ECCB 2017-2018 Annual Report and Statement of Accounts

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ECCB ANNUAL REPORT 2017/2018

(expressed in Eastern Caribbean dollars) Eastern Caribbean Central Bank Notes to the Financial Statements March 31, 2018 (expressed in Eastern Caribbean dollars) 23. Contingencies and commitments ...continued Pending litigation ...continued Case No. 17-01058 ...continued

EASTERN CARIBBEAN CENTRAL BANK NOTES TO THE FINANCIAL STATEMENTS

March 31, 2018

The Complaint was filed May 1, 2017 before the United States Bankruptcy Court Southern District of New York against the Defendants alleging breach of fiduciary duty and gross negligence and seeking judgment, inter alia: (a) Avoiding transfer of funds to CCB in the amount of at least US$4,481,394.62; (b) for recovery of transfers to NCBA in an amount of not less than US$2,248,628.46 million; (c) for recovery of transfers to ECCB of an amount (i) not less than US$28,673,612.01 during the two years prior to the Petition Date (ii) up to US$67,198,261.96 during the three years prior to the Petition Date (iii) up to US$70,023,261.96 during the Conservatorship Period The Court ordered that this matter and the matter listed at (5) above be heard jointly. The cases were heard on October 26, 2017 and on January 29, 2018 the Court ruled that both proceedings should be stayed pending the outcome of the litigation in Anguilla. (8) Case No. NEVHCV2-17/0124 BETWEEN KEVIN HUGGINS (The Intended Applicant) v THE EASTERN CARIBBEAN CENTRAL BANK (The Intended Respondent). On September 15, 2017, the Intended Applicant sought leave to file a Judicial Review Claim against the Intended Respondent to quash the purported decision of the Intended Respondent in relation to his fitness to serve on the Board of Directors of Bank of Nevis. The Intended Respondent filed submissions opposing the application. The matter was heard on December 10, 2017 and a decision is pending. (9) ClaimNo. 56 of 2018 BETWEEN FIRST ST VINCENT BANK LIMITED (Applicant) v EASTERN CARIBBEAN CENTRAL BANK (Respondent). On April 9, 2018, the Applicant filed application for leave to apply for judicial review of the ‘decision’ of the Respondent imposing penalties of $34.7 million for ‘alleged’ breaches of the Banking Act of St Vincent of the Grenadines. No income has been recorded pending the outcome of the claim. (iv) up to US$87,933,896.76 during the six years prior to the Petition Date; and (d) for damages for breach of fiduciary duty and gross negligence by the ECCB.