Resolution JPRFM-2026-009-M: Incorporation of Subsection 9 on Fiscal and Financial Agency for National Public Enterprise Commodity Hedging

THE FINANCIAL AND MONETARY POLICY AND REGULATION BOARD

CONSIDERING:

That, Article 226 of the Constitution of the Republic of Ecuador prescribes that 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 ibidem states that Public Administration constitutes a service to the community governed by the principles of effectiveness, efficiency, quality, hierarchy, coordination, planning, among others;

That, the first clause of Article 303 of the constitutional norm determines that the formulation of monetary, credit, exchange, and financial policies is the exclusive faculty of the Executive Function and will be implemented through the Central Bank of Ecuador;

That, on October 13, 2025, the Organic Law Reforming the Organic Code of Monetary and Finance was published in the Sixth Supplement of the Official Register No. 142;

That, Article 13 of the Organic Code of Monetary and Finance creates the Financial and Monetary Policy and Regulation Board, part of the Executive Function, as an organ with functional, technical, and institutional autonomy, and in its decisions, responsible for the formulation of monetary, credit, financial, securities, insurance, and prepaid comprehensive health care services policy. The Financial and Monetary Policy and Regulation Board will be the highest governing body of the Central Bank of Ecuador;

That, Article 17 of the referred Code, in its pertinent part, determines that:

"(...) For the fulfillment of these functions, the Board will issue regulations in matters within its competence, without being able to alter legal provisions. The Financial and Monetary Policy and Regulation Board may issue regulations by segments, economic activities, and other criteria. It may even reform or repeal regulations from the former Monetary Policy and Regulation Board, Financial Policy and Regulation Board, or Monetary and Financial Policy and Regulation Board.

All norms and policies issued by the Financial and Monetary Policy and Regulation Board in the exercise of its functions, duties, and faculties must be backed by duly substantiated technical and legal reports (...)";

That, Article 19 ibidem establishes the specific functions of the Financial and Monetary Policy and Regulation Board in the monetary field; in particular, in its items 4 and 19, it empowers it to formulate the policy of the operations of the Central Bank of Ecuador, as well as to set the commissions and fees for the services provided by the Central Bank of Ecuador;

That, Article 24 of the same Code provides that the acts of the Financial and Monetary Policy and Regulation Board enjoy the presumption of legality and will be expressed through resolutions that will have mandatory force, which will govern from their publication in the Official Register, or from the date of their issuance when so determined by the Board, in accordance with the matter;

That, Article 25.2 ibidem determines that the Technical Secretariat of the Financial and Monetary Policy and Regulation Board is exercised by the Central Bank of Ecuador, and Article 25.3 establishes as its functions the preparation of technical and legal reports that support regulation proposals, provide technical and administrative support to the Financial and Monetary Policy and Regulation Board, and the others assigned to it by said Board;

That, item 15 of Article 36 of the aforementioned Organic Code establishes that the Central Bank of Ecuador may act as a fiscal agent, financial agent, and depository of public resources and provide banking services to entities in the public sector and to the national financial system, according to the market remuneration determined by the Financial and Monetary Policy and Regulation Board;

That, within the framework of its quality as a fiscal and financial agent of the public sector, the Central Bank of Ecuador can provide specialized financial services to public entities, including the operational execution of financial operations in international markets, in accordance with the regulations issued by the Financial and Monetary Policy and Regulation Board;

That, Article 41 ut supra provides that non-financial public sector institutions, organisms, and companies must effect through the Central Bank of Ecuador, or its accounts, all payments they have to make, as well as all financial operations and services they require, including foreign trade operations, in accordance with the regulations and exceptions issued by the Financial and Monetary Policy and Regulation Board;

That, Article 56 of the referred legal body determines that the Central Bank of Ecuador will not provide direct or indirect financing to the central government, the entity in charge of public finances, decentralized autonomous governments, public sector institutions, nor to publicly owned institutions. This prohibition includes:

"1. The granting by the Central Bank of Ecuador of any direct or indirect loan, or short-term advance to the public sector;
2. The issuance of guarantees by the Central Bank of Ecuador for financial transactions carried out by the public sector;
3. Any financial transaction by the Central Bank of Ecuador with any third party that constitutes a precondition for loan operations carried out by the public sector (...)";

That, Article 56.1 of the Organic Code of Monetary and Finance provides that the Central Bank of Ecuador is prohibited from carrying out any of the following activities:

"1. making investments, including the purchase of shares, or participations in private and public companies, as well as the purchase of securities issued by said companies;
2. Providing aid, donations, or financial contributions to natural or legal persons;
3. Buying tangible movable or immovable goods for profit or with the intention of reselling them;
4. Receiving deposits, granting credits, or providing transaction services to natural or legal persons other than those determined in this Code;
5. Contributing to the paid-up capital of a legal person, or buying and selling securities of the same; and.
6. Issuing loans and/or bank guarantees for natural and legal persons"

That, Article 90.1 of the Organic Code of Public Planning and Finance grants the faculty to national public companies and the Central Bank of Ecuador to carry out hedging or coverage operations on the price of commodities, with the objective of mitigating the risk associated with international fluctuations in said prices. To this effect, in addition to contracting insurance, they may carry out operations through structured and unstructured financial derivatives. Likewise, it establishes that the

cost of the coverage or hedging will be established based on the market and will be paid from the budget of the public entity carrying out the operation;

That, coverage or hedging operations constitute risk management instruments intended to mitigate the volatility of international commodity prices and do not constitute financing, investment, or equity participation operations by the Central Bank of Ecuador, which will act exclusively as an agent of the ordering public entity;

That, General Provision Twenty-Ninth of the Organic Code of Monetary and Finance states: "In existing legislation where mention is made, indistinctly, of the Monetary and Financial Policy and Regulation Board, the Monetary Policy and Regulation Board; or, the Financial Policy and Regulation Board, replace and understand as 'Financial and Monetary Policy and Regulation Board';

That, First Transitional Provision of the Organic Law Reforming the Organic Code of Monetary and Finance determines that the members of the Financial and Monetary Policy and Regulation Board, sworn in on September 16, 2025, by the National Assembly, will continue to exercise their functions for the periods they were designated and will maintain their labor continuity and acquired rights;

That, through Office No. T.233-SGJ-25-098, dated September 5, 2025, signed by the Constitutional President of the Republic, addressed to the President of the National Assembly, he sent the list of candidates for the designation of the Members of the Financial and Monetary Policy and Regulation Board; as well as, the temporality of their stay within the initial period;

That, the Plenary of the National Assembly, on September 16, 2025, designated and swore in the members of the Financial and Monetary Policy and Regulation Board, in the persons of: Gustavo Estuardo Camacho Dávila; Silvia Daniela Moya Arteta; Roberto Javier Basantes Romero; and, María Isabel Camacho Cárdenas;

That, the Financial and Monetary Policy and Regulation Board, through ordinary session No. 007-2026, under hybrid modality, on March 06, 2026, reviewed the proposal sent via Memorandum No. BCE-BCE-2026-0073-M, dated March 04, 2026, by the General Manager of the Central Bank of Ecuador to the President of the Financial and Monetary Policy and Regulation Board; as well as, Technical Report No. BCE-GISI-010-2026, dated March 04, 2026; and, Legal Report No. BCE-GJ-023-2026, dated March 04, 2026; and,

In exercise of its functions and in attention to what is provided in Article 24 of the Organic Code of Monetary and Finance, the Financial and Monetary Policy and Regulation Board,

RESOLVES:

Article 1.- Incorporate, following Subsection 8 "Sucre Operations", Section 5 "Services of the Central Bank of Ecuador to operate with the exterior", Chapter I "Of the Operations of the Central Bank of Ecuador", Title II "Policies of Operations of the Central Bank of Ecuador" of the "Codification of Monetary Policy Resolutions and Operations of the Central Bank of Ecuador issued by the Monetary Policy and Regulation Board", the following Subsection:

"SUBSECTION 9: FISCAL AND FINANCIAL AGENCY FOR COMMODITY COVERAGE OF NATIONAL PUBLIC COMPANIES

Article 74.1.- Fiscal and Financial Agency Service for Commodity Coverage: The Central Bank of Ecuador may provide the Fiscal and Financial Agency Service for the execution of coverage operations intended to mitigate the risks of the fluctuation of commodity prices, to national public companies.

In the exercise of this service, the Central Bank of Ecuador will act exclusively as an agent of the requesting public entity and will proceed in accordance with the express instructions that said entity imparts for the contracting, execution, and settlement of financial derivative instruments in international markets.

The nature of this banking operation service is one of means and not of result; therefore, any risk, cost, or expense, direct or indirect, of these operations will be assumed entirely by the ordering public entity.

Under no circumstances will the Central Bank of Ecuador assume the economic position, market risk, or financial obligations derived from the coverage operations, which will correspond exclusively to the ordering public entity.

Article 74.2.- Faculties of the Central Bank of Ecuador for Risk Management and Guarantees: For the operability of the Fiscal and Financial Agency Service for commodity coverage, the Central Bank of Ecuador is empowered to establish directly in the respective contracts, the conditions and measures it considers necessary for the management of the operation, in accordance with the instructions received.

In the event that the coverage operation requires the constitution, administration, and execution of guarantees or collateral for the fulfillment of margin calls and other types of structures that generate credit exposure, the national public company must have liquid and sufficient guarantees constituted in its favor for this type of coverage operation. The Central Bank of Ecuador is not empowered to issue guarantees on commodity coverage operations, described in this subsection.

The Central Bank of Ecuador may only operate the Fiscal and Financial Agency Service for commodity coverage under the delivery against payment modality, prior to the receipt of valid instructions. For an instruction to be considered valid, in addition to meeting the information requirements established, the values associated with the requested operation must be fully credited.

The contract of the Fiscal and Financial Agency Service for commodity coverage will be the binding legal instrument and sufficient title for the Central Bank of Ecuador to proceed with debits in the accounts that the contracting public entity maintains in said institution, necessary to fulfill the instructions received and the obligations contracted with third parties in the name of the public entity".

Article 2.- Following item 2 "Services of administration of commercial trusts" in the corresponding section of the "Investment and International Services Management" of Annex No. 3 "Tariffs, rates for services and other concepts related to banking operations" of Section 6 "Tariffs, rates for operations and other concepts related to banking operations", Chapter I "Of the operations of the Central Bank of Ecuador", Title II "Policies of Operations of the Central Bank of Ecuador" of the "Codification of Monetary Policy Resolutions and Operations of the Central Bank of Ecuador issued by the Monetary Policy and Regulation Board", incorporate the following item:

"
3. The Fiscal and Financial Agency Service
for commodity coverage will be subject to the following tariffs:
a. Fixed Component (Agency Subscription): A fixed charge for the establishment of the relationship, due diligence processes (onboarding), and administration of the agency relationship, payable at the time of contract subscription. b. Variable Component (Operation Management): A commission established as a percentage of the total cost of each coverage operation agreed upon under the entity's instructions. Payment will be made once the execution of the operation is instructed to the Central Bank. a. 16 * Unified Basic Salaries. b. 0.005% of the total cost of the operation instructed.

GENERAL PROVISIONS

FIRST. - The Central Bank of Ecuador, through the Investment and International Services Management and the Submanagement of International Financial Services, as applicable, may sign contractual instruments, and any others, for the provision of the Fiscal and Financial Agency Service for commodity coverage.

SECOND. - The Central Bank of Ecuador will carry out all actions for the operational implementation of the Fiscal and Financial Agency Service for commodity coverage; including changes in accounting and administrative matters, if applicable.

FINAL PROVISION. - This resolution will enter into force from its issuance, without prejudice to its publication in the Official Register.

It is entrusted to its publication on the institutional website and the updating of the Codification of Monetary Policy Resolutions and Operations of the Central Bank of Ecuador issued by the Monetary Policy and Regulation Board.

COMMUNICATE AND PUBLISH. - Given in the city of Quito D.M., on March 06, 2026.

THE PRESIDENT
Mgs. Gustavo Estuardo Camacho Dávila

The resolution preceding was processed and signed by Master Gustavo Estuardo Camacho Dávila - President of the Financial and Monetary Policy and Regulation Board, in the city of Quito D.M., on March 06, 2026.- I CERTIFY.

TECHNICAL SECRETARIAT
Mgs. Jennifer Mishel Carrillo Rosales