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BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
CONSOLIDATED ANNUAL REPORT 2015
BARBADOS PUBLIC WORKERS' CO-OPERATIVE CREDIT UNION LIMITED
Notes to the Consolidated Financial Statements
For the year ended March 31, 2015
(Expressed in Barbados dollars)
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18. Loans Payable
Loans payable is comprised of the following:
2015
2014
National Insurance Board (i)
$ 25,938,471
32,429,384
Housing Credit Fund (ii)
26,105,471
31,536,760
$ 52,043,942
63,966,144
(i) During the year ended March 31, 2011, the Group borrowed $15,000,000 from the National
Insurance Board at a fixed interest rate of 8.25% payable over ten years to finance the purchase
of Clico Mortgage and Finance Corporation (renamed Capita Financial Services Inc.) by its
subsidiary BPW Financial Holdings Inc. This loan has been secured by a mortgage assignment
over the property at Broad Street stamped to cover $10,000,000 and an assignment of a treasury
note for $5,000,000 due to mature October 31, 2015. During the year the loan was fully repaid.
The other National Insurance Board loans amounting to $25,938,471 (2014 - $28,772,304), which
were acquired prior to March 31, 2011, are repayable over an average period of seventeen years
and are secured by an equivalent value of first legal mortgages over residential properties funded
by the loan proceeds. The interest rates on these loans ranged from 5.25% to 6.00% (2014 - 5.25%
to 6.00%) at year end.
(ii) The Housing Credit Fund loans are repayable over twenty-five years and are secured by an
equivalent value of first legal mortgages over residential properties. The interest rate on all loans
at year end was 4.25% (2014 - 4.25%).
The Group has not had any defaults of principal, interest or other breaches with respect to its loans
payable during the years ended March 31, 2015 and 2014.
