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)

22. Pension asset (continued)

Funding

The Bank meets the balance of the cost of funding the defined benefit Pension Plan and must contribute at least 12% o f members’ salaries to the Plan . The funding requirements are based on regular actuarial valuations of the Plan made every three years and the assumptions used to determine the funding required may differ from those set out above.

The estimated pension contributions to be paid into the defined benefit plan during the next financial year amounts to $3.0 million (2022: $2.942 million).

23. Related party balances and transactions

Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions. The Bank considers the participating governments, board of directors and key management personnel as related parties.

Participating governments

The receivables from and payables to participating governments arise mainly from the Bank carrying out one of its key roles as banker to participating governments as provided for in part nine (ix) of the ECCB Agreement Act 1983.

The year end balances arising from transacting with participating governments are as follows:

2023 $

2022 $

Due from participating governments

Participating gov ernments’ securities (note 10) Participating governments’ advances (note 11)

216,834,892 91,017,282

225,602,673 152,201,810

Due to participating governments (note 17)

116,363,329 56,495,679 52,198,457 10,535,871 14,018,302 12,410,745

Participating governments’ call accounts

83,532,638 55,995,679 23,598,664 9,556,835 7,922,411 6,355,938

Parti cipating governments’ fiscal reserve tranche II Participating governments’ operating accounts Participating governments’ drug service accounts Participating governments’ sinking fund call accounts Participating governments’ fiscal tranche I call accounts Participating governments’ debt restructuring escrow accounts

398,013

6,168

Interest income earned on participating governments securities and advances during the year was $6,459,084 (2022: $13,167,886). These accounts carry interest rates of 2.0% to 3.5% (2022: 2.0% to 3.5%) during the year.

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