ECCB 2015/2016 Annual Report

EASTERN CARIBBEAN CENTRAL BANK

Eastern Caribbean Central Bank Notes to Financial Statements March 31, 2016 (expressed in Eastern Caribbean dollars) Eastern Caribbean Central Bank Notes to Financial Statements March 31, 2016 (expressed in Eastern Caribbean dollars) (expressed in Eastern Caribbean dollars) 22. Related party balances and transactions … continued

NOTES TO FINANCIAL STATEMENTS

March 31, 2016

22. Related party balances and transactions … continued The term deposit balance represents amounts pledged as liquidity support for loans issued by BNS, St. Kitts and CIBC FirstCaribbean International, St Kitts to ECCB eligible employees (note 6). Interest income earned on loans and advances during the year was $17,183 (2015: $20,978). The loans carry an interest rate of 4% (2015: 4%) per annum. The repayment terms of the loans vary. The outstanding loans are primarily for mortgages and are secured by the mortgaged property. Key management personnel compensation The salaries, fees and benefits paid to the Board of Directors and key management personnel of the Bank during the year amounted to $4,007,176 (2015: $4,060,003). The following is an analysis of these amounts: 2016 $ 2015 $ Salaries and other short-term employee benefits 3,664,525 3,694,159 Board of Directors’ fees 192,000 192,000 Post-employment benefits 150,651 173,844 4,007,176 4,060,003 Article 40 (1) of the ECCB Agreement Act 1983 stipulates that “the Bank may, subject to such terms and conditions as the Board may prescribe, make temporary advances to each Participating Government to meet its seasonal needs…”. This can take the form of ECCB’s direct investment in government securities, overdrafts on operating accounts and temporary advances. The approved credit allocation to participating governments for the current financial year is $450,645,000 (2015: $402,000,000). The details are presented in the table below: 2016 $ 2015 $ Government of Antigua and Barbuda 115,430,000 122,306,000 Government of Saint Lucia 88,965,000 74,720,000 Government of St Kitts and Nevis 88,637,000 72,905,000 Government of St Vincent and the Grenadines 49,383,000 40,409,000 Government of Grenada 45,794,000 36,434,000 Government of Commonwealth of Dominica 39,740,000 34,962,000 Government of Anguilla 18,299,000 16,548,000 Government of Montserrat 4,397,000 3,716,000 Total credit allocation 450,645,000 402,000,000 22. Related party balances and transactions … continued The term deposit balance represents amounts pledged as liquidity support for loans issued by BNS, St. itts and CIBC FirstCaribbean International, St Kitts to ECCB eligible employees (note 6). Interest income earned on loans and advances during the year was $17,183 (2015: $20,978). The loans carry an interest rate of 4% (2015: 4%) per annum. The repayment terms of the loans vary. The outstan ing loans are primarily for mortgages and are secured by the mortgaged property. Key management personnel compensation The salaries, fees and benefits paid to the Board of Directors and key management personnel of the Bank during the year amounted to $4,007,176 (2015: $4,060,003). The following is an analysis of these amounts: 2016 $ 2015 $ Salaries and other short-term employee benefits 3,664,525 3,694,159 Board of Directors’ fees 192,000 192,000 Post-employment benefits 150,651 173,844 4,007,176 4,060,003 23. Contingencies and commitments Capital commitments At March 31, 2016, there were no commitments for capi al expenditure (2015: Nil). Credit extension to participating govern ents Article 40 (1) of the ECCB Agreement Act 1983 stipulates that “the Bank may, subject to such terms and conditions as the Board may prescribe, make temporary advances to each Participating Govern ent to mee it seasonal needs…”. This can take the form of ECCB’s direct investment in government securities, overdrafts on operating accounts and temporary advances. The approved credit allocation to participating governments for the current financial year is $450,645,000 (2015: $402,000,000). The details are presented in the table below: 2016 $ 2015 $ overnment of Antigua and Barbuda 115,430,000 122,306,000 Government of Saint Lucia 88,965,000 74,720,000 Government of St Kitts and Nevis 88,637,000 72,905,000 overnment of St Vincent and the Grenadines 49,383,000 40,409,000 ernment of Grenada 45,794,000 6,434,000 ernment of Commo we lth of Dominica 39,740,000 34,962,000 overnment of Anguilla 18,299,000 16,548,000 Government of Montserrat 4,397,000 3,716,000 Total credit allocation 450,645,000 402,000,000 Eastern Caribbean Central Bank No es to Financial Statements March 31, 2016 (exp essed in Eastern Caribbean dollars) 22. Related party bala ces and transactions … continued The te m deposit bala ce represents amounts pledged as liquidity pport for loans issued by BNS, St. Kitts and C BC FirstC ribbean In ernational, St Kitts to ECCB eligible employees (note 6). Interest income e rned on loans and adv nce during the year was $17,183 (2015: $20,978). The loans carry an interest rate of 4% (2015: 4%) per annum. The repayment terms of the loans vary. The outstand ng loans are prim rily for mo tgages and are secured by the mortgaged property. Key manage ent personnel compensation The salaries, fees and benefits paid to the Board of Directors and key managem nt personnel of the B nk during the year amounted to $4,0 7,176 (2015: $4,060,003). The following is an analysis of these amounts: 2016 $ 2015 $ Salaries and other short-term employee benefits 3,664,525 3,694,159 Board of Directors’ fees 192, 0 192,000 Post-e ployment benefits 150,651 173,844 4,0 7,176 4,060,003 23. C ntingencie and commitments Capital commitments At March 31, 2016, ther were no commitments for capital expenditure (2015: Nil). Cred t exte sion to participating governments Article 40 (1) of the ECCB Agreement Act 1983 stipulates that “the Bank may, subject to such terms and conditions a the Board may rescribe, make temporary advances to each Participating Government to meet its se so l needs…”. This can take the form of ECCB’s direct i v stment in government ecurities, overdrafts on operating ccounts and temporary advances. The approved credit allocation to participating governments for the cu rent financial year is $45 ,645, (2015: $402,000,000). The details are presented in the table below: 2016 $ 2 Government of Antigua and Barbuda 115,43 , 0 122,306,000 Government of Saint Lucia 88,965, 0 74,720,000 Governm nt of St Kitts and Nevis 88,637, 0 72,905,000 Government of St Vincent and the Grenadines 49,383, 0 40,409,000 Government of Grenada 45,794, 0 36,434, Government of Co monwealth of Dominica 39,74 , 0 34,962, Government of Anguilla 18,299, 0 16,548,000 Government of Montserrat 4,397, 0 3,716,000 Total credit allocation 450,645,000 402,000,000 The term deposit balance represents amounts pledged as liquidity support for loans issued by BNS, St. Kitts and CIBC FirstCaribbean International, St Kitts to ECCB eligible employees (note 6). Interest incom e rned o loan and adv ces during the year was $17,183 (2015: $20,978). The loans carry an interest rate of 4% (2015: 4%) per annum. The repayment terms of the loans vary. The outstanding loans are primarily for mortgages and are secured by the mortgaged property. y management personnel compensation he s lar es, fees nd benef ts paid to the Bo rd of Directors and key managem nt personnel f h Ba k du ing t e year amounted to $4,007,176 (2015: $4,060,003). The following is an analysis of these amounts: Contingencies and commitments Capital commitments t r h 31, 2016, there were no com it ents for capital expenditure (2015: Nil). C tension to participating gov r ments Article 40 (1) of the ECCB Agreement Act 1983 stipulates that “the Bank may, subject to such terms and conditions as th Board may prescribe, make temporary adv nces to each Participating Government to mee its seasonal needs…”. This can take the form of ECCB’s direct investment in government securities, overdrafts on operating accounts and temporary advances. he approved credit allocation to participating governments for the current financial year is $450,645,000 (2015: $402,000,000). The details are presented in the table below: 23. Contingencies and commitments Capital commitments At March 31, 2016, there were no commitments for capital expenditure (2015: Nil). Credit extension to participating governments

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ECCB A nnual R eport 2015/2016