44 HOUSING AGENCY OF JAMAICA LIMITED Notes to the Financial Statements March 31, 2016 28.
Financial risk management (continued) (d)
Market risk (continued): (ii)
Interest rate risk (continued): Average effective yields by the earlier of the contractual re-pricing and maturity dates. 2016 Immediately Within 3 to 12 Over rate sensitive 3 months months 12 months % % % % Cash and cash equivalents Loans receivable Loans payable
3.00 - 9.00
Immediately rate sensitive % Cash and cash equivalents Resale agreements Loans receivable Loans payable
3.00 - 9.00
1.00 - 3.00 3.45 - 6.80 3.00 - 9.00
3.00 - 9.00
2015 Within 3 to 12 3 months months % % 1.00 - 3.00 6.00 - 7.00 3.00 - 8.00
3.00 - 9.00
4.00 - 12.00 3.00 - 9.00
Over 12 months % 4.00 - 12.00 3.00 - 09.00
Sensitivity to interest rate movements The company materially contracts financial assets and liabilities at fixed rates for the duration of the term. It does not account for any financial assets or liabilities at fair value, except for investments, which are insignificant. Therefore, a change in interest rates at the reporting date would not affect profit or loss or the fair value of the company’s financial instruments. (iii) Equity price risk: Equity price risk arises from investment securities held by the company. The primary goal of management is to maximise investment returns. The securities are listed on the Jamaica Stock Exchange. The company’s holding of equity securities is insignificant and therefore equity price risk is negligible. There was no change during the year in the nature of the company’s exposure to market risks or the manner in which it measures and manages the risk.