ASF may ask for 30-billion peso reduction on Fobaproa bonds Fobaproa.

MEXICO CITY, Mar 28, 2003 (Cronica/Corporate Mexico by Internet Securities, Inc. via COMTEX) -- Next Monday, the Supreme Auditor of the Federation (ASF) will release its report on the Public Account 2001, which is expected to recommend that the Bank Savings Protection Institute (IPAB) reduce close to 30 billion pesos (US$2.80 billion) of Bank Fund for Savings Protection (Fobaproa) payments made by Bancomer, Bital and Banorte.According to sources from the financial sector, it is expected that the ASF will comment on Fobaproa's purchase of this portfolio supposedly composed of related credits or with interest moratoriums between 1995 and 1996. The sources did not know whether the report would name the amount connected to each institution, but expect the ASF to give IPAB 45 days to explain why Fobaproa bought this "bad" portfolio. IPAB will likely argue that Fopabroa's technical committee made the decision to accept the offer.This article has been translated by Internet Securities, Inc. as a service to its customers. Internet Securities, Inc. makes no representation or warranty regarding the accuracy or content of the translation.

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