Resolution No. JPRF-G-2024-0114 Approves the Budget of the National Financial Corporation B.P. for the 2024 Fiscal Year

Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas Government Financial Management Platform. Red Block, 8th floor
| Postal Code: 170507 | Quito - Ecuador |
Resolution No. JPRF-G-2024-0114
THE FINANCIAL POLICY AND REGULATION BOARD
CONSIDERING:
That, Article 226 of the Constitution of the Republic of Ecuador establishes that “state institutions, their agencies, dependencies, public servants, and persons acting by virtue of state authority shall exercise only the competencies and powers attributed to them in the Constitution and the law. They shall have the duty to coordinate actions to fulfill their purposes and make effective the enjoyment and exercise of rights recognized in the Constitution.”; That, Article 309 of the Fundamental Norm stipulates that entities of the national financial system shall be responsible for preserving their “security, stability, transparency, and solidity”; That, Article 310 of the Magna Carta orders that: “The public financial sector shall have as its purpose the sustainable, efficient, accessible, and equitable provision of 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 less favored groups, in order to promote their active inclusion in the economy.”; That, Article 13 of the Organic Monetary and Financial Code, 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 and policy; That, Article 14.1, number 14, letter a of the Organic Monetary and Financial Code, Book I, states that it is a faculty of the Financial Policy and Regulation Board: “a. Annually approve the budgets of public financial sector entities, their reforms, as well as regulate their execution”; That, through Resolution No. JPRF-G-2022-056 of December 29, 2022, the Financial Policy and Regulation Board approved the budget for the 2023 fiscal year of the National Financial Corporation B.P.; That, through Resolution No. JPRF-F-2024-099 of February 29, 2024, the Financial Policy and Regulation Board reformed the norm approving the budgets of public financial entities contained in Subsection I “Budget Management Norms for Entities of the Public Financial Sector,” Section III “Of the Public Financial Sector Capital Budget,” Chapter XXXIII “Of the Government and Administration of the Public Financial Sector,” Title II “National Financial System,” Book I “Monetary and Financial System” of the Compilation of Monetary, Financial, Securities, and Insurance Resolutions; That, the Sole Transitional Provision of Resolution No. JPRF-F-2024-099 establishes that, for the approval of budget proformas corresponding to the year 2024, public financial sector entities must remit to the Financial Policy and Regulation Board, on this single occasion, by April 30, 2024, the budgets approved by the corresponding government and administration bodies;

Resolution No. JPRF-G-2024-0114

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Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas Government Financial Management Platform. Red Block, 8th floor
| Postal Code: 170507 | Quito - Ecuador |
That, by Official Letter No. CFN-B.P.-GG-2024-0190-OF of April 30, 2024, the General Manager of the National Financial Corporation B.P. submitted the Budget Proforma of the National Financial Corporation B.P. for the year 2024, duly approved by the Institution's Board of Directors in a session held on April 29, 2024, through Resolution No. DIR-039-2024, as well as the technical and legal reports required for this purpose; That, the Acting Technical Secretary of the Financial Policy and Regulation Board, through Memorandum No. JPRF-ST-2024-0072-M of June 27, 2024, submits to the President of the Board the Technical Report No. JPRF-CTIFSP-2024-0013 and the Legal Report No. JPRF-CJF-2024-033, both dated June 26, 2024, as well as the respective draft resolution; That, the Financial Policy and Regulation Board, in an ordinary session held via technological means, convened on June 27, 2024, and carried out via video conference on July 1, 2024, reviewed the Memorandum No. JPRF-ST-2024-0072-M of June 21, 2024, issued by the Acting Technical Secretary of the Board; as well as the Technical Report No. JPRF-CTIFSP-2024-0013 and the Legal Report No. JPRF-CJF-2024-033, both dated June 26, 2024, issued by the Technical Coordination of Financial Inclusion and Prepaid Health Care Policy and Regulation and by the Legal Coordination of Financial Policy and Norms, and the corresponding draft resolution; That, the Financial Policy and Regulation Board, in an ordinary session held via technological means, convened on June 27, 2024, and carried out via video conference on July 1, 2024, reviewed and approved the following Resolution; and, In exercise of its functions, RESOLVES:
SINGLE ARTICLE.- Approve the budget of the National Financial Corporation B.P. for the 2024 fiscal year, covering the period from January 1, 2024, to December 31, 2024, based on the documentation presented by the Corporation through Official Letter No. CFN-B.P.-GG-2024-0194-OF of April 30, 2024, which are derived from the Annex that forms part of this Resolution. GENERAL PROVISIONS FIRST.- The National Financial Corporation B.P. must comply with what is established in Article 13 of the “Budget Management Norm for Entities of the Public Financial Sector,” of Section III “Of the Public Financial Sector Capital 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 Compilation 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, funds under administration, and captations of public sector resources during the year 2024. SECOND.- It is ordered that the National Financial Corporation B.P. submit the approved budget for the 2024 fiscal year to the Ministry of Economy and Finance and 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 Finance and 94 of its General Regulation.

Resolution No. JPRF-G-2024-0114

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Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas Government Financial Management Platform. Red Block, 8th floor
| Postal Code: 170507 | Quito - Ecuador |
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 July 1, 2024. THE PRESIDENT, Mgs. 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 July 1, 2024.- I CERTIFY. ACTING TECHNICAL SECRETARY Mgs. Luis Alfredo Olivares Murillo

Resolution No. JPRF-G-2024-0114

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Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas Government Financial Management Platform. Red Block, 8th floor
| Postal Code: 170507 | Quito - Ecuador |
ANNEX
Institutional Budget of the National Financial Corporation B.P. for the 2024 fiscal year Source: National Financial Corporation B.P.
Execution 2019 Execution 2020 Execution 2021 Execution 2022 Proforma 2023 Execution December 2023 Proforma 2024 Variation Proforma 2023 vs Proforma 2024 % Variation Percentage 2023-2024 ORDINARY BUDGET Income 165.85 133.18 154.23 140.57 141.54 139.89 141.19 -0.35 -0.25% Interest on Loans 125.19 108.45 126.02 100.60 89.59 94.30 89.43 -0.16 -0.18% Interest on Stock Market Financing Program 5.76 5.28 3.84 1.77 1.20 0.72 0.44 -0.77 -63.67% Interest on sale of CPGs at term 0.33 0.30 0.27 0.23 6.69 5.75 5.92 -0.78 -11.62% Interest on Investments 26.99 15.06 21.59 35.99 42.12 37.47 42.88 0.75 1.79% Interest foreign trade 4.49 1.98 0.22 0.00 0.02 0.00 0.00 -0.02 -100.00% Interest third-party adjudication and sale of term goods 1.59 0.94 1.07 0.76 0.67 0.64 1.56 0.89 133.50% Fiducia Commissions 1.28 1.14 1.22 1.22 1.24 1.00 0.98 -0.26 -21.25% Earned Dividends 0.22 0.02 0.00% Expenses 92.20 88.95 83.95 81.29 122.63 91.57 131.02 8.39 6.84% External credit interest 7.67 8.60 8.28 7.14 29.26 24.21 50.16 20.90 71.42% Interest on investment certificates 50.38 48.35 43.50 44.69 49.09 40.77 36.59 -12.50 -25.47% Paid commissions 0.66 1.44 0.82 0.83 1.35 1.52 1.35 0.00 0.00% Personnel expenses 20.42 19.17 20.67 17.75 18.41 15.53 19.17 0.77 4.16% Current expenses 7.33 5.49 5.61 5.90 12.41 4.34 11.61 -0.80 -6.48% Taxes and contributions 5.47 5.25 4.82 4.39 5.10 4.78 4.99 -0.11 -2.07% Fixed asset investments normal business 0.27 0.65 0.25 0.59 7.01 0.42 7.15 0.14 2.07%
I. Surplus / (Deficit) Ordinary 73.66 44.23 70.28 59.28 18.91 48.32 10.17 -8.74 -46.22%
EXTRAORDINARY BUDGET
Income 10.86 11.19 11.01 7.04 1.85 6.43 155.62 153.77 8311.34% Sale of adjudicated goods 8.43 7.76 2.47 2.12 0.56 2.32 1.14 0.58 104.62% Other income 2.43 3.43 8.54 4.92 1.29 4.10 154.47 153.18 11865.03% Expenses 4.01 6.96 4.10 14.08 8.87 145.16 3.20 -5.67 -63.90% Various receivables (Forestry Program) 3.29 0.87 1.05 1.01 1.20 0.21 1.20 0.00 0.00% Extraordinary expenses 0.73 6.09 3.05 13.07 7.67 144.95 2.00 -5.67 -73.91%
II. Surplus / (Deficit) Extraordinary 6.85 4.23 6.91 -7.04 -7.01 -138.74 152.42 159.43 -2272.71%
Administrative Execution Surplus / (Deficit) 80.51 48.46 77.19 52.24 11.90 -90.42 162.59 150.69 1266.44% POLICY BUDGET Execution 2019 Execution 2020 Execution 2021 Execution 2022 Proforma 2023 Execution December 2023 Proforma 2024 Variation Proforma 2023 vs Proforma 2024 % Variation Percentage 2023-2024 Income 4,180.42 4,323.40 3,867.11 3,820.98 4,524.56 3,980.28 4,571.20 46.64 1.03% Portfolio recovery 324.82 232.74 246.01 216.68 173.85 150.01 104.00 -69.85 -40.18% Factoring recovery 70.38 47.04 0.00 10.97 0.24 0.00 -10.97 -100.00% Recovery and sale of investments 275.12 380.37 727.60 743.31 959.87 1,097.48 1,267.98 308.11 32.10% Sale of CPGs at term 20.78 24.19 14.94 16.04 14.37 23.13 15.75 1.38 9.61% Bond recovery 552.39 156.00 151.50 16.00 368.18 352.18 2201.13% Subsidiary Profits 23.11 5.15 4.05 0.00% Income from securitization 79.73 0.00% External credit 204.47 10.00 116.84 417.00 250.00 180.30 -236.70 -56.76% Captation of investment certificates 2,820.57 3,109.04 2,439.75 2,456.70 2,710.61 2,234.96 2,328.36 -382.25 -14.10% Government capitalization funds 9.30 9.80 3.85 11.28 1.48 15.11% Available funds (Initial) 83.89 141.06 226.22 246.11 212.09 204.61 295.34 83.26 39.26% Expenses 4,119.87 4,145.65 3,698.19 3,668.60 4,339.97 3,594.52 4,517.82 177.85 4.10% Granting of loans 622.83 198.63 121.29 203.33 386.20 111.03 301.63 -84.57 -21.90% Factoring disbursements 68.88 50.40 0.00% Stock market financing program 40.04 16.78 0.00 0.00 20.00 3.22 0.00 -20.00 -100.00% Expenses from securitization 0.00% Payment of Profits 23.24 5.50 0.00% CPGs Ministry 18.14 10.03 8.76 6.19 0.00 18.97 0.00% External credit debt service 55.11 50.20 43.20 15.66 17.57 0.00 -0.02% Investment certificate debt service 3,047.14 3,265.54 2,357.78 2,535.85 2,755.20 2,263.64 2,394.12 -361.08 -13.11% Government bonds 200.00 0.00 355.60 0.00 20.00 28.40 350.00 330.00 1650.00% National Guarantee Fund 3.36 20.00 40.00 0.00 20.00 -20.00 -50.00% Treasury investments 110.03 510.09 761.17 907.58 1,101.00 1,151.70 1,434.50 333.50 30.29%
III. Surplus / (Deficit) of Policy 60.54 177.76 168.92 152.38 184.59 385.76 53.38 -131.21 -71.08%
IV. Global Surplus / (Deficit) I+II+III 141.06 226.22 246.11 204.61 196.48 295.34 215.96 19.48 9.91%
Total Budgetary Income 4,357.13 4,467.78 4,032.35 3,968.58 4,667.95 4,126.60 4,868.01 200.06 4.29% Total Budgetary Expenses 4,216.08 4,241.56 3,786.24 3,763.97 4,471.47 3,831.26 4,652.04 180.58 4.04%