ECCB 2016/2017 Annual Report

ECCB ANNUAL REPORT 2016/2017

149

Eastern Caribbean Central Bank Notes to the Financial Statements March 31, 2017 (expressed in Eastern Caribbean dollars)

EASTERN CARIBBEAN CENTRAL BANK NOTES TO THE FINANCIAL STATEMENTS

(expressed in Eastern Caribbean dollars)

March 31, 2017

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 $40,909 (2016: $17,183). The loans carry an interest rate of 4% (2016: 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 $3,604,245 (2016: $4,007,176). The following is an analysis of these amounts: 2017 $ 2016 $ Salaries and other short-term employee benefits 3,264,471 3,664,525 Board of Directors’ fees 192,774 192,000 Post-employment benefits 147,000 150,651 3,604,245 4,007,176 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 $563,605,000 (2016: $450,645,000). The details are presented in the table below: 2017 $ 2016 $ Government of Saint Lucia 122,801,000 88,965,000 Government of St Kitts and Nevis 109,114,000 88,637,000 Government of Antigua and Barbuda 95,043,000 115,430,000 Government of Grenada 73,553,000 45,794,000 Government of St Vincent and the Grenadines 69,971,000 49,383,000 Government of Commonwealth of Dominica 63,063,000 39,740,000 Government of Anguilla 24,176,000 18,299,000 Government of Montserrat 5,884,000 4,397,000 Total credit allocation 563,605,000 450,645,000 23. Contingencies and commitments Capital commitments At March 31, 2017, there were no commitments for capital expenditure (2016: Nil). Credit extension to participating governments