JPRM-2024-020-G — Authorize the Ministry of Production, Foreign Trade, Investments and Fisheries to open a yen account at MUFG Bank Ltd., Tokyo, Japan, to receive a donation from the Government of Japan to the Republic of Ecuador

RESOLUTION No. JPRM-2024-020-G THE MONETARY POLICY AND REGULATION BOARD

CONSIDERING:

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

That, Article 227 ibid states that the 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 supra 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, numeral 14 of Article 36 of the Organic Monetary and Financial Code, regarding the functions of the Central Bank of Ecuador, establishes: "Act as fiscal, financial, and depositary agent of public resources and provide banking services to entities in the public sector and the national financial system, according to the market remuneration determined by the Monetary Policy and Regulation Board";

That, Article 41 ibid, regarding financial operations of the non-financial public sector, provides: "Institutions, agencies, and companies of the non-financial public sector must carry out all payments they must make, as well as all financial operations and services they require, including foreign trade operations, through the Central Bank of Ecuador or its accounts, in accordance with the regulations and exceptions issued by the Monetary Policy and Regulation Board.

Except for the entity in charge of public finances, social security entities, Decentralized Autonomous Governments, and the Corporation for Deposit Insurance, Liquidity Fund, and Private Insurance Fund, non-financial public sector entities may not carry out financial investments, unless expressly authorized by the entity in charge of public finances.

Operations carried out by public institutions or public companies through the Central Bank of Ecuador, as the State's financial agent, whether in the country or abroad, are of a public nature.

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The Central Bank of Ecuador will sanction non-compliance or failure to comply with the provisions of this article as a serious infringement";

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

That, Article 47.6 of the same Code, regarding the functions of the Monetary Policy and Regulation Board, among others, establishes: "(…) 26. Those others conferred upon it by law";

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

That, by Resolution No. JPRM-2022-015-M, dated April 16, 2022, the Monetary Policy and Regulation Board issued the "Policy of Services of the Central Bank of Ecuador to operate with the exterior," reformed by Resolution No. JPRM-2024-019-M, dated October 1, 2024;

That, Article 7 of the aforementioned resolution provides: "The Monetary Policy and Regulation Board may authorize non-financial public sector entities to open, maintain, and manage accounts abroad to receive donations granted by foreign governments, multilateral entities, or international organizations, prior to favorable reports from the entity in charge of public finances and the Central Bank of Ecuador, within the scope of their attributions and competencies.";

That, Article 9 of the aforementioned resolution determines: "It corresponds to non-financial public sector entities to manage, control, and fulfill the objectives of the donations received in the authorized foreign accounts";

That, by Letter No. MPCEIP-CGAF-2024-0214-O, dated June 21, 2024, the Ministry of Production, Foreign Trade, Investments and Fisheries requested to continue with the process of opening an account abroad at MUFG Bank Ltd., Tokyo, Japan, to implement the donation from the Government of Japan intended to contribute to the implementation of the Economic and Social Development Program;

That, by Letter No. MEF-MEF-2024-1046-O, dated September 27, 2024, the Ministry of Economy and Finance sent the "Favorable Report with authorization to open an account abroad at MUFG Bank Ltd., Japan, in the name of the Ministry of Production, Foreign Trade, Investments and Fisheries Ministry of Production, Foreign Trade, Investments and Fisheries";

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That, the Monetary Policy and Regulation Board, in extraordinary session No. 009-2024, under a mixed modality, on October 3, 2024, reviewed the proposal sent via memorandum No. BCE-BCE-2024-0197-M, dated October 1, 2024, by the General Manager of the Central Bank of Ecuador to the President of the Monetary Policy and Regulation Board, as well as the technical report No. BCE-GISI-054-2024/BCE-SSFI-020-2024, dated October 1, 2024, and the legal report No. BCE-GJ-029-2024, dated October 1, 2024; 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. - Authorize the Ministry of Production, Foreign Trade, Investments and Fisheries to open a yen account at MUFG Bank Ltd., Tokyo, Japan, which will serve to receive the donation from the Government of Japan to the Republic of Ecuador, within the framework of the Economic and Social Development Program for fiscal year 2023, in accordance with the favorable report issued by the Ministry of Economy and Finance, contained in Letter No. MEF-MEF-2024-1046-O.

Article 2.- It shall be the absolute responsibility of the Ministry of Production, Foreign Trade, Investments and Fisheries to manage and control the account opened at MUFG Bank Ltd., Tokyo, Japan; as well as the correct administration of the resources and the fulfillment of the objectives of the donation received in the aforementioned account.

GENERAL PROVISIONS

FIRST: The Central Bank of Ecuador will implement what is established in this authorization as appropriate.

SECOND: The Ministry of Production, Foreign Trade, Investments and Fisheries must inform the Central Bank of Ecuador of the opening and closing dates of the authorized account.

THIRD: The opening and operation of the authorized account abroad shall be subject to everything provided for in the resolution of the Monetary Policy and Regulation Board No. JPRM-2024-019-M.

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

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Entrust its publication on the institutional website to the General Secretariat of the Central Bank of Ecuador. The Administrative Secretariat of the Monetary Policy and Regulation Board will communicate the content of this resolution to the Ministry of Economy and Finance and the Ministry of Production, Foreign Trade, Investments and Fisheries.

NOTIFY AND PUBLISH. - Given in the city of Quito D.M., on October 3, 2024.

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 October 3, 2024.- I CERTIFY. ADMINISTRATIVE SECRETARY Attorney MARÍA ALEXANDRA GUERRERO DEL POZO