ECCB 2014-2015 Annual Report and Statement of Accounts

EASTERN CARIBBEAN CENTRAL BANK

Eastern Caribbean Central Bank Notes to Consolidated Financial Statements March 31, 2015 Investments in associated undertakings using the equity method NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (expressed in Eastern Caribbean dollars) March 31, 2015 (expressed in Eastern Caribbean dollars) Article 42 (1) of the Eastern Carib ean Centr l Bank Agreement Act 1983 empowers the Bank, with the approval of the Monetary Council, to administer or participate in corporations or schemes established for the purpose of promoting the development of money, capital or securities markets in the territories of participating governments. Article 42 (2) of the Eastern Caribbean Central Bank Agreement Act 1983 authorises the Bank, with the approval of the Monetary Council, to subscribe to hold and sell shares of a corporation organised with the approval or under the authority of the participating governments for any of the purposes specified in Article 42 (1). The following are institutions which were established under article 42 (1): Eastern Caribbean Home Mortgage Bank (ECHMB) Th Bank holds 24.8% (2014: 24.8%) of t share capit l of the ECHMB – 25,000 Cl ss “A” shar s t a cost of $100 each and 41,812 Class “A” shares at a cost of $160 each. The Company was established as a vehicle to foster the development of the money market and secondary market for mortgages in the territories of the participating governments of the ECCB Agreement Act 1983. Eastern Caribbean Securities Exchange (ECSE) The Bank holds 30.8% (2014: 30.8%) of the share capital of the ECSE – 300,000 Class “A” shares at a cost of $10 each. The ECSE was established to enhance and increase investment opportunities, and to foster the development of a securities market in th territori s of participating governm nts of t e ECCB Agr ement Act 1983. The Ea tern Caribb an Cen ral Securities D pository Limit d (ECCSD) and Eastern Caribbean Central Se urities Registry Limited (ECCSR) are both wholly owned subsidiaries of the ECSE. Organisation of Eastern Caribbean States Distribution and Transportation Company (ODTC) The Bank h lds 20% of the share capital of the ODTC – 2,001 Class “A” shares at a cost f $10 each. The Company was established as a vehicle to foster the development of the distribution and transportation sector in the territories of the participating governments of the ECCB Agreement Act 1983. The company has not commenced operations as of March 31, 2015. 13. Investments in associated undertakings using the equity method Article 42 (1) of the Eastern Caribbean Central Bank Agreement Act 1983 empowers the Bank, with the approval of the Monetary Council, to administer or participate in corporations or schemes established for the purpose of promoting the development of money, capital or securities markets in the territories of participating governments. Article 42 (2) of the Eastern Caribbean Central Bank Agreement Act 1983 authorises the Bank, with the approval of the Monetary Council, to subscribe to hold and sell shares of a corporation organised with the approval or under the authority of the participating governments for any of the purposes specified in Article 42 (1). The following are institutions which were established under article 42 (1): Eastern Caribbean Home Mortgage Bank (ECHMB ) The Bank holds 24.8% (2014: 24.8%) of the share capital of the ECHMB – 25,000 Class “A” shares at a cost of $100 each and 41,812 Class “A” shares at a cost of $160 each. The Company was established as a vehicle to foster the development of the money market and secondary market for mortgages in the territories of the participating governments of the ECCB Agreement Act 1983. Eastern Caribbean Securities Exchange (ECSE) The Bank holds 30.8% (2014: 30.8%) of the share capital of the ECSE – 300,000 Class “A” shares at a cost of $10 each. The ECSE was established to enhance and increase investment opportunities, and to foster the development of a securities market in the territories of participating governments of the ECCB Agreement Act 1983. The Eastern Caribbean Central Securities Depository Limited (ECCSD) and Eastern Caribbean Central Securities Registry Limited (ECCSR) are both wholly owned subsidiaries of the ECSE. Organisation of Eastern Caribbean States Distribution and Transportation Company (ODTC ) The Bank holds 20% of the share capital of the ODTC – 2,001 Class “A” shares at a cost of $10 each. The Company was established as a vehicle to foster the development of the distribution and transportation sector in the territories of the participating governments of the ECCB Agreement Act 1983. The company has not commenced operations as of March 31, 2015. The Bank’s investments in associates are detailed below: 2015 $ 2014 $ Eastern Caribbean Home Mortgage Bank (ECHMB) Balance at beginning of year 13,866,457 13,452,805 Share of profit for the year 858,033 1,081,772 Dividend received in year (668,120) (668,120) Balance at end of year 14,056,370 13,866,457 Eastern Caribbean Securities Exchange (ECSE) Balance at beginning of year 1,025,277 875,171 Share of profit for the year 369,600 150,106 Balance at end of year 1,394,877 1,025,277 The Bank’s investments in associates are detailed below: Eastern Caribbean Ce tral Bank Notes to Consolidated Financial Statements March 31, 2015 (expressed in Eastern C ibbean dollars) 13. I vestments in associ ted undertakings sing the equity method Article 42 (1) of the Eastern Ca ibbe Central Ba k Agreement Act 1983 mpowers e Bank, with the approval of the Monetary Counc l, to admin ster or participate i co porations or schemes established for the purpose of promoting the devel pment of money, capital or securities markets in the ter itories of participati g governments. Article 42 (2) of the Eastern Ca ibbe Cent al Ba k Agreement Act 1983 authorises e Bank, with the approval of the Monetary Council, subscribe to hold and sell shares of a corporation organised with the approval or under the authority of he participati g g ver ments for any of the purposes spe ified in Article 42 (1). The following are institutions which were established under article 42 (1): Eastern Caribbean Home Mortgage Bank (ECHMB ) The Bank holds 24.8% (2014: 24.8%) of the share capital of the ECHMB – 25,000 Cla s “A” shares at a cost of $100 each and 41,812 Cla s “A” hares at a cost of $160 each. The Company was established as a v hicl to foster the develop ent of the mo ey market and secondary market for mortgages in the errito ies of the participati g governments of th ECCB Agreement Act 1983. Eastern Caribb an Securities Exchange (ECSE) The Bank holds 30.8% (2014: 30.8%) of the share capital of the ECSE – 300,000 Cla s “A” shares at a cost of $10 each. Th ECSE was establish d to e hanc a d incr ase investment opportunities, and to foster the developmen of a secur ties marke in the terri or es of participating g vernments of the ECCB Agreement Act 1983. The Eastern Ca ibbean Central Securities Depository Limited (ECCSD) and Eastern Caribbean Central Secu ities Registry Limited (ECCSR) are b th wholly owned subsidiaries of the ECSE. Organi ation of Eastern C ribbean States Distribution and Transport tion Company (ODTC ) The Bank holds 20% of the share capital of the ODTC – 2,001 Cla s “A” shares at a cost of $10 each. The Comp ny was e t blis ed as a vehicle to foster th developmen of the distribution and transp tation s ctor in the territories of he participati g governments of th ECCB Agreement Act 1983. T e company has not comme ced operations as of March 31, 2015. Th Bank’s investment in associates are detailed below: 2015 $ 2014 $ Eastern Caribbean Home Mortgage Bank (ECHMB) Balance at b ginning of year 13,866,457 13,452,805 Share of profit for the year 858,033 1,081,772 Divi e d received in year (668,120) (668,120) Balanc at end of year 14,056,370 13,866,457 Eastern Caribb an Securities Exchange (ECSE) Balance at b ginning of year 1,025,277 875,171 Share of profit for the year 369,600 150,106 Balanc at end of year 1,394,877 1,025,277 13.

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ECCB ANNUAL REPORT 2014/2015

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