JPRF-F-2025-0138 — Reforms to the "Credit Program for Public Sector Financial Entities"

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-2025-0138
THE FINANCIAL POLICY AND REGULATION BOARD
CONSIDERING:
That, Article 82 of the Constitution of the Republic enshrines the right to legal certainty, which is based on respect for the Constitution and the existence of prior, clear, public legal norms applied by competent authorities; That, Article 226 of the Magna Carta mandates 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 ibid establishes that the Public Administration constitutes a service to the collectivity that is governed by the principles of effectiveness, efficiency, quality, hierarchy, coordination, participation, and others; That, Article 303 of the Constitution prescribes that the formulation of monetary, credit, exchange, and financial policies is the exclusive faculty of the Executive Branch; That, Article 308 of the Fundamental Law states that financial activities are a service of public order; That, Article 309 ibid indicates that “The National Financial System is composed of the public, private, and popular and solidary sectors (…)”. Each of these sectors will have specific differentiated control norms and entities, which will be responsible for preserving their safety, stability, transparency, and solidity; That, Article 310 of the Constitution provides that “the public financial sector shall have as its purpose the sustainable, efficient, accessible, and equitable provision of financial services. The credit it grants shall be oriented preferentially to increase the productivity and competitiveness of the productive sectors that allow achieving the objectives of the Development Plan and of the groups least favored, in order to promote their active inclusion in the economy”; That, Article 13 of the Organic Code of Money and Finance, Book I, created the Financial Policy and Regulation Board, part of the Executive Branch and as a legal entity of public law, responsible for the formulation of credit, financial, securities, insurance, and prepaid comprehensive health care services policy and regulation; That, Article 14, number 1 of the Code ibid, stipulates that it is the responsibility of the Financial Policy and Regulation Board: “1. Formulate credit and financial policies, including the policy of insurance, prepaid comprehensive health care services, and securities;”; That, Article 150 of the Code supra prescribes that entities of the national financial system shall be subject to the resolutions issued by the Financial Policy and Regulation Board; That, Article 160 of the aforementioned normative body establishes that the financial system is integrated by the public financial sector, the private financial sector, and the popular and solidary financial sector; That, Article 161 of the Organic Code ibid states that the public financial sector is composed of banks and corporations;

Resolution No. JPRF-F-2025-0138

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Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas, Financial Management Governmental Platform. Red Block, 8th floor
| Postal Code: 170507 | Quito - Ecuador |
That, Article 372 of the aforementioned legal body provides that the public policies governing the exercise of the activities of the entities of the public financial sector shall be issued by the Financial Policy and Regulation Board; That, the Twenty-Ninth General Provision of the Organic Code of Money and Finance, Book I, added by the Organic Law Reforming the Organic Code of Money and Finance for the Defense of Dollarization, provides that in the current legislation where mention is made of the “Monetary and Financial Policy Board”, it shall be replaced by “Financial Policy and Regulation Board”; That, the Fiftieth-Fourth Transitional Provision supra establishes that the resolutions that are contained in the Codification of Monetary, Financial, Securities, and Insurance Resolutions shall remain in force until the Monetary Policy Board and the Financial Policy and Regulation Board resolve what corresponds, within the scope of their competencies; That, Article 15 of the Organic Administrative Code enshrines the principle of responsibility that establishes that the State shall respond for damages as a consequence of the lack or deficiency in the provision of public services or the actions or omissions of its public servants; That, by Resolution No. 626-2020-F of December 20, 2020, the Monetary and Financial Policy and Regulation Board reformed Chapter L “Credit Program for entities of the public financial sector”; That, Executive Decree No. 291, published on June 13, 2024 in the Official Register Second Supplement No. 578, modified the nature of the operations of the National Financial Corporation B.P., transforming it from a first-tier bank to a second-tier bank; That, the Technical Secretary of the Financial Policy and Regulation Board, through Memorandum No. JPRF-ST-2025-0007-M of February 20, 2025, submits to the President of the Board the Technical Report No. JPRF-CTSF-2025-002 and the Legal Report No. JPRF-CJF-2025-004 of February 13 and 14, 2025, respectively; as well as the respective draft resolution; That, the Financial Policy and Regulation Board, in an ordinary session held by technological means, convened on February 20, 2025 and carried out via video conference on February 24, 2025, reviewed the Memorandum JPRF-ST-2025-0007-M of February 20, 2025, issued by the Technical Secretary of the Board; as well as the Technical Report No. JPRF-CTSF-2025- 002 and the Legal Report No. JPRF-CJF-2025-004 of February 13 and 14, 2025, respectively, issued by the Technical Coordination of Policy and Regulation of the Financial System and by the Legal Coordination of Policy and Financial Norms, and the corresponding draft resolution; That, the Financial Policy and Regulation Board, in an ordinary session held by technological means, convened on February 20, 2025 and carried out via video conference on February 24, 2025, reviewed and approved the following Resolution; and, In exercise of its functions,

Resolution No. JPRF-F-2025-0138

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Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas, Financial Management Governmental Platform. Red Block, 8th floor
| Postal Code: 170507 | Quito - Ecuador |
RESOLVES:
SINGLE ARTICLE.- Substitute the following text of Article 3 of Chapter XLIX “Credit Program for entities of the public financial sector” of Title II “National Financial System”, Book I “Monetary and Financial System” of the Codification of Monetary, Financial, Securities, and Insurance Resolutions:
“Art. 3.- Investment, credit, and financing programs for the year 2021 will take into account the following guidelines:
The placement of resources through entities of the public financial sector for 2021 will be oriented transversally for projects and programs that allow the economic reactivation at the territorial and national level post-pandemic. Public financial entities, as one of the main agents of economic development of the country, will apply in their financial activities criteria of efficiency, effectiveness, sustainability, and local development, preserving at all times their financial sustainability and with an exclusive focus on the credit segments that correspond to the object of their creation.

• NATIONAL FINANCIAL CORPORATION B.P.
  The credit program of the CFN B.P. and its subsidiaries will prioritize placements through second-tier operations. First-tier operations carried out by it will focus exclusively on the segments of commercial and productive credit with the purpose of contributing to economic reactivation, with special emphasis on the industrial and export sectors, through the following credit lines:
• PYME Exprés
• PYMES Prospera
• Direct Credit
• CFN Construye
  Complementarily, it will participate in the secondary market of securities within the credit segments defined in the Stock Market Financing Program. Likewise, the entity will promote the credit guarantee service through the National Guarantee Fund (FNG).” by the following:
  “Art. 3.- Investment, credit, and financing programs will take into account the following guidelines:
  The placement of resources through entities of the public financial sector will be oriented transversally for projects and programs that allow reactivation and economic development, at the territorial or national level, as appropriate. Public financial entities, as one of the main agents of economic development of the country, will apply in their financial activities criteria of efficiency, effectiveness, sustainability, and local development, preserving at all times their financial sustainability and with an exclusive focus on the credit segments that correspond to the object of their creation.

Resolution No. JPRF-F-2025-0138

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Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas, Financial Management Governmental Platform. Red Block, 8th floor
| Postal Code: 170507 | Quito - Ecuador |

• NATIONAL FINANCIAL CORPORATION B.P.
  The credit programs of the CFN B.P. will consist of the granting of second-tier operations directed to productive activities, goods, and services of natural and legal persons, public, private, mixed, or popular and solidary. Likewise, the entity will promote the credit guarantee service through the National Guarantee Fund (FNG).” SINGLE TRANSITIONAL PROVISION.- The National Financial Corporation B.P. will maintain its status as creditor of first-tier credit operations that are currently in force, therefore it must administer them, until their cancellation by legal mechanisms, in accordance with what is established in the Second Transitional Provision of Executive Decree No. 291, published on June 13, 2024 in the Second Supplement No. 578 of the Official Register.” FINAL PROVISION.- This Resolution will enter into force from the present date, without prejudice to its publication in the Official Register. Publish this Resolution on the website of the Financial Policy and Regulation Board within a maximum term of two (2) days from its issuance. NOTIFY.- Given in the Metropolitan District of Quito, on February 24, 2025. THE PRESIDENT, Mgs. María Paulina Vela Zambrano The aforementioned resolution was processed and signed by Master María Paulina Vela Zambrano, President of the Financial Policy and Regulation Board, in the Metropolitan District of Quito, on February 24, 2025.- I CERTIFY. TECHNICAL SECRETARY, Mgs. Luis Alfredo Olivares Murillo