AEGON GROUP ANNUAL REPORT 2003 124 The weighted average interest rates on short-term borrowings at December 31, 2003, and 2002 were 1.72% and 1.94% respectively. 2003 2002 SHORT-TERM BORROWINGS Commercial paper 2,256 2,144 Banks 0 76 TOTAL 2,256 2,220 2003 2002 OTHER LIABILITIES Creditors 413 489 Taxes 92 (3) Other liabilities 276 386 TOTAL 781 872 2003 2002 SHAREHOLDERS’ EQUITY Capital 11 14 Reserves 673 859 TOTAL 684 873 2003 2002 RESERVES Balance at January 1 859 1,256 Net income 218 51 Capital redemptions / contributions 10 (161) Dividends paid (542) (59) Currency exchange rate differences (133) (163) Other changes 261 (65) BALANCE AT DECEMBER 31 673 859 Other changes in 2003 include the book gain from the sale of the real estate tax services and flood hazard certification businesses. In the ordinary course of business, Transamerica Finance Corporation grants various credit related commitments to meet the financing needs of its customers. Such commitments include purchase obligations and partnership investment commitments, revolving lines of credit and financial guarantees, including guarantees of letters of credit and standby letters of credit. Commitments under such arrangements totaled EUR 1,547 million at December 31, 2003. Transamerica Finance Corporation also is party to various other financial guarantees that could require payment of certain obligations in the event of demand by third parties. These guarantees amounted to EUR 20 million at December 31, 2003.  COMMITMENTS AND CONTINGENCIES  NOTES TO THE CONSOLIDATED INCOME STATEMENTS Amounts in EUR millions