Resolution JPRM-2025-001-G Approving the Audited Financial Statements of the Central Bank of Ecuador for the Period from January 1 to December 31, 2024

RESOLUTION No. JPRM-2025-001-G THE MONETARY POLICY AND REGULATION BOARD

CONSIDERING:

That, Article 226 of the Constitution of the Republic of Ecuador stipulates that public officials 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 principles of effectiveness, efficiency, quality, hierarchy, coordination, planning, among others;

That, the first clause of Article 303 aforementioned 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 30 of the Organic Monetary and Financial Code states: "The net results of the Central Bank of Ecuador will be determined based on the financial statements prepared in accordance with internationally recognized accounting standards applicable to the institution, which must have the opinion of an independent auditor. (...)";

That, Article 31 of the aforementioned Code determines: "The Monetary Policy and Regulation Board will review and approve the annual financial statements provided they comply with the accounting policies and procedures of the Central Bank of Ecuador, which must be based on internationally recognized accounting standards. Within three (3) months following the close of its financial year, the Central Bank of Ecuador will present to the entity in charge of public finances and the National Assembly, the financial statements approved by the Monetary Policy and Regulation Board, signed by the General Manager, the accountant, and audited by the external auditor. Within thirty (30) days from the certification of the annual financial statements by the external audit, the Central Bank of Ecuador must publish the financial statements, the notes to said financial statements, and the opinion issued by the external auditor.

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The Central Bank of Ecuador must publish the monthly financial statements within fifteen (15) days following the closing date of each month. It must present copies of said balances to the entity in charge of public finances";

That, Article 33 of the same Code prescribes: "Within the general balance sheet of the Central Bank of Ecuador, the following systems are created: First System: In the liability of this System, national monetary species minted by the Central Bank of Ecuador that are in circulation, the Central Bank Titles (TBC) referred to in Article 126 of this Code, any other direct obligation with the public, and deposits from other deposit societies, including private banks, mutualist banks, savings and credit cooperatives, and public banks with demand deposits, will be recorded. These liabilities must be covered one hundred percent by the assets of the international reserve. Second System: In the liability of this System, deposits from other financial entities will be recorded, including the National Financial Corporation B.P., the Bank of the Ecuadorian Social Security Institute, other public sector financial entities, and financial intermediaries that do not capture demand deposits from the public. These liabilities will be covered with the residual reserve assets once the First System is covered and must be equivalent to one hundred percent of the liabilities in this system. Third System: In the liability of this System, deposits from the Non-Financial Public Sector (NFPS), duly authorized private legal entities, in the Central Bank of Ecuador, and transfers through the Payment System pending settlement, as well as the external debt specific to the Central Bank of Ecuador, will be recorded. These liabilities must be covered one hundred percent by the assets of the international reserve, once the second system has been fully covered. Fourth System: Records the remaining accounts of the assets and liabilities of the Central Bank of Ecuador, including equity and results accounts. Once the Third System is covered, its remainder will be added to the assets covering this System. The liabilities of a system of lower priority cannot be honored with the assets of preceding systems. The Monetary Policy and Regulation Board will determine and publish the methodology for the distribution of assets and liabilities of each of the systems. The publication of the general balance sheet of the Central Bank of Ecuador, classified into the four systems, will be carried out on a monthly basis";

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That, Article 47.1 of the aforementioned Organic Code created the Monetary Policy and Regulation 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;

That, numeral 17 of Article 47.6 aforementioned, regarding the functions of the Monetary Policy and Regulation Board, among others, establishes: "(...) 17. Review and approve the annual financial statements of the Central Bank of Ecuador (...)";

That, Article 47.7 of the same Code states: "The acts of the Monetary Policy and Regulation Board enjoy the presumption of legality and will be expressed through resolutions that will have mandatory force (...)";

That, through Resolution No. JPRM-2021-006-A, dated December 17, 2021, the Monetary Policy and Regulation Board issued the "Regulation of the Audit Committee of the Central Bank of Ecuador", reformed;

That, Article 9 of the aforementioned Resolution, regarding the functions of the Audit Committee concerning the financial statements, among others, states: "(...) d) Review the financial statements of the Central Bank of Ecuador, prior to their presentation to the approval body; (...)";

That, through Resolution No. JPRM-2022-006-G, dated February 11, 2022, the Monetary Policy and Regulation Board issued the "Standard for the Contracting of External Auditors of the Central Bank of Ecuador", reformed;

That, through Resolution No. JPRM-2024-011-G, dated July 10, 2024, the Monetary Policy and Regulation Board appointed the company KRESTON AUDIT SERVICES ECUADOR CIA. LTDA. to perform the external audit of the Central Bank of Ecuador for the economic years 2024, 2025, and 2026;

That, the company KRESTON AUDIT SERVICES ECUADOR CIA. LTDA., through letter No. KE-BC-2025-006, dated February 25, 2025, issued the opinion on the reasonableness of the financial statements of the Central Bank of Ecuador, for the period from January 1 to December 31, 2024, with their respective notes;

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That, according to Memorandum No. BCE-JPRM-2025-0022-M dated February 25, 2025, the President of the Audit Committee informed the Monetary Policy and Regulation Board as follows: "(...) in the Extraordinary Session No. 004-2025 of the Audit Committee of the Central Bank of Ecuador, held today, February 25, 2025, the Opinion of the External Auditors on the Financial Statements as of December 2024 was reviewed. Previously, in the Extraordinary Session No. 003-2025 of the Audit Committee of the Central Bank of Ecuador held on February 24, 2025, the members of the Committee reviewed the content of said financial statements and their respective notes, making the appropriate observations, which were resolved by the External Auditors in the Committee held on this day. Therefore, the Audit Committee of the Central Bank of Ecuador considers that the Monetary Policy and Regulation Board could review and approve the Financial Statements based on the report of the referred External Auditor.";

That, the Monetary Policy and Regulation Board, in an extraordinary session by mixed modality, on February 27, 2025, reviewed the pronouncement of the Audit Committee related to the opinion on the reasonableness of the financial statements of the Central Bank of Ecuador, for the period from January 1 to December 31, 2024, with their respective notes; likewise, it reviewed the request for approval of the financial statements and the draft resolution sent via memorandum No. BCE-BCE-2025-0044-M, dated February 26, 2025, by the General Manager of the Central Bank of Ecuador to the President of the Monetary Policy and Regulation Board; and the technical report No. BCE-GAF-001-2025/BCE-SF-005-2025, dated January 24, 2025, and the legal report No. BCE-GJ-007-2025, dated February 25, 2025; and,

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

RESOLVES

Article 1.- Approve the audited Financial Statements of the Central Bank of Ecuador, for the period from January 1 to December 31, 2024, with their respective notes.

Article 2.- Order the Central Bank of Ecuador to publish the audited and approved financial statements, for the period from January 1 to December 31, 2024, as well as the notes to said financial statements and the opinion issued by the external auditor, on the institutional website.

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

The General Secretariat of the Central Bank of Ecuador is entrusted with its publication on the institutional website.

NOTIFY AND PUBLISH. - Given in the Metropolitan District of Quito, on February 27, 2025.

THE PRESIDENT Dr. TATIANA MARIBEL RODRÍGUEZ CERÓN

The aforementioned resolution was signed by Dr. Tatiana Maribel Rodríguez Cerón - President of the Monetary Policy and Regulation Board, in the Metropolitan District of Quito, on February 27, 2025.- I CERTIFY. ADMINISTRATIVE SECRETARY Attorney MARÍA ALEXANDRA GUERRERO DEL POZO