JPRF-G-2024-0115 — Approves BanEcuador's 2024 Budget

Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas, Governmental Financial Management Platform. Red Block, 8th floor
| Postal Code: 170507 | Quito - Ecuador |
Resolution No. JPRF-G-2024-0115
THE FINANCIAL POLICY AND REGULATION BOARD
CONSIDERING:
That Article 226 of the Constitution of the Republic of Ecuador establishes 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. They shall have the duty to coordinate actions for the fulfillment of their purposes and to make effective the enjoyment and exercise of the rights recognized in the Constitution.”; That Article 309 of the Fundamental Norm stipulates that entities of the national financial system shall be responsible for preserving their “security, stability, transparency, and solidity”; That Article 310 of the Magna Carta orders 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 productive sectors that allow achieving the objectives of the Development Plan and of the less favored groups, in order to promote their active inclusion in the economy.”; That Article 13 of the Organic Code of Monetary and Financial Affairs, Book I, created the Financial Policy and Regulation Board as part of the Executive Function, responsible for the formulation of credit, financial, securities, insurance, and prepaid health service regulation policy; That Article 14.1, number 14, letter a of the Organic Code of Monetary and Financial Affairs, Book I, states that it is a faculty of the Financial Policy and Regulation Board: “a. Annually approve the budget of the entities of the public financial sector, their reforms, as well as regulate their execution”; That, by Resolution No. JPRF-G-2023-060 of January 24, 2023, the Financial Policy and Regulation Board approved the budget for the economic exercise of the year 2023 of BANECUADOR B.P.; That, by Resolution No. JPRF-F-2024-099 of February 29, 2024, the Financial Policy and Regulation Board reformed the norm on the approval of budgets of public financial entities contained in Subsection I “Budget Management Norms for Entities of the Public Financial Sector”, Section III “Of the Public Financial Sector Capital Budget”, Chapter XXXIII “Of 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; That the Sole Transitional Provision of Resolution No. JPRF-F-2024-099 establishes that, for the approval of budget proformas corresponding to the year 2024, entities of the public financial sector must submit to the Financial Policy and Regulation Board, on this single occasion, by April 30, 2024, the budgets approved by the corresponding government and administration bodies; That, by Letter No. BANECUADOR-BANECUADOR-2024-0449-0F of June 17, 2024, the General Manager of BANECUADOR B.P.
submits in digital file the Budget Proforma of BANECUADOR B.P. for the year 2024, for the knowledge and approval of the Financial Policy and Regulation Board;

Resolution No. JPRF-G-2024-0115

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Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas, Governmental Financial Management Platform. Red Block, 8th floor
| Postal Code: 170507 | Quito - Ecuador |
That, the Acting Technical Secretary of the Financial Policy and Regulation Board, through Memorandum No. JPRF-ST-2024-0072-M of June 27, 2024, submits to the President of the Board the Technical Report No. JPRF-CTIFSP-2024-0014 and the Legal Report No. JPRF-CJF-2024-032, both dated June 26, 2024, as well as the respective draft resolution; That, the Financial Policy and Regulation Board, in an ordinary session held by technological means, convened on June 27, 2024, and carried out via video conference on July 1, 2024, reviewed the Memorandum No. JPRF-ST-2024-0072-M of June 21, 2024, issued by the Acting Technical Secretary of the Board; as well as the Technical Report No. JPRF-CTIFSP-2024-0014 and the Legal Report No. JPRF-CJF-2024-032, both dated June 26, 2024, issued by the Technical Coordination of Financial Inclusion and Prepaid Health Policy and Regulation and by the Legal Coordination of Financial Policy and Norms, and the respective draft resolution; That, the Financial Policy and Regulation Board, in an ordinary session held by technological means, convened on June 27, 2024, and carried out via video conference on July 1, 2024, reviewed and approved the following Resolution; and, In exercise of its functions, RESOLVES:
SINGLE ARTICLE.- Approve the budget of BANECUADOR B.P. for the economic exercise of the year 2024, which covers from January 1, 2024, to December 31, 2024, based on the documentation presented by BANECUADOR B.P. with Letter No. BANECUADOR-BANECUADOR-2024-0449-OF of June 17, 2024, which are derived from the Annex that forms part of this Resolution. GENERAL PROVISIONS FIRST.- BANECUADOR B.P. must comply with what is established in Article 13 of the “Budget Management Norm for Entities of the Public Financial Sector”, of Section III “Of the Public Financial Sector Capital Budget”, of Chapter XXXIII “Of the Government and Administration of the Public Financial Sector”, of Title II “National Financial System”, of Book I “Monetary and Financial System” of the Codification of Monetary, Financial, Securities, and Insurance Resolutions, regarding the control of budget execution, highlighting the need to monitor funding sources, placement and portfolio recovery targets, funds in administration, and resource captations from the public sector during the year 2024. SECOND.- It is ordered that BANECUADOR B.P. submit the approved budget for the economic exercise of the year 2024 to the Ministry of Economy and Finance and to the National Assembly within a term of 30 days, counted from the issuance of this Resolution, in compliance with what is established in Articles 112 of the Organic Code of Public Planning and Public Finances and 94 of its General Regulation. 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 Financial Policy and Regulation Board within a maximum term of two days from its issuance.

Resolution No. JPRF-G-2024-0115

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Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas, Governmental Financial Management Platform. Red Block, 8th floor
| Postal Code: 170507 | Quito - Ecuador |
LET IT BE NOTIFIED.- Given in the Metropolitan District of Quito, on July 1, 2024.
THE PRESIDENT,
Mgs. María Paulina Vela Zambrano
The preceding 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 July 1, 2024.- I CERTIFY.
ACTING TECHNICAL SECRETARY
Mgs. Luis Alfredo Olivares Murillo

Resolution No. JPRF-G-2024-0115

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Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas, Governmental Financial Management Platform. Red Block, 8th floor
| Postal Code: 170507 | Quito - Ecuador |
ANNEX
Institutional Budget of BANECUADOR B.P. for the economic exercise 2024 In dollars Source: BANECUADOR B.P.
B A N E C U A D O R B. P.
COMPARATIVE BUDGET 2023 vs. 2024 BUDGET PROFORMA

• thousands of dollars -
  BUDGETEXECUTEDBUDGETAPPROVEDBUDGETCODIFIEDEXECUTED 2024ABSOLUTE VARIATIONRELATIVE VARIATION 2019 2020 2021 2022 2023 2023 (A) 2023 (B) (B-A) (B-A) / A
  I. ADMINISTRATIVE EXECUTION BUDGET
  ORDINARY BUDGET
  INCOME 201,272.2 206,465.3 179,511.6 152,767.2 182,363.5 182,363.5 178,134.3 182,968.9 605.5 0.3% Loans and Investments Income 196,827.0 202,692.2 174,200.6 143,682.4 147,657.0 147,657.0 140,647.7 161,076.2 13,419.2 9.1% Earned Commissions and Financial Profits 1,038.1 817.3 1,129.5 786.0 734.0 734.0 873.7 915.9 181.9 24.8% Income from Services and Operational 3,407.1 2,955.8 4,181.5 8,298.8 33,972.4 33,972.4 36,612.9 20,976.8 -12,995.6 -38.3% EXPENSES 117,471.8 115,994.0 115,704.4 106,594.3 138,965.5 138,965.5 115,207.3 130,500.5 -8,464.9 -6.1% Interest and Commissions Paid 36,391.8 37,877.7 39,117.0 35,331.1 34,231.4 34,231.4 34,733.7 37,045.8 2,814.5 8.2% Personnel Expenses 47,482.3 45,262.5 49,074.6 44,237.2 49,842.9 49,842.9 46,244.2 49,842.9 0.0 0.0% Operating Expenses 25,901.4 25,243.8 23,133.8 21,396.6 33,941.5 33,941.5 25,629.8 29,970.8 -3,970.7 -11.7% Internal and External Transfers 3,623.4 3,780.4 3,388.7 3,483.0 4,257.0 4,257.0 3,258.3 3,500.0 -757.0 -17.8% Capital Investments 4,073.0 3,829.6 990.3 2,146.4 16,692.8 16,692.8 5,341.3 10,141.1 -6,551.7 -39.2% ORDINARY SURPLUS(+)/DEFICIT(-) 83,800.4 90,471.4 63,807.2 46,172.9 43,398.0 43,398.0 62,927.0 52,468.4 9,070.4 20.9% EXTRAORDINARY BUDGET INCOME 2,190.6 441.4 1,997.8 1,111.5 3,049.6 3,049.6 1,266.0 3,942.8 893.2 29.3% Sale of Unproductive Assets 0.0 69.6 3,049.6 3,049.6 0.0 3,244.9 195.3 6.4% Other Income (Extraordinary) 2,190.6 441.4 1,997.8 1,041.9 0.0 0.0 1,266.0 697.9 697.9 0.0% EXPENSES 3,451.9 3,399.9 3,462.7 3,864.6 5,223.1 5,223.1 3,779.5 4,838.0 -385.2 -7.4% Staff Reduction 0.0 0.0 275.4 743.1 1,539.9 1,539.9 814.1 1,539.9 0.0 0.0% Extraordinary Expenses 3,451.9 3,399.9 3,187.3 3,121.5 3,683.2 3,365.2 2,965.4 3,298.1 -67.1 -2.0% EXTRAORDINARY SURPLUS(+)/DEFICIT(-) -1,261.2 -2,958.5 -1,464.9 -2,753.1 -2,173.6 -2,173.6 -2,513.5 -895.2 1,278.4 -58.8% ADMINISTRATIVE SURPLUS(+)/DEFICIT(-) 82,539.1 87,512.9 62,342.3 43,419.8 41,224.4 41,224.4 60,413.5 51,573.2 10,348.8 25.1%
  II. POLICY BUDGET (Net Loan)
  INCOME 974,699.5 881,024.5 743,210.1 732,396.9 766,372.2 766,372.2 753,562.4 535,463.8 -230,908.4 -30.1% Portfolio Recovery 678,010.2 749,933.4 642,068.8 555,312.3 582,578.2 582,578.2 499,484.4 527,448.5 -55,129.7 -9.5% Effective 658,429.8 507,675.5 575,374.3 544,214.2 519,683.1 519,683.1 483,512.5 508,296.3 -11,386.9 -2.2% Renewed 19,433.7 240,591.9 65,585.4 9,663.0 61,954.9 61,954.9 10,811.3 12,519.5 -49,435.4 -79.8% Written-off 146.6 1,666.0 1,109.1 1,435.1 940.1 940.1 5,160.5 6,632.7 5,692.6 605.5% Deposit Capture (increase) 208,874.8 0.0 84,316.7 76,089.4 94,520.0 94,520.0 0.0 8,015.3 -86,504.7 -91.5% Financial Disinvestments (net) 13,798.0 131,091.0 0.0 57,441.7 0.0 0.0 Available Funds 0.0 100,995.2 89,274.0 89,274.0 196,636.3 0.0 -89,274.0 -100.0% Financing Lines 30,000.0 RILD Resource Capture Renewal 0.0 Other Sources and Other Movements 44,016.5 0.0 16,824.6 0.0 EXPENSES 1,057,238.6 968,537.4 805,552.4 775,816.7 807,596.6 807,596.6 813,975.9 587,037.0 -220,559.6 -27.3% Credit Concession 894,458.0 692,875.8 540,662.3 505,540.4 667,970.0 667,970.0 601,310.1 522,021.7 -145,948.3 -21.8% Financial Investments (net) 24,308.7 0.0 46,795.6 143,077.8 45,487.6 45,487.6 0.0 44,721.3 -766.2 -1.7% Available Funds 76,766.3 146,963.9 164,964.5 0.0 18,865.4 18,865.4 Deposit Withdrawal 0.0 60,011.7 0.0 100,102.6 0.0 0.0 Payment of Credit to Financial Institutions 38.9 0.0 1,428.6 1,428.6 Stock Market Financing 0.0 RILD Resource Capture Payment 61,666.7 7,130.0 53,130.0 96,991.0 94,139.0 0.0 -94,139.0 -100.0% Other Uses and Other Movements 0.0 61,556.0 0.0 30,207.5 0.0 0.0 18,424.1 0.0 0.0 POLICY SURPLUS(+)/DEFICIT(-) -82,539.1 -87,512.9 -62,342.3 -43,419.8 -41,224.4 -41,224.4 -60,413.5 -51,573.2 -10,348.8 25.1%
  III. GLOBAL SURPLUS(+)/DEFICIT(-) (I+II) 0.0%
  IV. FINANCING OF III : 0.0 0%
  Variation of Availability and Other Mov. 0.0
  TOTAL INCOME 1,178,162.3 1,087,931.3 924,719.6 886,275.6 951,785.2 951,785.2 932,962.7 722,375.5 -229,409.7 -24.1% TOTAL EXPENSES 1,178,162.3 1,087,931.3 924,719.6 886,275.6 951,785.2 951,785.2 932,962.7 722,375.5 -229,409.7 -24.1%