BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
NON-CONSOLIDATED ANNUAL REPORT 2015
45
BARBADOS PUBLIC WORKERS' CO-OPERATIVE CREDIT UNION LIMITED
Notes to the Non-consolidated Financial Statements
For the year ended March 31, 2015
(Expressed in Barbados dollars)
34
17. Loans Payable...(continued)
(i) During the year ended March 31, 2011, the Credit Union 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 $23,878,503 (2014 - $26,272,304) which
were acquired prior to March 31, 2011, are repayable over an average period of twenty 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 5.50% - 6.00% (2014 – 5.50% - 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 Credit Union 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.
18. Other Liabilities
Other liabilities is comprised of the following:
2015
2014
Accounts payable and accrued expenses
$
3,218,764
4,021,846
Amounts payable re Goodwill Credit Union (Note 27)
255,088
-
Fair value adjustment - staff loans (i)
2,320,167
2,543,327
Interest rebate payable
203,206
203,026
Unallocated receipts to members
1,421,395
1,199,188
$ 7,418,620
7,967,387
(i) Fair value adjustment staff loans
The fair value adjustment - staff loans represents the deferred interest income on staff loans associated
with the difference between the market value and the carrying value of the loans as a result of the interest
rates on the staff loans being lower than the market interest rate. This balance is partially offset by the
prepaid employee benefit recorded and included in other assets (Note 15). The deferred interest income
will be recognised over the term of the staff loans.
