Paying Taxes With Central Bank Securities ("TBCs")

The Central Bank is authorized to issue securities known as TBCs (by their Spanish acronym). The TBCs are delivered to contractors as payment for goods or services provided to the Ecuadorian State. The Monetary and Financial Policy and Regulation Board is the entity that authorizes the Central Bank to issue TBCs which must be fully supported with Central Bank assets.

There are two ways for trading (buying-selling) the TBCs as determined by the Finance Ministry:

a. Through the Stock Exchanges:

Such trading can only take place with the presence of (i) security trading companies, and (ii) public operators (when a TBC holder is a public enterprise). Those institutions must be duly qualified and authorized and must trade through the Stock Exchange.  The TBC price is determined by the market.