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.
