Resolution No. JPRF-G-2022-051 — Approval of the First Reform to the Budget of the Development Bank of Ecuador B.P. for the 2022 Fiscal Year

Resolution No. JPRF-G-2022-051
THE FINANCIAL POLICY AND REGULATION BOARD
CONSIDERING:
That, Article 226 of the Constitution of the Republic of Ecuador provides: "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. They shall have the duty to coordinate actions for the fulfillment of their purposes and to make effective the enjoyment and exercise of the rights recognized in the Constitution.";

That, Article 309 of the Constitution of the Republic stipulates that entities regulating the national financial system shall be responsible for "preserving its security, stability, transparency, and solidity.";

That, Articles 424, 425, and 426 of the Magna Carta establish the normative hierarchy that norms and acts of public power must maintain;

That, Article 13 of the Organic Code of Monetary and Financial, Book I, created the Financial Policy and Regulation Board as part of the Executive Function, responsible for the formulation of credit, financial, securities, insurance, and prepaid health care service regulation policy;

That, Article 14.1, letter a, number 14 ibidem, states that it is a faculty of the Financial Policy and Regulation Board: "To annually approve the budget of the entities of the public financial sector, their reforms, as well as to regulate their execution; (...)";

That, the Financial Policy and Regulation Board issued Resolution No. JPRF-F-2022-037 of September 29, 2022, which prescribes the applicable regulation for the execution stage of the budgetary cycle of the entities of the public financial sector, which contemplates the approval of budget reforms by the collegiate body of the financial regulator;

That, through Office No. BDE-BDE-2022-0440-OF of November 30, 2022, the General Manager of the Development Bank of Ecuador B.P., Master Homero Castanier Jaramillo, requests the approval of the "First Reform to the Budget of the Development Bank of Ecuador B.P. for the economic exercise of the year 2022 and the enabling documentation for the approval of the Monetary and Financial Policy Board, since the budget reform exceeds 5% of the policy budget (investment) and 10% of the approved operational budget.";

That, the Technical Secretariat of the Financial Policy and Regulation Board, through Memorandum No. JPRF-SETEC-2022-086-M of December 20, 2022, submits to the President of the Board the following reports:

i. Technical Report No. JPRF-CT-2022-0043 of December 20, 2022, issued by the Technical Coordination of the Board, through which the Technical Secretariat proposes to reform the Budget of the Development Bank of Ecuador B.P. for the economic exercise of the year 2022, in order for the aforementioned resolution to align with the provisions of Article 12 of Resolution No. JPRF-F-2022-037 incorporated in the Codification of Monetary, Financial, Securities, and Insurance Resolutions, as observed in the analysis of the policy budget as well as the operational one, regarding budget execution related to what was planned and what was effectively executed, and the justifications for the mentioned reform provided by the proposing entity.

Resolution No. JPRF-G-2022-051

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ii. The Legal Report No. JPRF-CJ-2022-0052 of December 19, 2022 concludes that it corresponds to the Financial Policy and Regulation Board to approve the budget reform of the Development Bank of Ecuador B.P. for the economic exercise of the year 2022, submitted by its General Manager through Office No. BDE-BDE-2022-0440-OF of November 30, 2022, in accordance with Article 14.1, numeral 14, literal a. of the Organic Code of Monetary and Financial, Book I.;

That, the Financial Policy and Regulation Board, in an extraordinary session convened by technological means on December 21, 2022, and carried out through video conference on December 22, 2022, reviewed Memorandum No. JPRF-SETEC-2022-0086-M of December 20, 2022, issued by the Technical Secretariat of the Board; as well as Technical Report No. JPRF-CT-2022-0043 and Legal Report No. JPRF-CJ-2022-0052 of December 19, 2022, issued by the Technical Coordination and the Legal Coordination of the aforementioned Board, and the corresponding draft resolution;

That, the Financial Policy and Regulation Board, in an extraordinary session convened by technological means on December 21, 2022, and carried out through video conference on December 22, 2022, reviewed and approved the following Resolution; and,

In exercise of its functions,
RESOLVES:
SINGLE ARTICLE.- Approve the budget reform of the Development Bank of Ecuador B.P. for the economic exercise of the year 2022, submitted by its General Manager through Office No. BDE-BDE-2022-0440-OF of November 30, 2022.
FINAL PROVISION.- This Resolution shall enter into force from the present date, without prejudice to its publication in the Official Register, and shall be published on the institutional website of the Financial Policy and Regulation Board within a maximum term of two days from its issuance.
NOTIFY.- Given in the Metropolitan District of Quito, on December 22, 2022.
THE PRESIDENT,
Master María Paulina Vela Zambrano
The resolution above was processed and signed by Master María Paulina Vela Zambrano, President of the Financial Policy and Regulation Board, in the Metropolitan District of Quito, on December 22, 2022.- I CERTIFY.
TECHNICAL SECRETARY
Dr. Nelly Arias Zavala