the Grenadines Ltd.

Notes to the Consolidated Financial Statement

For the Year Ended December 31, 2022

(in Eastern Caribbean dollars)

3. Financial Risk Management …..Cont’d

(f) Liquidity Risk …..Cont’d Assets held-for-managing Liquidity Risk

The Group holds a diversified portfolio of cash and investment securities to support payment obligations.

The Group’s assets held for managing liquidity risk comprise cash and balances with central banks, certificates of deposits, government bonds that are readily acceptab le in repurchase agreements, treasury and other eligible bills, loans and advances to financial institutions, loans and advances to customers and other items in the course of collection.

The Group would also be able to meet unexpected net cash outflows by selling investment securities and accessing additional funding sources.

(g) Off-Balance Sheet Items

(i) Loan Commitments

The dates of the contractual amounts of the Group’s off -balance sheet financial instruments that commit it to extend credit to customers and other facilities as disclosed in (Note 21), are summarised in the table below.

(ii) Financial Guarantees and Other Financial Facilities

Financial guarantees (Note 21) are also included below based on the earliest contractual maturity date.

(h) Fair Values of Financial Assets and Liabilities

Fair value amounts represent estimates of the consideration that would currently be agreed upon between knowledgeable willing parties who are under no compulsion to act and is best evidenced by a quoted market value, if one exists. The following methods and assumptions used to estimate the fair value of financia l instruments are described below: