Resolution No. JPRM-2023-023-G — Approving the Budget of the Central Bank of Ecuador for the 2024 Fiscal Year

RESOLUTION NO. JPRM-2023-023-G THE MONETARY AND FINANCIAL POLICY BOARD CONSIDERING: That, Article 226 of the Constitution of the Republic of Ecuador prescribes that public servants and persons acting by virtue of a state power shall exercise only the competencies and faculties attributed to them in the Constitution and the Law; That, Article 227 ibidem states that Public Administration constitutes a service to the community governed by the principles of efficiency, quality, hierarchy, coordination, planning, among others; That, Article 280 of the Magna Carta provides: "The National Development Plan is the instrument to which public policies, programs, and projects shall be subject; the programming and execution of the State budget; and the investment and allocation of public resources; and to coordinate the exclusive competencies between the central State and the decentralized autonomous governments. Its observance shall be mandatory for the public sector and indicative for other sectors"; That, Article 293 supra establishes: "The formulation and execution of the General State Budget shall be subject to the National Development Plan. The budgets of decentralized autonomous governments and those of other public entities shall be adjusted to the regional, provincial, cantonal, and parish plans, respectively, within the framework of the National Development Plan, without prejudice to their competencies and autonomy. (...)"; That, Article 303 ibidem determines: "The formulation of monetary, credit, exchange, and financial policies is the exclusive faculty of the Executive Function and shall be implemented through the Central Bank. The law shall regulate the circulation of currency with liberatory power within Ecuadorian territory. The execution of credit and financial policy shall also be exercised through public banking. The Central Bank is a public law legal entity, whose organization and functioning shall be established by law."

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That, numeral 1 of Article 5 of the Organic Code of Public Planning and Finances establishes: "The programming, formulation, approval, allocation, execution, monitoring, and evaluation of the General State Budget, the other budgets of public entities, and all public resources, shall be subject to the guidelines of development planning at all levels of government, in observance of what is provided in Articles 280 and 293 of the Constitution of the Republic"; That, the second clause of Article 70 ibidem, regarding the National System of Public Finances, states: "All entities, institutions, and organizations included in Articles 225, 297, and 315 of the Constitution of the Republic shall be subject to the SINFIP, under the terms provided in this code, without prejudice to the faculty of autonomous management of administrative, economic, financial, budgetary, and organizational order that the Constitution or laws establish for certain entities"; That, Article 101 supra provides: "In the formulation of budgetary proformas of the public sector, including those of public companies, decentralized autonomous governments, public banking, and social security, the technical norms, guidelines, classifiers, and catalogs issued by the governing body of the SINFIP shall be obligatorily observed"; That, Article 34 of the Organic Monetary and Financial Code establishes: "By November of each year, the Monetary and Financial Policy Board shall approve the annual budget for the following fiscal year of the Central Bank of Ecuador prior to the favorable opinion of the governing body of public finances, which must be delivered fifteen (15) days before the deadline for the approval of the budget. The failure to deliver the favorable opinion by the governing body of public finances within the established timeframe shall not prevent the approval of the budget by the Monetary and Financial Policy Board. All income and revenues generated by the Central Bank of Ecuador or granted to the Central Bank of Ecuador from any source, together with the expenses foreseen, including depreciation and provisions for losses, shall be included in the annual budget"; That, Article 47.1 of the aforementioned Organic Code created the Monetary and Financial Policy Board, as part of the Executive Function, responsible for the formulation of monetary policy, the highest governing body of the Central Bank of Ecuador, and determined its composition;

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That, numeral 16 of Article 47.6 of the Code ibidem, regarding the functions of the Monetary and Financial Policy Board, among others, establishes: "(...) 16. Approve the budget of the Central Bank of Ecuador and supervise its execution"; That, the Central Bank of Ecuador, via letter No. BCE-BCE-2023-0179-OF, of November 13, 2023, requested the Ministry of Economy and Finance to issue the respective opinion regarding the 2024 Budgetary Proforma Project of the Central Bank of Ecuador, which was sent with a favorable opinion via letter No. MEF-VGF-2023-0379-O, of November 19, 2023, signed by the Vice Minister of Finance; That, the Monetary and Financial Policy Board, in an extraordinary session by in-person modality, on November 29, 2023, reviewed the 2024 Budgetary Proforma of the Central Bank of Ecuador sent via memorandum No. BCE-BCE-2023-0267-M, of November 28, 2023, by the General Manager of the Central Bank of Ecuador to the President of the Monetary and Financial Policy Board, as well as Technical Report No. BCE-DFP-2023-079, of November 11, 2023, and Legal Report No. BCE-CGJ-074-2023, of November 24, 2023. In exercise of its functions and in attention to Article 47.7 of the Organic Monetary and Financial Code, the Monetary and Financial Policy Board, RESOLVES Article 1.- Approve the budget of the Central Bank of Ecuador corresponding to the 2024 fiscal year, in accordance with the attached annexes. Article 2.- The General Management of the Central Bank of Ecuador shall be in charge of the execution of the budget, for which it may agree, execute, and celebrate any type of act, fact, agreement, contract, or legal business that leads to the fulfillment of the entity's purposes and objectives and direct its operational and administrative management subject to the legal framework, strategic planning, and operational plans that directly impact institutional management. Article 3.- The General Manager of the Central Bank of Ecuador shall inform the Monetary and Financial Policy Board of the progress in the execution of the budget corresponding to the 2024 fiscal year, on a quarterly basis, as well as the compliance with the Annual Operational Plan and the progress of the Strategic Plan.

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Article 4.- Reforms to the budget of the Central Bank of Ecuador must be approved by the Monetary and Financial Policy Board, following the same procedure carried out for its approval. FINAL PROVISION. - This Resolution shall enter into force from the present date, without prejudice to its subsequent publication in the Official Register. Be entrusted with its publication on the institutional website of the Central Bank of Ecuador, to the Document Management and Archive Directorate. COMMUNICATE AND PUBLISH. - Given in the Metropolitan District of Quito, on November 29, 2023. THE PRESIDENT Dr. TATIANA MARIBEL RODRÍGUEZ CERÓN The preceding resolution was signed by Dr. Tatiana Maribel Rodríguez Cerón - President of the Monetary and Financial Policy Board, in the Metropolitan District of Quito, on November 29, 2023.- I CERTIFY. ADMINISTRATIVE SECRETARY Attorney MARÍA ALEXANDRA GUERRERO DEL POZO