ECCB 2015/2016 Annual Report

EASTERN CARIBBEAN CENTRAL BANK

NOTES TO FINANCIAL STATEMENTS

(expressed in Eastern Caribbean dollars)

March 31, 2016

23.

Contingencies and commitments ... continued

Pending litigation ... continued

The Applicant appealed the decision of the High Court. On the hearing before the Court of Appeal on 8 December 2015, the Court ordered that the matter be remitted to the High Court with directions that the Attorney General be joined as a party and that a timetable be fixed by the High Court for the expeditious hearing of the matter.

Eastern Caribbean Securities Exchange Limited

During the year, the Bank has given the following undertaking and guarantee in respect of the Eastern Caribbean Securities Exchange Limited (“ECSE”), a public limited company registered under the Laws of St. Christopher and Nevis: - - An undertaking to postpone all claims in respect of present and future funds advanced to the Eastern Caribbean Securities Exchange Limited and its wholly-owned subsidiary companies by the Bank up to the year ending March 31, 2016. At the year end, the total funds advanced amounted to $2,874,845 (2015: $2,874,845). The last advance was during the financial year ended March 31, 2005. - - Guarantee cover in the event of a budgeted shortfall in respect of the ECSE and its wholly-owned subsidiary companies for the fiscal year ending March 31, 2016 in an amount not expected to exceed $2,000,000 (2015: $2,000,000).

The above undertaking and guarantee will be reviewed on March 31, 2017 and are irrevocable before this date.

Contractual obligation

The Bank contracted the services of De La Rue (DLR) Cash Systems Inc. to supply onsite labour equipment maintenance and corrective equipment maintenance to keep the CPS 1200 System in good working order or to restore it to good working order as necessary. The total contract is US$600,000 and extends for a period of 120 months effective March 2008. As at March 31, 2016, the commitment of the Bank was $324,000 (2015: $486,000).

Leasehold obligation – operating leases

All agency offices operate out of leased premises with lease terms ranging from 2 to 33 1/3 years. Lease rentals payable on operating leases are expensed on a straight line basis over the term of the leases.

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ECCB A nnual R eport 2015/2016