Page 84 - NIB Annual Report 12-13 | 13-14

TURKS AND CAICOS ISLANDS NATIONAL INSURANCE BOARD
Notes to Financial Statements, continued Year ended March 31, 2013
25. Financial instruments, continued
(a) Credit risk, continued
At March 31, 2013, there was a concentration of credit risk in relation to financial assets held with the following TCI entities:
FCIB
Cash at banks – saving and current accounts
Scotiabank
Cash at banks – saving and current accounts Short-term investments
TCIG
Rent receivable
Treasury bonds – at par
Note receivable (gross of change in fair value) Interest receivable
Contributions receivable
TCI Bank (gross of change in fair value)
US$
US$
2013 2012
21,689,275 10,292,606
7,132,735 1,032,024 – 6,044,996
– 3,572,791 1,200,000 1,350,000 – 720,300 – 361,648 – 37,437 17,097,101 25,159,851
47,119,111 48,571,653
The following comprise financial assets held with TCI Bank at March 31, 2013 and 2012 including those deemed to have suffered a reduction in fair value:
2013
2012
Other receivables US$ Investment in TCI Bank Long-term deposits
Note receivable
Gross
1,215,108
2,000,000 13,881,993 –
Reduction in fair value
97,012 2,000,000 9,717,395 –
11,814,407
Gross
307,360 2,000,000 17,352,491 5,500,000
25,159,851
Reduction in fair value
97,012 2,000,000 9,717,395 –
11,814,407
(b) Liquidity risk
US$ 17,097,101
Liquidity risk is the risk that NIB will encounter difficulty in meeting obligations arising 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
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