Circular 63/2008 — Amends Circular 48/2008

"2008, Year of Physical Education and Sport" CIRCULAR 63/2008 Mexico, D.F., December 18, 2008. TO THE INSTITUTIONS OF MULTIPLE BANKING: SUBJECT: LIQUIDITY FACILITIES The Bank of Mexico, based on articles 28 of the Political Constitution of the United Mexican States, sixth and seventh paragraphs; 7°, fractions I, II and X, 8°, 14, 16, 24 and 36 of the Bank of Mexico Law; 22 of the Law for Transparency and Ordering of Financial Services; 8th paragraphs third and sixth, 12 in relation to 19 fraction IX and 17 fraction I of the Internal Regulations of the Bank of Mexico, which provide for the attribution of the Central Bank, through the General Directorate of Central Bank Banking Operations and the Directorate of Central Bank Banking Provisions, respectively, to issue provisions; Unique of the Agreement on the Assignment of the Administrative Units of the Bank of Mexico, fractions I and IV, with the objective of promoting the sound development of the financial system and encouraging these institutions to have greater liquidity in the payment systems, has resolved to modify numerals 1.3, third paragraph, and 1.3, first paragraph, all of them of Circular 48/2008, to remain in the following terms:

RULES APPLICABLE TO THE EXERCISE OF FINANCING

“1. . . . . . . The exercise of financing may be carried out, at the choice of the institution, through the celebration of: i) credit operations guaranteed with deposits of monetary regulation or deposits in U.S. dollars that the institutions maintain at the Bank of Mexico, and/or ii) repo operations, in terms of numerals 1.1 and 1.2 of these Rules, respectively. Additionally, in the event that the institutions do not have sufficient titles susceptible to being the object of repo to celebrate the respective operations, they may carry out with the Bank of Mexico the operations referred to in numeral 1.3. To do so, they must send to the Bank of Mexico in the terms specified in the Manual of Operation for the Exercise of Liquidity Financing, all the documentation related to the credits whose flows they intend to assign to the Bank of Mexico, which accredits that said credits meet the requirements that will be made known in accordance with what is provided in the aforementioned Manual. . . .”

“1.3 Credits related to credit portfolio Institutions may, prior to signing the corresponding contract in terms of numeral 2.1, carry out credit opening operations provided for in this numeral, only when they do not have available titles susceptible to being the object of repo sufficient to carry out operations referred to in numeral 1.2. . . .”

TRANSITORY UNIQUE. This Circular enters into force on December 18, 2008.