Resolution JPRF-G-2025-0168 Approves the Budget of the Bank of the Ecuadorian Social Security Institute (BIESS) for the 2025 Fiscal Year — BCE — EC

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-2025-0168 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 legal norms applied 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 Public Administration constitutes a service to the community governed by principles of effectiveness, efficiency, quality, hierarchy, coordination, participation, among 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 Foundational Norm provides: "The public financial sector shall have the purpose of providing sustainable, efficient, accessible, and equitable 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 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 designates 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 designation of the members of the Board of Financial and Monetary Policy and Regulation by the National Assembly; 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;

Resolution No. JPRF-G-2025-0168

Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas, Governmental 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 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 14.1 prior to the June 26, 2025 reforms 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. Approve annually the budget of the entities of the public financial sector, its reforms, as well as regulate its execution; (...)"; That Article 101 of the Organic Code of Public Planning and Public Finances provides that in the formulation of budget projections for the sector, including those of public banking, the technical norms, guidelines, classifiers, and catalogs issued by the governing body of SINFIP must be observed; That Article 109 of the aforementioned 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 takes office; That Article 112 of the aforementioned Organic Code states that "the budget projections 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 President of the Republic's taking office, the governing body of public finances will issue budget guidelines to prepare the budget for the fiscal exercise of that year, up to one month after the start of their management. It also adds that in the year of the presidential inauguration, the governing body will issue the dates for the issuance of budget guidelines to prepare the budget for the following fiscal exercise, taking into account the National Development Plan and the multiannual and annual fiscal programming of the Government's start of management; That on June 23, 2025, the Ministry of Economy and Finance as the governing body of public finances, and in accordance with its competence and responsibility in public finances, issued the guidelines for the elaboration of the General State Budget (PGE) Projection for the 2025 fiscal exercise and the Quadrennial Budget
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. BIESS-GGEN-2025-0398-OF of August 1, 2025, the Bank of the Ecuadorian Social Security Institute submits to the Board of Financial Policy and Regulation "the Budget Projection of the Bank of the Ecuadorian Social Security Institute - BIESS corresponding to the year 2025, and its supporting enabling documents to be known and approved."

Resolution No. JPRF-G-2025-0168

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 Technical Secretary of the Board of Financial Policy and Regulation, through Memorandum No. JPRF-ST-2025-0058-M of September 12, 2025, submits to the President of the Board the Technical Report No. JPRF-CTIFSP-2025-0018 and the Legal Report No. JPRF-CJF-2025-040, both dated September 12, 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 September 12, 2025, and carried out via video conference on September 15, 2025, reviewed the Memorandum No. JPRF-ST-2025-0058-M of September 12, 2025, issued by the Technical Secretary of the Board; as well as the Technical Report No. JPRF-CTIFSP-2025-0018 and the Legal Report No. JPRF-CJF-2025-040, both of September 12, 2025, issued by the Technical Coordination of Financial Inclusion and Prepaid Health Policy, and by the Legal Coordination of Financial Policy and Norms, and the corresponding draft resolution; That the Board of Financial Policy and Regulation, in an ordinary session held by technological means, convened on September 12, 2025, and carried out via video conference on September 15, 2025, reviewed and approved the following Resolution; and, In exercise of its functions, RESOLVES:
SINGLE ARTICLE.- Approve the budget of the Bank of the Ecuadorian Social Security Institute (BIESS) corresponding to the economic exercise of the year 2025, which covers from January 1, 2025, to December 31, 2025, under the terms indicated by the General Manager in Letter No. BIESS-GGEN-2025-0398-OF of August 1, 2025, which is derived from Annex I that forms part of this Resolution. GENERAL PROVISIONS FIRST.- The Bank of the Ecuadorian Social Security Institute (BIESS) must comply with what is established in Article 13 of the "Norm of Budget Management 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 exercise result projected by the entity for 2025, as well as to carry out the corresponding actions to reduce mortgage portfolio delinquency applying what is provided in the respective "MANUAL OF THE PROCESS OF EXTRAJUDICIAL RECOVERY AND COLLECTION MANAGEMENT". SECOND.- The Board of Directors of the Bank of the Ecuadorian Social Security Institute (BIESS) must carry out permanent monitoring of the management that the administration carries out on the execution of the 2025 operational budget; likewise, it must require the administration to provide an action plan to mitigate the operational risk observed in the mortgage portfolio. THIRD.- It is ordered that the Bank of the Ecuadorian Social Security Institute (BIESS) submit the approved budget for the economic exercise of the year 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.

Resolution No. JPRF-G-2025-0168

Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas, Governmental Financial Management Platform. Red Block, 8th floor | Postal Code: 170507 | Quito - Ecuador | 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. NOTIFY.- Given in the Metropolitan District of Quito, on September 15, 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 September 15, 2025.- I CERTIFY. TECHNICAL SECRETARY, Mgs. Luis Alfredo Olivares Murillo

Resolution No. JPRF-G-2025-0168

Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas, Governmental Financial Management Platform. Red Block, 8th floor | Postal Code: 170507 | Quito - Ecuador |
ANNEX I
CONCEPT
BUDGET EXECUTED
DECEMBER 2020
BUDGET EXECUTED
DECEMBER 2021
BUDGET EXECUTED
DECEMBER 2022
BUDGET EXECUTED
DECEMBER 2023
BUDGET APPROVED
2024
BUDGET
CODIFIED 2024
BUDGET EXECUTED
2024
PROFORMA 2025
VARIATION
PROFORMA 2025 vs
CODIFIED 2024
(USD)
VARIATION
PROFORMA 2025 vs
CODIFIED 2024
(%)
I. ADMINISTRATIVE BUDGET
ORDINARY INCOMES 25,039,824.86 24,344,517.00 24,789,807.59 25,277,110.97 37,720,900.00 37,720,900.00 29,487,191.57 35,300,000.00 -2,420,900.00 -6% IESS TRANSFERS 25,039,824.86 24,344,517.00 24,789,807.59 25,277,110.97 37,720,900.00 37,720,900.00 29,487,191.57 35,300,000.00 -2,420,900.00 -6% ORDINARY EXPENDITURES 25,039,824.86 24,344,517.00 24,789,807.59 25,277,110.97 37,720,900.00 37,720,900.00 29,487,191.57 35,300,000.00 -2,420,900.00 -6% PERSONNEL EXPENSES 13,540,500.52 13,959,900.16 15,031,508.00 15,221,052.67 19,147,450.34 18,821,310.34 16,586,947.13 17,756,086.46 -1,065,223.88 -6% UNIFIED REMUNERATIONS 4,836,525.84 4,496,408.60 4,706,137.68 6,089,248.22 9,524,484.00 9,950,652.63 9,291,793.78 10,484,097.45 533,444.82 5% UNIFIED SALARIES 285,019.00 273,404.96 265,965.80 270,408.00 - 0% INTERNSHIPS 20,630.77 49,065.42 33,362.96 45,111.64 84,000.00 60,102.09 52,203.93 60,000.00 -102.09 0% THIRTEENTH SALARY 797,411.01 847,007.05 906,156.58 962,319.06 1,144,908.10 1,110,280.73 1,016,845.82 1,067,672.85 -42,607.88 -4% FOURTEENTH SALARY 222,648.56 235,975.76 264,286.70 303,593.50 368,665.00 345,844.74 318,385.43 344,368.55 -1,476.19 0% COMPENSATION FOR RESIDENCE 3,540.00 - 1,085.60 19,493.60 42,480.00 43,987.80 40,568.40 49,312.20 5,324.40 12% ASSIGNMENTS AND SUBSTITUTIONS 62,558.85 124,661.51 137,976.39 190,644.71 297,868.38 244,944.17 221,460.21 231,959.04 -12,985.13 -5% PER DIEMS 355.32 2,250.36 7,000.00 7,000.00 1,939.46 5,000.00 -2,000.00 -29% OVERTIME AND SUPPLEMENTARY HOURS 108,625.28 248,591.12 279,655.06 313,975.16 218,400.00 335,541.68 325,733.15 250,000.00 -85,541.68 -25% OCCASIONAL SERVICES BY CONTRACT 4,359,774.00 5,248,113.12 5,727,129.65 4,477,682.49 3,944,005.20 2,909,606.30 2,376,075.08 1,932,404.52 -977,201.78 -34% PROFESSIONAL SERVICES BY CONTRACT 318,406.58 335,608.76 235,178.03 203,710.22 60,000.00 85,182.50 59,286.15 42,115.26 -43,067.24 -51% EMPLOYER CONTRIBUTION 1,124,376.53 1,211,241.23 1,283,238.62 1,312,149.78 1,600,581.52 1,553,008.58 1,446,818.44 1,518,502.57 -34,506.01 -2% RESERVE FUNDS 549,150.11 657,387.39 705,451.09 728,991.24 1,144,450.14 999,606.25 831,218.54 972,087.27 -27,518.98 -3% COMPENSATION FOR DISMISSAL 2,067.25 - - - 5,000.00 5,000.00 - 5,000.00 - 0% UNUSED VACATIONS TERMINATION OF FUNCTIONS 338,375.23 215,287.38 296,072.48 179,671.15 186,600.00 150,816.00 137,797.08 180,000.00 29,184.00 19% EMPLOYER PENSION 302,611.00 14,897.50 184,375.00 67,628.75 212,400.00 180,328.87 132,724.93 251,635.00 71,306.13 40% OTHER LABOR INDemnifications 208,425.19 - 3,186.00 54,174.79 36,000.00 568,800.00 63,688.73 91,523.75 -477,276.25 -84% FAMILY SUBSIDY - - - - 100.00 100.00 - - -100.00 -100% SENIORITY SUBSIDY - - - - 100.00 100.00 - - -100.00 -100% CURRENT USE AND CONSUMPTION GOODS 7,782,855.77 7,673,274.95 6,559,261.57 6,946,722.74 14,463,857.08 13,746,351.02 8,791,429.58 14,294,957.45 548,606.43 4% DRINKING WATER 831.96 919.29 941.07 1,096.78 1,090.91 1,700.00 1,586.30 2,084.11 384.11 23% ELECTRICITY 22,393.92
20,168.26 28,959.77 26,677.42 21,818.33 21,963.89 21,505.70 29,800.00 7,836.11 36% TELECOMMUNICATIONS 1,146,111.45 710,369.74 1,020,645.11 538,164.94 979,691.70 1,091,531.19 693,597.39 1,040,039.03 -51,492.16 -5% MAIL SERVICE 20,796.38 16,006.81 26,304.50 17,868.33 33,880.00 40,180.00 29,477.65 52,700.13 12,520.13 31% PERSONNEL TRANSPORT 82,410.40 207,549.20 135,262.66 121,384.94 231,071.51 255,263.50 205,587.25 254,000.00 -1,263.50 0% FREIGHT AND HANDLING 1,360.10 2,893.04 4.30 116.30 5,780.00 1,150.00 14.24 348.00 -802.00 -70% EDITION, PRINTING, REPRODUCTION AND PUBLICATIONS 97,711.99 3,271.64 45,467.65 130,868.35 246,883.50 205,111.73 60,729.40 81,440.50 -123,671.23 -60% DISSEMINATION, INFORMATION AND ADVERTISING 324,163.55 551,174.40 211,964.48 257,775.84 901,018.00 1,189,073.20 435,538.75 1,034,100.00 -154,973.20 -13% SECURITY AND SURVEILLANCE SERVICE 1,119,296.52 980,787.82 839,201.07 1,016,829.22 801,224.36 954,724.02 954,073.34 1,028,040.42 73,316.40 8% CLEANING SERVICE 116,461.44 144,894.18 105,677.83 129,317.24 153,686.71 157,527.71 140,462.22 144,068.50 -13,459.21 -9% SPECIALIZED TECHNICAL SERVICE 1,005,319.38 1,071,343.85 836,556.86 749,192.30 2,967,334.93 2,406,643.54 1,557,089.37 3,412,160.03 1,005,516.49 42% DAYCARE SERVICE - - - 9,086.10 84,000.00 82,550.00 34,828.50 33,023.70 -49,526.30 -60% OTHER GENERAL SERVICES 18,339.20 7,193.91 1,972.95 8,435.77 30,600.00 16,050.00 4,196.80 14,800.00 -1,250.00 -8% DOMESTIC TRAVELS 60,578.67 16,531.55 88,769.37 129,212.75 182,801.78 212,851.78 186,758.88 233,707.61 20,855.83 10% INTERNATIONAL TRAVELS 2,511.06 - - - 5,000.00 5,000.00 3,633.56 3,054.09 -1,945.91 -39% PER DIEMS AND SUBSISTENCES IN THE COUNTRY 85,464.60 121,147.74 173,590.61 161,124.67 161,647.49 245,100.00 144,598.83 209,341.31 -35,758.69 -15% PER DIEMS AND SUBSISTENCES ABROAD 4,400.00 1,400.00 - - 5,000.00 10,000.00 4,991.80 5,000.00 -5,000.00 -50% INSTALLATION, MAINT. AND REPAIR OF BUILDINGS, PREMISES AND RESIDENCES 705,881.24 250,525.17 557,642.77 450,871.79 544,154.02 699,223.02 476,923.93 473,905.42 -225,317.60 -32% INSTALLATION, MAINTENANCE AND REPAIR OF FURNITURE 127.12 10,804.18 7,292.00 7,430.80 70,872.00 61,100.00 60.00 9,634.90 -51,465.10 -84% INSTALLATION, MAINT. AND REPAIR OF MACHINERY AND EQUIPMENT 26,472.17 37,860.95 32,220.65 17,827.66 104,086.21 106,415.16 37,439.18 57,658.00 -48,757.16 -46% INSTALLATION, MAINT. AND REPAIR OF VEHICLES 12,375.01 30,433.00 10,662.15 19,343.76 217,755.35 141,088.68 41,039.53 152,797.77 11,709.09 8% LEASE OF BUILDINGS, PREMISES AND RESIDENCES 756,617.55 723,948.94 783,390.75 726,279.26 217,831.44 1,077,485.94 221,618.57 1,362,572.47 285,086.53 26% OTHER LEASES - - - - - - - - - - CONSULTANCY, ADVISORY AND SPECIALIZED RESEARCH 40,432.00 122,416.00 13,440.00 136,640.00 580,533.38 395,270.77 138,573.50 526,664.71 131,393.94 33% AUDIT SERVICE 221,600.00 224,000.00 224,000.00 200,480.00 276,280.00 261,380.00 165,600.00 161,100.00 -100,280.00 -38% TRAINING SERVICES 11,295.20 - - -
139,800.00 139,800.00 93,840.00 100.00 -139,700.00 -100% LEASE AND LICENSES FOR USE AND SOFTWARE PACKAGES 635,607.77 1,326,583.24 857,326.40 1,426,642.56 1,283,803.20 1,226,713.17 1,155,506.20 1,366,752.00 140,038.83 11% LEASE OF COMPUTER EQUIPMENT - - - - - - - - - - SPARE PARTS AND ACCESSORIES FOR COMPUTER EQUIPMENT 7,912.88 - 19,531.72 14,372.96 22,656.00 18,922.45 18,647.45 12,800.00 -6,122.45 -32% TECHNOLOGICAL SERVICES 1,131,378.53 995,159.40 456,472.13 548,365.06 3,814,726.84 2,455,573.22 1,744,912.95 2,372,646.50 -82,926.72 -3% FOOD AND BEVERAGES 27,815.56 31,146.66 29,488.00 30,716.80 43,644.70 36,000.00 28,580.00 30,500.00 -5,500.00 -15% CLOTHING AND PROTECTIVE GEAR 15,171.07 - 1,146.83 8,306.14 154,500.00 151,000.00 124,499.06 27,000.00 -124,000.00 -82% FUELS AND LUBRICANTS 14,492.58 24,358.09 26,002.43 21,990.95 37,266.21 30,104.21 22,780.29 46,635.00 16,530.79 55% OFFICE MATERIAL 26,989.93 8,151.52 3,449.84 19,678.74 15,200.00 9,347.14 8,282.73 35,982.85 26,635.71 285% CLEANING MATERIALS 16,320.76 4,591.20 2,807.28 - 14,000.00 100.00 - 200.00 100.00 100% CONSTRUCTION, ELECTRICAL, PLUMBING AND CARPENTRY MATERIALS 5,602.50 6,266.65 10,509.09 2,498.80 14,368.51 13,114.23 12,073.84 13,420.00 305.77 2% MINOR INSTRUMENTAL 3,518.59 - - 6,106.32 13,000.00 7,700.00 7,250.10 7,700.00 - 0% MEDICINES AND PHARMACEUTICAL PRODUCTS - - 3,510.30 6,131.90 6,000.00 7,700.00 6,478.60 7,099.60 -600.40 -8% OTHER CURRENT USE AND CONSUMPTION GOODS 15,094.69 21,378.52 5,011.00 5,888.29 80,850.00 11,892.47 8,653.67 52,080.80 40,188.33 338% OTHER CURRENT EXPENSES 2,316,621.05 2,186,072.18 2,814,475.03 2,570,820.13 2,187,941.26 2,746,582.92 2,641,799.58 2,768,256.87 21,673.95 1% PACKAGE, DOCUMENT AND CARGO SHIPPING SERVICES - - - - 4,500.00 - - 100.00 100.00 - OTHER TAXES, FEES AND CONTRIBUTIONS 2,133,615.31 1,951,414.63 2,599,522.28 2,393,109.44 1,785,847.96 2,253,903.87 2,246,425.60 2,352,013.25 98,109.38 4% INSURANCE 163,371.13 186,148.54 163,002.19 135,358.30 295,971.70 391,057.45 354,023.62 379,300.00 -11,757.45 -3% COMMISSIONS AND BANKING SERVICES 3,523.49 2,824.88 1,645.72 1,732.92 2,400.00 2,400.00 1,830.94 1,974.98 -425.02 -18% COURT COSTS 16,111.12 45,684.13 50,304.84 40,619.47 99,221.60 99,221.60 39,519.42 34,868.64 -64,352.96 -65% CLEANING, WASHING, WORK CLOTHING, FUMIGATION SERVICE - - - - - - - - - - UNIFORMS, LINEN, PROTECTIVE GEAR - - - - - - - - - - CLEANING MATERIALS - - - - - - - - - - LONG-TERM ASSETS 1,399,847.52 525,269.71 384,562.99 538,515.43 1,921,651.32 2,406,655.72 1,467,015.28 480,699.23 -1,925,956.50 -80% FURNITURE - 6,040.05 - - 158,850.00 210,959.00 150,811.00 32,450.00 -178,509.00 -85% OFFICE MACHINERY AND EQUIPMENT 12,461.12 58,768.06 25,814.19 - 125,306.80 316,603.20 14,140.76 199,282.01 -117,321.19 -37% VEHICLES - - - - 283,749.99 324,848.99 306,179.04 176,000.00 -148,848.99 -46% EQUIPMENT, SYSTEMS AND SOFTWARE PACKAGES 1,387,386.40 460,461.60 358,748.80 538,515.43 1,353,744.53 1,554,244.53 995,884.48 72,967.22 -1,481,277.32
-95% ADMINISTRATIVE SURPLUS (+) DEFICIT (-) - - - - - -0.00 - -0.00 0.00 -73% TOTALS 25,039,824.86 24,344,517.00 24,789,807.59 25,277,110.97 37,720,900.00 37,720,900.00 29,487,191.57 35,300,000.00 -2,420,900.00 -6%

Resolution No. JPRF-G-2025-0168