Common use of Depreciation of Fixed Assets Clause in Contracts

Depreciation of Fixed Assets. Fixed assets are recorded at acquisition cost and are depreciated using the straight-line method at rates considered adequate to write off the cost of the assets over their estimated useful lives as follows: Furniture 5 years Office equipment 5 years Leasehold Improvements 5 years Computer Equipment 3 years Real Property 20 years 6) Foreign Currency Transactions Transactions in currencies other than the Cayman Islands dollar are converted at exchange rates ruling at the date of the transactions. Also, assets and liabilities denominated in foreign currencies are translated at the rate of exchange prevailing at the balance sheet date. Resulting gains and losses on exchange are recognized in the Statement of Income and Expenses at the end of the period. Outputs Funded by Cabinet 577,872 577,875 Operations 1 3,713,938 2,030,000 Personnel 1,033,225 915,000 Accommodation Costs 136,500 155,000 Office Expenses 93,300 60,000 Directors Fees 16,200 7,500 Computer Maintenance and Licensing Fees 25,500 42,500 Marketing, Advertising and Promotions 37,350 27,250 Depreciation and Amortization 76,680 60,000 Professional Fees/Consultancy 51,500 75,000 Provision for Loan Losses 333,673 250,000 Insurances 22,150 25,000 Other Operating Expenses 1,800 25,000 Loss on Foreign Exchange Conversion 47,185 37,500 Interest Expense 2,104,535 875,000 Total Operating Expenses 3,979,598 2,554,750 Net Income from Operations 312,212 53,125 - - Total Other Revenue - - THE CAYMAN ISLANDS DEVELOPMENT BANK STATEMENT OF CHANGES IN NET WORTH FOR THE YEAR ENDING 30 JUNE 2008 NOTE 2007/8 Budget $ 2006/7 Forecast $ Opening Balance Net Worth 7,195,991 5,753,893 Net Income for Year 312,212 53,125 Transfer to Reserve Fund - - Total Recognized Revenues and Expenses 312,212 5,807,018 Reserve for Sinking Fund 1,382,318 Reserve Fund - 6,655 Closing Balance Net Worth 7,508,203 7,195,991 Cash and Cash Equivalents 2 974,884 757,000 Deposit Accounts 3,583,647 9,793,970 Loans and Deposit Interest Receivable 1,607,364 772,842 Loans Receivable 31,798,031 26,700,000 Office Building 640,000 640,000 Fixed Assets 4 236,626 313,306 Accounts and Other Payables 74,272 175,250 Current Portion of Long -Term Debt 388,000 388,000 Loans from CDB 5 3,740,477 4,098,277 Loan from Other External Agencies 6 650,000 650,000 Note Payable - Bonds #1 9,969,600 9,969,600 Notes Payable - Bonds #2 6 16,500,000 16,500,000 Equity Capital 7 3,289,185 3,289,185 Reserve Fund 8 112,442 50,000 Reserve for Sinking Fund 1,392,318 1,382,318 Retained Earnings 2,724,258 2,474,488 THE CAYMAN ISLANDS DEVELOPMENT BANK FORECAST STATEMENT OF CASH FLOWS FOR THE YEAR ENDING 30 JUNE 2008 2007/8 Budget 2006/7 Forecast NOTE $ $ Cash Flows from Operating Activities (5,644,640) (265,578) Net Cash Flows from Investing Activities - (19,273,077) Net Cash Provided by Financing Activities (347,799) 19,957,763 Opening Balance Cash and Cash Equivalents 10,550,970 337,892 Net Change in Cash and Cash Equivalents (5,992,439) 419,108 Closing Balance Cash and Cash Equivalents 2 4,558,531 757,000 Note 1: OPERATING REVENUES 2007/8 2006/7 Budget Forecast $ $ Interest Income 3,473,938 1,905,000 Other Income 818,872 702,875 4,292,810 2,607,875 Current and Call Accounts 974,884 757,000 Short -Term Fixed Deposits within 3 months 3,583,647 9,793,970 4,558,531 10,550,970 Loans Receivable is comprised of the total unpaid principal outstanding on the borrowers' accounts less the equivalent of 2% of this amount plus a specific provision which is set aside as a Provision for Loan Losses. 2007/8Budget $ 2006/7 Forecast $ Principal Amount Owed by ▇▇▇▇▇▇▇▇▇ 33,134,704 27,703,000 Less: Provision for Loan Losses (1,336,673) (1,003,000) Opening Book Value/Cost 193,864 165,466 Additions - 72,000 Closing Book Value 141,073 193,864 Opening Book Value/Cost 76,338 43,548 Additions - 41,500 Depreciation (15,268) (8,710) Closing Book Value 61,070 76,338 Opening Book Value/Cost 43,104 38,820 Additions - 12,237 Depreciation (8,621) (7,953) Closing Book Value 34,483 43,104 Real Property ±Office Space Opening Book Value/Cost 640,000 - Additions - 640,000 Depreciation - - Closing Book Value 640,000 640,000 The CIDB acts as executing agent for two (2) lines of credit from the Caribbean Development Bank (CDB). Of these, one is currently being repaid and drawdowns are being made under the second which is specifically earmarked for mortgage financing. Repayments under the second line of credit will not commence until 2008. 2007/8 Budget $ 2006/7Forecast $ Opening Balance for Period 4,486,277 2,885,912 Drawdowns - 1,788,540 Loss on Foreign Currency Conversion 12,750 19,750 Repayments (370,550) (207,925) On June 30, 2005, the CIDB issued two (2) Variable Rate Development Bonds totaling US$12 million /CI$10 million. The offering was fully subscribed. It is intending that additional funding of CI$16.5 million will be secured in the fiscal year 2007 for on-lending. 2007/8 Budget 2006/7 Forecast US$6 Million Variable Rate Dev. Bonds at 6-month Libor + .75% Due 2010 4,984,800 4,984,800 US$6 Million Variable Rate Dev. Bonds at 6-month Libor + 1.0% Due 2015 4,984,800 4,984,800 New Credit Facility @ 6.5% per annum (20 years) 16,500,000 16,500,000 Closing Balance for Period 26,469,600 26,469,600 The authorized capital of the Cayman Islands Development Bank is CI$50 million. The paid-up capital is exclusively subscribed for by the Cayman Islands Government as follows 2007/8 2006/7 Opening Balance 3,289,185 3,289,185 Additions - - Under Section 20 of the CIDB Law, 2001, the Bank is required to maintain a Reserve Fund equivalent to 20% of its net income until the total amount standing to the credit of such reserve is equivalent to the paid-up portion of the authorized capital of the Bank. The Reserve Fund is comprised as follows: 2007/8 2006/7 Budget Forecast $ $ Balance at Beginning of Year 50,000 43,345 Transfer from Net Income for Year 62,442 6,655 Cayman Islands Monetary Authority For the year ending 30 June 2080 1. Purpose 2. Nature and Scope of Activities

Depreciation of Fixed Assets. Fixed assets are recorded at acquisition cost and are depreciated using the straight-straight- line method at rates considered adequate to write off the cost of the assets over their estimated useful lives as follows: Furniture 5 years Office equipment 5 years Leasehold Improvements 5 years Computer Equipment 3 years Real Property 20 years 6) Foreign Currency Transactions Transactions: Transactions in currencies other than the Cayman Islands dollar are converted at exchange rates ruling at the date of the transactions. Also, assets and liabilities denominated in foreign currencies are translated at the rate of exchange prevailing at the balance sheet date. Resulting gains and losses on exchange are recognized in the Statement of Income and Expenses at the end of the period. Outputs Funded by Cabinet 577,872 577,875 577,875 Operations 1 3,713,938 2,030,000 3,602,069 3,490,574 Personnel 1,033,225 915,000 974,615 1,194,692 Accommodation Costs 136,500 155,000 122,070 120,507 Office Expenses 93,300 60,000 150,765 154,931 Directors Fees 16,200 7,500 16,200 Computer Maintenance and Licensing Fees 25,500 42,500 42,171 42,171 Marketing, Advertising and Promotions 37,350 27,250 31,650 31,650 Depreciation and Amortization 125,250 76,680 60,000 Professional Fees/Consultancy 51,500 75,000 104,500 104,500 Provision for Loan Losses 333,673 250,000 Insurances 22,150 25,000 138,000 138,000 Insurance 21,150 21,150 Other Operating Expenses 1,800 25,000 17,756 16,910 Loss on Foreign Exchange Conversion 47,185 37,500 20,000 47,085 Interest Expense 2,104,535 875,000 2,065,756 2,108,159 Total Operating Expenses 3,979,598 2,554,750 3,829,883 4,072,635 Net Income from Operations 312,212 53,125 350,061 (4,186) - - Total Other Revenue - - THE CAYMAN ISLANDS DEVELOPMENT BANK STATEMENT OF CHANGES IN NET WORTH FOR THE YEAR ENDING 30 JUNE 2008 NOTE 2007/8 Budget $ 2006/7 Forecast $ Opening Balance Net Worth 7,195,991 5,753,893 Net Income for Year 312,212 53,125 350,061 (4,186) Transfer to Reserve Fund - - Total Recognized Revenues and Expenses 312,212 5,807,018 Reserve for Sinking Fund 1,382,318 - - Reserve Fund - 6,655 Closing Balance Net Worth 7,508,203 7,195,991 - Cash and Cash Equivalents 2 974,884 757,000 200,000 868,360 Deposit Accounts 3,583,647 9,793,970 800,000 8,025,528 Loans and Deposit Interest Receivable 1,607,364 772,842 862,679 712,244 Total Current Assets 1,862,679 9,606,132 Loans Receivable 31,798,031 26,700,000 3 36,649,395 28,257,566 Office Building 640,000 640,000 650,750 685,000 Fixed Assets 4 145,626 236,626 313,306 Overdraft 500,000 - Accounts and Other Payables 74,272 175,250 499,891 869,442 Current Portion of Long -Term Debt 388,000 388,000 Loans from CDB 5 3,783,093 3,740,477 4,098,277 Loan from Other External Agencies 6 650,000 650,000 - - Note Payable - Bonds #1 9,969,600 9,969,600 Notes Payable - Bonds #2 6 16,500,000 16,500,000 16,616,000 16,616,000 Equity Capital 7 3,289,185 3,289,185 Reserve Fund 8 112,442 50,000 50,000 Reserve for Sinking Fund 1,392,318 1,382,318 1,392,318 Retained Earnings 2,724,258 2,474,488 THE CAYMAN ISLANDS DEVELOPMENT BANK FORECAST STATEMENT OF CASH FLOWS FOR THE YEAR ENDING 30 JUNE 2008 2007/8 Budget 2006/7 Forecast NOTE $ $ Cash Flows from Operating Activities (5,644,640) (265,578) Net Cash Flows from Investing Activities - (19,273,077) Net Cash Provided by Financing Activities (347,799) 19,957,763 Opening Balance Cash and Cash Equivalents 10,550,970 337,892 2,820,363 2,470,302 Net Change in Cash and Cash Equivalents (5,992,439668,360) 419,108 Closing Balance Cash and Cash Equivalents 2 4,558,531 757,000 111,360 Note 1: 1 - OPERATING REVENUES 2008/9 2007/8 2006/7 Interest Income Budget $ 3,390,069 Forecast $ $ Interest Income 3,473,938 1,905,000 2,663,574 Other Income 818,872 702,875 4,292,810 2,607,875 212,000 1,136,000 3,602,069 3,799,574 Note 2 - CASH and CASH EQUIVALENTS 2008/9 2007/8 Budget $ Forecast $ Current and Call Accounts 974,884 757,000 Short -Term Fixed Deposits within 3 months 3,583,647 9,793,970 4,558,531 10,550,970 Loans Receivable is comprised of the total unpaid principal outstanding on the borrowers' accounts less the equivalent of 2% of this amount plus a specific provision which is set aside as a Provision for Loan Losses. 2007/8Budget $ 2006/7 Forecast $ 100,000 868,360 Principal Amount Owed by ▇▇▇▇▇▇▇▇▇ 33,134,704 27,703,000 Borrowers 37,950,895 29,421,066 Less: Provision for Loan Losses (1,336,6731,301,500) (1,003,0001,163,500) Opening Book Value/Cost 193,864 165,466 96,184 148,975 Additions - 72,000 - Depreciation (35,740) (52,791) Closing Book Value 141,073 193,864 60,444 96,184 Office Furniture and Equipment Opening Book Value/Cost 76,338 43,548 43,774 Additions - 41,500 45,000 Depreciation (15,26826,000) (8,71012,436) Closing Book Value 61,070 50,338 76,338 Computer Hardware and Software Opening Book Value/Cost 43,104 38,820 42,804 34,257 Additions - 12,237 - Depreciation (8,62125,000) (7,95311,453) Closing Book Value 34,483 43,104 17,804 42,804 Motor Vehicle Opening Book Value/Cost 21,300 21,300 Additions - - Depreciation (4,260) - Closing Book Value 17,040 21,300 Real Property ±Office – Office Space Opening Book Value/Cost 640,000 - Additions - 45,000 640,000 Depreciation 34,250 - - Closing Book Value 640,000 640,000 The CIDB acts as executing agent for two (2) lines of credit from the Caribbean Development Bank (CDB). Of these, one is currently being repaid and drawdowns are being made under the second which is specifically earmarked for mortgage financing. Repayments under the second line of credit will did not commence until 20082007. 2007/8 2008/9 Budget $ 2006/7Forecast 2007/8 Forecast $ Opening Balance for Period 4,486,277 2,885,912 4,128,477 2,697,737 Drawdowns - 1,788,540 Loss on Foreign Currency Conversion 12,750 19,750 Repayments 42,616 (370,550) (207,925357,800) On June 30, 2005, the CIDB issued two (2) Variable Rate Development Bonds totaling US$12 million /CI$10 million. The offering was fully subscribed. It is intending that The additional funding of CI$16.5 million will be was secured in the fiscal year 2007 for on-lending. 2008/9 Budget $ 2007/8 Budget 2006/7 Forecast $ US$6 Million Variable Rate Dev. Bonds at 6-month Libor + .75% Due 2010 4,984,800 4,984,800 US$6 Million Variable Rate Dev. Bonds at 6-month Libor + 1.0% Due 2015 4,984,800 4,984,800 New Credit Facility @ 6.56.85% per annum (20 yearsyears - fixed) 16,500,000 16,616,000 16,500,000 Closing Balance for Period 26,469,600 26,585,600 26,469,600 The authorized capital of the Cayman Islands Development Bank is CI$50 million. The paid-up capital is exclusively subscribed for by the Cayman Islands Government as follows 2007/8 2006/7 Opening Balance 2008/9 Budget $ 3,289,185 2007/8 Forecast $ 3,289,185 Additions - - Under Section 20 of the CIDB Law, 2001, the Bank is required to maintain a Reserve Fund equivalent to 20% of its net income until the total amount standing to the credit of such reserve is equivalent to the paid-up portion of the authorized capital of the Bank. The Reserve Fund is comprised as follows: 2008/9 Budget $ 2007/8 2006/7 Budget Forecast $ $ Balance at Beginning of Year 50,000 43,345 Transfer from Net Income for Year 62,442 6,655 Cayman Islands Monetary Authority For the year ending 30 June 2080 1. Purpose 2. Nature and Scope of Activities0 6,655

Depreciation of Fixed Assets. Fixed assets are recorded at acquisition cost and are depreciated using the straight-line method at rates considered adequate to write off the cost of the assets over their estimated useful lives as follows: Furniture 5 years Office equipment 5 years Leasehold Improvements Furniture/Equipment 5 years Computer Equipment 3 years Real Property Motor Vehicle 5 years Building 20 years 6) Foreign Currency Transactions Transactions: Transactions in currencies other than the Cayman Islands dollar are converted at exchange rates ruling at the date of the transactions. Also, assets and liabilities denominated in foreign currencies are translated at the rate of exchange prevailing at the balance sheet statement of financial position date. Resulting gains and losses on exchange are recognized in the Statement of Income and Expenses at the end of the periodComprehensive Income. Outputs Funded by Cabinet 577,872 577,875 Operations 1 3,713,938 2,030,000 Personnel 1,033,225 915,000 Accommodation Costs 136,500 155,000 Office Expenses 93,300 60,000 Directors Fees 16,200 7,500 Computer Maintenance and Licensing Fees 25,500 42,500 Marketing, Advertising and Promotions 37,350 27,250 Depreciation and Amortization 76,680 60,000 Professional Fees/Consultancy 51,500 75,000 Provision for Loan Losses 333,673 250,000 Insurances 22,150 25,000 Other Operating Expenses 1,800 25,000 Loss on Foreign Exchange Conversion 47,185 37,500 Interest Expense 2,104,535 875,000 Total Operating Expenses 3,979,598 2,554,750 Net Income from Operations 312,212 53,125 - - Total Other Revenue - - THE CAYMAN ISLANDS DEVELOPMENT BANK STATEMENT OF CHANGES IN NET WORTH FOR THE YEAR ENDING 30 JUNE 2008 NOTE 2007/8 Budget $ 2006/7 Forecast $ Opening Balance Net Worth 7,195,991 5,753,893 Net Income for Year 312,212 53,125 Transfer to Reserve Fund - - Total Recognized Revenues and Expenses 312,212 5,807,018 Reserve for Sinking Fund 1,382,318 Reserve Fund - 6,655 Closing Balance Net Worth 7,508,203 7,195,991 Cash and Cash Equivalents 2 974,884 757,000 Deposit Accounts 3,583,647 9,793,970 Loans and Deposit Interest Receivable 1,607,364 772,842 Loans Receivable 31,798,031 26,700,000 Office Building 640,000 640,000 Fixed Assets 4 236,626 313,306 Accounts and Other Payables 74,272 175,250 Current Portion of Long -Term Debt 388,000 388,000 Loans from CDB 5 3,740,477 4,098,277 Loan from Other External Agencies 6 650,000 650,000 Note Payable - Bonds #1 9,969,600 9,969,600 Notes Payable - Bonds #2 6 16,500,000 16,500,000 Equity Capital 7 3,289,185 3,289,185 Reserve Fund 8 112,442 50,000 Reserve for Sinking Fund 1,392,318 1,382,318 Retained Earnings 2,724,258 2,474,488 THE CAYMAN ISLANDS DEVELOPMENT BANK FORECAST STATEMENT OF CASH FLOWS COMPREHENSIVE INCOME FOR THE YEAR ENDING 30 JUNE 2008 2007/8 Budget 2006/7 2013‌ Note 2012/13 Target $ 2011/12 Forecast NOTE (Restated) $ $ Cash Flows from Operating Activities Outputs Funded by Cabinet 577,875 577,875 Operations 2,528,399 2,615,342 Personnel 1,110,712 1,134,914 Accommodation Costs 155,672 131,918 Office Expenses 35,289 48,122 Directors Fees 4,200 4,200 Computer Maintenance and Licensing Fees 58,800 63,344 Marketing, Advertising and Promotions 9,200 4,350 Depreciation 62,700 98,012 Professional Fees/Consultancy 64,200 64,256 Provision for Loan Losses 500,000 600,000 Loss on Foreign Exchange Conversion 2,000 2,000 Interest Expense 1,169,365 1,101,634 Opening Balance Retained Earnings 927,556 987,089 Net Income (5,644,640Loss) for Year (65,864) (265,57859,533) Transfer to Reserves - - Closing Balance Retained Earnings 861,692 927,556 Opening Balance Reserves 48,509 48,509 Transfer from Operations - - Closing Balance Reserves 48,509 48,509 Opening Balance Share Capital 3,289,185 3,289,185 Movement in Share Capital 1,000,000 - Closing Balance Share Capital 4,289,185 3,289,185 THE CAYMAN ISLANDS DEVELOPMENT BANK FORECAST STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2013‌‌ NOTE 2012/13 Target $ 2011/12 Forecast (Restated) Cash and Cash Equivalents 2 6,091,350 3,097,572 Deposit Accounts 170,548 170,548 Prepayments 40,000 25,000 Loans, Deposit Interest and Other Receivable 252,569 302,569 Loans Receivable 3 37,370,429 38,953,392 Fixed Assets 4 635,039 621,502 Bank Overdraft 2 750,000 - Accounts Payable and Accruals 274,590 284,588 Due to Related Parties 841,499 791,499 Interest payable – loans and bonds 278,448 269,702 Current Portion of Long -Term Debt 311,567 343,531 Post Retirement Benefit Pension Obligations 28,000 28,000 Loans from CDB 5 2,149,005 2,460,572 Note Payable - Bonds 6 34,727,440 34,727,440 Equity Capital 7 4,289,185 3,289,185 Reserve Fund 8 48,509 48,509 Retained Earnings 861,692 927,557 Net Cash Flows from Investing Activities Income (loss) for the Year (65,864) (59,533) Items not Affecting Cash: Depreciation 62,700 98,012 Loan loss expense 500,000 600,000 Transfer to reserve fund - 496,836 638,479 Decrease/(increase) in prepayments (19,273,07715,000) (3,696) Decrease/ (Increase) in Loans, Deposit Interest and Other Receivable 50,000 (97,430) Increase (Decrease) in due to related parties 50,000 50,000 (Increase) Decrease in loans receivable 1,082,963 (645,758) Increase (Decrease) in post-retirement pension obligation - - Increase (Decrease) in Accounts Payable & Accruals (10,000) 50,000 Increase (Decrease) in interest payable – loans and bonds 8,748 29,681 Net Cash Provided by (Used in) Operating Activities 1,663,547 21,276 (Increase)/decrease in Fixed deposits - - Purchase of Fixed Assets (76,237) - Net Cash Provided by (Used in) Investing Activities (76,237) - CDB Loans repaid (343,532) (501,336) Equity Investment from Cabinet 1,000,000 - Bonds repaid - - Net Cash Provided by (Used in) Financing Activities 656,468 (347,799501,335) 19,957,763 Opening Balance Cash and Cash Equivalents 10,550,970 337,892 Net Change Increase (Decrease) in Cash and Cash Equivalents 2,243,778 (5,992,439480,060) 419,108 Closing Balance Cash and Cash Equivalents 2 4,558,531 757,000 Note 1: OPERATING REVENUES 2007/8 2006/7 Budget Forecast $ $ at Beginning of the Period 3,097,572 3,577,632 THE CAYMAN ISLANDS DEVELOPMENT BANK‌ Interest Income 3,473,938 1,905,000 2,503,399 2,568,018 Other Income 818,872 702,875 4,292,810 2,607,875 602,875 625,199 3,106,274 3,193,217 Note 2 - CASH & CASH EQUIVALENTS 2012/13 Target $ 2011/12 Forecast (Restated) $ Current and Call Accounts 974,884 757,000 Short -Term Fixed Deposits within 6,091,350 3,097,572 Bank overdraft (750,000) - 5,341,350 3,097,572 Note 3 months 3,583,647 9,793,970 4,558,531 10,550,970 Loans Receivable is comprised of the total unpaid principal outstanding on the borrowers' accounts less the equivalent of 2% of this amount plus a specific provision which is set aside as a Provision for Loan Losses. 2007/8Budget - LOANS RECEIVABLE 2012/13 Target $ 2006/7 2011/12 Forecast (Restated) $ Principal Amount Owed by ▇▇▇▇▇▇▇▇▇ 33,134,704 27,703,000 40,705,944 41,788,907 Less: Provision for Loan Losses (1,336,6733,335,515) (1,003,0002,835,515) Opening Book Value/Cost 193,864 165,466 117,688 117,688 Additions 5,087 - 72,000 Closing Book Value 141,073 193,864 Depreciation (118,705) (117,688) Opening Book Value/Cost 76,338 43,548 298,254 298,254 Additions 51,150 - 41,500 Depreciation (15,268273,398) (8,710256,518) Closing Book Value 61,070 76,338 Opening Book Value/Cost 43,104 38,820 21,300 21,300 Additions 20,000 - 12,237 Depreciation (8,62125,300) (7,95321,300) Closing Book Value 34,483 43,104 Real Property ±Office Space Opening Book Value/Cost 640,000 - 816,065 816,065 Additions - 640,000 - Depreciation - - Closing Book Value 640,000 640,000 (277,102) (236,299) THE CAYMAN ISLANDS DEVELOPMENT BANK‌ The CIDB acts as executing agent for two (2) lines of credit from the Caribbean Development Bank (CDB). Of these, one is currently being repaid and drawdowns are being made under the second which is specifically earmarked for mortgage financing. Repayments under the second line of credit will not commence until 2008. 2007/8 Budget 2012/13 Target $ 2006/7Forecast 2011/12 Forecast (Restated) $ Opening Balance for Period 4,486,277 2,885,912 Drawdowns - 1,788,540 Loss on Foreign Currency Conversion 12,750 19,750 2,804,103 3,305,438 Repayments (370,550343,532) (207,925501,335) On June 30, 2005, the CIDB issued two (2) Variable Rate Development Bonds totaling US$12 million /CI$10 (CI$10 million). The offering was fully subscribed. It is intending that additional Additional funding of CI$16.5 CI$16.6 million will be was secured in the fiscal year 2007 2007/2008 for on-lending; this bond was later refinanced in April 2010 with a local financial institution. 2007/8 Budget 2006/7 One of the bonds issued in June 2005 matured in June 2010; the Management of the Bank successfully negotiated with over 95% (US$5.8 Million) of the bondholders to extend the bond for another 5 years to June 30, 2015. In July 2010 and January 2011 the Bank obtained proceeds under two US$5 Million bonds with a local financial institution. There is no planned borrowing for year ending June 30, 2013. 2012/13 Target $ 2011/12 Forecast (Restated) $ US$5 Million Variable Rate Dev. Bond U.S. 6-month Libor +2 .75% Due 2015 4,154,000 4,154,000 US$5 Million Variable Rate Dev. Bond U.S. 6-month Libor +2 .75% Due 2016 4,154,000 4,154,000 US$5.8 Million Variable Rate Dev. Bonds at U.S. 6- month Libor +2 .75% Due 2015 4,818,640 4,818,640 US$6 Million Variable Rate Dev. Bonds at 6-month Libor + .75% Due 2010 4,984,800 4,984,800 US$6 Million Variable Rate Dev. Bonds at 6-U.S. 6- month Libor + 1.0% Due 2015 4,984,800 4,984,800 New Credit Facility @ 6.5US$20 million bond at U.S. 6-Month LIBOR plus 2.35% per annum (20 years) 16,500,000 16,500,000 16,616,000 16,616,000 Closing Balance for Period 26,469,600 26,469,600 The authorized capital of the Cayman Islands Development Bank is CI$50 million. The paid-up capital is exclusively subscribed for by the Cayman Islands Government as follows 2007/8 2006/7 Opening Balance 3,289,185 3,289,185 34,727,440 34,727,440 Additions - 1,000,000 - Under Section 20 of the CIDB Law, 2001Law (2004 Revision), the Bank is required to maintain a Reserve Fund equivalent to 20% of its net income until the total amount standing to the credit of such reserve is equivalent to the paid-up portion of the authorized capital of the Bank. The Reserve Fund is comprised as follows: 2007/8 2006/7 Budget 2012/13 Target $ 2011/12 Forecast $ (Restated) $ Balance at Beginning of Year 50,000 43,345 48,509 48,509 Transfer from Net Income for Year 62,442 6,655 Cayman Islands Monetary Authority For the year ending 30 June 2080 1. Purpose 2. Nature and Scope of Activities- -