Resolution JPRFM-2025-012-F: Repeal of Section III on Public Financial Sector Capital Budget

RESOLUTION No. JPRFM-2025-012-F THE FINANCIAL AND MONETARY POLICY AND REGULATION BOARD

CONSIDERING:

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

That, Article 227 of the same instrument states that 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 constitutional norm 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, on October 13, 2025, the Organic Law Reforming the Organic Monetary and Financial Code was published in the Sixth Supplement of 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 Function, as an entity with functional, technical, and institutional autonomy, and in its decisions, responsible for the formulation of monetary, credit, financial, securities, insurance, and prepaid comprehensive health care services policy and regulation. The Financial and Monetary Policy and Regulation Board shall be the highest governing body of the Central Bank of Ecuador;

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 being able to alter 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.

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All norms 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 (...)";

That, Article 18 of the same instrument establishes the specific functions of the Financial and Monetary Policy and Regulation Board in the financial sphere, within which, from the promulgation of the Organic Law Reforming the Organic Monetary and Financial Code, the competence of said body to annually approve the budget of public financial sector entities, their reforms, as well as the faculty to regulate their execution, was suppressed;

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 govern from their publication in the Official Register, or from the date of their issuance when so determined by the Board, in accordance with the subject matter;

That, Article 25.2 of the same instrument determines that the Technical Secretariat of the Financial and Monetary Policy and Regulation Board is exercised by the Central Bank of Ecuador, and Article 25.3 establishes as its functions the preparation of technical and legal reports that support regulation proposals, provide technical and administrative support to the Financial and Monetary Policy and Regulation Board, and those other functions assigned to it by said Board;

That, General Provision Twenty-Ninth of the same instrument states: "In existing legislation where mention is made, indistinctly, of 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, Section III "On the Public Financial Sector Capital Budget", Chapter XXXIII "On the Government and Administration of the Public Financial Sector", Title II "National Financial System", Book I "Monetary and Financial System" of the Codification of Monetary, Financial, Securities, and Insurance Resolutions, contains the norms for the approval of the budget of public financial sector entities and their reforms; as well as, budget execution;

That, First Transitional Provision of the Organic Law Reforming 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

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National Assembly, will continue to exercise their functions for the periods for which they were designated and will maintain their labor continuity and acquired rights;

That, through 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 designation of the Members of the Financial and Monetary Policy and Regulation Board was sent; as well as, the temporality of their stay within the initial period;

That, the Plenary of the National Assembly, on September 16, 2025, designated and swore in the members of the Financial and Monetary Policy and Regulation Board, in the persons of: Gustavo Estuardo Camacho Dávila; Silvia Daniela Moya Arteta; Roberto Javier Basantes Romero; María Isabel Camacho Cárdenas; and, Jeniffer Nathaly Rubio Abril;

That, the Financial and Monetary Policy and Regulation Board, through ordinary session No. 006-2025, under mixed modality, on November 27, 2025, reviewed the proposal sent via Memorandum No. BCE-BCE-2025-0270-M, dated November 18, 2025, 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, Legal Report No. BCE-GJ-056-2025, dated November 17, 2025; and,

In exercise of its functions and in attention to Article 24 of the Organic Monetary and Financial Code, the Financial and Monetary Policy and Regulation Board:

RESOLVES:

Sole Article.- Repeal Section III "On the Public Financial Sector Capital Budget", Chapter XXXIII "On the Government and Administration of the Public Financial Sector", Title II "National Financial System", Book I "Monetary and Financial System" of the Codification of Monetary, Financial, Securities, and Insurance Resolutions.

SINGLE TRANSITIONAL PROVISION. – Entities of the public financial sector that have initiated or maintain pending any procedure related to the approval or budget reform, in observance of the repealed norm, must adopt the necessary actions so that said processes are resolved in accordance with the functions, attributions, and responsibilities that correspond to their respective boards of directors and other governing bodies.

FINAL PROVISION. - This resolution will enter into force from its issuance, without

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prejudice of its publication in the Official Register.

Be entrusted with its publication on the institutional website and the update with the renumbering of Chapter XXXIII "On the Government and Administration of the Public Financial Sector", Title II "National Financial System", Book I "Monetary and Financial System" of the Codification of Monetary, Financial, Securities, and Insurance Resolutions, to the General Secretariat of the Central Bank of Ecuador.

COMMUNICATE AND PUBLISH. - Given in the city of Quito D.M., on November 27, 2025.

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 November 27, 2025.- I CERTIFY.

TECHNICAL SECRETARY Lcdo. Julio Fernando Moya Jarrín