ECCB 2015/2016 Annual Report

EASTERN CARIBBEAN CENTRAL BANK

Eastern Caribbean Central Bank Notes to Financial Statements March 31, 2016 (expressed in Eastern Caribbean dollars) Eastern Caribbean Central Bank Notes to Financial Statements March 31, 2016 (expressed in Eastern Caribbean dollars) 16. Demand and deposit liabilities - domestic …continued (expressed in Eastern Caribbean dollars) 16. Demand and deposit liabilities - domestic … continued

NOTES TO FINANCIAL STATEMENTS

March 31, 2016

16. Demand and deposit liabilities - domestic …continued During the year the following balances earned interest at rates ranging from 0.01% to 0.23% (2015: 0.01% to 0.13 %) per annum: fiscal tranche I, bankers’ call accounts and fixed deposits, participating governments and statutory bodies’ fixed depo sits and ECHMB operating accounts. Participating governments’ fiscal reserve tranche II The Monetary Council has approved the establishment of a fiscal reserve fund. In accordance with the Bank’s profit distribution policy, forty per cent (40%) of the annual share of distributable profits to member governments is transferred to the participating governments’ fiscal tranche II call accounts. As the Bank recorded a net loss there was no transfer to the fund in the 2016 and 2015 financial years. 2016 $ 2015 $ Balance at beginning of year 67,979,568 67,979,568 Loans to participating governments (10,000,000) - Loan repayments during the year 3,004,216 - Allocation from net income - - Balance at end of year 60,983,784 67,979,568 Participating governments’ fiscal tranche I call accounts These accounts earn interest at the prevailing call rate offered by the Bank and are readily accessible by the respective governments. There was no allocation by member governments from the fiscal reserve tranche I accounts to cover the deficit position in the current financial year. 2016 $ 2015 $ During the year the following balances earned interest at rates ranging from 0.01% to 0.23% (2015: 0.01% to 0.13 %) per annum: fiscal tranche I, bankers’ call accounts and fixed deposits, participating governments and statutory bodies’ fixed depo sits and ECHMB operating accounts. Participating governments’ fiscal reserve tranche II The Monetary Council has approved the establishment of a fiscal reserve fund. In accordance with the Bank’s profit distribution policy, forty per cent (40%) of the annual share of distributable profits to member governments is transferred to the participating governments’ fiscal tranche II call accounts. As the Bank recorded a net loss there was no transfer to the fund in the 2016 and 2015 financial years. 2016 $ 2015 $ Balance at beginning of year 67,979,568 67,979,568 s to participating governments (10,000,000) - Loan repayments during the year 3,004,216 - Allocation from net income - - Balance at end of year 60,983,784 67,979,568 Participating governments’ fiscal tranche I call accounts These accounts earn interest at the prevailing call rate offered by the Bank and are readily accessible by the respective g vernments. There was n all cation by member governments from the fiscal reserve tranche I accounts to cover the deficit position in the current financial year. 2016 $ 2015 $ uring the year the following balances earned inter st at rates ranging from 0.01% to 0.23% (2015: 0.01% to 0.13%) per annum: fisc l tranche I, bank rs’ call accounts and fixed deposits, participating governments and statutory bodies’ fix d deposits and ECHMB operat accounts. Participating governments’ fiscal reserv tranche II ve t establi hm nt f a fiscal reserve fund. In a cordance with the a k f d r p n ( ) f the an ual s are of distributable profits to em er r th p ti i t g e nme t ’ fi l tr c e II ca l a counts. As nk cor e t a s e to the f d i the 2016 and 2015 fin ncial years. Participating govern ents’ fiscal tranche I call accounts These accounts earn interest a the prevailing call rate offered by the Bank and are readily accessible by the espective governme ts. There was no all ca by memb r governments from the fiscal reserve tranch I c ounts to cover the d ficit position in the current financial year.

Balance at beginning of year Balance at begin ing of year Interest on account Interest on account Transfers Transfers Net withdrawals Net withdrawals Allocation (to) net loss/ from net income Allocation (to) net loss/ from net income

12,313,939 12,313,939 (5,000,000) (5,000,000) - - - - -

7,313,939 7,313,939 5,623 670,133 5,62 670,133

- -

-

-

7,313,939 7,313,939

Balance at end of year Balance at end of year

7,989,695 7,989,695

110

ECCB ANNUAL REPORT 2014/2015

74