BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
NON-CONSOLIDATED ANNUAL REPORT 2016
57
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)
41
22. Related Party Disclosures,
continued
Other transactions,
continued
In November 2015, the Barbados Public Workers Co-operative Credit Union Limited (BPWCCUL)
entered into a Deed of Sale and Administration agreement with Capita Financial Services Limited for the
sale of a portfolio of Real Estate loans amounting to $20 million over a two year period at a rate of $10
million per year starting the fiscal year 2015-2016. The BPWCCUL has determined that substantially all
the risks and rewards of the said loan portfolio have been transferred to Capita Financial Services
Limited and consequently, the loans were eliminated from the BPWCCUL statement of financial position.
23. Commitments and Contingencies
(i)
Loan commitments
2016
2015
Consumer loans approved and pending disbursement
$ 18,408,702
17,526,447
Mortgage loans approved and pending disbursement
28,310,186
21,008,905
Available balances on line of credit accounts
15,104,437
14,120,598
$ 61,823,325
52,655,950
(ii)
Loan facilities
Loan facilities committed but not recognised in the financial statements as at March 31, 2016 are as
follows:
(a)
an approved line of credit facility of $10,000,000 (2015 - $10,000,000) with a bank. This facility
is secured by a first legal mortgage over the property at Belmont Road. At March 31, 2016 this
facility was undisbursed.
(b)
an approved line of credit facility of $125,000 (2015 - $125,000) with a bank for the purpose of
securing the corporate credits used by the Credit Union during the normal course of business.
This facility is secured by an equivalent value of held-to-maturity investments. The commitment
due on this facility at year end was $28,732 (2015 - $10,567).
(iii)
Legal proceedings
At March 31, 2016, there were certain legal proceedings against the Credit Union. In view of the
inherent difficulty of predicting the outcome of such matters, the Credit Union cannot state what the
eventual outcome of such matters will be; however, based on current knowledge, the Credit Union
does not believe that liabilities, if any, arising from pending litigation will have a material adverse
effect on its financial position or results of operations.
