Mexico City, March 26th, 2020.

On March 24, Juan Carlos Jiménez Rojas, General Director of the Mexican Banking Association (Asociación de Bancos de México) («ABM«), sent a letter to the President of the National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores) («CNBV«), Mr. Juan Pablo Graf Noriega, in which the existence of a negative impact is mentioned with respect to the measures taken to prevent the spread of the COVID-19 virus and, consequently, the direct impact on the Mexican economy. In this sense, consumption, services, tourism, restaurants, are those mostly affected by this situation, so it is inevitable that there will be inconveniences for companies and individuals to meet their respective credit commitments in a timely manner.

Consequently, some credit institutions have decided to support those clients who find it difficult to adequately meet their credit commitments, all this through the implementation of different programs.

That is why, in general, the support by the credit institutions will be carried out in the following way:

I.In relation to loans related to the construction of housing, individual loans with a mortgage guarantee, revolving and non-revolving loans that are directed to individuals, as well as: personal, payroll, automotive, credit card and microcredit loans; such as, commercial loans directed to companies and individuals that have a business activity in its different modalities, will be offered one of the following options in relation to the entire amount due, including accessories:

a)Total or partial deferral of interest and / or principal payments for up to 4 (four) months, with the possibility of extending it for up to 2 (two) more months, so that banks can opt for up to a total of 6 (six) ) months, depending on what is most appropriate for each client and / or product. In addition to this, the balances may be frozen at no interest charge.

b)Application to the facility for any modification to credit agreements that entail a change in the risk profile of the operation or of the same borrower and that do not imply a partial or total deferral of capital and interest that is greater than 4 (four) months with the possibility of extending it for 2 (two) more months.

II.In relation to agricultural loans, credit institutions within their sphere of competence adhere to the “Permanent Program of Support for Areas Affected by Natural Disasters” or “Programa Permanente de Apoyo a las Zonas Afectadas por Desastres Naturales” of Trusts Established in Relation to Agriculture («FIRA«) which it considers the use of extensions, rescheduling, restructuring, consolidation of debts and technical assistance for up to a period of 6 (six) months in those municipalities that are declared a «disaster area«.

On the other hand, it should be noted that the support offered to clients may vary according to the implementation mechanics of each of the credit institutions and the particular conditions of each borrower.

On the other hand, it will be an indispensable requirement that the loans be classified as valid as of February 28, 2020. The foregoing, by virtue of the different cut-off dates of the credit institutions, it is considered that the benefits must be implemented no later than 120 (one hundred and twenty) days after the date mentioned above.

Finally, the ABM requested the CNBV to issue special accounting criteria that allows:

I.That the modifications to the original loan conditions described above are not considered as restructuring or renewal, in terms of the provisions of Criterion-B-6 «Credit Portfolio» in force, of the Banking Circular (Circular Única de Bancos), and

II.That the loan portfolio that is the object of support is considered as current accounting for up to the corresponding period of the benefit received.


Lawyers of the banking and financial practice of our Firm will be delighted to provide you with further information regarding the content of this informative note.


    Miguel Ángel Peralta                                 Pedro Said                                    Patrick S. Stockdale