ECCB 2017-2018 Annual Report and Statement of Accounts

160 ECCB ANNUAL REPORT 2017/2018 Eastern Caribbean Central Bank Notes to the Financial Statements March 31, 2018 (expressed in Eastern Caribbean dollars)

EASTERN CARIBBEAN CENTRAL BANK NOTES TO THE FINANCIAL STATEMENTS

(expressed in Eastern Caribbean dollars)

March 31, 2018

23. Contingencies and commitments ...continued 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, 2018. At the year end, the total funds advanced amounted to $2,874,845(2017: $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, 2018 in an amount not expected to exceed $$2,000,000 (2017: $2,000,000). The above undertaking and guarantee will be reviewed on March 31, 2018 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, 2018, the commitment of the Bank was nil (2017: $162,000). 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. Minimum lease payments subsequent to 2018 and in aggregate are as follows: 2018 $ 2017 $ 2018 - 907,270 2019 904,745 625,950 2020 397,500 592,650 2021 232,268 472,230 2022 235,350 - 2023 60,000 - Thereafter 770,000 830,000 Total minimum lease payments 2,599,863 3,428,100

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