JPSCU AR 2018 finan web

NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31st December 2018
(Expressed in Jamaican Dollars unless otherwise indicated)
5. Liquid Assets:
2018 2017
$ $
a) Placement with Other Financial Institutions 553,442,200 781,023,112
b) Cash and Balances with JCCUL 369,425,994 76,696,512
c) JCCUL CUETS Investments 2,145,465 2,116,813
925,013,659 859,836,437
d) Foreign Currency Deposit Account 20,888,863 20,241,472
945,902,522 880,077,909
a)
b)
This represents reverse repurchase agreements collateralised by Government of Jamaica securities.
These agreements may result in credit exposure in the event that the counterparty to the transaction is
unable to fulfill its collateral obligations. At 31st December 2018, the Credit Union held securities totalling
$519,707,610 (2017: $446,248,786) representing Government of Jamaica debt securities as collateral for
reverse repurchase agreements.
Included in these investments is an amount for $2,350,707 (2017 - $2,307,665) with respect to a Care-A-
Bit Reserve Fund (Note 22d).
Cash and balances with the Jamaica Co-operative Credit Union League Limited represent (i) Cucash
Deposits of $360,580,640 (2017: $62,096,039) which are cash management call accounts. The rules of the
League stipulate that the Credit Union must invest a minimum of 2% of members' savings deposits in
Cucash deposits.
Term deposits of NIL (2017: $325,658,799) held with the League are classified as held-to-maturity.
The rules of the Jamaica Co-operative Credit Union League Limited stipulate that the Credit Union must
invest a minimum of 10% of members' savings deposits in short-term deposit instruments. A minimum of
8% is required to be invested with the League, and a maximum of 2% with any other financial institution.
Of the 8% requirement, a minimum of 4% must be held in fixed deposits and 2% in Cucash deposits.
c)
This represents an investment in the Jamaica Co-operative Credit Union League Limited
Settlement Deposit, which is used as a security deposit for ATM transactions.
CUETS
d) This represents short-term reverse repurchase agreements denominated in United States Dollar, which are
collateralised by Government of Jamaica securities.
43 Annual Report 2018