JPRFM-2026-007-A — Order to Transfer 100% of Central Bank of Ecuador's 2025 Distributable Profits (USD 378,974,883.33) to the General State Budget

RESOLUTION No. JPRFM-2026-007-A
THE FINANCIAL AND MONETARY POLICY AND REGULATION 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 stipulates 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 of the constitutional norm determines that the formulation of monetary, credit, exchange, and financial policies is the exclusive authority of the Executive Branch and shall be implemented through the Central Bank of Ecuador; That, on October 13, 2025, the Organic Reform Law of the Organic Monetary and Financial Code was published in the Sixth Supplement of the Official Register No. 142; That, Article 13 of the Organic Monetary and Financial Code creates the Financial and Monetary Policy and Regulation Board, part of the Executive Branch, responsible for formulating monetary, credit, financial, securities, insurance, and prepaid comprehensive health care service policies, as well as the highest governing body of the Central Bank of Ecuador, and determines its composition; That, Article 17 of the aforementioned Code, in its pertinent part, determines that: "(...) For the fulfillment of these functions, the Board shall issue regulations in matters within its competence, without altering legal provisions. The Financial and Monetary Policy and Regulation Board may issue regulations by segments, economic activities, and other criteria. It may even reform or repeal regulations from the former Monetary Policy and Regulation Board, Financial Policy and Regulation Board, or Monetary and Financial Policy and Regulation Board. All regulations and policies issued by the Financial and Monetary Policy and Regulation Board in the exercise of its functions, duties, and powers must be backed by duly substantiated technical and legal reports (...)"; RESOLUTION No. JPRFM-2026-007-A That, Article 24 of the same Code provides that the acts of the Financial and Monetary Policy and Regulation Board enjoy the presumption of legality and shall be expressed through resolutions that will have mandatory force, which shall take effect from their publication in the Official Register, or from the date of issuance if the Board so determines, in accordance with the subject matter; That, Article 25.2 of the same stipulates that the Technical Secretariat of the Financial and Monetary Policy and Regulation Board shall be exercised by the Central Bank of Ecuador, and Article 25.3 establishes as its functions the preparation of technical and legal reports to support regulatory proposals, provide technical and administrative support to the Board, and any other duties assigned by said Board; That, Article 30.1 of the aforementioned Organic 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 a remainder exists, the Monetary Policy and Regulation Board shall establish a percentage not less than thirty percent to credit the general reserve fund account until it equals five hundred percent of the authorized and paid capital of the Central Bank of Ecuador; and,
3. The balance shall be transferred to the General State Budget.
   No other distribution of the Central Bank of Ecuador's profits shall be made to those referred to in this article"; That, General Provision Twenty-Ninth of the same stipulates: "In existing legislation where reference is made, interchangeably, to the Monetary and Financial Policy and Regulation Board, the Monetary Policy and Regulation Board; or the Financial Policy and Regulation Board, replace and understand as 'Financial and Monetary Policy and Regulation Board'"; That, First Transitional Provision of the Organic Reform Law of the Organic Monetary and Financial Code determines that the members of the Financial and Monetary Policy and Regulation Board, sworn in on September 16, 2025 by the National Assembly, will continue to exercise their functions for the periods they were designated and will maintain their employment continuity and acquired rights; That, through Official Letter No. T.233-SGJ-25-098, dated September 5, 2025, signed by the Constitutional President of the Republic, addressed to the President of the National Assembly, the list of candidates for the appointment of Members of the Financial and Monetary Policy and Regulation Board was sent, along with the duration of their stay within the initial term; That, the Plenary of the National Assembly, on September 16, 2025, appointed and swore in the members of the Financial and Monetary Policy and Regulation Board, namely: Gustavo Estuardo Camacho Dávila; Silvia Daniela Moya Arteta; Roberto Javier Basantes Romero; María Isabel Camacho Cárdenas; and Jeniffer Nathaly Rubio Abril; That, through Resolution No. JPRFM-2026-006-A, dated February 27, 2026, the Financial and Monetary Policy and Regulation Board resolved to approve the audited Financial Statements of the Central Bank of Ecuador, as of December 31, 2025; and ordered the Central Bank of Ecuador to publish the approved audited financial statements on its institutional website; That, the Financial and Monetary Policy and Regulation Board, through extraordinary session No. 006-2026, held electronically (asynchronously) on March 1, 2026, reviewed the proposal sent via Memorandum No. BCE-BCE-2026-0067-M, dated February 27, 2026, by the General Manager of the Central Bank of Ecuador to the President of the Financial and Monetary Policy and Regulation Board; as well as Technical Report No. BCE-GAF-2026-007/BCE-SF-2026-015, dated February 27, 2026; and Legal Report No. BCE-GJ-018-2026, dated February 27, 2026; and, In exercise of its functions and in accordance with Article 24 of the Organic Monetary and Financial Code, the Financial and Monetary Policy and Regulation Board, RESOLUTION No. JPRFM-2026-007-A RESOLVES:
   Single Article.- Order that the balance of distributable profits of the Central Bank of Ecuador corresponding to the 2025 fiscal year, valued at USD 378,974,883.33 (THREE HUNDRED SEVENTY-EIGHT MILLION NINE HUNDRED SEVENTY-FOUR THOUSAND EIGHT HUNDRED EIGHTY-THREE WITH 33/100 US DOLLARS), equivalent to one hundred percent (100%) of distributable profits, be transferred in full to the General State Budget through its crediting to the National Treasury's Single Current Account of the Ministry of Economy and Finance. In view that the Central Bank of Ecuador's general reserve fund account has reached five hundred percent (500%) of its authorized and paid capital. FINAL PROVISION.- This resolution shall take effect from its issuance, without prejudice to its publication in the Official Register. The General Secretariat of the Central Bank of Ecuador is tasked with publishing this resolution on the institutional website. COMMUNICATE AND PUBLISH.- Given in the city of Quito D.M., on March 1, 2026. THE PRESIDENT Mgs. Gustavo Estuardo Camacho Dávila The aforementioned resolution was processed and signed by Master Gustavo Estuardo Camacho Dávila - President of the Financial and Monetary Policy and Regulation Board, in the city of Quito D.M., on March 1, 2026.- I CERTIFY. TECHNICAL SECRETARIAT Mgs. Jennifer Mishel Carrillo Rosales