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2025-01-01 | JPRM-2025-002-G

JPRM-2025-002-G — Order to Transfer Distributable Profit Balance to the General State Budget

The Monetary and Financial Policy Board (JPRM) issued Resolution JPRM-2025-002-G to mandate the transfer of the entire remaining distributable profit balance of the Central Bank of Ecuador to the General State Budget. This directive follows the confirmation that the Central Bank's general reserve fund has reached the legally required threshold of 500% of its authorized and paid-in capital. The resolution requires the immediate crediting of these funds to the Single Treasury Account and enters into force upon issuance.

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RESOLUTION No. JPRM-2025-002-G THE MONETARY AND FINANCIAL POLICY 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 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 clause of Article 303 of the same determines that the formulation of monetary, credit, exchange, and financial policies is the exclusive prerogative of the Executive Branch and shall 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 not less than thirty percent to credit the general reserve fund account until it equals five hundred percent (500%) 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 to those referred to in this article shall be made";

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

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

RESOLUTION No. JPRM-2025-002-G Page | 2

That, through Resolution No. JPRM-2025-001-G, dated February 27, 2025, the Monetary and Financial Policy Board resolved to approve the audited Financial Statements of the Central Bank of Ecuador, as of December 31, 2024; and ordered the Central Bank of Ecuador to publish the approved audited Financial Statements on its institutional website;

That, the Monetary and Financial Policy Board, in an extraordinary session held via mixed modality on February 28, 2025, reviewed the draft resolution proposal for the distribution of profits to credit the Single Treasury Account, submitted via Memorandum No. BCE-BCE-2025-0045-M, dated February 27, 2025, by the General Manager of the Central Bank of Ecuador; attaching Technical Report No. BCE-GAF-006-2025/BCE-SF-014-2025, dated February 27, 2025, and Legal Report No. BCE-GJ-008-2025, dated February 27, 2025; 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

Article 1.- In view that the general reserve fund account has reached five hundred percent (500%) of the authorized and paid-in capital of the Central Bank of Ecuador, it is ordered that the balance of distributable profits be transferred to the General State Budget in its entirety, with its corresponding crediting in the Single Treasury Account.

FINAL PROVISION. - This resolution shall 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 tasked with its publication on the institutional website.

COMMUNICATE AND PUBLISH. - Given in the Metropolitan District of Quito, on February 28, 2025.

THE PRESIDENT Dr. TATIANA MARIBEL RODRÍGUEZ CERÓN

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The aforementioned resolution was signed by Dr. Tatiana Maribel Rodríguez Cerón - President of the Monetary and Financial Policy Board, in the Metropolitan District of Quito, on February 28, 2025.- I CERTIFY.

ADMINISTRATIVE SECRETARY Attorney MARÍA ALEXANDRA GUERRERO DEL POZO

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