Page 143 - NIB Annual Report 12-13 | 13-14

TURKS AND CAICOS ISLANDS NATIONAL INSURANCE BOARD
Notes to Financial Statements, continued Year ended March 31, 2014
20. Financial instruments, continued
(a) Credit risk, continued
At March 31, 2014, NIB held financial assets with the following TCI entities: 2014
FCIB
Cash at banks – savings and current accounts
Scotiabank
Cash at banks – savings and current accounts
TCI Investment Agency Ltd. Loans
TCIG
Treasury bonds – at par
TCI Bank (gross of change in fair value)
US$
US$
32,044,531
7,161,315
2,346,893
1,050,000 16,020,581
58,623,320
2013
21,689,275
7,132,735
2,724,141
1,200,000 17,097,101
49,843,252
The following comprise financial assets held with TCI Bank at March 31, 2014 and 2013 including those deemed to have suffered a reduction in fair value:
Other receivables Investment in TCI Bank Long-term deposits
(b) Liquidity risk
US$
US$ 16,020,581
138,588 2,000,000 13,881,993
Gross
Reduction in fair value
97,012 2,000,000 9,717,395
11,814,407
Gross
1,215,108
2,000,000 13,881,993
17,097,101
Reduction in fair value
97,012 2,000,000 9,717,395
11,814,407
2014
2013
Liquidity risk is the risk that NIB will encounter difficulty in
from its financial liabilities that are settled by delivering cash or another financial asset, or that such obligations will have to be settled in a manner disadvantageous to NIB.
NIB’s policy for managing liquidity is to have sufficient liquidity to meet its liabilities, including estimated payments of benefits, as and when due, without incurring undue losses or risking damage to NIB’s reputation.
NIB’s financial assets include long-term receivables which are generally illiquid.
In addition, NIB’s deposits with TCI Bank are now subject to restrictions over their future redemption.
NIB also holds a TCIG issued debt security investment which is exposed to redemption restrictions (note 8(b)).
2013 & 2014 ANNUAL REPORT |139 47
meeting obligations arising