Eastern Caribbean Central Bank
Notes to Consolidated Financial Statements
March 31, 2015
(expressed in Eastern Caribbean dollars)
77
20. Other reserves
2015
$
2014
$
Property, plant and equipment revaluation reserve
82,106,312
70,507,471
Pension reserve
20,517,000
17,572,000
Unrealised holding gain (loss) - investment securities
17,300,883
(4,198,764)
Self-insurance reserve fund
10,980,827
10,980,827
Capital reserve
6,537,928
6,537,928
Export Credit Guarantee fund
1,808,877
1,808,877
Unrealised holding (loss) gain
–
money market instruments
(1,765)
218,350
Total reserves
139,250,062
103,426,689
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 inclu
des the land (8.3568 acres) on which the Bank’s headquarters (phase I and II) are
constructed, which was donated by the Government of St. Kitts and Nevis. The land was independently
valued at $629,528 in 1991 for phase I 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 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.
EASTERN CARIBBEAN CENTRAL BANK
ECCB
ANNUAL REPORT 2014/2015
118
20.
Other reserves
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 ade to exporters from the Organisation of E st rn 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 (phase I and II) are constructed,
which was donated by the Government of St. Kitts and Nevis. The land was independently valued at $629,528 in
1991 for phase I and $2,720,000 in 2001 for phase II. In 2003 the Government of St. Kitts and Nevis donated an
addition l 0. 1 acres to the Bank, w ich has been independently valued at $498,400 In 2 5, th
r ent of
St. Kitts and Nevis donate a ad ition l 2 acres of land which has b en independently valued at $2,690,000.
Self-insurance reserve
The Board of Directors have agreed to appropriate annually to 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.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(expressed in Eastern Caribbean dollars)
March 31, 2015
