EASTERN CARIBBEAN PARTIAL CREDIT GUARANTEE
CORPORATION

Financial Statements

March 31, 2021

(Expressed in Eastern Caribbean Dollars/United
States Dollars)
EASTERN CARIBBEAN PARTIAL CREDIT GUARANTEE CORPORATION




Table of Contents


                                                         Pages


Independent Auditors’ Report                               1-2
Statement of Financial Position                              3
Statement of Comprehensive Loss                              4
Statement of Changes in Equity                               5
Statement of Cash Flows                                      6
Notes to the Financial Statements                         7-20
                                                                           Tel: 268 462 8868                           Cnr. Factory Road and Carnival Gardens

IBDO                                                                            268·462-8869
                                                                                268-462·8992
                                                                           Fax: 268·462·8808
                                                                                                                       P.O. Box 3109
                                                                                                                      St. John's
                                                                                                                      Antigua




 INDEPENDENT AUDITORS' REPORT

 To the Shareholders of
 EASTERN CARIBBEAN PARTIAL CREDIT GUARANTEE CORPORATION

 Opinion

 We have audited the financial statements of Eastern Caribbean Partial Credit Guarantee
 Corporation("the Company"), which comprise the statement of financial position at March 31 , 2021 ,
 the statements of other comprehensive loss, changes in equity and cash flows for the year then ended,
 and notes, comprising significant accounting policies and other explanatory information.

 In our opinion, the accompanying financial statements present fairly, in all material respects, the
 financial position of the Company as at March 31, 2021, and its financial performance and its cash
 flows for the year then ended in accordance with the International Financial Reporting Standard for
 Small and Medium-sized entities (IFRS for SMEs).

 Basis for Opinion

 We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
 responsibilities under those standards are further described in the Auditors' Responsibilities for the
 Audit of the Financial Statements section of our report. We are independent of the Company in
 accordance with the International Ethics Standards Board for Accountants' Code of Ethics for
 Professional Accountants (IESBA Code) and we have fulfilled OL!r other ethical responsibilities in
 accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient
 and appropriate to provide a basis for our opinion.

 Other Matter

 Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole.
 The schedules included in the "Additional Information" section pages 1 - 5 are presented for purpose
 of additional analysis and are net a required part of the financial statements.

 Responsibilities- of Management and Those Charged with Governance for the Financial Statements

 Management is responsible for the preparation and fair presentation of the financial statements in
 accordance with IFRS, and for such internal control as management determines is necessary to enable
 the preparation of financial statements that are free from material misstatement, whether due to
 fraud or error.

 In preparing the financial statements, management is responsible for assessing the Company's ability
 to continue as a going concern, disclosing, as applicable, matters related to going concern and using
 the going concern basis of accounting unless management either intends to liquidate the Company or
 to cease operations, or has no realistic alternative but to do so. Those charged with governance are
 responsible for overseeing the Company's financial reporting process.



                                                                             '•




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limited. a UK company limited by guarantee. and ronns pan of the intcrnatoonal 800 network or Independent mmibel rrrms.
INDEPENDENT AUDITORS' REPORT(cont'd)

To the Shareholders of
EASTERN CARIBBEAN PARTIAL CREDIT GUARANTEE CORPORATION

Auditors' Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors' report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with ISAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken
on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:

•   Identify and assess the risks of material misstatement of the financial statements, whether due
    to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
    evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
    detecting a material misstatement resulting from fraud is higher than for one resulting from error,
    as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
    of internal control.

•   Obtain an understanding of internal control relevant to the audit in order to design audit
    procedures that are appropriate in the circumstances, but not for the purpose of expressing an
    opinion on the effectiveness of the Company's internal control.

•   Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
    estimates and related disclosures made by management.

•   Conclude on the appropriateness of management's use of the going concern basis of accounting
    and, based on the audit evidence obtained, whether a material uncertainty exists related to
    events or conditions that may cast significant doubt on the Company's ability to continue as a
    going concern. If we conclude that a material uncertainty exists, we are required to draw
    attention in our auditors' report to the related disclosures in the financial statements or, if such
    disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
    obtained up to the date of our auditors' report. However, future events or conditions may cause
    the Company to cease to continue as a going concern.

•   Evaluate the overall presentation, structure and content of the financial statements, including
    the disclosures, and whether the financial statements represent the underlying transactions and
    events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.




Antigua and Barbuda

                                                   2
EASTERN CARIBBEAN PARTIAL CREDIT GUARANTEE CORPORATION

Statement of Financial Position

March 31, 2021

(Expressed In Eastern Caribbean and United States Dollars)

                                                             2021            2021        2020         2020
                                  Notes                       EC$ _           USS         EC$          USS
Assets
Current Assets
Cash in hand and at bank             5        s      4,290,427         1,589,047      428,881     158,845
Treasury bills                      5,6              2,504,916           927,747      496,004     183,705
Other assets                         7                   7z925             2,935        3,777       1,399
Total Current Assets                                 6,803,268           519,729
                                                                       2,_            928,662     343,949
Non- Current Assets
Plant and equipment                  8                  11,275             4,176       17,788       6,588
Intangible asset                     9                  97,522            36, 119       4,482       1,660
Long-Term Bonds                      6              20,485,345         7,587, 165
Total Non-Current Assets                            20,594z 142        7z627,460       22,270       8,248
Total Assets                                  s     27,397,410        10,147,189      950,932     352, 197

Liabilities
Accounts payable and accruals       10                    59,966          22,210       56, 124     20,787
Deferred income                     16        s           18,098           6,703       18,098       6,703

Total Liabilities                                         78,064          28,913       74,222      27,490

Equity
Contributed capital                 12              28,604,514        10,594,264     1,779,449     659,055
Retained earnings                                    (1,285, 168)       (475,988)     (902,739)   (334,348)

Total Equity                                        27,319,346        10, 118,276     876,710     324,707

Total Liabilities and Equity                  $     27,397,410        10, 147, 189    950,932     352, 197




Approved for issue by the Board of Directors and signed on its behalf by:




The notes on pages 7 to 20 are an integral part of these financial statements.
                                                      3
EASTERN CARIBBEAN PARTIAL CREDIT GUARANTEE CORPORATION

Statement of Comprehensive Loss

Year ended March 31, 2021

(Expressed in Eastern Caribbean and United States Dollars)

                                                             2021        2021        2020        2020
                                          Notes               EC$         US$         EC$         US$

Investment income                                 $       519,314      192,339        330         122
Guarantee income                                               33           12          -           -

Operating income                            13    $       519,347      192,351        330         122

Operating expenses
General and administrative                  14    $       764,564      283,172    671,286     248,624
Directors fees and expenses                                97,150       35,981    119,088      44,107
Audit fees and expenses                                    31,550       11,685     30,000      11,111
Depreciation                                                8,512        3,153      3,421       1,267
Total operating expenses                                  (901,776)   (333,991)   (823,795)   (305,109)

Loss for the year                                         (382,429)   (141,640)   (823,465)   (304,987)

Total comprehensive loss for the year             $       (382,429)   (141,640)   (823,465)   (304,987)




The notes on pages 7 to 20 are an integral part of these financial statements.
                                                      4
EASTERN CARIBBEAN PARTIAL CREDIT GUARANTEE CORPORATION

Statement of Changes in Equity

Year ended March 31, 2021

(Expressed in Eastern Caribbean and United States Dollars)

                                                    Contributed              Retained
                                                        Capital              Earnings            Total
                                 Notes                      EC$                   EC$             EC$
                                            $
Balance as at March 31, 2019                           1,026,000                 (79,274)     946,726
Capital contributed                12                    753,449                       -      753,449
Total comprehensive loss for
the year                                                       -             (823,465)        (823,465)

Balance as at March 31, 2020                           1,779,449             (902,739)         876,710
Capital contributed                12                 26,825,065                    -       26,825,065
Total comprehensive loss for
the year                                                       -             (382,429)        (382,429)

Balance as at March 31, 2021                $         28,604,514           (1,285,168)      27,319,346



                                                    Contributed              Retained
                                                        Capital              Earnings            Total
                                 Notes                      US$                   US$             US$
                                            $
Balance as at March 31, 2019                             380,000                 (29,361)     350,639
Capital contributed                12                    279,055                       -      279,055
Total comprehensive loss for
the year                                                       -             (304,987)        (304,987)

Balance as at March 31, 2020                             659,055             (334,348)         324,707
Capital contributed                12                  9,935,209                    -        9,935,209
Total comprehensive loss for
the year                                                       -             (141,640)        (141,640)

Balance as at March 31, 2021                $         10,594,264             (475,988)      10,118,276




The notes on pages 7 to 20 are an integral part of these financial statements.
                                                      5
EASTERN CARIBBEAN PARTIAL CREDIT GUARANTEE CORPORATION

Statement of Cash Flows

Year ended March 31, 2021

(Expressed in Eastern Caribbean and United States Dollars)

                                                              2021          2021         2020       2020
                                         Notes                 EC$           US$          EC$        US$
Cash flows from operating activities
Loss for the year                                $         (382,429)    (141,640)    (823,465)   (304,987)
Items not affecting cash:
Depreciation                               8                 6,513          2,412       1,903        705
Amortisation of intangibles                9                 2,000            741       1,518        562

Cash flows before changes in
working capital                                            (373,916)    (138,487)    (820,044)   (303,720)
Change in other assets                                       (4,148)      (1,536)      (3,777)     (1,399)
Change in accounts payables and
accruals                                                     3,842          1,423     (23,150)     (8,574)
Change in deferred income                                        -              -       18,098      6,703

Net cash used in operating activities                      (374,222)    (138,600)    (828,873)   (306,990)

Cash flows from investing activities
Purchase of property and equipment         8                   -                 -    (19,691)     (7,293)
Purchase of financial assets                         (20,485,345)      (7,587,165)           -          -
Purchase of intangible assets              9             (95,040)         (35,200)     (6,000)     (2,222)

Net cash used in investing activities                (20,580,385)      (7,622,365)    (25,691)     (9,515)

Cash flows from financing activities
Capital contributions                                 26,825,065        9,935,209     753,449    279,055

Net cash from financing activities                    26,825,065        9,935,209     753,449    279,005

Increase/(decrease) in cash and cash
equivalents during the year                               5,870,458     2,174,244    (101,115)    (37,450)

Cash and cash equivalents, beginning
of year                                                    924,885        342,550    1,026,000   380,000

Cash and cash equivalents, end of
year                                       5     $        6,795,343     2,516,794     924,885    342,550




The notes on pages 7 to 20 are an integral part of these financial statements.
                                                      6
EASTERN CARIBBEAN PARTIAL CREDIT GUARANTEE CORPORATION

Notes to the Financial Statements

March 31, 2021

(Expressed in Eastern Caribbean and United States Dollars)

1.      Nature of operations:

        The principal activity of the Eastern Caribbean Partial Credit Guarantee Corporation (the
        “Corporation”) is to provide Credit Guarantees to financial institutions which provide credit to Micro
        Small and Medium Size (MSMEs) enterprises in the participating member countries.



2.      General information:

        On March 2, 2017, the Monetary Council of the Eastern Caribbean Central Bank (ECCB) approved and
        signed the Agreement for the formation of the Eastern Caribbean Partial Credit Guarantee
        Corporation (ECPCGC).

        The Governments of Antigua and Barbuda, The Commonwealth of Dominica, Grenada, St. Kitts-
        Nevis, St. Lucia and St. Vincent and the Grenadines passed in their parliaments, an Agreement titled
        the “Eastern Caribbean Partial Credit Guarantee Corporation Agreement 2017” establishing the
        Eastern Caribbean Partial Credit Guarantee Corporation.

        The registered office and principal place of business of the Corporation is located at Birdrock,
        Basseterre, St. Kitts.



3.      Basis of Preparation:

(a)     Statement of Compliance
        These financial statements have been prepared in accordance with the International Financial
        Reporting Standards for Small and Medium-sized Entities (IFRS for SMEs) adopted by the International
        Accounting Standard Board (IASB). The accounting policies adopted in the preparation of these
        financial statements have been applied consistently to all periods presented except as otherwise
        stated and are set out below.

        The preparation of financial statements in conformity with IFRS requires the use of certain critical
        accounting estimates. It also requires management to exercise its judgment in the process of
        applying the Corporation’s accounting policies. The areas involving a higher degree of judgment or
        complexity, or areas where assumptions and estimates are significant to the financial statements
        are disclosed in notes. These financial statements were approved by the Board of Directors on July
        27, 2021.

(b)     Basis of Measurement
        These financial statements have been prepared on the historical cost basis.

(c)     Functional and Presentation Currency:
        Items included in the financial statements are measured using the currency of the primary economic
        environment in which the Corporation operates (the “functional currency”). The financial
        statements are presented in Eastern Caribbean and United States dollars, which are the
        Corporation’s functional and presentation currencies.

        Transactions and Balances:
        Transactions in foreign currencies are translated into the functional currency of the Corporation at
        the spot exchange rates at the date of the transactions.

                                                      7
 EASTERN CARIBBEAN PARTIAL CREDIT GUARANTEE CORPORATION

 Notes to the Financial Statements

 March 31, 2021

 (Expressed in Eastern Caribbean and United States Dollars)

3.       Basis of Preparation: (cont’d)

 (c)     Functional and Presentation Currency: (cont’d)
         Monetary assets and liabilities denominated in foreign currencies at the reporting date are
         translated into the functional currency at the spot exchange rate at that date. The foreign currency
         gain or loss on monetary items is the difference between the amortised cost in the functional
         currency at the beginning of the year, adjusted for effective interest and payments during the year,
         and the amortised cost in the foreign currency translated at the spot exchange rate at the end of
         the year.

         Non-monetary assets and liabilities that are measured at fair value in a foreign currency are
         translated into the functional currency at the spot exchange rate at the date at which the fair value
         is determined. Non-monetary items that are measured based on the historical cost in a foreign
         currency are translated using the spot exchange rate at the date of the transaction.

         Foreign currency differences arising on translation are generally recognized in profit or loss.
         However, foreign currency differences arising from the translation of financial assets at fair value
         through other comprehensive income (OCI) are recognized in OCI.

(d)      Use of Accounting Estimates and Judgments:
         Management has made judgements and estimates in the preparation of these financial statements
         that affect the application of the accounting policies and the reported amounts of assets, liabilities,
         income, and expenses. Actual results could differ from these estimates. Estimates and the
         underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
         recognised in the period in which the estimates are revised and in any future periods affected.

(e)      Going concern:
         These financial statements have been prepared on the going concern basis, which assumes that the
         Corporation will continue in operation for the foreseeable future. They do not purport to give effect
         to adjustments, if any, that may be necessary should the Corporation be unable to realise its assets
         and discharge its liabilities in other than the ordinary course of business.



 4.      Summary of significant accounting policies:

 4.1     Overall considerations

         The significant accounting policies set out below have been applied consistently by the Corporation
         to all periods presented in these financial statements, except as otherwise stated.

 4.2     Cash and Cash Equivalents

         Cash and cash equivalents include cash on hand, cash at banks and treasury bills with an original
         maturity date of three months or less. Cash and cash equivalents are carried at amortised cost.

 4.3     Accounts Receivable

         Accounts receivable are amounts due to the corporation in the ordinary course of business. If
         collection is expected in one year or less (or in the normal operating cycle of the business if
         longer), they are classified as current assets. If not, they are presented as non-current assets.
         Accounts receivable are recognised initially at fair value and subsequently measured at amortised
         cost using the effective interest rate method, less provision for impairment.
                                                       8
EASTERN CARIBBEAN PARTIAL CREDIT GUARANTEE CORPORATION

Notes to the Financial Statements

March 31, 2021

(Expressed in Eastern Caribbean and United States Dollars)

4.      Summary of significant accounting policies: (cont’d)

4.3     Accounts Receivable (cont’d)

        A provision for impairment of accounts receivables is established if there is any objective evidence
        that amounts are not recoverable by the end of each reporting period. If so, an impairment loss
        is recognised immediately in profit or loss.

4.4     Property and Equipment

        Plant and equipment are measured at cost less accumulated depreciation and any accumulated
        impairment losses. Subsequent expenditure is capitalised only if it is probable that the future
        economic benefits associated with the expenditure will flow to the Corporation. All other
        expenditure is recognised in profit or loss.

        Any gain or loss on disposal of an item of plant and equipment is recognised in profit or loss.
        Depreciation is calculated to write off the cost of items of plant and equipment less their
        estimated residual values using the straight-line method and is generally recognised in profit or
        loss. Depreciation is provided on the straight-line basis using rates estimated to write off the
        depreciable cost of the assets over their expected useful lives as follows:

        Furniture and Fittings                   5 years
        Computer Equipment - Hardware            3 years

        Depreciation methods, useful lives and residual values are reviewed at each reporting date and
        adjusted if necessary.


4.5     Intangible Assets

        Intangible assets are identifiable non-monetary assets without physical substance. These assets
        are measured at cost less accumulated amortisation and any accumulated impairment losses.
        Acquired computer software is capitalised on the basis of the costs incurred to acquire and bring
        to use the specific software. Capitalised costs are amortised on the straight-line basis over their
        estimated useful lives. Residual values and useful lives are reviewed at each reporting date.

        The estimated useful lives of computer software range from three (3) to five (5) years.


4.6     Accounts Payable and Accruals

        Accounts payable and accruals are carried at cost, which is the fair value of the consideration to
        be paid in the future for goods and services received, whether or not billed to the Corporation.


4.7     Provisions

        Provisions are recognised when the Corporation has a present obligation (legal or constructive) as
        a result of a past event where it is probable that an outflow of resources embodying economic
        benefits will be required to settle the obligation and a reliable estimate can be made of the
        amount of the obligation.



                                                      9
EASTERN CARIBBEAN PARTIAL CREDIT GUARANTEE CORPORATION

Notes to the Financial Statements

March 31, 2021

(Expressed in Eastern Caribbean and United States Dollars)

4.8     Revenue recognition

        The Corporation principally derives its revenue from two main sources, provision of partial credit
        guarantees on financial institutions loans to MSMEs and revenue derived from investments in
        participating governments financial instruments. Revenue is recognised when the amount of
        revenue can be measured reliably, and it is probable that the economic benefits associated with
        the transaction will flow to the Corporation. It is measured at the fair value of consideration
        received or receivable excluding any discounts. The Corporation’s revenue is recognised at a point
        in time.

        Revenue is recognised on the accrual basis when the services have been provided. Interest income
        is reported on the accrual basis using the effective interest method.


4.9     Taxation

        Article 6 of the Eastern Caribbean Partial Credit Guarantee Corporation Agreement Act of 2017
        exempts the corporation from any form of taxation.

4.10    Leases

        Leases are classified as finance leases whenever the terms of the lease transfer substantially all the
        risks and rewards of ownership of the leased asset to the Corporation. All other leases are classified
        as operating leases.

        Rights to assets held under finance leases are recognised as assets of the Corporation at the fair
        value of the leased property (or, if the lower, the present value of minimum lease payments) at the
        inception of the lease. The corresponding liability to the lessor is included in the statement of
        financial position as a finance lease obligation. Lease payments are apportioned between finance
        charges and reduction of the lease obligation so as to achieve a constant rate of interest on the
        remaining balance of the liability. Finance charges are deducted in measuring profit or loss. Assets
        held under finance leases are included in property, plant and equipment, and depreciated and
        assessed for impairment losses in the same way as owned assets.

        Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the
        term of the relevant lease.


4.11    Impairment of non-financial assets

        At each reporting date, property and equipment, and intangible assets are reviewed to determine
        whether there is any indication that those assets have suffered an impairment loss. If there is an
        indication of possible impairment, the recoverable amount of any affected asset (or group of related
        assets) is estimated and compared with its carrying amount. If the estimated recoverable amount is
        lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss
        is recognised immediately in profit or loss.

        If an impairment loss for a non-financial asset other than goodwill subsequently reverses, the
        carrying amount of the asset (or group of related assets) is increased to the revised estimate of its
        recoverable amount, but not in excess of the amount that would have been determined had no
        impairment loss been recognised for the asset (or group of related assets) in prior years. A reversal
        of an impairment loss is recognised immediately in profit or loss.

                                                     10
EASTERN CARIBBEAN PARTIAL CREDIT GUARANTEE CORPORATION

Notes to the Financial Statements

March 31, 2021

(Expressed in Eastern Caribbean and United States Dollars)

4.12    Financial Instruments

4.12.1 Initial Recognition and Subsequent Measurement

        Trade and other receivables are initially recognised at the transaction price.

        Investments in debt securities are initially recognised at the transaction price and subsequently
        measured at amortised cost using the effective interest rate.

        The effective interest rate is the rate that exactly discounts estimated future cash payments or
        receipts through the expected life of the financial instrument or, when appropriate, a shorter
        period, to the carrying amount of the financial asset or financial liability. When calculating the
        effective interest rate future credit losses are excluded. Fees, transaction costs and other premiums
        or discounts are amortised over the life of the instrument (or shorter if they relate to a shorter
        period).

        Financial liabilities are initially recognised at the transaction price (including transaction costs).
        Trade payables are obligations on the basis of normal credit terms and do not bear interest. Interest
        bearing liabilities are subsequently measured at amortised cost using the effective interest method.

4.12.2 Impairment of financial instruments

        At each reporting date, an assessment is made as to whether there is objective evidence of a possible
        impairment of debt securities and trade and other receivables. The impairment loss of debt
        securities at amortised cost is the difference between carrying value and the revised cash flows
        discounted at the original effective interest rate.
        The carrying amounts of trade and other receivables are reviewed to determine whether there is
        any objective evidence that the amounts are not recoverable. If so, an impairment loss is recognised
        immediately in profit or loss.


4.12.3 Derecognition

        The Corporation derecognises a financial asset when:
        •     The contractual rights to the cash flows from the financial asset expire or are settled

        •     The Corporation transfers to another party substantially all of the risks and rewards of
              ownership of the financial asset

        •     The Corporation, despite having retained some significant risks and rewards of ownership, has
              transferred control of the asset to another party and the other party has the practical ability
              to sell the asset in its entirety to an unrelated third party.

        The Corporation derecognises a financial liability when extinguished.




                                                     11
EASTERN CARIBBEAN PARTIAL CREDIT GUARANTEE CORPORATION

Notes to the Financial Statements

March 31, 2021

(Expressed in Eastern Caribbean and United States Dollars)

5.     Cash and Cash Equivalents:

       For the purpose of the statement of cash flows, cash and cash equivalents comprise the following
       balances:
                                                2021              2021             2020             2020
                       Notes                      EC$              US$              EC$              US$

       Cash on hand
       and at banks                 $        4,290,427            1,589,047             428,881       158,845
       Treasury bills     6                  2,504,916              927,747             496,004       183,705

                                    $        6,795,343            2,516,794             924,885       342,550


6.     Investment Security:
                                                                 2021           2021          2020      2020
       Treasury Bills                Code                         EC$            US$           EC$       US$

       Government of Grenada         GOGPP161121         $ 1,000,000          370,370             -         -
       Government of Antigua and
       Barbuda                       AGB240521                490,328         181,603             -         -
       Government of Antigua and
       Barbuda                       AGB140621                983,033         364,086            -          -
       Government of Grenada         GDB250620                      -               -      496,004    183,705
       Accrued interest                                        31,555          11,688            -          -

                                                         $ 2,504,916          927,747      496,004    183,705

                                                                 2021           2021         2020       2020
       Bonds                                                      EC$            US$          EC$        US$
       Government of St. Lucia       LCG080826           $ 1,131,844       419,201                -         -
       Government of St. Lucia       LCG070327             1,091,215       404,154                -         -
       Government of St. Lucia       LCG080328             2,782,562     1,030,579                -         -
       Government of Grenada         GOGPP161125           5,005,000     1,853,704                -         -
       Government of Antigua and
       Barbuda                       AGG240228               5,000,000   1,851,852                -         -
       Government of St. Vincent
       and the Grenadines            VCB270126               3,503,500   1,297,593                -         -
       Government of St. Vincent
       and the Grenadines            VCB060724               1,751,750        648,796             -         -
       Accrued interest                                        219,474         81,286             -         -

                                                         $ 20,485,345    7,587,165                -         -

       The weighted average effective interest rate in respect of treasury bills for the year was 3.76%
       (2020 - 3.50%). The weighed average effective interest rate in respect of bonds for the year was
       6.19% (2020-0%).




                                                     12
EASTERN CARIBBEAN PARTIAL CREDIT GUARANTEE CORPORATION

Notes to the Financial Statements

March 31, 2021

(Expressed in Eastern Caribbean and United States Dollars)

6.     Investment Security: (cont’d)

       The Corporation’s investments mature as follows:

                                                                             Interest             Maturity
       Type      Description                                  Code               rate                Date
       Bond      Government of Saint Lucia 8 Year Bond        LCGO80826        6.95%        August 1, 2026
       Bond      Government of Saint Lucia 7 Year Bond        LCG070327        6.50%        March 31,2027
       Bond      Government of Saint Lucia 8 Year Bond        LCG080328        7.00%       March 11, 2028
                 Government of Grenada 5-year Treasury
       Bond      Note                                         GOGPP161125      6.00% November 16, 2025
                 Government of Antigua and Barbuda 7-year
       Bond      Treasury Bond                            AGG240228            6.75% February 24, 2028
                 Government of St. Vincent and the
       Bond      Grenadines 5-year Treasury Note              VCB270126        5.50%      January 27, 2026
                 Government of St. Vincent and the
       Bond      Grenadines 4-year Private Bond               VCB060724        4.50%          July 6, 2024
       Treasury
       Bill     Government of Grenada 5-year Treasury Bill GOGPP161121         4.00% November 16, 2021
       Treasury Government of Antigua and Barbuda 180-day
       Bill     Treasury Bill                             AGB240521            3.92%         May 24, 2021
       Treasury Government of Antigua and Barbuda 180-day
       Bill     Treasury Bill                             AGB140621            3.44%        June 14, 2021


7.     Other assets

                                                      2021           2021         2020                2020
                                                       EC$            US$          EC$                 US$

       VAT receivable                  $              2,557            947          151                  56
       Prepayments                                    3,920          1,452        3,039               1,126
       Guarantee Fees Receivable                        862            319            -                   -
       Office supplies                                  586            217          587                 217

                                       $              7,925          2,935        3,777               1,399




                                                     13
EASTERN CARIBBEAN PARTIAL CREDIT GUARANTEE CORPORATION

Notes to the Financial Statements

March 31, 2021

(Expressed in Eastern Caribbean and United States Dollars)

8.      Property and equipment:
                                                                      Furniture and
                                                     Computer                 office
                                                    Equipment            equipment      Total
                                                          EC$                   EC$      EC$
        Cost
        At March 31, 2019                                         -               -          -
        Additions                          $                 19,290             401     19,691

        At March 31, 2020                                 19,290                401     19,691

        Additions                                                -                 -         -

        At March 31, 2021                  $              19,290                401     19,691

        Depreciation:
        At December 31, 2019               $                     -                 -         -
        Charge for the period                                 1,879                24    1,903

        At March 31, 2020                  $                  1,879                24    1,903
        Charge for the period                                 6,433                80    6,513

        At March 31, 2021                  $                 8,312              104      8,416

        Carrying value
        At March 31, 2021                  $              10,978                297     11,275

        At March 31, 2020                  $              17,411                377     17,788




                                                     14
EASTERN CARIBBEAN PARTIAL CREDIT GUARANTEE CORPORATION

Notes to the Financial Statements

March 31, 2021

(Expressed in Eastern Caribbean and United States Dollars)

8.      Property and equipment: (cont’d)

                                                                       Furniture and
                                                     Computer                  office
                                                    Equipment             equipment         Total
                                                          US$                    US$         US$
        Cost
        At March 31, 2019                                        -                 -            -
        Additions                          $                 7,144               149        7,293
        Disposals                                                -                 -             -

        At March 31, 2020                  $                 7,144               149        7,293

        Additions                                                -                  -           -
        Disposals                                                -                  -           -

        At March 31, 2021                  $                 7,144               149        7,293

        Depreciation:
        At December 31, 2019               $                     -                  -           -
        Charge for the period                                   696                     9     705
        Written back on disposal                                   -                    -        -

        At March 31, 2020                  $                    696                  9         705
        Charge for the period                                 2,382                 30       2,412
        Written back on disposal                                  -                  -           -

        At March 31, 2021                  $                  3,078               39        3,117

        Carrying value
        At March 31, 2021                  $                  4,066              110        4,176

        At March 31, 2020                  $                  6,448              140        6,588




                                                     15
EASTERN CARIBBEAN PARTIAL CREDIT GUARANTEE CORPORATION

Notes to the Financial Statements

March 31, 2021

(Expressed in Eastern Caribbean and United States Dollars)

9.    Intangible Assets:

                                            Computer                    Computer
                                             Software          Total     Software     Total
                                                  EC$           EC$           US$      US$

       Cost:
       As at March 31, 2020             $        6,000         6,000       2,222      2,222
       Additions                                95,040        95,040      35,200     35,200

       As at March 31, 2021                    101,040       101,040       37,422    37,422

       Amortization
       As at March 31, 2020             $        1,518         1,518        562         562
       Charge for the period                     2,000         2,000        741        741

       As at March 31, 2021             $        3,518         3,518      1,303       1,303

       Carrying value

       As at March 31, 2021             $       97,522        97,522     36,119      36,119

       As at March 31, 2020             $        4,482         4,482      1,660       1,660




10.    Accounts Payable and accruals:

                                                2021            2021       2020      2020
                                                  EC              US         EC        US

       Guarantee fees accruals      $            829              307          -         -
       Accounts payable                       29,137           10,791     26,124     9,676
       Accruals                               30,000           11,112     30,000    11,111

                                    $         59,966           22,210     56,124    20,787




                                                       16
EASTERN CARIBBEAN PARTIAL CREDIT GUARANTEE CORPORATION

Notes to the Financial Statements

March 31, 2021

(Expressed in Eastern Caribbean and United States Dollars)

11.   Related parties’ balances and transactions:

      A related party is a person or entity that is related to the Company:

        a)    A person or a close member of that person’s family is related to the Company if that person:
              i)     has control or joint control over the Company;
              ii)    has significant influence over the Company; or
              iii)   is a member of the key management personnel of the Company, or of a parent of the
                     Company.
        b)    An entity is related to the Company if any of the following conditions applies:
              i)     The entity and the Company are members of the same group (which means that each
                     parent, subsidiary and fellow subsidiary is related to the others).
              ii)    One entity is an associate or joint venture of the other entity (or an associate or joint
                     venture of a member of a group of which the other entity is a member).
              iii)   Both entities are joint ventures of the same third party.
              iv)    One entity is a joint venture of a third entity and the other entity is an associate of the
                     third entity.
              v)     The entity is a post-employment benefit plan for the benefit of employees of either the
                     Company or an entity related to the Company.
              vi)    The entity is controlled, or jointly controlled by a person identified in (a).
              vii) A person identified in (a)(i) has significant influence over the entity or is a member of
                   the key management personnel of the entity (or of a parent of the entity).


      Related party transactions

      A related party transaction is a transfer of resources, services or obligations between related parties,
      regardless of whether a price is charged.

      Transactions have been entered into with related parties in the normal course of business. These
      transactions were conducted at market rates, on commercial terms and conditions except for certain
      loans made available to officers.

      Key Management Personnel Compensation

      Remuneration of Key Management Personnel

      The salaries, fees and benefits paid to key management personnel of the Corporation during the year
      amounted to EC$522,705/US 193,594 (2020: EC$489,044/US181,127).




                                                        17
EASTERN CARIBBEAN PARTIAL CREDIT GUARANTEE CORPORATION

Notes to the Financial Statements

March 31, 2021

(Expressed in Eastern Caribbean and United States Dollars)

12.   Contributed Capital:
                                                             2021             2021       2020      2020
                                                               EC               US         EC        US
      Government of Grenada                       $     4,870,084      1,803,735       251,359    93,096
      Government of St. Kitts and Nevis                 4,760,875      1,763,287     1,026,000   380,000
      Government of St. Lucia                           4,760,875      1,763,287             -         -
      Government of St. Vincent and the
      Grenadines                                        4,760,875      1,763,287            -          -
      Government of Antigua and Barbuda                 4,759,908      1,762,928      250,731     92,863
      Government of Dominica                            4,691,897      1,737,740      251,359     93,096

                                                  $    28,604,514     10,594,264     1,779,449   659,055



13.   Revenue:

      Revenue was derived from investments in Government securities and the issuance of guarantees to
      Participating Lenders.

                                                      2021            2021           2020          2020
                                                        EC              US             EC            US
      Interest income from short
      term investments                    $       44,257             16,392            330           122
      Interest income from long
      term investments                          475,057             175,947              -              -
      Guarantee fees                                 33                  12              -              -
                                                519,347             192,351            330           122

      A guarantee fee is billed to the Participating Lender once the loan is accepted, and a guarantee
      extended. The guarantee fee is calculated based on the actual guarantee percentage specified in the
      guarantee certificate issued multiplied by the approved rate. The income from the guarantee fee is
      recognized on an accrual basis over a period of 12 months. The guarantee fees are recognized as
      revenues in profit or loss.




                                                       18
EASTERN CARIBBEAN PARTIAL CREDIT GUARANTEE CORPORATION

Notes to the Financial Statements

March 31, 2021

(Expressed in Eastern Caribbean and United States Dollars)

14. General and administrative expenses:

                                                        2021           2021            2020          2020
                                                          EC             US              EC            US
     Consultancy/Staff fees                $        700,599         259,483          632,783       234,363
     Rent/Lease expense                              22,800           8,444           13,300         4,926
     Legal and professional expenses                 12,500           4,630                -             -
     Recruitment cost                                 9,902           3,667                -             -
     Purchase fees                                    6,915           2,561              650           241
     Licensing                                        6,538           2,421            3,450         1,278
     Website expense                                  1,246             461              317           117
     Bank charges                                     1,026             380              523           194
     Maintenance expense                              1,016             376              150            56
     Marketing expense                                  811             300              506           188
     Telephone expense                                  703             260            1,172           434
     Postage expense                                    415             154              210            78
     Meals and entertainment                             88              33            1,123           416
     Travel expenses                                      5               2           14,001         5,185
     Office expenses                                      -               -            2,547           943
     Interest charges                                     -               -              546           202
     Supplies expense                                     -                                8             3
                                           $        764,564         283,172          671,286       248,624


15. Contingent liabilities and capital commitments:

    The Corporation had one capital commitment amounting to EC$124,200 (US$46,000) as at March 31,
    2021 (2020 - EC$183,600(US$68,000). The business of the corporation is the issuance of guarantees
    on loans issued by Participating Lenders to MSMEs. The outstanding guarantees at the end of the year
    are as follows:

                                                2021                2021
      Number of Guarantees                         EC                  US
                  1                            37,500              13,889

                                                 2020                2020
      Number of Guarantees                         EC                  US
                  0                                 -                   -


    Litigations and claims:
    As at March 31, 2021, there are no litigations or claims against the Corporation (2020:nil).




                                                     19
EASTERN CARIBBEAN PARTIAL CREDIT GUARANTEE CORPORATION

Notes to the Financial Statements

March 31, 2021

(Expressed in Eastern Caribbean and United States Dollars)

16.     Deferred Income:

        The Corporation received a grant of EC$18,098 (US$6,703) from the German Savings Bank to be
        utilized in the creation of training materials to be used as part of the training being offered to
        MSMEs. As at the end of March 2021, the Corporation had not utilized any of these funds and will
        do so in the new financial year.


17.     Subsequent events:

        In April 2021, volcanic activities at the La Soufriere in St. Vincent and the Grenadines intensified,
        resulting in the eruption of the volcano and a complete stop to economic activities on island. The
        Government of St. Vincent and the Grenadines is a shareholder of the corporation contributing
        EC$4,760,875/US$1,763,287 to date as capital in the Corporation. The Corporation has long-term
        investments of EC$5,255,250/US$1,946,389 in the long-term Bonds issued by the country. There are
        currently no indications as to whether the current situation will impact the relationship with the
        Company.




                                                     20