Separate Annual Report 2021

82 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | SEPARATE FINANCIAL STATEMENTS 2021 BARBADOS PUBLIC WORKERS' CO-OPERATIVE CREDIT UNION LIMITED Notes to the Separate Financial Statements For the year ended March 31, 2021 (Expressed in Barbados dollars) 60 23. Financial Risk Management, continued Credit risk, continued The Credit Union offered borrowers cash flow relief through loan payment moratoria which allowed for a deferral of loan payments while interest continued to accrue on outstanding balances. The initial moratoria periods ranged from three to six months and were intended for members who faced financial difficulty due to COVID-19 but who were previously in good standing. Loans subject to moratoria were not treated as non-performing during the deferral period. The moratoria programme adopted an opt-in approach where members were required to request the moratoria if needed. Early observations of payment behaviour related to loans where moratoriums expired during this year were considered in the assessment of the longer-term probability of the members’ ability to pay, a key input in determining migration. All payment deferrals ended on March 31, 2021 and the organization remains committed to providing support to financially challenged members through the below options: • extension of loan terms • converting outstanding interest to a separate loan and / or • consolidation of debt Modifications The terms and conditions related to the payment deferrals were assessed to determine if they represented substantial modifications. Where required, modification gains or losses have been recognized.