The Monetary Board (JM) is the highest authority of the Bank of Guatemala .

Its functions are

determined by the Constitution and the Organic Law of the Bank of Guatemala, as well as, it will be
in charge of determining the monetary, exchange and credit policy of the country and will ensure the
liquidity and solvency of the national banking system, ensuring stability. and strengthening national
savings.

The acts and decisions of the Monetary Board are subject to administrative and contentious-
administrative and cassation appeals.

The Purpose of the Monetary Board is to guarantee the monetary, exchange and credit stability of
the country. The Monetary Board may not authorize the Bank of Guatemala to grant direct or
indirect financing; guarantee or endorsement to the State, to its decentralized or autonomous
entities or to private non-banking entities.

For this same purpose, the Bank of Guatemala will not be able to acquire the securities issued or
negotiated in the primary market by said entities. Exception from these prohibitions is the financing
that may be granted in cases of catastrophes or public disasters, as long as it is approved by two-
thirds of the total number of deputies that make up Congress at the request of the President of the
Republic of Guatemala .

According to article 132 of the Constitution and article 13 of the Organic Law of the Bank of
Guatemala, they establish that the Monetary Board is made up of the following members:

to. The President , who will also be the President of the Bank of Guatemala, appointed by the
President of the Republic and for a period established by Law;

b. The Ministers of Public Finance , Economy and Agriculture, Livestock and Food ;

c. A Member elected by the Congress of the Republic of Guatemala ;

d. A Member elected by the Business Associations of Commerce, Industry and Agriculture;

and. A Member elected by the Presidents of the Boards of Directors or Boards of Directors of the
National Private Banks; and

F. A Member elected by the Superior Council of the University of San Carlos of Guatemala .

These last three members will remain in office for one year.

All members of the Monetary Board will have substitutes, except for the President, who will be
replaced by the Vice President , and the ministers of State, who will be replaced by their respective
vice minister. The Vice President of the Monetary Board and the Bank of Guatemala, who will also
be appointed by the President of the Republic, may attend the sessions of the Monetary Board,
together with the President, with voice, but without vote, except when he replaces the President. in
their functions, in which case, they will have a vote.
The President, the Vice President and those appointed by the Higher University Council and by the
Congress of the Republic, must be people of recognized honorability and notable preparation and
competence in economic and financial matters.

The functions of the Monetary Board are the following:

a) Determine and evaluate the monetary, exchange and credit policy of the country, including the
programmed goals, taking into account the economic environment;

b) Ensure the liquidity and solvency of the national banking system;

c) Regulate aspects related to banking reserve and legal deposit, in accordance with its Organic
Law;

d) Regulate the banking clearinghouse or any other instrument or mechanism that pursues the
same purposes as that one;

e) Authorize, at the proposal of the General Manager , the investment policy of international
monetary reserves;

f) Establish the necessary reserves to strengthen the Bank's assets;

g) Approve the Income and Expenditure Budget of the Bank of Guatemala and that of the
Superintendency of Banks;

h) Approve or modify the administrative structure of the Banco de Guatemala, to

i) Appoint and remove the General Manager and other authorities and officials;

j) Approve the Bank's financial statements annually;

k) Approve annually, for publication, the work report of the Bank of Guatemala;

l) Issue regulations in accordance with this and other laws;

m) Approve the provisions, standards or legal instruments submitted for consideration by the
Superintendency of Banks or, where applicable, the Bank of Guatemala; and

n) Exercise the other powers and powers that correspond to it, in accordance with this Law, the
Monetary Law and other applicable legal provisions.

The Bank of Guatemala ( BANGUAT ) is the central bank of the Republic of Guatemala . It is an
autonomous state entity with its own assets capable of acquiring rights and contracting obligations;
It acts as the one in charge of centralizing the funds of the financial institutions that make up the
national financial system (including the national banking system), it is also the issuer of the national
currency called Quetzal and contributes to the creation and maintenance of the best conditions for
development. of the national economy. This body is governed by article 132 of the Constitution and
its Organic Law.
The highest authority of the Bank of Guatemala is the Monetary Board. The current President of the
Bank of Guatemala is Lic. Edgar Baltazar Barquín Durán and the current Vice President of the Bank
of Guatemala is Lic. Julio Roberto Suárez Guerra. The President of the Bank of Guatemala is also
the President of the Monetary Board and the Vice President is his substitute.

The power to issue the national currency, called Quetzal, belongs solely to The Bank of Guatemala,
the power to issue the Bank of Guatemala is established in Art. 2 of the Monetary Law, which says:

"Only the Bank of Guatemala can issue banknotes and coins within the territory of the Republic of
Guatemala, in accordance with this Law and the Organic Law of the Bank of Guatemala. The issue
is made up of national banknotes and coins that are not in the possession of the Bank of
Guatemala."

The international monetary reserves of the Bank of Guatemala are described in Art. 10 of the
Monetary Law, which is why they are made up of the following assets: 1

a) Gold;

b) Banknotes and coins accepted as a means of international payment;

c) Immediate currency deposits, payable and in installments, in international financial institutions or

in foreign banks determined by the Monetary Board;

d) First class, liquid securities or securities issued by foreign governments of recognized solvency,
international organizations and corporations or financial institutions determined by the Monetary
Board.

e) Special Drawing Rights of the country in the International Monetary Fund;

f) Contributions to international financial organizations when they are considered internationally as

reserve assets; and

g) Other assets that the Monetary Board qualifies, in accordance with the circumstances derived
from the evolution of international financial market instruments.

International monetary reserves cannot be seized and may not be subject to precautionary,
administrative, or judicial measures. Nor will they be subject to the payment of taxes, tributes or any
special contribution.

The Bank of Guatemala has, among others determined by its Organic Law, the following functions:

a) Be the only issuer of the national currency;

b) Ensure that an adequate level of liquidity in the banking system is maintained, through the use of
the instruments provided for in its Organic Law;

c) Ensure the proper functioning of the payment system;

d) Receive in deposit the bank reserves and legal deposits referred to in its Organic Law;

e) Manage international monetary reserves, in accordance with the guidelines issued by the
Monetary Board; and,

f) The other functions compatible with its nature as a Central Bank that are assigned by legal
mandate.

The Bank of Guatemala, to fulfill its fundamental objective and at the same time, efficiently,
effectively and timely develop the functions entrusted to it by its Organic Law, has designed an
Administrative Structure based on an organic and administrative hierarchy made up of the
Presidency, Vice Presidency, General Management , Area Management, Departments, Sections
and Units. This structure has the dependencies that, individually fulfilling their reason for being and
their functions, allow the Institution to achieve its objectives as a Central Bank, these being:

The Monetary Board, integrated in accordance with articles 132 of the Political Constitution of the
Republic of Guatemala and 13 of Decree Number 16-2002 of the Congress of the Republic of
Guatemala, Organic Law of the Bank of Guatemala, exercises the supreme direction of the Bank of
Guatemala. The Monetary Board is the one that defines the exchange, monetary and credit policy
of the country, these being the most favorable for the national economy. In addition, the Monetary
Board is the one that exercises the general direction of the National Financial System. The Bank of
Guatemala depends on the direction of the Monetary Board, since said board is the highest
authority within the central banking institution.

The Presidency of the Bank of Guatemala is made up of the President and the Vice President, who
in turn are also members of the Monetary Board. Among the powers of the President are to propose
to the Monetary Board the monetary, exchange and credit policy, including the programmed goals;
and, ensure the correct execution of the aforementioned policy.

The General Management is responsible for the administration of the Bank of Guatemala and is
responsible to the President of the Institution and to the Monetary Board for the correct and
effective functioning of the Bank. The department that, at a staff level, will directly advise the
General Management on internal control matters is the Internal Audit.

The Economic Management is responsible for the design and monitoring of the country's Monetary,
Exchange and Credit Policy, the periodic evaluation of said policy, the identification of the main
economic macro trends, their analysis and interpretation and their impact on the scheme. internal
monetary policy, as well as the preparation of the main economic statistics necessary for making
decisions on monetary policy and advising the Authorities in relations with international financial
organizations.

Financial Management covers the coordination of the following functions: the administration and
implementation of monetary policy, through monetary stabilization operations; attention to foreign
currency operations in the public sector; the execution of the annual programs for the issuance,
amortization and destruction of cash; attention to deposit, withdrawal and currency exchange
operations with system banks and public sector entities; the administration of international monetary
reserves –RMI-, including the risk analysis associated with the management of said reserves; the
accounting record of economic-financial events that affect the Bank's assets; the implementation of
actions that contribute to the strengthening of the national payment system.
Administrative Management deals with the coordination of administrative functions and internal
services through the departments that comprise it, clearly defined according to their nature and
specialization. Its administrative functions are framed, mainly, in institutional relations; human
resource management and organizational analysis; computer systems; the provision of goods and
services and security.

The Legal Management is the area specialized in legal matters, in charge of advising the Monetary
Board, Authorities and Officials of the Bank of Guatemala. Likewise, he will be responsible for the
good administration of the Secretariat of the Monetary Board.

For its part, the superintendence of banks also plays an important role.

The Superintendency of Banks (SIB) is a technical government entity that supervises and
inspects banks , credit institutions, financial companies, bonding and insurance entities and other
financial institutions established by law, that is, the national financial system . This body is governed
by the Constitution , the Financial Supervision Law, the Organic Law of the Bank of Guatemala , the
Monetary Law and other laws.

The Superintendency of Banks as a technical body of the Central Bank , acts under the direction of
the Monetary Board . The current Superintendent of Banks is Lic. Ramón Benjamín Tobar Morales.
It is organized according to the Financial Supervision Law, Decree. 18-2002 of the Congress of the
Republic of Guatemala and its internal regulations, approved by the Monetary Board.

Article 1 and 2 of the Financial Supervision Law establishes that:

" Article 1. Nature and object. The Superintendency of Banks is a Central Banking body,
organized in accordance with this law; eminently technical, which acts under the general direction of
the Monetary Board and exercises surveillance and inspection of the Bank of Guatemala , banks,
financial companies, credit institutions, surety and insurance entities, general deposit warehouses,
exchange houses, financial groups and controlling companies of financial groups and others."

" Article 2. Supervision. The Superintendency of Banks has full capacity to acquire rights and
contract obligations, enjoys the functional independence necessary to fulfill its purposes, and to
ensure that the people subject to its surveillance and inspection comply with their legal obligations
and observe the applicable regulatory provisions. in terms of liquidity, solvency and patrimonial
solidity. The supervisory function does not imply that the Superintendency of Banks will acquire
responsibilities over the operations of the entities under its supervision."

Article 3 of said law establishes that the Superintendency of Banks is responsible for the following
functions:

a) Comply with and enforce applicable laws, regulations, provisions and resolutions;

b) Supervise them so that they maintain adequate liquidity and solvency that allows them to timely
and fully meet their obligations, and adequately evaluate and manage the coverage, distribution and
level of risk of their investments and contingent operations;
c) Dictate in a reasoned manner the instructions aimed at correcting the deficiencies or irregularities
that are found;

d) Impose the corresponding sanctions in accordance with the law;

e) Exercise surveillance and inspection with the broadest investigative powers and free access to all
sources and information systems of the supervised entities, including books, records, reports,
contracts, documents and any other information, as well as the receipts that support the operations
of the supervised entities.

Any company, company or individual that provides entities subject to the supervision and inspection
of the Superintendency of Banks, computer, accounting, legal, custody, securities intermediation or
other operations services, has the obligation to allow access to its facilities to the persons appointed
by the Superintendency of Banks, as well as providing them with all the information, documents,
records or receipts that support the operations, businesses, contracts or matters that are related to
the supervised entity to which they provide services;

f) Request directly from any judge of first instance in the civil or criminal branches, the precautionary
measures that he considers necessary to be able to fulfill his function of surveillance and inspection
in case of refusal, impediment or delay by the corresponding entity or the society, company or
individual hired to provide the services listed in the previous paragraph, which will be decreed
without the need for a prior hearing;

g) Require information about any of their activities, acts, trust operations and their financial
situation, either individually, or when appropriate, on a consolidated basis;

h) Carry out its surveillance and inspection on the basis of consolidated supervision;

i) Evaluate the policies, procedures, standards and systems of the entities and, in general, ensure
that they have comprehensive risk management processes;

j) Make recommendations of a prudential nature aimed at identifying, limiting and adequately

managing the risks assumed in their operations, constituting the valuation reserves that are
necessary to cover the risk of unrecoverability and maintaining sufficient equity in relation to such
risks;

k) Ensure general and uniform compliance with accounting operations, in accordance with the
regulations issued by the Monetary Board;

l) Ensure compliance with the general provisions issued by the Monetary Board that regulate trust
operations;

m) Ensure compliance with the rules issued by the Monetary Board so that entities provide the
public with sufficient, truthful and timely information about their activities and financial situation,
individually and, when appropriate, in a consolidated manner;

n) Publish sufficient, truthful and timely information on the financial situation of the entities subject to
its surveillance and inspection, individually or consolidated;

ñ) Regulate in a general and uniform manner, the minimum requirements that the entities subject to
its supervision must demand from external auditors or audit firms when carrying out external audits
of them;
o) Keep records of banks, financial companies, financial groups, controlling companies, responsible
companies, general deposit warehouses, exchange houses, insurance and surety companies, and
other entities that, according to the law, are subject to surveillance and inspection of the
Superintendency of Banks; of the directors, senior officials and legal representatives of the
aforementioned entities, as well as external auditors, insurance agents, and others who are
necessary for the fulfillment of their purposes;

p) Request from the corresponding authority the liquidation or declaration of bankruptcy of entities
subject to its supervision and inspection, in cases where appropriate in accordance with the law;

q) Provide the statistical information or financial data required by the Monetary Board, the Bank of
Guatemala or the competent court;

r) Participate and be part of international supervisory bodies, associations, entities and forums, as
well as be able to subscribe and adhere to statements issued by them, in accordance with the law;

s) Exchange information with other supervisory entities, national or foreign, for supervision
purposes;

t) Report, to the competent authority, facts that may have a criminal nature, about which they have
knowledge due to their activities, for which they are authorized to provide information that identifies
depositors or investors, when judicially requested;

u) Propose to the Monetary Board the regulations, provisions and other regulations that it must
dictate, in matters of its competence, in accordance with the law;

v) Dictate the necessary provisions so that the supervised entities send reports, data, background
information, statistics, and other documents on their financial situation; determining the period and
the form or means by which said information must be sent to you; and,

w) Exercise the other functions that correspond to you in accordance with the laws, regulations and
other applicable provisions.

The Superintendent of Banks is the highest administrative authority of the Superintendence of

Banks. Exercises legal representation, both to act judicially and extrajudicially within the scope of its
jurisdiction; Consequently, it has the powers to execute acts, grant and revoke mandates and enter
into contracts that are part of the ordinary course of the Superintendency of Banks, according to
their nature and object, from those that arise from it and from those that are associated with it.
relate.

The Superintendent of Banks is appointed by the President of the Republic for a period of four
years, selected from a shortlist proposed by the Monetary Board, with the favorable vote of three-
quarters of all the members of said Board.

In the event of death, resignation, abandonment of the position, or definitive impediment to the
exercise of the position of Superintendent of Banks, the substitute will be appointed to finish the
term of his predecessor.
Its functions include the following:

a) Manage the Superintendence of Banks;

b) Establish the organizational structure that allows the Superintendency of Banks to fulfill its
objective;

c) Dictate the necessary provisions for the orderly development of the internal administration of the
Superintendency of Banks;

d) Delegate, when it deems appropriate, its administrative and technical powers to the authorities
and officials of the Superintendency of Banks;

e) Propose to the Monetary Board the appointment of the mayors and directors of the
Superintendence of Banks;

f) Appoint and remove other officials and employees of the Superintendency of Banks;

g) Submit the annual budget of the Superintendency of Banks to the approval of the Monetary
Board;

h) Report to the Monetary Board, quarterly, when it requires it or when the Superintendent deems it
pertinent, about the financial situation of the entities subject to surveillance and inspection of the
Superintendency of Banks. Likewise, in the month of February of each year, or when the Congress
of the Republic of Guatemala requires it, it must inform it or the legislative commission that it
determines, about the financial situation of the banking system;

i) Resolve on the written requests of the entities subject to the supervision and inspection of the
Superintendency of Banks, within a period of thirty (30) days following the date of receipt thereof;

j) Serve as an ex-officio advisor, with the right to speak, but without vote, in the sessions of the
Monetary Board;

k) Require and receive sworn statements to accredit the organizers of new banking entities,
shareholders, members of a board of directors or a board of directors, general managers or their
equivalent, of the entities subject to the supervision and inspection of the Superintendency of Banks
; and,

l) Exercise the other powers, functions and faculties that correspond to it in accordance with the
law.