Regulatory Alerts2024-01-01 | JPRM-2024-025-GResolution JPRM-2024-025-G Approving the Budget of the Central Bank of Ecuador for the 2025 Fiscal Year
The Monetary and Financial Policy Board of Ecuador issued Resolution JPRM-2024-025-G to formally approve the 2025 budget for the Central Bank of Ecuador following a favorable opinion from the Ministry of Economy and Finance. The resolution mandates the General Management of the Central Bank to execute the budget while providing quarterly progress reports on its implementation and strategic plans. It further stipulates that any future reforms to the budget require prior approval by the Board using the same procedural steps as the original approval.
RESOLUTION NO. JPRM-2024-025-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 under state authority shall exercise only the competencies and powers 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 effectiveness, efficiency, quality, hierarchy, coordination, planning, among others;
That, Article 280 of the Constitution of the Republic provides: “The National Development Plan is the instrument to which public policies, programs, and projects; the programming and execution of the State budget; and the investment and allocation of public resources shall be subject; and to coordinate the exclusive competencies between the central State and 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 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 authority of the Executive Function and shall be implemented through the Central Bank. The law shall regulate the circulation of currency with legal tender 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.”;
RESOLUTION No. JPRM-2024-025-G
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That, numeral 1 of Article 5 of the Organic Code of Public Planning and Finance 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 development planning guidelines of all levels of government, in observance of what is provided in Articles 280 and 293 of the Constitution of the Republic.”;
That, the second paragraph of Article 70 ibidem, regarding the National System of Public Finance, 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 autonomous management faculty 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 projections 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 of the following economic exercise of the Central Bank of Ecuador prior to a favorable opinion from the governing body of public finances, which must be delivered fifteen (15) days before the deadline for budget approval.
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, along with the anticipated expenses, including depreciation and provisions for losses, shall be included in the annual budget.”;
That, Article 47.1 of the aforementioned norm creates 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;
RESOLUTION No. JPRM-2024-025-G
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That, numeral 16 of Article 47.6 of the Code ibidem, as a function of the Monetary and Financial Policy Board, 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-2024-0199-OF, of November 15, 2024, requested the Ministry of Economy and Finance to issue an opinion regarding the 2025 Budgetary Projection project of the Central Bank of Ecuador, a requirement that was attended to with a favorable opinion contained in letter No. MEF-VGF-2024-0518-O, of November 28, 2024, signed by the Vice Minister of Finance, pursuant to the delegation given by the Minister of Economy and Finance, in Ministerial Agreement No. 0104B, of August 29, 2018;
That, the Monetary and Financial Policy Board, in an extraordinary session by mixed modality, on November 29, 2024, reviewed the 2025 Budgetary Projection of the Central Bank of Ecuador sent via memorandum No. BCE-BCE-2024-0272-M, of November 28, 2024, 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-SF-2024-029, of November 15, 2024, and Legal Report No. BCE-GJ-041-2024, of November 28, 2024.
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 2025 economic exercise, 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 2025 economic exercise, on a quarterly basis, as well as the compliance with the Annual Operational Plan and the progress of the Strategic Plan.
RESOLUTION No. JPRM-2024-025-G
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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.
It is entrusted to its publication on the institutional website of the Central Bank of Ecuador, to the General Secretariat.
COMMUNICATE AND PUBLISH. - Given in the Metropolitan District of Quito, on November 29, 2024.
THE PRESIDENT
Signature
Dr. TATIANA MARIBEL RODRÍGUEZ CERÓN
The aforementioned resolution was signed by Doctor Tatiana Maribel Rodríguez Cerón, in her capacity as President of the Monetary and Financial Policy Board, in the Metropolitan District of Quito, on November 29, 2024.- I CERTIFY.
AD-HOC ADMINISTRATIVE SECRETARY
Signature
Law. VLADIMIR NARANJO ALMEIDA
2025 BUDGETARY PROJECTION
ANNEX 1
| Items | Initial Approved Budget 2024 | Projected Execution DEC-2024 | Projection 2025 | Variations Projection 2025 vs. Budget | ||
|---|---|---|---|---|---|---|
| Value | % | |||||
| Income from International Reserves | 124,129,200.00 | 175,859,224.21 | 71,595,621.00 | -52,533,579.00 | 57.7% | |
| R.I. Investment | 32,887,600.00 | 69,369,838.80 | 39,916,876.00 | 7,029,276.00 | 121.4% | |
| Overnight and Weekend Investment | 3,613,700.00 | 3,304,150.28 | 1,266,689.00 | -2,347,011.00 | 35.1% | |
| Overnight and Weekend Investment OM Portfolio | 0.00 | 82,297.67 | 4,013.00 | 4,013.00 | 0.0% | |
| Overnight and Weekend Investment Liquidity Portfolio | 0.00 | 20,015.29 | 0.00 | 0.00 | 0.0% | |
| Overnight and Weekend Investment Liquidity Portfolio | 0.00 | 858,671.47 | 461,843.00 | 461,843.00 | 0.0% | |
| Fixed Term Deposit Investment Liquidity Portfolio | 0.00 | 17,512,038.38 | 16,129,131.00 | 16,129,131.00 | 0.0% | |
| Overnight Investment Payments Portfolio | 0.00 | 275,580.48 | 277,750.00 | 277,750.00 | 0.0% | |
| Deposit Investment Payments Portfolio | 0.00 | 8,439,198.36 | 9,011,090.00 | 9,011,090.00 | 0.0% | |
| Fixed Term Deposits | 29,273,900.00 | 37,650,576.42 | 11,517,176.00 | -17,756,724.00 | 39.3% | |
| Interest on Fixed Term Deposit Investment OM Sale Portfolio | 0.00 | 1,227,310.45 | 1,249,184.00 | 1,249,184.00 | 0.0% | |
| Returns on Title Investment | 89,561,600.00 | 104,572,266.58 | 29,638,745.00 | -59,922,855.00 | 33.1% | |
| Profit on Reserve Investment | 62,533,100.00 | 48,637,854.66 | 1,041,719.00 | -61,491,381.00 | 1.7% | |
| Profit on T-BILLS Reserve | 27,028,500.00 | 20,976,726.11 | 211,423.00 | -26,817,077.00 | 0.8% | |
| Profit on Fixbis OM Reserve | 0.00 | 11,823,824.22 | 3,753,196.00 | 3,753,196.00 | 0.0% | |
| Profit on Fixbis ONM Reserve | 0.00 | 2,009,903.97 | 1,642,173.00 | 1,642,173.00 | 0.0% | |
| Profit on Fixbis Investment Payments Portfolio | 0.00 | 1,662,975.84 | 12,528,377.00 | 12,528,377.00 | 0.0% | |
| Profit on Tbll Reserve Payments Portfolio | 0.00 | 0.00 | 9,836,327.00 | 9,836,327.00 | 0.0% | |
| Profit on Fixbis Investment Liquidity Portfolio | 0.00 | 8,117,184.33 | 0.00 | 0.00 | 0.0% | |
| Profit on T-Bills Reserve Liquidity Portfolio | 0.00 | 11,343,797.45 | 0.00 | 0.00 | 0.0% | |
| Profit on Tbll Reserve Portfolio | 0.00 | 0.00 | 625,530.00 | 625,530.00 | 0.0% | |
| Other Interests | 1,680,000.00 | 1,917,118.83 | 2,040,000.00 | 360,000.00 | 121.4% | |
| IMF Operations Income | 1,680,000.00 | 1,917,118.83 | 2,040,000.00 | 360,000.00 | 121.4% | |
| Income from other operations with the exterior | 5,776,756.00 | 5,167,274.73 | 4,628,000.00 | -1,148,756.00 | 80.1% | |
| Dividends | 428,000.00 | 646,825.50 | 428,000.00 | 0.00 | 100.0% | |
| Profit from Foreign Currency Valuation | 5,283,756.00 | 4,457,908.17 | 4,200,000.00 | -1,083,756.00 | 79.5% | |
| Repurchase Agreements | 65,000.00 | 62,541.06 | 0.00 | -65,000.00 | 0.0% | |
| Income from internal operations | 115,570,029.00 | 157,168,734.73 | 111,901,870.00 | -3,668,159.00 | 96.8% | |
| Investments | 70,469,766.00 | 108,933,570.96 | 70,425,007.00 | -44,759.00 | 99.9% | |
| Domestic Investment of Public Savings | 0.00 | 186,700.26 | 0.00 | 0.00 | 0.0% | |
| MEF Instrument | 70,469,766.00 | 52,871,866.00 | 0.00 | -70,469,766.00 | 0.0% | |
| Financial Contracts | 0.00 | 55,875,004.70 | 70,425,007.00 | 70,425,007.00 | 0.0% | |
| Other Interests | 60,000.00 | 74,052.01 | 81,200.00 | 21,200.00 | 135.3% | |
| Installment Sales Interests on Goods Given in Payment | 60,000.00 | 74,052.01 | 81,200.00 | 21,200.00 | 135.3% | |
| Earned Commissions | 45,040,263.00 | 48,161,111.76 | 41,395,663.00 | -3,644,600.00 | 91.9% | |
| Payment Agreements and Reciprocal Credits | 4,900.00 | 4,900.00 | 1,900.00 | -3,000.00 | 38.8% | |
| AL and Foreign Letters of Credit | 398,352.00 | 652,249.13 | 972,000.00 | 573,648.00 | 244.0% | |
| Transfer to and From the Exterior | 510,027.00 | 495,560.00 | 471,324.00 | -38,703.00 | 92.4% | |
| Trust | 8,770,000.00 | 8,664,447.74 | 7,570,000.00 | -1,200,000.00 | 86.3% | |
| Custody | 3,868,178.00 | 4,988,805.65 | 3,635,618.00 | -232,560.00 | 94.0% | |
| Funds Received in Administration | 14,668,477.00 | 16,030,270.62 | 10,013,273.00 | -4,655,204.00 | 68.3% | |
| Transfers within the country | 6,264.00 | 6,246.00 | 7,440.00 | 1,176.00 | 118.8% | |
| Current Account Statements | 186,385.00 | 172,386.00 | 186,803.00 | 418.00 | 100.2% | |
| Payment Orders | 13,082.00 | 12,498.00 | 12,720.00 | -362.00 | 97.2% | |
| Clearing House | 402,250.00 | 378,452.56 | 368,878.00 | -33,372.00 | 91.7% | |
| National Payment Systems | 7,487,588.00 | 8,566,855.00 | 10,402,227.00 | 2,914,639.00 | 138.9% | |
| Other Commissions | 8,724,760.00 | 8,188,441.06 | 7,753,480.00 | -971,280.00 | 88.9% |
2025 BUDGETARY PROJECTION
ANNEX 1
| Items | Initial Approved Budget 2024 | Projected Execution DEC-2024 | Projection 2025 | Variations Projection 2025 vs. Budget | ||
|---|---|---|---|---|---|---|
| Value | % | |||||
| Other Management Income | 1,261,752.00 | 88,530,317.58 | 1,365,823.00 | 104,071.00 | 108.2% | |
| Budget Liquidation | 0.00 | 381,807.36 | 0.00 | 0.00 | 0.0% | |
| Rentals | 13,142.00 | 11,248.62 | 13,143.00 | 1.00 | 100.0% | |
| Sale of Goods Given in Payment | 1,043,920.00 | 1,109,099.06 | 52,600.00 | -991,320.00 | 5.0% | |
| Current Exercise Income | 125,900.00 | 8,726,051.00 | 1,224,900.00 | 1,099,000.00 | 972.9% | |
| Previous Exercise Income | 0.00 | 78,185,391.21 | 0.00 | 0.00 | 0.0% | |
| Other Management Income | 78,790.00 | 116,720.33 | 75,180.00 | -3,610.00 | 95.4% | |
| Monetary Policy Management Income | 103,547,603.00 | 2,122,039.43 | 898,344.00 | -102,649,259.00 | 0.9% | |
| Monetary Policy Income | 103,547,603.00 | 2,122,039.43 | 898,344.00 | -102,649,259.00 | 0.9% | |
| Interest Earned on Titles | 98,436,358.00 | 1,479,927.06 | 0.00 | -98,436,358.00 | 0.0% | |
| Sale of Non-Monetary Gold | 0.00 | 35,431.03 | 177,156.00 | 177,156.00 | 0.0% | |
| Silver Sale | 369,112.00 | 429,078.80 | 536,316.00 | 167,204.00 | 145.3% | |
| Domestic Investment of Public Savings | 4,557,261.00 | 0.00 | 0.00 | -4,557,261.00 | 0.0% | |
| Securitization Return | 184,872.00 | 177,602.54 | 184,872.00 | 0.00 | 100.0% | |
| Expenses from International Reserves | 1,848,000.00 | 2,133,499.00 | 2,644,000.00 | 796,000.00 | 143.1% | |
| Other Commissions | 1,800,000.00 | 1,979,999.00 | 1,800,000.00 | 0.00 | 100.0% | |
| R.M.I. Investment Loss | 48,000.00 | 36,000.00 | 844,000.00 | 796,000.00 | 1758.3% | |
| Portfolio Administration | 0.00 | 117,500.00 | 0.00 | 0.00 | 0.0% | |
| Expenses from other operations with the exterior | 4,777,140.00 | 4,525,363.33 | 4,770,297.00 | -6,843.00 | 99.9% | |
| Payment Agreements and Reciprocal Credits | 7,956.00 | 7,293.00 | 7,956.00 | 0.00 | 100.0% | |
| Credit Agreement Commissions | 29,184.00 | 8,439.44 | 22,341.00 | -6,843.00 | 76.6% | |
| Correspondency and Transfer Commissions | 240,000.00 | 200,000.00 | 240,000.00 | 0.00 | 100.0% | |
| Foreign Currency Loss | 4,500,000.00 | 4,309,630.89 | 4,500,000.00 | 0.00 | 100.0% | |
| Expenses from internal operations | 3,135,220.00 | 1,804,677.20 | 3,538,970.00 | 403,750.00 | 112.9% | |
| Paid Commissions | 7,020.00 | 5,946.46 | 7,400.00 | 380.00 | 105.4% | |
| Other Financial Expenses | 195,200.00 | 283,009.54 | 994,570.00 | 799,370.00 | 509.5% | |
| Provisions | 2,933,000.00 | 1,515,721.20 | 2,537,000.00 | -396,000.00 | 86.5% | |
| Uncollectible Accounts | 1,333,000.00 | 1,117,325.93 | 1,337,000.00 | 4,000.00 | 100.3% | |
| Investment Provision | 1,600,000.00 | 398,395.27 | 1,200,000.00 | -400,000.00 | 75.0% | |
| Administration Expenses | 70,937,058.00 | 58,042,022.01 | 100,593,596.00 | 29,656,538.00 | 141.8% | |
| Inventory for Sale | 346,320.00 | 0.00 | 0.00 | -346,320.00 | 0.0% | |
| Works | 0.00 | 0.00 | 19,879,777.00 | 19,879,777.00 | 0.0% | |
| Property, Plant, Equipment and Intangibles | 9,419,347.00 | 7,293,922.27 | 14,948,474.00 | 5,529,127.00 | 158.7% | |
| Payroll Mass | 24,312,864.00 | 21,198,474.23 | 24,142,648.00 | -170,216.00 | 99.3% | |
| Other Personnel Expenses | 1,161,766.00 | 947,448.74 | 1,693,676.00 | 531,910.00 | 145.8% | |
| Operating Expenses | 28,873,879.00 | 20,626,008.16 | 22,397,980.00 | -6,475,899.00 | 77.6% | |
| Services | 9,513,396.00 | 9,961,679.00 | 10,162,151.00 | 648,755.00 | 106.8% | |
| Maintenance | 17,489,677.00 | 8,860,387.19 | 10,729,802.00 | -6,759,875.00 | 61.3% | |
| Supplies and Materials | 333,383.00 | 279,262.31 | 144,387.00 | -188,996.00 | 43.3% | |
| Rentals | 1,005,488.00 | 800,184.81 | 1,256,371.00 | 250,883.00 | 125.0% | |
| Editing and Press | 531,935.00 | 724,494.85 | 105,269.00 | -426,666.00 | 19.8% | |
| Taxes and Contributions | 2,284,078.00 | 2,599,291.74 | 1,761,469.00 | -522,609.00 | 77.1% | |
| Securities Market Registration | 18,105.00 | 18,105.00 | 18,105.00 | 0.00 | 100.0% | |
| CEMLA | 52,000.00 | 51,559.20 | 48,798.00 | -3,202.00 | 93.8% | |
| Others | 2,213,973.00 | 2,529,627.54 | 1,694,566.00 | -519,407.00 | 76.5% |
2025 BUDGETARY PROJECTION
ANNEX 1
| Items | Initial Approved Budget 2024 | Projected Execution DEC-2024 | Projection 2025 | Variations Projection 2025 vs. Budget | ||
|---|---|---|---|---|---|---|
| Value | % | |||||
| Special Programs | 538,804.00 | 372,996.52 | 821,098.00 | 282,294.00 | 152.4% | |
| Numismatic Programs | 333,575.00 | 161,772.46 | 618,357.00 | 284,782.00 | 185.4% | |
| Special Projects | 205,229.00 | 211,224.06 | 202,741.00 | -2,488.00 | 98.8% | |
| Depreciations | 4,000,000.00 | 5,003,880.35 | 14,948,474.00 | 10,948,474.00 | 373.7% | |
| Fixed Assets Depreciation Expense | 4,000,000.00 | 5,003,880.35 | 14,948,474.00 | 10,948,474.00 | 373.7% | |
| Other Management Expenses | 1,264,432.00 | 2,694,085.12 | 2,022,240.00 | 757,808.00 | 159.9% | |
| Losses in Previous Exercises | 0.00 | 132,497.41 | 197,954.00 | 197,954.00 | 0.0% | |
| Indemnification for Personnel Dismissal | 0.00 | 1,092,014.00 | 0.00 | 0.00 | 0.0% | |
| Retirement Pensions | 1,000,000.00 | 1,000,000.00 | 1,000,000.00 | 0.00 | 100.0% | |
| Zamora Gold Commercialization Building | 0.00 | 0.00 | 627,325.00 | 627,325.00 | 0.0% | |
| Others | 264,432.00 | 469,573.71 | 196,961.00 | -67,471.00 | 74.5% | |
| Monetary Policy Management Expenses | 9,827,667.00 | 7,863,956.22 | 10,787,742.00 | 960,075.00 | 109.8% | |
| Other Policy Expenses | 500.00 | 0.00 | 0.00 | -500.00 | 0.0% | |
| Cost of Internal Remittance Transport | 333,857.00 | 476,664.83 | 3,315,280.00 | 2,981,423.00 | 993.0% | |
| Cost of Remittance Transport to and From the Exterior | 2,361,896.00 | 2,284,922.06 | 2,433,052.00 | 71,156.00 | 103.0% | |
| National Metal Coin Minting | 6,851,414.00 | 4,867,162.57 | 4,856,328.00 | -1,995,086.00 | 70.9% | |
| Cost for sale-non-monetary gold-Dngr-Uio | 280,000.00 | 235,206.76 | 183,082.00 | -96,918.00 | 65.4% | |
| Total Income | 350,285,340.00 | 428,847,590.68 | 190,389,658.00 | -159,895,682.00 | 54.4% | |
| Total Expenses | 91,789,517.00 | 77,063,602.88 | 124,356,845.00 | 32,567,328.00 | 135.5% | |
| Budgetary Result | 258,495,823.00 | 351,783,987.80 | 66,032,813.00 | -192,463,010.00 | 26% |
REVIEWED BY:
Signature
Mario Vega J.
Acting Administrative and Financial Manager
Signature
Martín Acosta B.
Acting Financial Submanager
PREPARED BY:
Signature
Silvana Alegría G.
Financial and Accounting Expert
Signature
Pablo Segarra V.
Financial and Accounting Specialist