ECCB 2022-2023 Annual Report and Financial Statements

Eastern Caribbean Central Bank Notes to the Financial Statements For the year ended 31 March 2023 (Expressed in Eastern Caribbean dollars)

13. Investments in associated undertakings using the equity method

Article 42 (1) of the Eastern Caribbean Central Bank Agreement Act 1983 empowers the Bank, with the approval of the Monetary Council, to administer or participate in corporations or schemes established for the purpose of promoting the development of money, capital or securities markets in the territories of participating governments. Article 42 (2) of the Eastern Caribbean Central Bank Agreement Act 1983 authorises the Bank, with the approval of the Monetary Council, to subscribe to hold and sell shares of a corporation organised with the approval or under the authority of the participating governments for any of the purposes specified in Article 42 (1). The following are institutions, which were established under Article 42 (1): Eastern Caribbean Home Mortgage Bank (ECHMB ) The Bank holds 24.8% (2022: 24.8%) of the share capital of the ECHMB – 25,000 Class “A” shares at a cost of $100 each and 41,812 Class “A” shares at a cost of $160 each. The Company was established as a vehicle to foster the development of the money market and secondary market for mortgages in the territories of the participating governments of the ECCB Agreement Act 1983. The ECHMB’s principal place of business is Bird Rock, Basseterre, Saint Christopher (St Kitts) and Nevis. Eastern Caribbean Securities Exchange (ECSE) The Bank holds 32.74% (2022: 32.74%) of the share capital of the ECSE – 327,419 Class “A” shares at a cost of $10 each. The ECSE was established to enhance and increase investment opportunities, and to foster the development of a securities market in the territories of participating governments of the ECCB Agreement Act 1983. The Eastern Caribbean Central Securities Depository Limited (ECCSD) is a wholly owned subsidiary of the ECSE. The ECSE’s principal place of business is Bird Rock, Basseterre, Saint Christopher (St Kitts) and Nevis. Organisation of Eastern Caribbean States Distribution and Transportation Company (ODTC ) The Bank holds 20% of the share capital of the ODTC – 2,001 Class “A” shares at a cost of $10 each. The Company was established as a vehicle to foster the development of the distribution and transportation sector in the territories of the participating governments of the ECCB Agreement Act 1983. The company has not commenced operations as of 31 March 2023. The company’s secretariat is located at Bird Rock, Basseterre, Saint Christopher (St Kitts) and Nevis.

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