JPRM-2022-017-G — Establish that thirty percent (30%) of the profits corresponding to 2021, after deducting accumulated losses from previous years, be credited to the general reserve fund account of the Central Bank of Ecuador

RESOLUTION No. JPRM-2022-017-G THE MONETARY AND FINANCIAL POLICY BOARD

CONSIDERING:

That, Article 226 of the Constitution of the Republic of Ecuador prescribes that public officials and persons acting by virtue of a state power 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 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 30.1 of the Organic Monetary and Financial Code establishes that: "Within thirty days following the publication of the financial statements, the Central Bank of Ecuador shall allocate profits according to the following order:

1. To cover accumulated losses from previous fiscal years;
2. If there is a remainder, the Monetary and Financial Policy Board shall establish a percentage that will not be less than thirty percent to credit the general reserve fund account until it equals five hundred percent of the authorized and paid-in capital of the Central Bank of Ecuador; and,
3. The balance shall be transferred to the General State Budget. No other distribution of profits of the Central Bank of Ecuador shall be made to those referred to in this article."

That, Article 47.1 of the Organic Monetary and Financial Code created the Monetary and Financial Policy Board, as part of the Executive Function, responsible for the formulation of monetary policy, as the highest governing body of the Central Bank of Ecuador, and determines its composition;

That, the Fifty-First Transitory Provision of the Organic Monetary and Financial Code provides: "(...) the Monetary and Financial Policy Board shall adopt all necessary measures to ensure the full preparation and publication of its financial statements, policies, and accounting procedures in accordance with the adaptation of IFRS in all that is applicable to the nature of the Central Bank of Ecuador, for the closing of the fiscal year ending on December 31, 2021, at the latest. (...)";

That, the Monetary and Financial Policy Board, through Resolution No. JPRM-2022-016-G of June 17, 2022, resolved to approve the audited Financial Statements of the Central Bank of Ecuador, as of December 31, 2021, and ordered the Central Bank of Ecuador to publish the audited and approved Financial Statements on its institutional website;

That, the Monetary and Financial Policy Board, in an ordinary session held virtually on June 17, 2022, reviewed the proposal for the determination of the profit percentage to be credited to the general reserve fund account, sent via memorandum No. BCE-BCE-2022-0133-M and its addendum via memorandum No. BCE-BCE-2022-0134-M, both dated June 14, 2022, by the General Manager of the Central Bank of Ecuador; attaching the technical report BCE-CGAF-072-2022/BCE-DFP-2022-030, dated June 13, 2022; and the legal report No. BCE-CGJ-080-2022, dated June 13, 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

SINGLE ARTICLE.- Establish that thirty percent (30%) of the profits corresponding to the year 2021, after deducting accumulated losses from previous years, be credited to the general reserve fund account of the Central Bank of Ecuador.

TRANSITORY PROVISION.- The Central Bank of Ecuador, within a period of 2 months, shall inform the Monetary and Financial Policy Board of the compliance percentage of the reserve fund account regarding what is stated in number 2 of Article 30.1 of the Organic Monetary and Financial Code.

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

Entrust the publication on the institutional website to the Document Management and Archive Directorate of the Central Bank of Ecuador.

RESOLUTION No. JPRM-2022-017-G Page | 2

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COMMUNICATE.- Given in the Metropolitan District of Quito, on June 17, 2022

THE PRESIDENT Dr. TATIANA MARIBEL RODRÍGUEZ CERÓN

The resolution above was signed by Dr. Tatiana Maribel Rodríguez Cerón - President of the Monetary and Financial Policy Board, in the Metropolitan District of Quito, on June 17, 2022.- I CERTIFY.

ADMINISTRATIVE SECRETARY Attorney MARÍA ALEXANDRA GUERRERO DEL POZO