other than credit institutions, popular financial societies with operation level IV, in terms of the Savings and Popular Credit Law, community financial societies with operation level IV, in terms of the Savings and Popular Credit Law, cooperative savings and loan societies with operation level IV, in terms of the Savings and Popular Credit Law, financial entities acting as trustees in trusts that grant credit or financing to the public, and development banking institutions, that issue credit cards, regarding the Extension of the Deadline for Provisional Measures on Minimum Payment Amounts Applicable to Credits, Loans or Revolving Financing Associated with Credit Cards, as a consequence of the damage caused by hydrometeorological phenomena with severe impact in the State of Guerrero.

At the margin a logo, which says: Banco de Mexico.- "2024, Year of Felipe Carrillo Puerto, Meritorious of the Proletariat, Revolutionary and Defender of the Mayab".

CIRCULAR 5/2024
TO MULTIPLE BANKING INSTITUTIONS,
REGULATED MULTIPLE-OBJECT FINANCIAL SOCIETIES
THAT MAINTAIN EQUITY LINKS WITH CREDIT INSTITUTIONS, UNREGULATED MULTIPLE-OBJECT FINANCIAL SOCIETIES, REGULATED MULTIPLE-OBJECT FINANCIAL SOCIETIES THAT MAINTAIN EQUITY LINKS WITH ENTITIES OTHER THAN CREDIT INSTITUTIONS, POPULAR FINANCIAL SOCIETIES WITH OPERATION LEVEL IV, IN TERMS OF THE SAVINGS AND POPULAR CREDIT LAW, COMMUNITY FINANCIAL SOCIETIES WITH OPERATION LEVEL IV, IN TERMS OF THE SAVINGS AND POPULAR CREDIT LAW, COOPERATIVE SAVINGS AND LOAN SOCIETIES WITH OPERATION LEVEL IV, IN TERMS OF THE SAVINGS AND POPULAR CREDIT LAW, FINANCIAL ENTITIES THAT ACT AS TRUSTEES IN TRUSTS THAT GRANT CREDIT OR FINANCING TO THE PUBLIC AND DEVELOPMENT BANKING INSTITUTIONS, THAT ISSUE CREDIT CARDS:

SUBJECT: EXTENSION OF THE DEADLINE FOR PROVISIONAL MEASURES ON MINIMUM PAYMENT AMOUNTS APPLICABLE TO CREDITS, LOANS OR REVOLVING FINANCING ASSOCIATED WITH CREDIT CARDS, AS A CONSEQUENCE OF THE DAMAGE CAUSED BY HYDROMETEOROLOGICAL PHENOMENA WITH SEVERE IMPACT IN THE STATE OF GUERRERO.

Banco de Mexico, with the purpose of continuing to promote the sound development of the financial system, protect the interests of the public and foster the proper functioning of payment systems, as well as in attention to the extension of facilities granted to financial entities by the National Banking and Securities Commission to continue supporting clients affected by Hurricane "Otis", and in order for the Financial Entities subject to Circular 10/2023 of this Central Institute to be able to suspend until October 31, 2024 the requirement to charge the minimum payment to their clients who reside in the zones affected by the aforementioned hurricane, based on articles 28, paragraphs sixth and seventh, of the Political Constitution of the United Mexican States, 24 and 26, of the Banco de Mexico Law, 4, 4 Bis, 18 Bis 7 and 22, of the Law for Transparency and Ordering of Financial Services, 1, 4, first paragraph, 8, paragraphs fourth and eighth, 10, first paragraph, 17, fraction I, and 25 Bis 1, fraction IV, of the Internal Regulations of Banco de Mexico, which grant it the authority to issue provisions through the Directorate of Central Banking Provisions and the Directorate of Regulation and Supervision, respectively, as well as Second, fractions I and X of the Agreement on the Assignment of Administrative Units of Banco de Mexico, and in numeral 13, fraction IV, of the Policies for public consultation of general provisions issued by Banco de Mexico, has resolved to modify the deadline for the provisional measures on minimum payment amounts applicable to credits, loans or revolving financing associated with credit cards, contained in Circular 10/2023 of this Central Institute, published in the Official Gazette of the Federation on November 2, 2023, to remain in the following terms:

PROVISIONAL MEASURES ON MINIMUM PAYMENT AMOUNTS APPLICABLE TO CREDITS, LOANS OR REVOLVING FINANCING ASSOCIATED WITH CREDIT CARDS, AS A CONSEQUENCE OF THE DAMAGE CAUSED BY HYDROMETEOROLOGICAL PHENOMENA WITH SEVERE IMPACT IN THE STATE OF GUERRERO

...

"The minimum payment amounts that Financial Entities, in compliance with what is established in article 18 Bis 7 of the Law for Transparency and Ordering of Financial Services, are obliged to charge regarding credits, loans or revolving financing associated with cards, will be those that, in accordance with the calculation provided in the Card Provisions, correspond to the payment periods that become applicable starting from the month of October 2023. Consequently, Financial Entities will not be obliged to charge the corresponding minimum payment amounts calculated in accordance with the Card Provisions, for the payment periods comprised between October 1, 2023 and October 31, 2024, when they so determine and agree with the respective clients.

Additionally, Financial Entities will not be obliged to charge the corresponding minimum payment amounts calculated in accordance with the Card Provisions, for the payment periods comprised between October 2023 and October 2024, regarding those credits, loans or revolving financing associated with cards that fall under cases where the following conditions are met:

a) The referred credits, loans and financing are subject to programs that remain in effect for periods not exceeding October 31, 2024, established by the Financial Entities themselves to foster the viability of payment of said credits, loans or revolving financing associated with cards, and

b) Under the programs referred to in the preceding subsection, the borrowers or debtors have agreed with the respective Financial Entities to abstain from making the payment of the corresponding minimum payment amount for consecutive periods ending between October 2023 and October 2024.

...

Financial Entities will be obliged to charge the minimum payment amounts established in the Card Provisions starting from November 2024 or, in case that the schemes referred to in the same paragraph conclude before that month, the obligation to charge will become enforceable starting from the immediate next charging period after that in which the respective program concludes.

..."

TRANSITORY
SINGLE.- This Circular will enter into force on the day of its publication in the Official Gazette of the Federation.

Tuesday, April 30, 2024 OFFICIAL GAZETTE 577
Mexico City, April 25, 2024.- BANCO DE MEXICO: Director of Central Banking Provisions, Maria Teresa Munoz Aramburu.- Signature.- Director of Regulation and Supervision, Viviana Garza Salazar.- Signature.

For any inquiry regarding the content of this Circular, Banco de Mexico is at your disposal through the Directorate of Central Banking Authorizations and Sanctions at phone (55) 5237-2000 extension 3200.