Resolution JPRM-2024-003-G: Allocation of 30% of 2023 Distributable Profits to the General Reserve Fund of the Central Bank of Ecuador

RESOLUTION No. JPRM-2024-003-G
THE MONETARY AND FINANCIAL POLICY 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 powers 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 paragraph of Article 303 ut supra 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, 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 will 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 will establish a percentage that will not be less than thirty percent to credit 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 will be transferred to the General State Budget. No other distribution of profits of the Central Bank of Ecuador to those referred to in this article shall be made"; That, Article 47.1 of the aforementioned Organic Code created the Monetary and Financial Policy Board as part of the Executive Function, responsible for the formulation of monetary policy, the highest governing body of the Central Bank of Ecuador, and determines its composition; That, by Resolution No. JPRM-2024-002-G, dated February 8, 2024, the Monetary and Financial Policy Board resolved to approve the audited financial statements of the Central Bank of Ecuador, as of December 31, 2023; 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 extraordinary session held via mixed modality, on February 9, 2024, reviewed the proposal for resolution regarding the determination of the percentage of profits to be credited to the general reserve fund account, submitted via Memorandum No. BCE-BCE-2024-0033-M, dated February 8, 2024, by the General Manager of the Central Bank of Ecuador; attaching Technical Report No. BCE-CGAF-004-2024/BCE-DFP-024-2024, dated February 7, 2024, and Legal Report No. BCE-CGJ-013-2024, dated February 8, 2024; and, In exercise of its functions and in accordance with Article 47.7 of the Organic Monetary and Financial Code, the Monetary and Financial Policy Board:
RESOLVES
Article 1.- Order that thirty percent (30%) of the distributable profits corresponding to the 2023 economic fiscal year be credited to the general reserve fund account of the Central Bank of Ecuador.
Article 2.- That once the provisions established in the preceding article are executed and considering that the general reserve fund has reached five hundred percent (500%) of the authorized and paid-in capital, as stipulated in numeral 2 of Article 30.1 of the Organic Monetary and Financial Code, the excess shall be incorporated into the remainder of the total distributable profits to be transferred in the amount of USD 508,912,215.74 to the General State Budget, with the corresponding credit to the National Treasury Single Account.
FINAL PROVISION. - This resolution shall enter into force from its issuance, without prejudice to its publication in the Official Register.
Entrust the publication of this resolution on the institutional website to the Document Management and Archive Directorate of the Central Bank of Ecuador.
NOTIFY AND PUBLISH. - Given in the Metropolitan District of Quito, on February 9, 2024.
THE PRESIDENT
Dr. TATIANA MARIBEL RODRÍGUEZ CERÓN

RESOLUTION No. JPRM-2024-003-G

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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 February 9, 2024.- I CERTIFY.
ADMINISTRATIVE SECRETARY
Attorney MARÍA ALEXANDRA GUERRERO DEL POZO