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BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
NON-CONSOLIDATED ANNUAL REPORT 2014
BARBADOS PUBLIC WORKERS' CO-OPERATIVE CREDIT UNION LIMITED
Notes to the Non-consolidated Financial Statements
For the year ended March 31, 2014
(Expressed in Barbados dollars)
35
16.
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. As at March 31, 2014, the remaining balance
on this loan is $3,657,080 (2013: $12,217,257).
The other National Insurance Board loans amounting to $26,272,304 (2013 - $28,567,876) 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% (2013 – 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% (2013 - 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, 2014 and 2013.
17. Other Liabilities
Other liabilities is comprised of the following:
2014
2013
Accounts payable and accrued expenses
$
4,021,846
2,858,212
Fair value adjustment - staff loans (i)
2,543,327
-
Interest rebate payable
203,026
203,026
Unallocated receipts to members
1,199,188
1,154,328
$ 7,967,387
4,215,566
(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 14). The
deferred interest income will be recognised over the term of the staff loans.