JPRF-F-2025-0167 — Reforming Section II "On Interest Rates" of the Central Bank of Ecuador's Interest Rate and Fee System

Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas, Financial Management Governmental Platform. Red Block, 8th floor | Postal Code: 170507 | Quito - Ecuador | Resolution No. JPRF-F-2025-0167 THE BOARD OF FINANCIAL POLICY AND REGULATION CONSIDERING: That Article 82 of the Constitution enshrines the right to legal certainty, which is based on respect for the Constitution and the existence of prior, clear, public laws and regulations applied by competent authorities; That Article 84 of the Fundamental Norm establishes that any body with normative power shall have the obligation to formally and materially adapt laws and other legal norms to the rights provided for in the Constitution; That Article 226 of the Magna Carta provides that State institutions, their agencies, dependencies, public servants, and persons acting by virtue of a state power shall exercise only the competencies and faculties attributed to them in the Constitution and the law; That Article 227 of the Constitution determines that the Public Administration constitutes a service to the community that is governed by the principles of effectiveness, efficiency, quality, hierarchy, coordination, participation, and others; That Article 308 of the Magna Carta states that financial activities are a matter of public order and may be exercised, with prior authorization from the State, in accordance with the law; That Article 309 of the Supreme Norm prescribes that the national financial system is composed of the public, private, and popular and solidary sectors, which intermediated public resources and that each of these sectors will have specific and differentiated control norms and entities, which will be responsible for preserving their security, stability, transparency, and solidity; That Article 424 ibidem establishes that the Constitution is the supreme norm and prevails over any other in the legal order. Furthermore, it establishes that norms and acts of public power must maintain conformity with constitutional provisions; otherwise, they will lack legal efficacy; That Article 425 ut supra prescribes that the hierarchical order of application of norms shall be as follows: "Constitution; international treaties and conventions; organic laws; ordinary laws; regional norms and district ordinances; decrees and regulations; ordinances; agreements and resolutions; and other acts and decisions of public powers." That the Organic Law of Public Integrity, published in the Official Register Third Supplement No. 68 of June 26, 2025, reformed Article 13 of the Organic Monetary and Financial Code, Book I, where it created the Board of Financial and Monetary Policy and Regulation as a unified entity for monetary, credit, financial, securities, insurance, and prepaid comprehensive health care services policy and regulation. This new body will be the highest governing body of the Central Bank of Ecuador and will assume the competencies currently exercised by the Board of Monetary Policy and Regulation and the Board of Financial Policy and Regulation; That the Tenth Transitional Provision of the aforementioned Organic Law states that the current members of the Board of Financial Policy and Regulation will cease their functions prematurely only when the National Assembly appoints the new members of the Board of Financial and Monetary Policy and Regulation, in accordance with the procedure provided in the Organic Monetary and Financial Code; That the Fourth Transitional Provision of the Organic Law for the Strengthening of Protected Areas establishes that the structure and functions of the Board of Financial Policy and Regulation, established in the Organic Monetary and Financial Code prior to June 26, 2025, will remain in effect until the appointment of the members of the Board of Financial and Monetary Policy and Regulation by the National Assembly;

Resolution No. JPRF-F-2025-0167 Page 2 of 3

---

Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas, Financial Management Governmental Platform. Red Block, 8th floor | Postal Code: 170507 | Quito - Ecuador | That the Seventh General Provision of the General Regulation to the Organic Law of Public Integrity establishes that the personnel of the Board of Financial Policy and Regulation will continue to perform their activities while it remains in office; That the Fifteenth Transitional Provision of the aforementioned Regulation provides that the Board of Financial Policy and Regulation will guarantee, during the transformation process, the continuity of administrative, contractual, judicial, and extrajudicial processes; as well as of the various services, programs, projects, and processes already initiated until they are assumed by the Board of Financial and Monetary Policy and Regulation; That Article 13 of the Organic Monetary and Financial Code, Book I, prior to the reforms introduced by the Organic Law of Public Integrity and the Organic Law for the Strengthening of Protected Areas, created the Board of Financial Policy and Regulation, part of the Executive Branch, as a public law legal entity, responsible for the formulation of credit, financial, securities, insurance, and prepaid comprehensive health care services policy and regulation; That Article 14.1, numeral 7, literal b, and Article 130 of the aforementioned Organic Code establish that for the performance of its functions, the Board of Financial Policy and Regulation will establish the interest rate system for active and passive operations of the financial system and the other interest rates required by law; That the second incise of Article 21 of the Tax Code prescribes that, in the case of tax obligations established after the exercise of the respective faculties of the Tax Administration, the annual interest will be equivalent to 1.3 times the reference active rate; That the last incise of Article 21 of the same normative body states that "this interest collection system will also be applied to all obligations in default that are generated by law in favor of State institutions, excluding financial institutions, as well as for cases of employer default before the Ecuadorian Social Security Institute." That the Technical Secretary of the Board of Financial Policy and Regulation, through Memorandum No. JPRF-ST-2025-0057-M of September 10, 2025, submits to the President of the Board the Technical-Legal Report No. JPRF-CTCJ-2025-005 of September 8, 2025, issued by the Coordination of Policy and Regulation of the Financial System and the Legal Coordination of Policy and Financial Norms, as well as the respective draft resolution; That the Board of Financial Policy and Regulation, in an extraordinary session held by technological means, convened on September 10, 2025, and carried out via video conference on September 11, 2025, reviewed the Memorandum No. JPRF-ST-2025-0057-M of September 10, 2025, issued by the Technical Secretary of the Board; as well as the Technical-Legal Report No. JPRF-CTCJ-2025-005 of September 8, 2025, issued by the Technical Coordination of Policy and Regulation of the Financial System and the Legal Coordination of Policy and Financial Norms, and the corresponding draft resolution; That the Board of Financial Policy and Regulation, in an extraordinary session held by technological means, convened on September 10, 2025, and carried out via video conference on September 11, 2025, reviewed and approved the following Resolution; and, In exercise of its functions, RESOLVES: ARTICLE FIRST.- Substitute the text of the first paragraph of Article 25 of Subsection IV "Interest Rates for Special Operations", included in Section II "On Interest Rates", of Chapter XI "Interest Rate and Fee System of the Central Bank of Ecuador", of Title I "Monetary System" of Book I "Financial and Monetary System" of the Codification of Monetary, Financial, Securities, and Insurance Resolutions, with the following:

Resolution No. JPRF-F-2025-0167 Page 3 of 3

---

Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas, Financial Management Governmental Platform. Red Block, 8th floor | Postal Code: 170507 | Quito - Ecuador | "In the case of delay in the fulfillment of tax obligations, the default interest rate to be applied shall be that established in Article 21 of the Tax Code." ARTICLE SECOND.- Incorporate the following text as the last paragraph of Article 40 of Subsection VI "Default and Diversion Interest Rates", included in Section II "On Interest Rates", of Chapter XI "Interest Rate and Fee System of the Central Bank of Ecuador", of Title I "Monetary System" of Book I "Financial and Monetary System" of the Codification of Monetary, Financial, Securities, and Insurance Resolutions: "This regime shall also be applicable when public law institutions intervene in acts or contracts celebrated outside the national financial system, in which case the obligations in default shall be subject to the same conditions provided for in this article." ARTICLE THIRD.- Substitute the text of the first paragraph of Article 42 of Subsection VI "Default and Diversion Interest Rates", included in Section II "On Interest Rates", of Chapter XI "Interest Rate and Fee System of the Central Bank of Ecuador", of Title I "Monetary System" of Book I "Financial and Monetary System" of the Codification of Monetary, Financial, Securities, and Insurance Resolutions, with the following text: "In the case of default on obligations whose source is the law in favor of State institutions, as well as for cases of employer default before the Ecuadorian Social Security Institute, the default interest rate established in Article 21 of the Tax Code shall be applied. Obligations contracted through financial operations with public financial institutions are exempt from this provision." FINAL PROVISION.- This Resolution shall enter into force from the present date, without prejudice to its publication in the Official Register, and shall be published on the institutional website of the Board of Financial Policy and Regulation within a maximum term of two days from its issuance. NOTIFY.- Given in the Metropolitan District of Quito, on September 11, 2025. THE PRESIDENT, Mgs. María Paulina Vela Zambrano The aforementioned Resolution was processed and signed by Magister María Paulina Vela Zambrano, President of the Board of Financial Policy and Regulation, in the Metropolitan District of Quito, on September 11, 2025.- I CERTIFY. TECHNICAL SECRETARY, Mgs. Luis Alfredo Olivares Murillo