Resolution JPRM-2023-010-G: Allocation of 30% of 2022 Profits to the General Reserve Fund of the Central Bank of Ecuador

RESOLUTION No. JPRM-2023-010-G
THE MONETARY AND FINANCIAL POLICY BOARD

CONSIDERING:

That, Article 226 of the Constitution of the Republic of Ecuador stipulates that public officials and persons acting under state authority shall exercise only the competencies and powers attributed to them in the Constitution and the Law;

That, Article 227 of the same Constitution 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 Constitution of the Republic determines that the formulation of monetary, credit, exchange, and financial policies is the exclusive authority of the Executive Branch and shall be implemented through the Central Bank of Ecuador;

That, Article 30.1 of the Organic Monetary and Financial Code establishes that: "Within thirty days following the publication of the financial statements, the Central Bank of Ecuador shall allocate profits according to the following order:

1. To cover accumulated losses from previous fiscal years;
2. If there is a remainder, the Monetary and Financial Policy Board shall establish a percentage not less than thirty percent to be credited to the general reserve fund account until it equals five hundred percent of the authorized and paid-in capital of the Central Bank of Ecuador; and,
3. The balance shall be transferred to the General State Budget.
   No other distribution of profits of the Central Bank of Ecuador shall be made to those referred to in this article."

That, Article 47.1 of the aforementioned Code created the Monetary and Financial Policy Board as part of the Executive Branch, responsible for the formulation of monetary policy, the highest governing body of the Central Bank of Ecuador, and determines its composition;

That, through Resolution No. JPRM-2023-007-G, dated March 24, 2023, the Monetary and Financial Policy Board resolved to approve the audited Financial Statements of the Central Bank of Ecuador, as of December 31, 2022; and ordered the Central Bank of Ecuador to publish the audited and approved Financial Statements on its institutional website;

That, the Monetary and Financial Policy Board, in an ordinary session held virtually on April 10, 2023, reviewed the proposal for the resolution determining the percentage of profits to be credited to the general reserve fund account, submitted via Memorandum No. BCE-BCE-2023-0082-M, dated April 4, 2023, by the General Manager of the Central Bank of Ecuador, attaching Technical Report No. BCE-CGAF-010-2023/BCE-DFP-023-2023, dated April 4, 2023, and Legal Report No. BCE-CGJ-024-2023, dated April 4, 2023; and,

In exercise of its functions and in accordance with Articles 47.6 and 47.7 of the Organic Monetary and Financial Code, the Monetary and Financial Policy Board:

RESOLVES

SINGLE ARTICLE.- Establish that thirty percent (30%) of the profits corresponding to the 2022 fiscal year, after deducting accumulated losses from previous years, shall be credited to the general reserve fund account of the Central Bank of Ecuador.

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

The Director of Document Management and Archives of the Central Bank of Ecuador is tasked with its publication on the institutional website.

NOTIFY.- Given in the Metropolitan District of Quito, on April 10, 2023.

THE PRESIDENT
Dr. TATIANA MARIBEL RODRÍGUEZ CERÓN

The aforementioned resolution was signed by Dr. Tatiana Maribel Rodríguez Cerón - President of the Monetary and Financial Policy Board, in the Metropolitan District of Quito, on April 10, 2023.- I CERTIFY.

RESOLUTION No. JPRM-2023-010-G

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ADMINISTRATIVE SECRETARY
Attorney MARÍA ALEXANDRA GUERRERO DEL POZO