the Grenadines Ltd.

Notes to the Consolidated Financial Statement

For the Year Ended December 31, 2022

(in Eastern Caribbean dollars)

17.

Borrowings

The Caribbean Development Bank borrowings are secured by a Government of St. Vincent and the Grenadines guarantee.

The Group has pledged property having a carrying value of $24, 232,923 (2021: $24,562,989) as security for its borrowings from the National Insurance Services.

As at December 31, 2022, the Group had no undrawn facilities with either of the above -mentioned institutions.

18.

Share Capital

Authorised share capital – an unlimited number of shares of no-par value.

19.

Statutory Reserves

Pursuant to Section 45 (1) of the Banking Act of 2015, the Group shall, maintain a general reserve fund and shall, out of its net profits of each year transfer to that fund a sum equal to not less than twenty per cent of profits whenever the amount of the reserve fund is less than a hundred per cent of the issued share capital. The reserve is not available for distribution as dividends or any form of appropriation. 20.

A general contingency reserve totalling $5,475,297 (2021: $5,184,573) was created as a voluntary appropriation from retained earnings. This reserve will be funded on an annual basis at a rate to be decided by the Board of Directors.