JPRM-2022-031-G — Authorize the Ministry of Economy and Finance to Open, Administer, and Control the Yen Account at MUFG Bank Ltd. Tokyo

MONETARY AND REGULATORY POLICY BOARD

RESOLUTION No. JPRM-2022-031-G

THE MONETARY AND REGULATORY 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 the competencies and powers attributed to them in the Constitution and the law;

That, Article 227 thereof states that 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 Branch and will be implemented through the Central Bank of Ecuador;

That, Article 41 of the Organic Monetary and Financial Code, regarding financial operations of the non-financial public sector, establishes that operations carried out by public institutions or public companies, through the Central Bank of Ecuador, as the financial agent of the State, whether in the country or abroad, are of a public nature;

That, Article 47.1 supra created the Monetary and Regulatory Policy Board, as part of the Executive Branch, responsible for the formulation of monetary policy, as the highest governing body of the Central Bank of Ecuador;

That, Article 47.6 of the same Code, regarding the functions of the Monetary and Regulatory Policy Board, establishes: "(...) 26. Those others conferred by law. For the fulfillment of these functions, the Monetary and Regulatory Policy Board will issue regulations in matters within its competence, without being able to alter legal provisions."

That, Article 140 of the Organic Monetary and Financial Code determines that: "Debt Service. In its capacity as the fiscal agent of the State, it corresponds to the Central Bank of Ecuador to acquire foreign exchange to effect the debt service and payments of public sector entities.

The Monetary and Regulatory Policy Board will authorize the opening and maintenance of accounts abroad, for use by public sector entities, prior to favorable reports from the regulator of public finances."

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MONETARY AND REGULATORY POLICY BOARD

RESOLUTION No. JPRM-2022-031-G Page | 2

That, Article 163 of the Organic Code of Public Planning and Finances, regarding the Management and accreditation of public resources, determines: "(...) The Republic of Ecuador, with prior authorization from the Regulator of Public Finances, may open and maintain abroad fixed-term or demand deposit accounts to manage, grant, or make payments, incur debt, invest, and pay security interests."

That, General Provision First thereof establishes: "Regardless of the origin of the resources, entities and organisms of the non-financial public sector may not create accounts, funds, or other mechanisms for handling income and expenses that are not authorized by the regulator of the Public Finance System."

That, Article 170 of the General Regulation of the Organic Code of Public Planning and Finances, regarding the opening of accounts abroad, provides: "With the exception of public financial institutions, the Ministry of Economy and Finance, coordinating with the Central Bank, will authorize the opening and maintenance abroad of accounts to manage, grant, or make payments, incur debt, invest, and pay security interests. The Central Bank of Ecuador, as the financial agent of the State, will open said accounts."

That, Article 5 of Resolution No. JPRM-2022-015-M, of April 16, 2022, issued by the Monetary and Regulatory Policy Board determines: "The Monetary and Regulatory Policy Board may authorize public sector entities to constitute, open, and maintain accounts abroad for debt service, prior to favorable reports from the regulator of public finances and the Central Bank of Ecuador";

That, Article 6 of the same resolution establishes: "It corresponds to public institutions to carry out the control of the accounts they open abroad for debt service";

That, by Resolution No. CDF-RES-2022-010, of October 7, 2022, the Debt and Financing Committee resolved to authorize the Ministry of Economy and Finance to contract the freely available loan under the Program Loan modality, granted by the Japan International Cooperation Agency (JICA) to the Republic of Ecuador, for up to JPY 23,000 million, within the framework of the "COVID-19 Crisis Response Emergency Support Loan" program;

That, by Letter No. MEF-MINFIN-2022-0733-O, of November 18, 2022, addressed to the President of the Monetary and Regulatory Policy Board, the Minister of Economy and Finance issued a favorable report for the opening of an account abroad, at MUFG Bank Ltd. Tokyo for the "Loan Agreement No. EC-C1. MEF-JICA COVID-19 Crisis Response Emergency Support Loan";

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MONETARY AND REGULATORY POLICY BOARD

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That, the Monetary and Regulatory Policy Board, in ordinary session by mixed modality, on December 19, 2022, reviewed the proposal sent via Memorandum No. BCE-BCE-2022-0259-M, of December 13, 2022, by the General Manager of the Central Bank of Ecuador to the President of the Monetary and Regulatory Policy Board; as well as, Technical Report No. BCE-SGSERV-073/DNSP-0561-2022, of December 12, 2022; and, Legal Report No. BCE-CGJ-165-2022, of December 12, 2022; and,

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

Art. 1.- Authorize the Ministry of Economy and Finance to open a yen-denominated account at MUFG Bank Ltd. Tokyo, which will serve to manage the credit "Loan Agreement No. EC-C1. MEF-JICA COVID-19 Crisis Response Emergency Support Loan".

Art. 2.- It corresponds to the Ministry of Economy and Finance the administration and control of the account at MUFG Bank Ltd. Tokyo, which will serve to manage the credit "Loan Agreement No. EC-C1. MEF-JICA COVID-19 Crisis Response Emergency Support Loan", as well as, it corresponds to it the execution and compliance of this resolution.

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

It is entrusted to its publication on the institutional website, to the Directorate of Documentary Management and Archive of the Central Bank of Ecuador.

COMMUNICATE AND PUBLISH.- Given in the Metropolitan District of Quito, on December 19, 2022.

THE PRESIDENT

(Signature) Dr. TATIANA MARIBEL RODRÍGUEZ CERÓN

The preceding resolution was signed by Dr. Tatiana Maribel Rodríguez Cerón, - President of the Monetary and Regulatory Policy Board, in the Metropolitan District of Quito, on December 19, 2022.- I CERTIFY.

ADMINISTRATIVE SECRETARY

(Signature) Law. MARÍA ALEXANDRA GUERRERO DEL POZO