23 Jul BANXICO – Circular 29/2020
July 23, 2020 – Banco de México has resolved that it is convenient to broaden the scope, as well as reduce the cost of operations that credit institutions can carry out with Banxico under the “Rules applicable to operations of corporate securities with Banco de México to cover liquidity needs ”, issued through Circular 18/2020, published in the Official Gazette of the Federation on May 19, 2020, so that, through these operations, the primary placement of national corporate debt can be favored and, in this way, reactivate a fundamental channel for the granting of credit in the economy, as well as generate the additional benefits derived from greater dynamism in the debt market.
In these circumstances, the aforementioned could be achieved through the execution of three-month repurchases subject to renewal with recently issued corporate debt securities, which are placed on the market in an extended period until December 31, 2020.
Jurisdictions affected: Mexico
For more information, visit Banco de México.