Financial Statement 2001

The net operating surplus for the financial year ended December 31, 2001 was $12,712,153. Current income totalled $56.1 million and represented an increase of $5.16 million compared with the previous year. This increase is attributed to higher holdings of foreign reserves arising from Government’s foreign borrowings, and adoption of a more aggressive investment policy aimed at earning higher yields on a more diversified portfolio. The increase in income was affected by the decline in foreign interest rates, especially during the last quarter of the financial year. There was excess liquidity in the local banking system and the Bank earned only $144,000 from Treasury Bills operations. Government maintained a net credit balance for the year and no income was earned under the Ways and Means Facility. Operating expenses totalled $37.36 million and represented an increase of $0.93 million over 2000. Non-operating expenses for 2001 included contributions of $1.0 million, $3.0 million and $2.0 million to the Barbados Investment Fund, Industrial Credit Fund and Redevelopment of Church Village Site respectively.