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Mexico eyes tougher rules to catch bad loans

Wednesday, May 14, 2014

New rules to shed more light on loans like the fraudulent ones that hit Citigroup's Mexican unit are being drawn up by Mexico's bank watchdog.

The new rules should go into effect by the fourth quarter, the agency said.

Citigroup in February said it had found $400 million in bad loans at its Mexican subsidiary Banamex, made to oil services firm Oceanografia and backed by apparently fraudulent invoices to state-owned oil company Pemex.

Source: Reuters