JPRF-G-2025-0161 — Approves the Budget of the National Financial Corporation B.P. for the 2025 Economic Year — BCE — EC

Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas Government Financial Management Platform. Red Block, 8th floor | Postal Code: 170507 | Quito - Ecuador | Resolution No. JPRF-G-2025-0161 THE FINANCIAL POLICY AND REGULATION BOARD 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, and applied legal norms by competent authorities; 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 governed by the principles of effectiveness, efficiency, quality, hierarchy, coordination, participation, and others; That Article 309 of the Magna Carta states that “The National Financial System is composed of the public, private, and popular and solidary sectors (…)”. 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 310 of the Founding Norm provides that: “The public financial sector will have the purpose of providing sustainable, efficient, accessible, and equitable financial services. The credit it grants will be oriented preferentially to increase the productivity and competitiveness of productive sectors that allow achieving the objectives of the Development Plan and the least favored groups, in order to promote their active inclusion in the economy.”; 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 Monetary and Financial Policy and Regulation as the governing body of monetary, credit, financial, securities, insurance, and prepaid health care services policy and regulation. This new body will be the highest government 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 in advance only when the National Assembly appoints the new members of the Board of Financial Policy and Regulation and Monetary, 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 before June 26, 2025, will remain in effect until the appointment of the members of the Board of Financial Policy and Regulation and Monetary by the National Assembly; 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 functions; 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, the different services, programs, projects, and processes already initiated until they are assumed by the Board of Financial Policy and Regulation and Monetary;

Resolution No. JPRF-G-2025-0161

Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas Government Financial Management Platform. Red Block, 8th floor | Postal Code: 170507 | Quito - Ecuador | 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 Function, as a public law legal entity, responsible for the formulation of credit, financial, securities, insurance, and prepaid health care services policy and regulation; That Article 14.1 of the aforementioned Organic Code establishes that for the performance of its functions, the Board of Financial Policy and Regulation must fulfill the following duties and exercise the following faculties, among which are: “14. Exercise the following attributions in matters of approvals and authorizations: a. Annually approve the budget of the entities of the public financial sector, their reforms, as well as regulate their execution; (…)”; That Article 101 of the Organic Code of Public Planning and Public Finances provides that in the formulation of budget proformas for the public sector, including public banking, the technical norms, guidelines, classifiers, and catalogs issued by the governing body of the National Public Finance System (SINFIP) must be observed; That Article 109 of the aforementioned Organic Code stipulates that the budgets of the entities and organisms indicated in this Code will enter into force and be mandatory from January 1 of each year, with the exception of the year in which the President of the Republic is sworn in; That Article 112 of the aforementioned Organic Code states that “the budget proformas of the entities subject to this code, which are not included in the General State Budget, will be approved in accordance with the applicable legislation and this code”; That Article 81 of the General Regulation to the Organic Code of Public Planning and Public Finances establishes that, for the year of the swearing-in of the President of the Republic, the governing body of public finances will issue budget guidelines to prepare the budget for the fiscal year of that year, up to one month after the start of their management. In addition, it adds that in the year of the presidential swearing-in, the governing body will issue the dates for the issuance of budget guidelines to prepare the budget for the following fiscal year, taking into account the National Development Plan and the multiannual and annual fiscal programming and management start of the Government. That on June 23, 2025, the Ministry of Economy and Finance as the governing body of public finances, and in function of its competence and responsibility in public finances, issued the guidelines for the elaboration of the Proforma of the General State Budget (PGE) for the fiscal year 2025 and the Quadrennial Budgetary Programming for
the period 2025 – 2028, which apply to all institutions within the scope of the PGE and indicatively for Public Enterprises - EP, Decentralized Autonomous Governments, Social Security, and Public Banking. That by means of Letter No. CFN-B.P.-GG-2025-0279-OF of July 23, 2025, the National Financial Corporation (CFN) submits to the Board of Financial Policy and Regulation the Budgetary Proforma for the year 2025, duly approved on July 22, 2025, by Resolution No. DIR-073-2025, for which it attaches the technical and legal reports required for its review and approval; That the Technical Secretary of the Board of Financial Policy and Regulation, through Memorandum No. JPRF-ST-2025-0052-M of August 14, 2025, sends to the President of the Board the Technical Report No. JPRF-CTIFSP-2025-0016 of August 14, 2025, and the Legal Report No. JPRF-CJF-2025-032 of August 4, 2025, as well as the respective draft resolution; That the Board of Financial Policy and Regulation, in an ordinary session held by technological means, convened on August 15, 2025 and carried out via video conference on August 19, 2025, reviewed the Memorandum No. JPRF-ST-2025-0052-M of August 14, 2025, issued by the Technical Secretary of the Board; as well as Technical Report No. JPRF-CTIFSP-2025-0016 of August 14, 2025, and the Legal Report No. JPRF-CJF-2025-032 of August 4, 2025, issued by the Technical Coordination of Policy and Regulation of the Financial Inclusion and Prepaid Health System and by the Legal Coordination of Policy and Financial Norms, and the corresponding draft resolution;

Resolution No. JPRF-G-2025-0161

Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas Government Financial Management Platform. Red Block, 8th floor | Postal Code: 170507 | Quito - Ecuador | That the Board of Financial Policy and Regulation, in an ordinary session held by technological means, convened on August 15, 2025 and carried out via video conference on August 19, 2025, reviewed and approved the following Resolution; and, In exercise of its functions, RESOLVES:
SINGLE ARTICLE.- Approve the budget of the National Financial Corporation B.P. for the economic year of 2025, which covers from January 1, 2025 to December 31, 2025, under the terms indicated by the General Manager in Letter No. CFN-B.P.-GG-2025-0279-OF of July 23, 2025, which derives from Annex I that forms part of this Resolution.
GENERAL PROVISIONS
FIRST.- The National Financial Corporation B.P. must comply with what is established in Article 13 of the “Budget Management Norm for Entities of the Public Financial Sector” contained in Section III “Of the Public Capital Financial Sector 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, earned commissions, operating expenses, the intermediation margin, and the result of the exercise projected by the entity for 2025, as well as to carry out the corresponding actions to reduce delinquency. SECOND.- It is ordered that the National Financial Corporation B.P. submit the approved budget for the economic year of 2025 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 provided in Articles 112 of the Organic Code of Public Planning and Public Finances and 94 of its General Regulation. FINAL PROVISION.- This Resolution will enter into force from the present date, without prejudice to its publication in the Official Register, and will be published on the institutional website of the Board of Financial Policy and Regulation within a maximum term of two days from its issuance. COMMUNICATE.- Given in the Metropolitan District of Quito, on August 19, 2025. THE PRESIDENT, Mgs. María Paulina Vela Zambrano The aforementioned Resolution was processed and signed by Master María Paulina Vela Zambrano, President of the Board of Financial Policy and Regulation, in the Metropolitan District of Quito, on August 19, 2025.- I CERTIFY. TECHNICAL SECRETARY, Mgs. Luis Alfredo Olivares Murillo

Resolution No. JPRF-G-2025-0161