JPRM-2022-011-M — Reforming the Public Sector Deposits Regulation

RESOLUTION No. JPRM-2022-011-M

THE MONETARY AND REGULATORY POLICY BOARD

CONSIDERING:

That, Article 226 of the Constitution of the Republic of Ecuador stipulates that public servants and persons acting under state authority shall exercise only the competencies and powers attributed to them in the Constitution and the Law;

That, Article 227 of the same Constitution states that Public Administration constitutes a service to the community governed by the principles of effectiveness, efficiency, quality, hierarchy, coordination, planning, among others;

That, the first paragraph of Article 303 of the Constitution of the Republic determines that the formulation of monetary, credit, exchange, and financial policies is the exclusive authority of the Executive Branch and will be implemented through the Central Bank of Ecuador;

That, Article 47.1 of the Organic Code of Monetary and Financial Affairs created the Monetary and Regulatory Policy Board as part of the Executive Branch, responsible for the formulation of monetary policy, the highest governing body of the Central Bank of Ecuador, and determines its composition;

That, the final paragraph of Article 47.6 of the same Code, regarding the functions of the Monetary and Regulatory Policy Board, establishes: "(...) For the fulfillment of these functions, the Monetary and Regulatory Policy Board shall issue regulations in matters within its competence, without being able to alter legal provisions.";

That, Article 128 of the Organic Code of Administrative Procedures establishes: "Administrative normative act. It is any unilateral declaration made in the exercise of an administrative competence that produces general legal effects, which is not exhausted with its compliance and directly.";

That, Article 99 of the Statute of the Legal and Administrative Regime of the Executive Branch, in its pertinent part, states: "Normative acts may be repealed or reformed by the competent authority to do so when deemed convenient. (...)";

That, Article 38 of the "Public Sector Deposits Regulation," approved by Resolution No. JPRM-2022-004-M of January 28, 2022, by the Monetary and Regulatory Policy Board, prescribes: "Remuneration shall be paid monthly and calculated based on the methodology approved by the General Management of the Central Bank of Ecuador. Remuneration shall be calculated considering the results generated by all investments achieved by the external assets available for investment, prorated to the balance each entity holds in its accounts.";

That, the Third Transitional Provision of the aforementioned "Public Sector Deposits Regulation" provides: "THIRD: Within a period of one (1) month, the General Management of the Central Bank of Ecuador must issue the methodology for calculating the returns established in Article 38 of this resolution. During this period, the Central Bank of Ecuador will use the methodology it had been applying until the issuance of this resolution.";

That, the Monetary and Regulatory Policy Board, in an extraordinary session held via mixed modality on March 11, 2022, reviewed the request sent via Memorandum No. BCE-BCE-2022-0046-M of February 25, 2022, by the General Manager of the Central Bank of Ecuador to the President of the Monetary and Regulatory Policy Board; and,

In exercise of its functions and in accordance with Article 47.7 of the Organic Code of Monetary and Financial Affairs, the Monetary and Regulatory Policy Board resolves:

REFORM THE PUBLIC SECTOR DEPOSITS REGULATION

Art. 1.- Substitute the Third Transitional Provision of Resolution No. JPRM-2022-004-M of January 28, 2022, with the following text:

"THIRD: Within a term of 45 days, counted from the date of issuance of this resolution, the General Management of the Central Bank of Ecuador must issue the methodology for calculating the returns established in Article 38 of this resolution. Until the corresponding administrative regulation is issued, the Central Bank of Ecuador will use the methodology it had been applying until the issuance of this resolution."

Art. 2.- Ratify the content of Resolution No. JPRM-2022-004-M of January 28, 2022, in all aspects that have not been reformed.

FINAL PROVISION.- This resolution shall enter into force from its issuance, without prejudice to its publication in the Official Register.

Its publication on the institutional website is entrusted to the Document Management and Archive Directorate of the Central Bank of Ecuador.

COMMUNICATE.- Given in the Metropolitan District of Quito, on March 11, 2022.

THE PRESIDENT

(Signature) Dr. TATIANA MARIBEL RODRÍGUEZ CERÓN

The aforementioned resolution was signed by Dr. Tatiana Maribel Rodríguez Cerón - President of the Monetary and Regulatory Policy Board, in the Metropolitan District of Quito, on March 11, 2022.- I CERTIFY.

ADMINISTRATIVE SECRETARY

(Signature) Attorney MARÍA ALEXANDRA GUERRERO DEL POZO