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 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (expressed in Eastern Caribbean dollars) March 31, 2015

(expressed in Eastern Caribbean dollars)

23.

23. Contingencies and commitments ...continued Contingencies and commitments ...continued

Eastern Caribbean Securities Exchange Limited During the year, the Bank has given the following undertaking and guarantee in respect of the Eastern Caribbean Securities Exchange Limited ( “ ECSE ” ), a public limited company registered under the Laws of St. Christopher and Nevis: - An undertaking to postpone all claims in respect of present and future funds advanced to the Eastern Caribbean Securities Exchange Limited and its wholly-owned subsidiary companies by the Bank up to the year ending March 31, 2015. At the year end the total funds advanced amounted to $2,874,845 (2014: $2,874,845). The last advance was during the financial year ended March 31, 2005. - Guarantee cover of the budgeted shortfall projected in respect of the ECSE and its wholly-owned subsidiary companies for the fiscal year ending March 31, 2015 in an amount not expected to exceed $2,000,000 (2014: $2,000,000). The above undertaking and guarantee will be reviewed on March 31, 2016 and are irrevocable before this date. Contractual obligation The Bank contracted the services of De La Rue (DLR) Cash Systems Inc. to supply onsite labour equipment maintenance and corrective equipment maintenance to keep the CPS 1200 System in good working order or to restore it to good working order as necessary. The total contract is US$600,000 and extends for a period of 120 months effective March 2008. As at March 31, 2015, the commitment of the All agency offices operate out of leased premises with lease terms ranging from 2 to 33 1/3 years. Lease rentals payable on operating leases are expensed on a straight line basis over the term of the leases. Minimum lease payments subsequent to 2015 and in aggregate are as follows: 2015 $ 2014 $ 2015 – 708,907 2016 662,887 683,465 2017 491,245 448,106 2018 290,020 401,245 2019 60,000 – Thereafter 950,000 1,010,000 Total minimum lease payments 2,454,152 3,251,723 During the year, the Bank has given the following undertaking and guarantee in respect of the Eastern Caribbean Securities Exchange Limited (“ECSE”), a public limited company registered under the Laws of St. Christopher and Nevis: - - An undertaking to postpone all claims in respect of present and future funds advanced to the Eastern Caribbean Securities Exchange Limited and its wholly-owned subsidiary companies by the Bank up to the year ending March 31, 2015. At the year end the total funds advanced amounted to $2,874,845 (2014: $2,874,845). The last advance was during the financial year ended March 31, 2005. - - Guarantee cover of the budgeted shortfall projected in respect of the ECSE and its wholly-owned subsidiary companies for the fiscal year ending March 31, 2015 in an amount not expected to exceed $2,000,000 (2014: $2,000,000). he above undertaking and guarantee will be reviewed on March 31, 2016 and are irrevocable before this date. Contractual obligation The Bank contracted the services of De La Rue (DLR) Cash Systems Inc. to supply onsite labour equipme t maintenance and corr ctive equipment maintenance to ke p the CPS 1200 System in g od working order or to restore it t good working order s n cessary. Th total contract is US$600,000 an extends f r a period of 120 months effective March 2008. As at March 31, 2015, the commitment of the Bank was $486,000 (2014: $648,000). Leasehold obligation – operating leases All agency offices operate out of leased premises with lease terms ranging from 2 to 33 1/3 years. Lease rentals payable on operating leases are expensed on a straight line basis over the term of the leases. Minimum lease payments subsequent to 2015 and in aggregate are as follows: Bank was $486,000 (2014: $648,000). Leasehold obligation – operating leases Eastern Caribbean Securities Exchange Limited

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ECCB ANNUAL REPORT 2014/2015

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