Eastern Caribbean Central Bank 2024-2025 Annual Report

Eastern Caribbean Central Bank Notes to the Financial Statements For the year ended 31 March 2025 (Expressed in Eastern Caribbean dollars)

10. Participating governments’ securities (continued) Participating government securities measured at amortised cost (continued)

During the financial year ended 31 March 2025, the Government of Antigua and Barbuda issued debentures to the ECCB totalling $20,000,000 (2024: $14,300,000) through the member governments’ access to their long-term credit allocation at the Bank. During the year, the Bank reassessed the treatment of certain participating governments securities, following the ECCB’s Monetary Council approval of a reduction in the Bank’s discount rate and interest rate on long-term credit to member governments during the year ended 31 March 2021. This review concluded that the interest rate on long-term credit to member governments is a floating rate indexed to the Bank’s discount (policy) rate. Therefore, the previously recorded modification loss of $6,552,558 was not consistent with the nature of the instruments. Management has assessed and determined that the impact of the previously recorded modification loss is immaterial. Accordingly, the Bank has recorded the correcting adjustment in the current period’s financial statements to ensure accurate cumulative reporting and fair presentation. The movement in participating governments’ securities may be summarized as follows: Debentures $ Balance as of 31 March 2023 223,455,139 Additions 14,300,000 Payment of principal (26,571,184) Balance as of 31 March 2024 211,183,955 Additions 20,000,000 Payment of principal (29,773,563) Reversal of modification loss on debentures 6,552,558 Balance as of 31 March 2025 207,962,950

During the year, participating governments’ securities accrued interest at a rate of 3.5% to 4.5% (2024: 2% to 4.5%).

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