Friday, May 29, 2020

Banxico publishes first operating rules to access financial support

Last April, the Central Bank announced a series of measures for an amount of up to 750 billion pesos. The first operating rules to access liquidity programs that Banco de México (Banxico) announced in April were published this Wednesday, so that financial institutions will be able to access those resources once they comply with the guidelines established by the Bank. Central. The document, published in the Official Gazette of the Federation (DOF), establishes the rules applicable to the exercise of financing granted by Banxico to cover ordinary additional liquidity needs of both multiple banking and development institutions.

The institution interested in obtaining financing from the Central Bank in order to meet these needs must submit an application through the Electronic Attention Module, which must have the advanced electronic signature of the general director of the bank in question. With this, you can ask for a combination of resources to face your liquidity problems. On April 21, the Central Bank launched 10 additional measures to promote orderly behavior in the financial markets; strengthen the channels for granting credit, and provide liquidity for the healthy development of the financial system in the face of the new coronavirus pandemic.

The announced actions support the operation of the financial system with up to 750 billion pesos. When added to what has already been implemented, the total is equivalent to 3.3 percent of 2019 GDP, the institution explained at the time. Banxico will continue to publish the operating rules for each of the 10 points that it will launch, in order for institutions to choose those options that they require. The foregoing seeks to create the conditions that facilitate financial intermediaries to fulfill their priority function, that is, to provide financing to the economy, so that in turn it can be used for micro, small and medium-sized enterprises, as well as households that have seen a reduction in their sources of income due to the COVID-19 pandemic.

Source: El Financiero


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