CARIBBEAN DEVELOPMENT BANK ANNUAL REPORT 2017
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CARIBBEAN DEVELOPMENT BANK
ORDINARY CAPITAL RESOURCES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2017 (EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS, UNLESS OTHERWISE STATED)
NOTE 10 – LOANS OUTSTANDING ...continued Collateral ...continued loans, where applicable, also comprises that pledged against sub-loans (comprising loans on-lent by the borrower in accordance with terms of the original loan agreement) assigned to trusts that are managed by the borrower at no cost to CDB. The fair value of the security pool is the future expected cash flows of the sub-loans discounted by a current market interest rate reflective of the risk of the borrowers. Marketable assets secure direct loans to the non-sovereign, while the fair value is the observable market price of the asset. The fair value of the collateral held (off-balance sheet) for the impaired non-sovereign loans was estimated at approximately $1,000 (2016: $1,000). This is comprised of the fair value of sub-loans and the Bank’s portion of the estimated realisable value of a property.