119 CONSOLIDATED FINANCIAL STATEMENTS 2024 Barbados Public Workers’ Co-operative Credit Union Limited Notes to the Consolidated Financial Statements March 31, 2024 (expressed in Barbados dollars) 79 25 Financial Risk Management …continued 25.2 Credit risk …continued Credit Quality Analysis…continued 2023 Stage 1 $ Stage 2 $ Stage 3 $ Total $ Term deposits measured at amortised cost Internally rated 12,149,860 – – 12,149,860 Gross term deposit 12,149,860 12,149,860 Expected credit losses allowance (72,225) – – (72,225) Net term deposits 12,077,635 – – 12,077,635 Expected Credit Loss Allowance Model Refer to accounting policies 2 (d). Loans with renegotiated terms and the Credit Union’s forbearance policy Loans with renegotiated terms are loans that have been restructured due to deterioration in the borrower’s financial position, where the Group has made concessions by agreeing to terms and conditions that are more favourable for the borrower than the Group has provided initially. The Group implements forbearance policy in order to maximise collection opportunities and minimise the risk of default. Under the Group’s forbearance policy, loan forbearance is granted on a selective basis in situations where the debtor is currently in default on its debt, or where there is a high risk of default, there is evidence that the debtor made all the reasonable efforts to pay under the original contractual terms and it is expected to be able to meet the revised terms. The revised terms usually include extending maturity, changing timing of interest payments and amendments to the terms of loan covenants. All loans are subject to the forbearance policy. Once the loan is restructured it remains in this category independent of satisfactory performance after restructuring. The Group’s Credit Committee regularly reviews reports on forbearance activities. 2024 $ 2023 $ Renegotiated loans and advances to individuals 3,312,379 3,312,266
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