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ECCB ANNUAL REPORT 2016/2017
EASTERN CARIBBEAN CENTRAL BANK
NOTES TO THE FINANCIAL STATEMENTS
(expressed in Eastern Caribbean dollars)
March 31, 2017
Eastern Caribbean Central Bank
Notes to the Financial Statements
March 31, 2017
(expressed in Eastern Caribbean dollars)
79
20. Other reserves
2017
$
2016
$
Property, plant and equipment revaluation reserve
82,106,312
82,106,312
Unrealised holding (loss) gain - investment securities
(17,424,849)
22,041,092
Pension reserve
26,510,000
14,467,000
Self-insurance reserve fund
11,390,470
10,980,827
Capital reserve
6,537,928
6,537,928
Export Credit Guarantee fund
1,808,877
1,808,877
Unrealised holding gain – money market instruments
132,806
7,664
Total reserves
111,061,544
137,949,700
Export Credit Guarantee fund
Under Article 42 (1) of the Eastern Caribbean Central Bank Agreement Act 1983, the Bank is
empowered to administer or participate in an export credit guarantee scheme. In exercise of this
power, the Bank has assigned to one of its departments, the objective of providing pre-shipment export
credit guarantees to commercial banks in respect of advances made to exporters from the Organisation
of Eastern Caribbean States.
Article 42 (4) of the Eastern Caribbean Central Bank Agreement Act 1983 provides for the Bank to
make discretionary contributions out of its profits towards a guarantee fund for administering the
Export Credit Guarantee Scheme. The Board of Directors have agreed to maintain the fund at a
minimum of $1,000,000.
Capital reserve
Capital reserve includes the land (8.3568 acres) on which the Bank’s headquarters (Sir K Dwight
Venner and Phase II Buildings) are constructed, which was donated by the Government of St. Kitts and
Nevis. The land was independently valued at $629,528 in 1991 for Sir K Dwight Venner Building and
$2,720,000 in 2001 for Phase II. In 2003 the Government of St. Kitts and Nevis donated an additional
0.61 acres to the Bank, which has been independently valued at $498,400. In 2005, the Government of
St. Kitts and Nevis donated an additional 2 acres of land which has been independently valued at
$2,690,000.
Self-insurance reserve
The Board of Directors have agreed to appropriate annually to the Self-insurance Reserve, from net
income, such amount equivalent to the quoted premium from an insurance carrier, to cover potential
catastrophe in respect of the Bank’s headquarters buildings and full coverage for the other properties. It
also agreed to a funded cap of 20% of the replacement value of the relevant buildings (determined by
independent valuation).
Pension reserve
The Board of Directors have decided to make appropriations annually to or from net income for the
amounts necessary to maintain a pension reserve equivalent to the pension asset.