Realized gains and losses from transactions within the private placements and bond portfolios valued at amortized cost are, unless the loss is considered a default loss, deferred and released to the income statements in annual installments over the estimated average remaining term to maturity of the investments sold.  In the United States a reduction in the carrying value is made for loans which are in default or have experienced a significant downgrade in their credit rating. Such reductions are charged against the loans default provision. In the other countries the provision is accrued until the receivable has legally ceased to exist. The carrying value and market value of private placements by contractual maturity at December 31, 2003 are as follows: As no market exists for these investments, market value is calculated based on current interest rates, term to maturity and risk assumptions. Asset-backed loan agreements are priced by outside brokers and corporate private placements are matrix priced primarily with spreads and interest rates from outside sources. In isolated instances, spreads or prices are adjusted for credit specific issues. These assets are valued similarly to a forced sale, therefore large discounts are included for liquidity premiums and the uniqueness of each deal. 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 provision for doubtful debts for not yet written-down private placements was nil (2002: EUR 32 million). This item relates to amounts that can be called up after a minimum period of one year. Market value of the deposits is equated with book value. AEGON GROUP ANNUAL REPORT 2003 91 The carrying value and market value of private placements are as follows: 2003 2002 Redemption value  21,360 22,231 Deferred purchase differences (2,650) (599) Amortization value 18,710 21,632 Carrying Unrealized Market value gains losses value Amounts at December 31, 2003 US government 0 0 0 0 Dutch government 98 9 0 107 Other government 702 36 (5) 733 Mortgage backed loan agreements 4,800 120 (175) 4,745 Corporate private placements 13,110 826 (184) 13,752 Total 18,710 991 (364) 19,337 Amounts at December 31, 2002 US government 12 1 0 13 Dutch government 1,288 83 (9) 1,362 Other government 819 22 (21) 820 Mortgage backed loan agreements 7,010 197 (343) 6,864 Corporate private placements 12,503 846 (474) 12,875 Total 21,632 1,149 (847) 21,934 Carrying Market value value Due in one year or less 1,209 1,224 Due after one year through five years 5,551 5,765 Due after five years through ten years 6,634 6,920 Due after ten years 5,316 5,428 Total 18,710 19,337 2003 2002 DEPOSITS WITH CREDIT INSTITUTIONS 1,349 1,577