RESOLUTION No. JPRM-2022-028-M

THE MONETARY AND FINANCIAL POLICY BOARD

CONSIDERING:

That, the Constitution of the Republic of Ecuador, in its article 226, 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 the Public Administration constitutes a service to the community that is 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 faculty of the Executive Function and will be implemented through the Central Bank of Ecuador;

That, article 47.1 ut supra 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 determines its composition;

That, article 47.6 of the same Code, regarding the functions of the Monetary and Financial Policy Board, establishes: "(...) 26. Those others conferred upon it by law.

For the fulfillment of these functions, the Monetary and Financial Policy Board will issue regulations in matters within its competence, without being able to alter legal provisions.";

That, numeral 1 of article 53.1 of the Code ibidem states that the Central Bank of Ecuador, to achieve its objective, must "(...) 1. Collect, compile, analyze, extract, prepare, and publish on the website and/or by any other means, with the periodicity determined by the Monetary and Financial Policy Board, the following information: the figures corresponding to monetary, financial, credit, and exchange indicators; the macroeconomic synthesis statistics of the country; interest rates; authorized payment systems and authorized institutions to operate; statistics of payment systems and means; and, additional information required by the Monetary and Financial Policy Board. (...)";

That, article 128 of the Organic Code of Administrative Procedures establishes: "Normative act of an administrative nature. 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, numeral II "Interest on external credits" of article 30 of the Regulation for the application of the Internal Tax Regime Law, states: "Interest paid on external credits, acquired for the business activity, shall be deductible, up to the rate authorized by the Central Bank of Ecuador, provided that these and their payments are registered in the Central Bank of Ecuador, and that they meet the other conditions established in the law";

That, through Resolution No. JPRM-2021-004-M, of November 16, 2021, the Monetary and Financial Policy Board issued the "Regulation on the Registration of External Credits to the Private Sector", in which the general conditions for the registration of private sector external credits in the Central Bank of Ecuador and the applicable requirements are established;

That, the Monetary and Financial Policy Board, in an extraordinary session by mixed modality, on November 29, 2022, reviewed the proposal sent via memorandum No. BCE-BCE-2022-0250-M, of November 28, 2022, by the General Manager of the Central Bank of Ecuador to the President of the Monetary and Financial Policy Board; as well as, the Technical Report No. BCE-SGSERV-061/DNSP-543-2022, of November 24, 2022, and the Legal Report No. BCE-CGJ-154-2022, of November 25, 2022; and,

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

REFORM THE REGULATION ON THE REGISTRATION OF EXTERNAL CREDITS TO THE PRIVATE SECTOR ISSUED THROUGH RESOLUTION NO. JPRM-2021-004-M

Art. 1.- Replace article 3 of Resolution No. JPRM-2021-004-M, of November 16, 2021, which contains the "Regulation on the Registration of External Credits to the Private Sector", with the following text:

"Art. 3.- The Central Bank of Ecuador will establish the requirements, enabling documents, and the procedure for the registration of external credits to the private sector, according to the nature of each case."

Art. 2.- Replace article 4 of Resolution No. JPRM-2021-004-M, of November 16, 2021, which contains the "Regulation on the Registration of External Credits to the Private Sector", with the following text:

"Art. 4.- The Central Bank of Ecuador will register the external credits referred to in this regulation, in the currency in which they are contracted.

The registration will be carried out as long as the payment term of said obligations is active on the date of the request.

The Central Bank of Ecuador will carry out the registration of external credits, solely for statistical purposes."

TRANSITORY PROVISION.- The Central Bank of Ecuador, within thirty (30) days, will update the corresponding administrative regulations and implement the necessary mechanisms, in accordance with the provisions of this resolution.

The Central Bank of Ecuador will continue to register external credits, in accordance with the current requirements, until the institution issues the corresponding administrative regulation.

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

Publication in 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 November 29, 2022.

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, 2022.- I CERTIFY.

ADMINISTRATIVE SECRETARY

Att. MARÍA ALEXANDRA GUERRERO DEL POZO