Non-Consolidated Annual Report 2016

BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED NON-CONSOLIDATED ANNUAL REPORT 2016 51 BARBADOS PUBLIC WORKERS' CO-OPERATIVE CREDIT UNION LIMITED Notes to the Non-consolidated Financial Statements For the year ended March 31, 2016 (Expressed in Barbados dollars) 35 17. Loans Payable Loans payable is comprised of the following: 2016 2015 National Insurance Board (i) $ 13,317,772 23,878,503 Housing Credit Fund (ii) 8,965,543 9,566,629 $ 22,283,315 33,445,132 (i) The National Insurance Board loans 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% (2015 – 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 3.00% (2015 - 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, 2016 and 2015. 18. Other Liabilities Other liabilities is comprised of the following: 2016 2015 Accounts payable and accrued expenses $ 3,727,265 3,218,764 Amounts payable re Goodwill Credit Union (Note 27) 100,377 255,088 Fair value adjustment - staff loans (i) 3,196,129 2,320,167 Interest rebate payable 203,206 203,206 Unallocated receipts to members 1,331,048 1,421,395 $ 8,558,025 7,418,620 (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.