NOTES TO THE CONSOLIDATED BALANCE SHEETS Amounts in EUR millions The carrying value and market value of bonds and other fixed rate securities are as follows: Carrying Unrealized Market value gains losses value Amounts at December 31, 2003 US government 2,945 38 (25) 2,958 Dutch government 898 34 (1) 931 Other government 6,730 339 (50) 7,019 Mortgage backed securities 13,592 270 (188) 13,674 Corporate bonds 47,411 2,794 (115) 50,090 Total 71,576 3,475 (379) 74,672 Amounts at December 31, 2002 US government 4,505 103 (17) 4,591 Dutch government 670 42 (1) 711 Other government 4,419 301 (15) 4,70 5 Mortgage backed securities 16,169 472 (311) 16,3 30 Corporate bonds 49,934 3,250 (961) 52,223 Total 75,697 4,168 (1,305) 78,560 Carrying Market value value Due in one year or less 4,202 4,243 Due after one year through five years 17,858 18,575 Due after five years through ten years 25,315 26,511 Due after ten years 24,201 25,343 Total 71,576 74,672 The carrying value and market value of bonds and other fixed rate securities by contractual maturity at December 31, 2003 are  as follows: For a proper understanding it should be noted that the market value is not part of the matching of these investments with the related insurance liabilities, which are not stated at market value either. The doubtful debts provision for bonds and other fixed rate securities not yet written down amounts to EUR 194 million  (2002: EUR 249 million). Bonds and other fixed rate securities lent out are included and amount to a carrying value of EUR 3,784 million  (2002: EUR 5,469 million). No bonds and other fixed rate securities were borrowed. 2003 2002 LOANS GUARANTEED BY MORTGAGES 16,748 18,568 2003 2002 OTHER LOANS 18,710 21,632 Loans guaranteed by mortgages are valued at redemption value. Discounts granted are deferred and amortized to income over the contractual period of interest fixation. Market value of the portfolio amounts to EUR 18,011 million (2002: EUR 20,039 million). As no market exists for these investments, market value is calculated based on current interest rate, maturity and risk assumptions. For a proper understanding it should be noted that this market value is not part of the matching of these investments with the related insurance liabilities, which are not stated at market value either. The provision for doubtful debts for these investments amounts to EUR 47 million (2002: EUR 38 million). Other loans represent private placements, which are shown at amortized cost less provisions for uncollectable amounts. Amortized cost represents the cash value at the balance sheet date of future interest and principal repayment components based on the effective interest rate on the date of acquisition. AEGON GROUP ANNUAL REPORT 2003 90