Page 61 - NIB Annual Report 12-13 | 13-14

TURKS AND CAICOS ISLANDS NATIONAL INSURANCE BOARD
Notes to Financial Statements, continued Year ended March 31, 2013
10. Long-term receivables, continued
(a) Loans to TCI Investment Agency Ltd., continued
(i)
Loan one
On September 20, 1997, NIB entered into a US$1 million loan agreement with TCI Investment Agency Ltd., an inward investment agency in TCI with a mandate to attract new offshore investment, encourage entrepreneurship amongst residents and provide financing to the local population.
The remaining outstanding balance of US$237,500 at March 31, 2013 (2012 – US$287,500) bears interest at a rate of 4.75% per annum. The maturity date of the loan is September 30, 2017 and it is being repaid in equal quarterly instalments of US$12,500 of principal and related interest.
During the year ended March 31, 2013, NIB collected US$50,000 (2012 – US$37,500) in principal and recognised US$12,174 (2012 – US$14,587) in interest income. The loan is guaranteed by TCIG.
Loan two
On February 24, 2005, NIB entered into a second US$1 million loan agreement with TCI Investment Agency Ltd.
The remaining outstanding balance of US$612,500 at March 31, 2013 (2012 – US$662,500) bears interest at a rate of 5.00% per annum. The maturity date of the loan is March 31, 2025 and it is being repaid in equal quarterly instalments of US$12,500 of principal and related interest.
During the year ended March 31, 2012, NIB collected US$50,000 (2012 – US$37,500) in principal and recognised US$31,565 (2012 – US$34,156) in interest income. The loan is guaranteed by TCIG.
Loan three
On January 30, 2006, NIB entered into a US$3 million loan agreement with TCI Investment Agency Ltd. as follows:
(ii)
(iii)
Interest rate Purpose of loan per annum
Loan granted
Low income support lending Educational lending Commercial lending
5.0% 5.0% 6.0%
Maturity date
December 31, 2025 December 31, 2017 December 31, 2017
2013 & 2014 ANNUAL REPORT | 57 36
US$
US$ 3,000,000
600,000 1,200,000 1,200,000