##s. as the countries of the region move into the caribbean single market and economy, public understanding of the financial and economic issues which govern the arrangement will be imperative. during the year, the bank restructured its operations, in an effort to improve its effectiveness and efficiency. a significant part of the restructuring effort was the establishment of a statistics department. this signals the increased importance being placed by the bank on assisting member countries to gather relevant statistics in order to improve decision - making for economic development and improvement in the standard of living. the eccb's financial objective for 2005 / 2006 was expenditure reduction, in an attempt to keep expenditure in line with income earned on foreign reserve assets. i am pleased to say that this objective was achieved notwithstanding the unfavourable performance of the us bond market in an increasing interest rate environment, which had an adverse effect on the bank's portfolio of foreign reserves. operating income of $ 64 million exceeded the budgeted amount by more than $ 11 million. on the expenditure side, total expenditure of $ 51 million was less than budgeted by just over $ 1 million. the conservative expectation for income, coupled with strict expenditure management controls, contributed to a higher than anticipated operating profit of just under $ 13 million. at 31 march 2006, the bank's total assets stood at just over $ 1. 8 billion, a decline of 2. 3 per cent when compared to the position last year. this decline, reflected in a contraction in the foreign reserves, was due primarily to foreign payments made by the bank on behalf of member governments and commercial banks in the eccu. all in all, however, i am pleased to report that 2005 / 2006 was a successful and profitable year for the bank. the current financial year 2006 / 2007 will bring new challenges for the bank and its member countries. we must persist in our joint efforts in the years ahead as we work to strengthen our own economic union. this is necessary if the bank is to continue to fulfil its mission to maintain the stability of the ec dollar and to ensure the safety and soundness of the banking system, for the benefit of the people of the eastern caribbean currency union.

territory to oversee financial institutions not regulated under the banking act. the bank established a payment system council to research, consult, and advise on payment system policy, in an effort to make the system in the eastern caribbean currency union more effective, efficient, reliable and secure. one of the benefits from this will be that, in any of the bank's member countries, you can have ready access to your accounts through the use of debit and credit cards. there were also positive developments with respect to the bank's money and capital market development programme during the year. among these was the increase to five, in the number of governments participating in the regional government securities market, following the issue of treasury bills by the government of antigua and barbuda. these five governments have benefited from a reduction in their cost of borrowing, while the public is now able to invest in a larger pool of investment instruments. with respect to the eastern caribbean securities exchange, the listing of two prominent regional companies, grace kennedy limited of jamaica and firstcaribbean international bank limited of barbados, is evidence that the efforts of the bank to promote the eastern caribbean securities exchange as the caricom exchange, are beginning to bear fruit. as part of the effort to promote business development and to infuse an entrepreneurial spirit in the region's youth, the bank collaborated with private and public sector partners to introduce the junior achievement programme in st kitts and nevis. successful programmes are already operating in grenada and saint lucia under the auspices of other interested parties in those countries. the bank intends to work with partners in the other currency union countries where the junior achievement programme does not yet exist, to ensure that it is implemented. recognising the importance of public understanding and involvement in the economic development thrust, the bank continued to expand its public education and awareness programme throughout the year. among the initiatives targeting school children, the media and the public were : • a savings and investments course, which has now been implemented in grenada, st kitts and nevis, montserrat and anguilla ; • media round table discussions in all of the eccb member countries. • press briefings, following monetary council meetings, which have been aired on radio and television in member countries. • regional interactive discussions on the economic performance of currency union countries, and • the opening of the oecs / eccu exhibition centre with a mission to promote an understanding of the people, culture, history and economies of the oec